Financially Prepared?
Julian
| 20-02-2025
· Art Team
Some states in the U.S. require a substantial amount of savings to cover basic retirement expenses. These states generally have high housing costs, such as New York, California, and Hawaii. Hawaii, in particular, stands out as the most expensive state to retire in.
The total cost of essentials like housing, groceries, transportation, utilities, and health care for 25 years amounts to around $2.21 million. In comparison, Massachusetts and California require retirees to have approximately $1.6 million each to sustain themselves in retirement.
Methodology and Data
The estimates are based on the latest data on average cost of living from the U.S. Bureau of Labor Statistics. After deducting the average Social Security income from annual expenditures, the remaining amount was divided by 4% to determine the necessary retirement savings.
This approach follows a common rule of thumb for safely managing retirement savings. It's important to note that these totals represent the essential minimum required for retirement and do not account for other factors like inflation, discretionary spending, or unexpected expenses.
Top 15 Most Expensive States to Retire In
1. Hawaii
Annual cost of living: $110,921
Savings needed for retirement: $2,212,084
Annual cost of living: $88,268
Savings needed for retirement: $1,645,764
3. California
Annual cost of living: $86,946
Savings needed for retirement: $1,612,716
4. Alaska
Annual cost of living: $74,147
Savings needed for retirement: $1,292,753
5. New York
Annual cost of living: $74,147
Savings needed for retirement: $1,292,753
6. New Jersey
Annual cost of living: $68,980
Savings needed for retirement: $1,163,566
7. Vermont
Annual cost of living: $68,559
Savings needed for retirement: $1,153,051
8. Washington
Annual cost of living: $68,259
Savings needed for retirement: $1,145,540
9. Maine
Annual cost of living: $68,199
Savings needed for retirement: $1,144,038
10. Arizona
Annual cost of living: $67,778
Savings needed for retirement: $1,133,522
11. Rhode Island
Annual cost of living: $67,538
Savings needed for retirement: $1,127,514
12. Connecticut
Annual cost of living: $67,117
Savings needed for retirement: $1,116,998
13. New Hampshire
Annual cost of living: $66,997
Savings needed for retirement: $1,113,994
14. Oregon
Annual cost of living: $66,096
Savings needed for retirement: $1,091,462
15. Utah
Annual cost of living: $65,795
Savings needed for retirement: $1,083,951
The 5 Most Expensive States To Retire In (And 5 Of The Least)
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