How Much Money You Need To Retire In Every State In America

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how-much-money-you-need-to-retire-by-state

Retirement can be stressful to think about. But understanding the amount of money needed to retire is half the battle. And while everyone has a different idea of what their retirement will look like (and a different freedom number), there is a bare minimum amount of money needed to retire in every state in America.

The data below, which was pulled together by GoBankingRates, might come as a bit of a shock to some people. The shock might come from both high earners and those earning a lower income.

The good news is, for those who aren’t high income earners or planning to have several million in net worth by retirement, the vast majority of states require less than $1 million in savings to retire. Shocking, right?

As mentioned earlier, this list should be looked at as the bare minimum that is needed to retire by state. This won’t guarantee a stress free retirement with a boat and a golf membership and very few financial worries. In fact, given how low some of these numbers are, finding side hustles or new passive income streams in retirement could be a necessity.

How Much Savings You Need To Retire In Every State In America

Alabama

  • Minimum annual income to be in the top 5%: $189,695
  • Median household income: $51,734
  • Amount of money needed to retire in Alabama:  $723,989

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Alaska

  • Minimum annual income to be in the top 5%: $242,208
  • Median household income: $75,463
  • Amount of money needed to retire in Alaska: $1,238,947

Arizona

  • Minimum annual income to be in the top 5%: $220,936
  • Median household income: $62,055
  • Amount of money needed to retire in Arizona: $862,583

Arkansas

  • Minimum annual income to be in the top 5%: $176,997
  • Median household income: $48,952
  • Amount of money needed to retire in Arkansas: $697,288

income-to-be-considered-rich

California

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $80,440
  • Amount needed to retire in California: $1,369,911

Colorado

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $77,127
  • Amount needed to retire in Colorado: $908,357

Connecticut

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $78,833
  • Amount needed to retire in Connecticut: $1,184,272

Delaware

  • Minimum annual income to be in the top 5%: $235,059
  • Median household income: $70,176
  • Amount needed to retire in Delaware: $960,488

Florida

  • Minimum annual income to be in the top 5%: $226,319
  • Median household income: $59,227
  • Amount needed to retire in Florida: $843,510

Georgia

  • Minimum annual income to be in the top 5%:$233,979
  • Median household income: $61,980
  • Amount needed to retire in Georgia: $737,976

Hawaii

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $83,102
  • Amount needed to retire in Hawaii: $2,151,884

Hawaii wins the award for the most expensive state to retire in America.  A true honor, no doubt!

Idaho

  • Minimum annual income to be in the top 5%: $199,218
  • Median household income: $60,999
  • Amount needed to retire Idaho: $797,736

Illinois

  • Minimum annual income to be in the top 5%: $199,218
  • Median household income: $69,187
  • Amount needed to retire in Illinois: $804,094

Indiana

  • Minimum annual income to be in the top 5%:$194,407
  • Median household income: $57,603
  • Amount needed to retire in Indiana: $745,605

Iowa

  • Minimum annual income to be in the top 5%: $199,328
  • Median household income: $61,691
  • Amount needed to retire in Iowa: $767,220

Kansas

  • Minimum annual income to be in the top 5%: $211,256
  • Median household income: $62,087 
  • Amount needed to retire in Kansas: $703,645

Kentucky

  • Minimum annual income to be in the top 5%: $185,241
  • Median household income: $52,295
  • Amount needed to retire in Kentucky: $774,849

Louisiana

  • Minimum annual income to be in the top 5%: $199,417
  • Median household income: $51,073
  • Amount needed to retire in Louisiana: $773,578

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Maine

  • Minimum annual income to be in the top 5%: $202,639
  • Median household income: $58,924
  • Amount needed to retire in Maine: $1,083,824

Maryland

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $86,738
  • Amount needed to retire Maryland: $1,238,947

Massachusetts

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $85,843
  • Amount needed to retire Massachusetts: $1,249,119

Michigan

  • Minimum annual income to be in the top 5%: $209,099
  • Median household income: $59,580
  • Amount needed to retire in Michigan: $732,890

Minnesota

  • Minimum annual income to be in the top 5%:  $244,552
  • Median household income: $74,593
  • Amount needed to retire in Minnesota: $871,483

