A 20-year retirement still requires substantial savings in the Midwest. According to a GOBankingRates study outlining the savings you need to retire in the 12 Midwestern states, this amount needs to be at least $585,000 for a comfortable lifestyle. And that’s the lower end of the amount needed, too. The cost of said retirement in Minnesota is $951,593, nearly $1 million in savings.
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For this piece, GOBankingRates recently conducted a study about the amount of money you need to save monthly for a comfortable retirement and included each Midwestern state. A full methodology is available at the end of this article.
Keep reading to find out how much you’ll need in savings to retire in the Midwest.
Illinois
- Annual cost of a comfortable living: $83,406
- Cost of 20 years of comfortable retirement: $767,734
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,422
- If you start at age 30: $1,828
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Indiana
- Annual cost of a comfortable living: $77,613
- Cost of 20 years of comfortable retirement: $651,857
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,207
- If you start at age 30: $1,552
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Iowa
- Annual cost of a comfortable living: $74,527
- Cost of 20 years of comfortable retirement: $590,147
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,093
- If you start at age 30: $1,405
Kansas
- Annual cost of a comfortable living: $74,293
- Cost of 20 years of comfortable retirement: $585,465
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,084
- If you start at age 30: $1,394
Michigan
- Annual cost of a comfortable living: $77,275
- Cost of 20 years of comfortable retirement: $645,105
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,195
- If you start at age 30: $1,536
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Minnesota
- Annual cost of a comfortable living: $92,599
- Cost of 20 years of comfortable retirement: $951,593
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,762
- If you start at age 30: $2,266
Missouri
- Annual cost of a comfortable living: $76,431
- Cost of 20 years of comfortable retirement: $628,219
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,163
- If you start at age 30: $1,496
Nebraska
- Annual cost of a comfortable living: $79,958
- Cost of 20 years of comfortable retirement: $698,758
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,294
- If you start at age 30: $1,664
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North Dakota
- Annual cost of a comfortable living: $80,935
- Cost of 20 years of comfortable retirement: $718,307
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,330
- If you start at age 30: $1,710
Ohio
- Annual cost of a comfortable living: $76,058
- Cost of 20 years of comfortable retirement: $620,769
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,150
- If you start at age 30: $1,478
South Dakota
- Annual cost of a comfortable living: $85,827
- Cost of 20 years of comfortable retirement: $816,151
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,511
- If you start at age 30: $1,943
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Wisconsin
- Annual cost of a comfortable living: $87,554
- Cost of 20 years of comfortable retirement: $850,695
How much you need to save monthly for 20 years of comfortable retirement (through age 85):
- If you start at age 20: $1,575
- If you start at age 30: $2,025
Methodology: GOBankingRates found information for each state including total population, population ages 65 and over, total households and household median income, all sourced from the U.S. Census American Community Survey. The cost-of-living indexes were sourced from the Missouri Economic and Research Information Center. Using the cost-of-living indexes and the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each state was calculated. Using data from Zillow Home Value Index and the Federal Reserve, the average mortgage was calculated. Expenditures and mortgage were combined to find total cost of living. Using the 50/30/20 rule that states needs should not exceed 50% of household income, the total cost of living was doubled in order to find the amount needed to live comfortably. The average Social Security benefits were sourced from the Social Security Administration for each state. Using the average Social Security benefits as well as the total cost of living comfortably, the amount needed to live comfortably after Social Security benefits was calculated. The amount needed to retire was calculated for each age of starting savings and each age of life expectancy. All data was collected on and is up to date as of Nov. 15, 2024.
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This article originally appeared on GOBankingRates.com: The Money You Need To Save Monthly To Retire Comfortably in the Midwest
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