How Much a Comfortable Retirement Will Cost You in Each State
How much do you need to retire comfortably? It’s a question in the mind of every American in every state that is saving for retirement.
Unfortunately, there’s not a one-size-fits-all answer. Several rules of thumb help you figure out how much to save to retire. But the exact dollar amount you need will depend on various factors — especially where you plan to live in retirement.
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That’s because the cost of living varies from state to state. In some places, you can get by on a small nest egg. In others, even $2 million won’t be enough. Your age at retirement also plays a factor.
To pinpoint the average retirement income you would need to live comfortably throughout the U.S., GOBankingRates looked at five factors in all 50 states and Washington, D.C.: an individual’s spending on groceries, healthcare, housing, utilities and transportation. Then, the annual retirement income needed to cover these living expenses was calculated, with an additional 20% to account for the “comfortable” aspect of retirement.
Here’s an alphabetical look at the cost to retire comfortably in every state.
Alabama
- Total expenditures: $50,995
- 20% comfort buffer: $12,749
- Cost of a comfortable retirement annually: $63,744
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Alaska
- Total expenditures: $72,446
- 20% comfort buffer: $18,111
- Cost of a comfortable retirement annually: $90,557
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Arizona
- Total expenditures: $61,923
- 20% comfort buffer: $15,481
- Cost of a comfortable retirement annually: $77,404
Arkansas
- Total expenditures: $52,094
- 20% comfort buffer: $13,024
- Cost of a comfortable retirement annually: $65,118
California
- Total expenditures: $80,772
- 20% comfort buffer: $20,193
- Cost of a comfortable retirement annually: $100,965
Colorado
- Total expenditures: $60,593
- 20% comfort buffer: $15,148
- Cost of a comfortable retirement annually: $75,742
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Connecticut
- Total expenditures: $66,144
- 20% comfort buffer: $16,536
- Cost of a comfortable retirement annually: $82,680
Delaware
- Total expenditures: $59,726
- 20% comfort buffer: $14,932
- Cost of a comfortable retirement annually: $74,657
Florida
- Total expenditures: $58,917
- 20% comfort buffer: $14,729
- Cost of a comfortable retirement annually: $73,646
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Georgia
- Total expenditures: $51,631
- 20% comfort buffer: $12,908
- Cost of a comfortable retirement annually: $64,539
Hawaii
- Total expenditures: $104,940
- 20% comfort buffer: $26,235
- Cost of a comfortable retirement annually: $131,175
Idaho
- Total expenditures: $57,355
- 20% comfort buffer: $14,339
- Cost of a comfortable retirement annually: $71,694
Illinois
- Total expenditures: $53,250
- 20% comfort buffer: $13,313
- Cost of a comfortable retirement annually: $66,563
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Indiana
- Total expenditures: $52,903
- 20% comfort buffer: $13,226
- Cost of a comfortable retirement annually: $66,129
Iowa
- Total expenditures: $51,978
- 20% comfort buffer: $12,995
- Cost of a comfortable retirement annually: $64,973
Kansas
- Total expenditures: $50,417
- 20% comfort buffer: $12,604
- Cost of a comfortable retirement annually: $63,022
Kentucky
- Total expenditures: $54,638
- 20% comfort buffer: $13,660
- Cost of a comfortable retirement annually: $68,298
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Louisiana
- Total expenditures: $53,308
- 20% comfort buffer: $13,327
- Cost of a comfortable retirement annually: $66,635
Maine
- Total expenditures: $65,045
- 20% comfort buffer: $16,261
- Cost of a comfortable retirement annually: $81,307
Maryland
- Total expenditures: $69,786
- 20% comfort buffer: $17,447
- Cost of a comfortable retirement annually: $87,233
Massachusetts
- Total expenditures: $82,738
- 20% comfort buffer: $20,684
- Cost of a comfortable retirement annually: $103,422
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Michigan
- Total expenditures: $53,250
- 20% comfort buffer: $13,313
- Cost of a comfortable retirement annually: $66,563
Minnesota
- Total expenditures: $55,274,01
- 20% comfort buffer: $13,818.50
- Cost of a comfortable retirement annually: $69,092.51
Mississippi
- Total expenditures: $49,723
- 20% comfort buffer: $12,431
- Cost of a comfortable retirement annually: $62,154
Missouri
- Total expenditures: $51,978
- 20% comfort buffer: $12,995
- Cost of a comfortable retirement annually: $64,973
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Montana
- Total expenditures: $59,553
- 20% comfort buffer: $14,888
