16 States Where You’ll Need at Least $1 Million To Retire

Retirement may be a time to take it easy, but only if you have enough money to do so comfortably. According to a recent Charles Schwab survey, Americans think they’ll need $1.8 million in retirement savings to be able to retire comfortably.

Find Out: How Long $1 Million in Retirement Will Last in Every State

Up Next: 7 Reasons You Shouldn’t Retire Before Speaking To a Financial Advisor

If that sounds like a jaw-dropping amount of money, depending on which state you live in and the age at which you retire, that figure may not be far off.

In order to find out which states you’ll need more than $1 million to retire comfortably, GOBankingRates found the annual cost of expenditures for a retired person in each state using data from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey, the Missouri Economic Research and Information Center and the Social Security Administration’s monthly statistical snapshot.

Here’s a look at the most expensive states to retire across America.

Hands type on computer keyboard lit by monitor stock photo

Key Findings

  • The three most expensive states to retire in are California, Massachusetts and Hawaii.
  • The three most affordable states to retire in are West Virginia, Mississippi and Oklahoma.
  • Annual healthcare expenses, groceries and utilities are the most expensive in Alaska.

See More: 8 States To Move to If You Don’t Want To Pay Taxes on Social Security

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Welcome-Colorado-iStock-182432492

Colorado

  • Annual expenditures: $61,807
  • Cost of living index: 106.9
  • Minimum needed for 25 years of retirement: $1,006,017
  • Minimum needed for 30 years of retirement: $1,208,429

Learn More: What a Middle-Class Social Security Check Could Look Like in 2025

Arizona sign

Arizona

  • Annual expenditures: $63,600
  • Cost of living index: 110
  • Minimum needed for 25 years of retirement: $1,050,826
  • Minimum needed for 30 years of retirement: $1,262,253
Newark is the largest city in New Jersey.

New Jersey

  • Annual expenditures: $63,773
  • Cost of living index: 110.3
  • Minimum needed for 25 years of retirement: $1,055,162
  • Minimum needed for 30 years of retirement: $1,267,462
Kingfield is a town in Franklin County, Maine, United States.

Maine

  • Annual expenditures: $64,004
  • Cost of living index: 110.7
  • Minimum needed for 25 years of retirement: $1,060,944
  • Minimum needed for 30 years of retirement: $1,274,407
Crowds gather along Woonasquatucket river in Providence, RI in preparation for the summer series known as WaterFire, which consists of fiery wooden blocks placed along the river during the nighttime.

Rhode Island

  • Annual expenditures: $64,756
  • Cost of living index: 112
  • Minimum needed for 25 years of retirement: $1,079,735
  • Minimum needed for 30 years of retirement: $1,296,979

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Soldiers and Sailors Memorial Arch in Hartford, Connecticut, USA commemorating the Civil War.

Connecticut

  • Annual expenditures: $65,855
  • Cost of living index: 113.9
  • Minimum needed for 25 years of retirement: $1,107,199
  • Minimum needed for 30 years of retirement: $1,329,968
A view from Mt.

Oregon

  • Annual expenditures: $66,317
  • Cost of living index: 114.7
  • Minimum needed for 25 years of retirement: $1,118,762
  • Minimum needed for 30 years of retirement: $1,343,858
Cumberland, Maryland

Maryland

  • Annual expenditures: $66,375
  • Cost of living index: 114.8
  • Minimum needed for 25 years of retirement: $1,120,208
  • Minimum needed for 30 years of retirement: $1,345,595
aerial-view-of-charming-small-town-stowe-in-vermont-picture-id1281919271

Vermont

  • Annual expenditures: $66,433
  • Cost of living index: 114.9
  • Minimum needed for 25 years of retirement: $1,121,653
  • Minimum needed for 30 years of retirement: $1,347,331

Watch Out: 5 Reasons Retirees Regret Selling Their Homes in Retirement

Spring in Nashua, New Hampshire stock photo

New Hampshire

  • Annual expenditures: $66,838
  • Cost of living index: 115.6
  • Minimum needed for 25 years of retirement: $1,131,771
  • Minimum needed for 30 years of retirement: $1,359,485
The Naches River flows from the Cascade Range near Chinook Pass and enters the Yakima River in the town of Yakima, Washington State, USA.

Washington

  • Annual expenditures: $66,895
  • Cost of living index: 115.7
  • Minimum needed for 25 years of retirement: $1,133,217
  • Minimum needed for 30 years of retirement: $1,361,221
Haines Alaska from across the water with snow on the mountains.

Alaska

  • Annual expenditures: $73,082
  • Cost of living index: 126.4
  • Minimum needed for 25 years of retirement: $1,287,880
  • Minimum needed for 30 years of retirement: $1,547,003
Statue of Liberty and New York City Skyline with Manhattan Financial District, Battery Park, Water of New York Harbor, World Trade Center, Empire State Building, Governors island and Blue Sky with Puffy Clouds.

New York

  • Annual expenditures: $73,140
  • Cost of living index: 126.5
  • Minimum needed for 25 years of retirement: $1,289,325
  • Minimum needed for 30 years of retirement: $1,548,739
Golden Gate bridge with fog over San Francisco and Sutro Tower over the clouds, California.

California

  • Annual expenditures: $78,864
  • Cost of living index: 136.4
  • Minimum needed for 25 years of retirement: $1,432,425
  • Minimum needed for 30 years of retirement: $1,720,630

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Waltham is a city in Middlesex County, Massachusetts, United States.

Massachusetts

  • Annual expenditures: $85,571
  • Cost of living index: 148
  • Minimum needed for 25 years of retirement: $1,600,097
  • Minimum needed for 30 years of retirement: $1,922,038
The dormant volcano known as Diamond Head located adjacent to downtown Honlulu, Hawaii, as shot from an altitude of about 1500 feet over the Pacific Ocean.

Hawaii

  • Annual expenditures: $103,610
  • Cost of living index: 179.2
  • Minimum needed for 25 years of retirement: $2,051,077
  • Minimum needed for 30 years of retirement: $2,463,757

Methodology: In order to find out exactly how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65 year and older expenditures from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey by the cost of living index for each state from the Missouri Economic Research and Information Center’s Q3 2023 cost of living series. To find how much money a retired person would need to save, we divided each state’s annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration’s Monthly Statistical Snapshot, March 2022, by 0.0333%, 0.04% and 0.05% — assuming 20, 25 and 30 years of retirement respectively. All data was collected on and is up to date as of Jan. 8, 2024.

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This article originally appeared on GOBankingRates.com: 16 States Where You’ll Need at Least $1 Million To Retire

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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