How Much Money Do You Need to Retire Comfortably in Each State?
Retirement planning is one of the most important financial decisions you will ever make, yet many people underestimate how much geography influences retirement costs. The amount of money needed to retire comfortably can vary dramatically depending on which state you choose to live in. Housing prices, healthcare expenses, taxes, and overall cost of living all play a major role in determining how far your retirement savings will stretch.
A retiree living in a high cost coastal state may need hundreds of thousands of dollars more than someone retiring in a more affordable part of the country. Healthcare access and pricing vary by state, as do property taxes, sales taxes, and whether retirement income is taxed. Housing costs alone often create the largest gap between states.
Understanding state specific retirement costs before you retire allows you to plan more accurately, avoid unpleasant surprises, and make informed decisions about where to live. State by state retirement estimates provide a realistic framework for setting savings goals and aligning your financial plan with the lifestyle you want in retirement.
What Determines the Cost of a Comfortable Retirement?
Several key factors combine to shape retirement costs, and each one can vary significantly by state.
| Cost Factor | Why It Matters |
|---|---|
| Housing costs | Includes rent or mortgage, property taxes, insurance, and maintenance |
| Healthcare expenses | Medicare premiums, supplemental insurance, out of pocket care, and long term care |
| State and local taxes | Treatment of Social Security, pensions, IRA and 401(k) withdrawals |
| General cost of living | Food, utilities, transportation, and everyday services |
| Lifestyle choices | Urban versus rural living, travel, hobbies, and entertainment |
| Life expectancy | Determines how many years retirement savings must last |
Each of these variables affects how much income you need and how large your retirement nest egg must be.
What Is Considered a Comfortable Retirement?
A comfortable retirement is often defined as having enough income to replace about 70 to 80 percent of your pre retirement income. This range typically allows retirees to maintain their standard of living while accounting for reduced work related expenses.
On a national level, many financial planners estimate that retirees should aim for roughly $900,000 to $1,000,000 in total retirement savings. However, this national average can be misleading. State specific data shows that the true number may be far higher or lower depending on where you live, your health, and your lifestyle expectations.
State by State Retirement Cost Estimates
The table below shows estimated annual costs for a comfortable retirement and the approximate retirement savings needed to fund 20 years of retirement in each state. These figures assume consistent spending and do not include investment growth or inflation adjustments, making them a conservative planning baseline.
| State | Annual Retirement Cost | Approximate Nest Egg for 20 Years |
|---|---|---|
| Alabama | $61,176 | $1,223,520 |
| Alaska | $86,868 | $1,737,360 |
| Arizona | $76,730 | $1,534,600 |
| Arkansas | $61,454 | $1,229,080 |
| California | $100,687 | $2,013,740 |
| Colorado | $70,689 | $1,413,780 |
| Connecticut | $78,605 | $1,572,100 |
| Delaware | $70,064 | $1,401,280 |
| Florida | $71,592 | $1,431,840 |
| Georgia | $63,398 | $1,267,960 |
| Hawaii | $129,296 | $2,585,920 |
| Idaho | $70,203 | $1,404,060 |
| Illinois | $64,787 | $1,295,740 |
| Indiana | $62,704 | $1,254,080 |
| Iowa | $62,565 | $1,251,300 |
| Kansas | $60,620 | $1,212,400 |
| Kentucky | $64,301 | $1,286,020 |
| Louisiana | $63,954 | $1,279,080 |
| Maine | $77,286 | $1,545,720 |
| Maryland | $80,688 | $1,613,760 |
| Massachusetts | $100,201 | $2,004,020 |
| Michigan | $63,745 | $1,274,900 |
| Minnesota | $65,828 | $1,316,560 |
| Mississippi | $61,315 | $1,226,300 |
| Missouri | $61,454 | $1,229,080 |
| Montana | $65,689 | $1,313,780 |
| Nebraska | $64,856 | $1,297,120 |
| Nevada | $71,314 | $1,426,280 |
| New Hampshire | $78,883 | $1,577,660 |
| New Jersey | $78,952 | $1,579,040 |
| New Mexico | $64,995 | $1,299,900 |
| New York | $85,480 | $1,709,600 |
| North Carolina | $68,398 | $1,367,960 |
| North Dakota | $64,440 | $1,288,800 |
| Ohio | $65,273 | $1,305,460 |
| Oklahoma | $59,995 | $1,199,900 |
| Oregon | $79,230 | $1,584,600 |
| Pennsylvania | $66,384 | $1,327,680 |
| Rhode Island | $78,744 | $1,574,880 |
| South Carolina | $67,773 | $1,355,460 |
