For many Americans, $1 million is considered the benchmark for retirement savings. However, in 32 U.S. states, the estimated minimum age required to retire at age 65 is lower than this.
That’s according to a state-by-state analysis by personal finance website GOBankingRates, which estimates the minimum amount of savings a household needs to retire at age 65 and cover 25 years of essential living expenses such as housing, groceries, transportation, utilities and medical expenses.
To determine each state’s minimum savings amount, GOBankingRates looked at cost of living data for retirees age 65 and older minus average Social Security income from the U.S. Bureau of Labor Statistics. We then used a 4% annual withdrawal rate to estimate the total savings needed to cover the remaining expenses.
These estimates focus on the minimum amount needed to cover day-to-day living expenses, not a comfortable retirement. Discretionary spending is excluded, and factors such as inheritances and paid-off mortgages are not taken into account.
This analysis is also based on household spending, meaning that retirement costs can be supported by multiple people’s savings and income on a particular home.
Still, basic living expenses in retirement can exceed what many people expect. According to a 2025 Bankrate survey, nearly half of U.S. workers say they need at least $500,000 to cover basic necessities and retire comfortably.
Here’s a look at U.S. states where the estimated minimum savings needed to retire at age 65 is less than $1 million.
Alabama
Annual living expenses: $53,999 Required savings for retirement: $789,037
arkansas
Annual living expenses: $54,859 Savings required for retirement: $810,538
florida
Annual living expenses: $61,125 Savings required for retirement: $967,190
georgia
Annual living expenses: $56,395 Retirement savings: $848,933
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
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
nebraska
Annual living expenses: $56,272 Retirement savings: $845,862
nevada
Annual living expenses: $60,572 Retirement savings: $953,368
new mexico
Annual living expenses: $56,825 Retirement savings: $859,684
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
pennsylvania
Annual living expenses: $59,650 Retirement savings: $930,331
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
virginia
Annual living expenses: $61,493 Retirement savings: $976,405
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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