- Cost of a comfortable retirement annually: $74,441
Nebraska
- Total expenditures: $52,788
- 20% comfort buffer: $13,197
- Cost of a comfortable retirement annually: $65,985
Nevada
- Total expenditures: $58,801
- 20% comfort buffer: $14,700
- Cost of a comfortable retirement annually: $73,501
New Hampshire
- Total expenditures: $66,259
- 20% comfort buffer: $16,565
- Cost of a comfortable retirement annually: $82,824
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New Jersey
- Total expenditures: $64,583
- 20% comfort buffer: $16,146
- Cost of a comfortable retirement annually: $80,728
New Mexico
- Total expenditures: $54,407
- 20% comfort buffer: $13,602
- Cost of a comfortable retirement annually: $68,008
New York
- Total expenditures: $73,198
- 20% comfort buffer: $18,299
- Cost of a comfortable retirement annually: $91,497
North Carolina
- Total expenditures: $55,390
- 20% comfort buffer: $13,847
- Cost of a comfortable retirement annually: $69,237
North Dakota
- Total expenditures: $55,505
- 20% comfort buffer: $13,876
- Cost of a comfortable retirement annually: $69,382
Ohio
- Total expenditures: $52,846
- 20% comfort buffer: $13,211
- Cost of a comfortable retirement annually: $66,057
Oklahoma
- Total expenditures: $50,244
- 20% comfort buffer: $12,561
- Cost of a comfortable retirement annually: $62,805
Oregon
- Total expenditures: $67,185
- 20% comfort buffer: $16,796
- Cost of a comfortable retirement annually: $83,981
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Pennsylvania
- Total expenditures: $56,083
- 20% comfort buffer: $14,021
- Cost of a comfortable retirement annually: $70,104
Rhode Island
- Total expenditures: $64,641
- 20% comfort buffer: $16,160
- Cost of a comfortable retirement annually: $80,801
South Carolina
- Total expenditures: $55,737
- 20% comfort buffer: $13,934
- Cost of a comfortable retirement annually: $69,671
South Dakota
- Total expenditures: $54,002
- 20% comfort buffer: $13,501
- Cost of a comfortable retirement annually: $67,503
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Tennessee
- Total expenditures: $52,267
- 20% comfort buffer: $13,067
- Cost of a comfortable retirement annually: $65,334
Texas
- Total expenditures: $53,713
- 20% comfort buffer: $13,428
- Cost of a comfortable retirement annually: $67,141
Utah
- Total expenditures: $59,379
- 20% comfort buffer: $14,845
- Cost of a comfortable retirement annually: $74,224
Vermont
- Total expenditures: $66,838
- 20% comfort buffer: $16,709
- Cost of a comfortable retirement annually: $83,547
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Virginia
- Total expenditures: $59,321
- 20% comfort buffer: $14,830
- Cost of a comfortable retirement annually: $74,152
Washington
- Total expenditures: $66,780
- 20% comfort buffer: $16,695
- Cost of a comfortable retirement annually: $83,475
West Virginia
- Total expenditures: $51,631
- 20% comfort buffer: $12,908
- Cost of a comfortable retirement annually: $64,539
Wisconsin
- Total expenditures: $54,985
- 20% comfort buffer: $13,746
- Cost of a comfortable retirement annually: $68,731
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Wyoming
- Total expenditures: $53,250
- 20% comfort buffer: $13,313
- Cost of a comfortable retirement annually: $66,563
Jordan Rosenfeld and John Csiszar contributed to the reporting for this article.
Methodology: GOBankingRates analyzed the following expenditures of Americans aged 65 and older, based on data sourced from the Bureau of Labor Statistics’ (BLS) most recent Consumer Expenditure Survey release for the full year of 2022: (1) annual spending on groceries, defined as “food at home;” (2) annual spending on housing, defined as “shelter;” (3) annual spending on transportation, defined as “gasoline, other fuels and motor oil” AND “other vehicle expenses;” (4) annual spending on healthcare; (5) annual spending on utilities, defined as “utilities, fuels, and public services;” and (6) overall average annual expenditures. Spending estimates were adjusted to the state level by multiplying each cost category by its corresponding cost of living index score in each state, sourced from the Missouri Economic Research and Information Center’s 2023 Q2 cost of living index data. After calculating total consumption expenditures, an additional (7) savings buffer was calculated by assuming that total expenditures consume 80% of ones budget (50% for necessities and 30% for discretionary spending), with 20% left over for savings. GOBankingRates then combined factors (6) and (7) and factored it out by 20 (assuming 20 years of retirement) to give (8) retirement savings needed to live comfortably. All data was collected on and up to date as of April 28, 2024.
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