| South Dakota | $64,856 | $1,297,120 |
| Tennessee | $62,704 | $1,254,080 |
| Texas | $64,162 | $1,283,240 |
| Utah | $71,453 | $1,429,060 |
| Vermont | $79,647 | $1,592,940 |
| Virginia | $70,342 | $1,406,840 |
| Washington | $79,925 | $1,598,500 |
| West Virginia | $58,190 | $1,163,800 |
| Wisconsin | $67,356 | $1,347,120 |
| Wyoming | $66,037 | $1,320,740 |
Retirement Cost Highlights by State
Certain states stand out due to their tax policies, housing markets, or retiree friendliness.
| State | Key Retirement Consideration |
|---|---|
| Florida | No state income tax and large retiree population, but housing costs vary widely |
| California | Extremely high housing and healthcare costs |
| Arizona | Historically affordable, though housing prices have risen |
| Texas | No state income tax, but higher property taxes |
| Hawaii | Highest overall retirement costs due to housing, utilities, and healthcare |
Most and Least Expensive States to Retire
Most Expensive States
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Hawaii, driven by extreme housing and living costs
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California, largely due to real estate and healthcare expenses
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Massachusetts, with a high overall cost of living
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New York, impacted by taxes and housing prices
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Alaska, where geographic challenges increase everyday costs
Most Affordable States
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West Virginia, with the lowest estimated annual retirement costs
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Oklahoma, benefiting from low housing and living expenses
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Kansas, offering affordable housing and moderate taxes
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Alabama, with a low overall cost of living
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Mississippi, known for affordability across most expense categories
How Taxes Affect Retirement Savings
Taxes play a major role in how long retirement savings last. States with no income tax, such as Florida, Texas, Nevada, and Tennessee, often allow retirees to keep more of their income. Some states fully exempt Social Security benefits, while others tax a portion or all of them.
Pension income and withdrawals from IRAs and 401(k) accounts are also treated differently by state. Even in states with no income tax, high property taxes or sales taxes can quietly erode retirement income. Factoring in state specific tax rules is essential when estimating how much you truly need to save.
How to Calculate Your Personal Retirement Number
A practical approach to determining your own retirement target includes these steps:
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Estimate annual living expenses based on your desired lifestyle and location
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Plan for longevity by assuming a retirement lasting 20 to 30 years
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Account for healthcare costs and potential long term care needs
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Factor in state and local taxes
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Subtract expected income sources such as Social Security, pensions, and annuities
The result is a personalized retirement number that reflects both your financial goals and the state where you plan to retire.
Retirement Planning Guidance You Can Trust
Retirement costs are not uniform across the country. Each state presents a unique mix of expenses, tax policies, and lifestyle considerations that directly affect how much money you need to retire comfortably. Reviewing state by state data allows you to plan with clarity and confidence, whether you intend to stay where you are or relocate in retirement.
At Protect & Preserve Inc., we go beyond investments. We help connect every part of your financial life, including retirement planning, tax strategies, risk management, legal coordination, and business guidance, into a clear and proactive roadmap. With a focus on retirement security, legacy protection, and long term peace of mind, we proudly serve clients both in person and virtually.
If you are ready to remove the uncertainty from your financial future, contact us today to schedule your complimentary consultation and take the next step toward protecting what you have built and preserving what matters most.