Yahoo Finance 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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District of Columbia
Total expenditures: $86,554
20% comfort buffer: $21,638
Cost of a comfortable retirement annually: $108,192
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
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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 22, 2024.
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This article originally appeared on GOBankingRates.com: How Much a Comfortable Retirement Will Cost You in Each State