Mississippi

  • Minimum annual income to be in the top 5%: $172,337
  • Median household income: $45,792
  • Amount needed to retire in Mississippi: $666,772

Missouri

  • Minimum annual income to be in the top 5%: $201,541
  • Median household income: $57,409
  • Amount needed to retire in Missouri: $725,261

Montana

  • Minimum annual income to be in the top 5%: $187,867
  • Median household income: $57,153
  • Amount needed to retire in Montana: $963,031

income of top 1 percent

Nebraska

  • Minimum annual income to be in the top 5%: $203,793
  • Median household income: $63,229
  • Amount needed to retire in Nebraska: $758,320

Nevada

  • Minimum annual income to be in the top 5%: $221,626
  • Median household income: $63,276
  • Amount needed to retire in Nevada: $899,456

New Hampshire

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $77,933
  • Amount needed to retire in New Hampshire: $956,674

New Jersey

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $85,751
  • Amount needed to retire in New Jersey: $1,174,100

New Mexico

  • Minimum annual income to be in the top 5%: $192,480
  • Median household income: $51,945
  • Amount needed to retire in New Mexico: $720,175

New York

  • Minimum annual income to be in the top 5%: $250,000+ 
  • Median household income: $72,108 
  • Amount needed to retire in New York: $1,308,879

North Carolina

  • Minimum annual income to be in the top 5%: $213,009
  • Median household income: $57,341
  • Amount needed to retire in North Carolina: $797,736

income of top 1 percent

North Dakota

  • Minimum annual income to be in the top 5%: $220,611
  • Median household income: $64,577
  • Amount needed to retire in North Dakota: $820,623

Ohio

  • Minimum annual income to be in the top 5%: $204,940
  • Median household income: $58,642
  • Amount needed to retire in Ohio: $772,306

Oklahoma

  • Minimum annual income to be in the top 5%:  $194,523
  • Median household income: $54,449
  • Amount needed to retire in Oklahoma: $687,116

Oregon

  • Minimum annual income to be in the top 5%: $229,747
  • Median household income: $67,058
  • Amount needed to retire in Oregon: $1,334,309

Pennsylvania

  • Minimum annual income to be in the top 5%: $233,467
  • Median household income: $63,463
  • Amount needed to retire in Pennsylvania: $874,026

Rhode Island

  • Minimum annual income to be in the top 5%: $235,524
  • Median household income: $71,169
  • Amount needed to retire in Rhode Island: $1,099,082

South Carolina

  • Minimum annual income to be in the top 5%: $204,826
  • Median household income: $56,227
  • Amount needed to retire in South Carolina: $801,551

South Dakota

  • Minimum annual income to be in the top 5%: $190,156
  • Median household income: $59,533
  • Amount needed to retire in South Dakota: $819,352

Tennessee

  • Minimum annual income to be in the top 5%: $205,063
  • Median household income: $56,071
  • Amount needed to retire in Tennessee: $707,460

income of top 1 percent

Texas

  • Minimum annual income to be in the top 5%: $241,212
  • Median household income: $64,034
  • Amount needed to retire in Texas: $762,134

Utah

  • Minimum annual income to be in the top 5%: $235,835
  • Median household income: $75,780
  • Amount needed to retire in Utah: $815,537

Vermont

  • Minimum annual income to be in the top 5%: $212,823
  • Median household income: $63,001
  • Amount needed to retire in Vermont: $1,060,937

Virginia

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $76,456
  • Amount needed to retire in Virginia: $885,470

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Washington

  • Minimum annual income to be in the top 5%: $250,000+
  • Median household income: $78,687
  • Amount needed to retire in Washington: $1,003,719

West Virginia

  • Minimum annual income to be in the top 5%: $171,816
  • Median household income: $48,850
  • Amount needed to retire in West Virginia: $754,505

Wisconsin

  • Minimum annual income to be in the top 5%: $202,582
  • Median household income: $64,168
  • Amount needed to retire in Wisconsin: $811,723

Wyoming

  • Minimum annual income to be in the top 5%: $199,944
  • Median household income: $65,003
  • Amount needed to retire in Wyoming: $889,284
Author
C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.