How Much You Need to Save for a Decent Retirement in Each State
A good retirement means different things to different people — some want to be close to their family, some don’t want to spend their winters hip-deep in snow. Retirees who travel frequently want to be near a good airport, some want to be close to a good hospital, others might want to live in a walkable town.
But the bottom line is, of course, the bottom line: you can compromise on those things, but it’s harder to make concessions with necessary expenses —the cost of living in the state where you retire is going to have a big impact on how much discretionary income you’ll have to enjoy yourself and be comfortable.
The average yearly expenses for someone over the age of 65 in the U.S. is $51,624, according to How Much, a cost information website, which looked at the average annual expenses in each state plus life expectancy and average retirement age to determine how much you need to retire comfortably in every state.
Taking into account life expectancy as well as yearly expenses, the average savings required for retirement in the U.S. is $904,452. States in the Northeast and the West require the highest savings for retirement, at over $1 million, while states in the South and the Midwest require the lowest savings.
To find out the yearly figure needed for retirement in each state, How Much used the Bureau of Labor Statistics’ 2018 Consumer Expenditure Survey’s annual expenses for the age group over 65, and added 20% to allow for a comfortable retirement.
These calculations do not include Social Security benefits. The maximum monthly Social Security benefit that an individual can receive per month in 2020 is $3,790 for someone who files at age 70. For someone at full retirement age the maximum amount is $3,011, and for someone age 62 the maximum amount is $2,265. A person filing for Social Security at full retirement age could receive as much as $36,132 a year.
For all 50 states and D.C., here’s how much you need for a decent retirement, from cheapest to most expensive:
1. Mississippi
Amount needed to retire comfortably: $618,000
Average retirement age: 63
2. Tennessee
Amount needed to retire comfortably: $661,000
Average retirement age: 64
3. Alabama
Amount needed to retire comfortably: $713,000
Average retirement age: 62
4. Oklahoma
Amount needed to retire comfortably: $724,000
Average retirement age: 62
5. Arkansas
Amount needed to retire comfortably: $728,000
Average retirement age: 62
6. Kentucky
Amount needed to retire comfortably: $738,000
Average retirement age: 62
7. Kansas
Amount needed to retire comfortably: $733,000
Average retirement age: 65
8. South Dakota
Amount needed to retire comfortably: $738,000
Average retirement age: 66
9. Texas
Amount needed to retire comfortably: $765,000
Average retirement age: 65
10. Missouri
Amount needed to retire comfortably: $771,000
Average retirement age: 63
11. Louisiana
Amount needed to retire comfortably: $777,000
Average retirement age: 62
12. Ohio
Amount needed to retire comfortably: $777,000
Average retirement age: 63
13. South Carolina
Amount needed to retire comfortably: $784,000
Average retirement age: 63
14. Indiana
Amount needed to retire comfortably: $785,000
Average retirement age: 63
15. West Virginia
Amount needed to retire comfortably: $787,000
Average retirement age: 61
16. Georgia
Amount needed to retire comfortably: $797,000
Average retirement age: 63
17. Nebraska
Amount needed to retire comfortably: $806,000
Average retirement age: 65
18. Iowa
Amount needed to retire comfortably: $821,000
Average retirement age: 65
19. Wyoming
Amount needed to retire comfortably: $824,000
Average retirement age: 64
20. North Dakota
Amount needed to retire comfortably: $824,000
Average retirement age: 65
21. Montana
Amount needed to retire comfortably: $839,000
Average retirement age: 64
22. Pennsylvania
Amount needed to retire comfortably: $857,000
Average retirement age: 64
23. Michigan
Amount needed to retire comfortably: $865,000
Average retirement age: 62
24. North Carolina
Amount needed to retire comfortably: $865,000
Average retirement age: 63
25. Idaho
Amount needed to retire comfortably: $872,000
Average retirement age: 64
26. Utah
Amount needed to retire comfortably: $873,000
Average retirement age: 65
27. New Mexico
Amount needed to retire comfortably: $883,000
Average retirement age: 62
28. Illinois
Amount needed to retire comfortably: $883,000
Average retirement age: 64
29. Virginia
Amount needed to retire comfortably: $885,000
Average retirement age: 65
30. Wisconsin
Amount needed to retire comfortably: $925,000
Average retirement age: 64
31. Florida
Amount needed to retire comfortably: $927,000
Average retirement age: 64
32. New Hampshire
Amount needed to retire comfortably: $947,000
Average retirement age: 65
33. Minnesota
Amount needed to retire comfortably: $991,000
Average retirement age: 65
34. Colorado
Amount needed to retire comfortably: $977,000
Average retirement age: 65
35. Nevada- 36. Arizona- 37. Delaware (tie)
Amount needed to retire comfortably: $1 million
Average retirement age: 63
38. Rhode Island
Amount needed to retire comfortably: $1 million
Average retirement age: 65
39. District of Columbia
Amount needed to retire comfortably: $1 million
Average retirement age: 67
40. Maine
Amount needed to retire comfortably: $1.1 million
Average retirement age: 63
41. Washington
Amount needed to retire comfortably: $1.1 million
Average retirement age: 64
42. Maryland – 43. Vermont (tie)
Amount needed to retire comfortably: $1.1 million
Average retirement age: 65
44. Connecticut
Amount needed to retire comfortably: $1.2 million
Average retirement age: 65
45. New Jersey
Amount needed to retire comfortably: $1.2 million
Average retirement age: 65
46. Massachusetts
Amount needed to retire comfortably: $1.2 million
Average retirement age: 66
47. Oregon
Amount needed to retire comfortably: $1.33 million
Average retirement age: 63
48. Alaska
Amount needed to retire comfortably: $1.34 million
Average retirement age: 61
49. New York
Amount needed to retire comfortably: $1.4 million
Average retirement age: 64
50. California
Amount needed to retire comfortably: $1.5 million
Average retirement age: 64
51. Hawaii
Amount needed to retire comfortably: $1.85 million
Average retirement age: 66
Article by Samanda Dorger on msn.com
