Your daily living expenses have a big impact on how much you need in retirement.
A new state-by-state analysis by personal finance website GOBankingRates shows that the estimated total savings you need to retire at age 65 can vary by up to $1.46 million depending on where you live.
In Hawaii, a retiree needs about $2.2 million to stop working at age 65 and cover essential living expenses such as housing, groceries, transportation, utilities, and medical expenses for 25 years. This is the highest estimated minimum for any state. By comparison, Oklahoma has the lowest estimated total cost to cover the same base costs at $735,284.
The analysis is based on the average cost of living for retirees age 65 and older in each state, extracted from the latest data released by the U.S. Bureau of Labor Statistics. From there, GOBankingRates subtracted the average Social Security payment and used a 4% annual withdrawal rate to estimate the savings needed to cover the remaining expenses.
The resulting numbers represent a baseline for covering essential expenses and do not take into account discretionary expenses such as travel, dining, and entertainment. Additionally, this estimate does not take into account factors such as inflation, lifestyle changes, or unexpected expenses.
Housing is the largest factor in annual retirement benefits, which varies by about $30,000 per year between states. Utility and medical bills can amount to as much as $5,000 a year, the study found.
Let’s take a look at the minimum savings required to retire at age 65 in each state, in alphabetical order.
Alabama
Annual living expenses: $53,999 Retirement savings: $789,037
alaska
Annual living expenses: $78,449 Retirement savings: $1,400,286
arizona
Annual living expenses: $66,838 Retirement savings: $1,110,019
arkansas
Annual living expenses: $54,859 Savings required for retirement: $810,538
California
Annual living expenses: $83,978 Required savings for retirement: $1,538,508
colorado
Annual living expenses: $63,091 Savings required for retirement: $1,016,336
connecticut
Annual living expenses: $70,094 Retirement savings: $1,191,417
Delaware
Annual living expenses: $63,152 Required savings for retirement: $1,017,871
florida
Annual living expenses: $61,125 Savings required for retirement: $967,190
georgia
Annual living expenses: $56,395 Retirement savings: $848,933
Hawaii
Annual living expenses: $110,393 Retirement savings: $2,198,902
idaho
Annual living expenses: $60,818 Retirement savings: $959,511
illinois
Annual living expenses: $58,913 Retirement savings: $911,901
Indiana
Annual living expenses: $55,657 Retirement savings: $830,504
iowa
Annual living expenses: $55,473 Retirement savings: $825,896
Kansas
Annual living expenses: $54,613 Retirement savings: $804,395
kentucky
Annual living expenses: $56,456 Retirement savings: $850,469
louisiana
Annual living expenses: $56,947 Retirement savings: $862,756
maine
Annual living expenses: $70,155 Retirement savings: $1,192,953
maryland
Annual living expenses: $73,043 Retirement savings: $1,265,135
Massachusetts
Annual living expenses: $92,639 Retirement savings: $1,755,055
michigan
Annual living expenses: $58,176 Retirement savings: $893,472
minnesota
Annual living expenses: $57,869 Retirement savings: $885,793
mississippi
Annual living expenses: $52,524 Savings required for retirement: $752,178
missouri
Annual living expenses: $54,674 Savings required for retirement: $805,931
montana
Annual living expenses: $67,452 Retirement savings: $1,125,377
nebraska
Annual living expenses: $56,272 Retirement savings: $845,862
nevada
Annual living expenses: $60,572 Retirement savings: $953,368
new hampshire
Annual living expenses: $67,084 Savings required for retirement: $1,116,163
new jersey
Annual living expenses: $70,401 Retirement savings: $1,199,096
new mexico
Annual living expenses: $56,825 Retirement savings: $859,684
new york
Annual living expenses: $77,773 Retirement savings: $1,383,392
north carolina
Annual living expenses: $59,835 Retirement savings: $934,938
north dakota
Annual living expenses: $56,087 Retirement savings: $841,254
ohio
Annual living expenses: $57,009 Retirement savings: $864,291
oklahoma
Annual living expenses: $51,849 Retirement savings: $735,284
Oregon
Annual living expenses: $68,681 Savings required for retirement: $1,156,093
pennsylvania
Annual living expenses: $59,650 Retirement savings: $930,331
rhode island
Annual living expenses: $69,664 Retirement savings: $1,180,666
south carolina
Annual living expenses: $56,825 Retirement savings: $859,684
south dakota
Annual living expenses: $56,395 Retirement savings: $848,933
tennessee
Annual living expenses: $55,473 Retirement savings: $825,896
texas
Annual living expenses: $55,780 Savings required for retirement: $833,575
Utah
Annual living expenses: $60,879 Retirement savings: $961,047
vermont state
Annual living expenses: $69,848 Retirement savings: $1,185,274
virginia
Annual living expenses: $61,493 Retirement savings: $976,405
washington
Annual living expenses: $69,971 Retirement savings: $1,188,345
west virginia
Annual living expenses: $54,122 Retirement savings: $792,109
wisconsin
Annual living expenses: $60,019 Retirement savings: $939,546
wyoming
Annual living expenses: $58,545 Retirement savings: $902,686
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