How Much it Really Costs to Retire in Every State
Location, location, location
Where you live in retirement can have a big impact on your annual expenses. While the average annual cost of living in the U.S. is $51,624, that figure can fluctuate significantly — from nearly double that amount in the most expensive state to just under 90 percent in the least expensive. Consider the average retirement age in each state and your life expectancy, and you’re looking at a sizable amount of money needed to cover your retirement years.
Of course, Social Security can help cover those expenses, but knowing when you’re eligible to take those benefits and how to maximize them when you do can help to ensure your financial comfort. Likewise, knowing how states tax Social Security benefits can help you decide which states are the most financially attractive. As you think about moving or potentially downsizing in retirement, you need to weight how much it costs to retire by location.
Methodology
To put this list together, we looked at data compiled by HowMuch.net, based on figures from the Bureau of Labor Statistics along with cost of living and life expectancy data.
The yearly figure needed for retirement comes from the BLS’ 2018 Consumer Expenditure Survey. The expenditures HowMuch considered were those of the age group “65 years or more.”
To obtain the total amount required for a comfortable retirement, HowMuch used IHME-based life expectancy figures published by National Geographic. They then subtracted the average retirement year published on MoneyTalks to the previous figure and multiplied it by the state-adjusted yearly expenditures, to obtain the total amount required to retire.
Breaking down the data
According to the data, the average American retirement age is 64 and the average life expectancy is 78.6 years, meaning retirees need an average of $904,000 to cover their living expenses in retirement.
Here’s a look at the data in every state, including the average retirement age, cost of living, annual expenses, life expectancy and total amount needed to cover retirement costs. We've ranked it from least to most expensive.
51. Mississippi
Average retirement age: 63
Cost of living index: 0.86
Average annual expenses: $44,758
Life expectancy: 74.5
Retirement funds needed: $617,661
50. Tennessee
Average retirement age: 64
Cost of living index: 0.89
Average annual expenses: $45,894
Life expectancy: 76
Retirement funds needed: $660,870
49. Alabama
Average retirement age: 62
Cost of living index: 0.89
Average annual expenses: $46,049
Life expectancy: 75
Retirement funds needed: $712,832
48. Oklahoma
Average retirement age: 62
Cost of living index: 0.87
Average annual expenses: $45,016
Life expectancy: 75.4
Retirement funds needed: $723,859
47. Arkansas
Average retirement age: 62
Cost of living index: 0.88
Average annual expenses: $45,274
Life expectancy: 75.4
Retirement funds needed: $728,010
46. Kansas
Average retirement age: 65
Cost of living index: 0.90
Average annual expenses: $46,255
Life expectancy: 78.2
Retirement funds needed: $732,681
45. South Dakota
Average retirement age: 66
Cost of living index: 0.98
Average annual expenses: 78.1
Life expectancy: 78.1
Retirement funds needed: $738,337
44. Kentucky
Average retirement age: 62
Cost of living index: 0.92
Average annual expenses: $47,339
Life expectancy: 75
Retirement funds needed: $738,492
43. Texas
Average retirement age: 65
Cost of living index: 0.91
Average annual expenses: $47,236
Life expectancy: 78.5
Retirement funds needed: $765,223
42. Missouri
Average retirement age: 63
Cost of living index: 0.88
Average annual expenses: $45,584
Life expectancy: 77.1
Retirement funds needed: $771,281
41. Ohio
Average retirement age: 63
Cost of living index: 0.92
Average annual expenses: $47,597
Life expectancy: 76.6
Retirement funds needed: $776,788
40. Louisiana
Average retirement age: 62
Cost of living index: 0.94
Average annual expenses: $48,320
Life expectancy: 75.4
Retirement funds needed: $776,987
39. South Carolina
Average retirement age: 63
Cost of living index: 0.96
Average annual expenses: $49,507
Life expectancy: 76.2
Retirement funds needed: $784,197
38. Indiana
Average retirement age: 63
Cost of living index: 0.91
Average annual expenses: $46,720
Life expectancy: 77
Retirement funds needed: $784,891
37. West Virginia
Average retirement age: 61
Cost of living index: 0.92
Average annual expenses: $47,546
Life expectancy: 74.8
Retirement funds needed: $787,357
36. Georgia
Average retirement age: 63
Cost of living index: 0.91
Average annual expenses: $46,771
Life expectancy: 77.2
Retirement funds needed: $796,984
35. Nebraska
Average retirement age: 65
Cost of living index: 0.92
Average annual expenses: $47,649
Life expectancy: 79.1
Retirement funds needed: $806,220
34. Iowa
Average retirement age: 65
Cost of living index: 0.92
Average annual expenses: $47,494
Life expectancy: 79.4
Retirement funds needed: $820,698
33. North Dakota
Average retirement age: 65
Cost of living index: 0.98
Average annual expenses: $50,850
Life expectancy: 78.5
Retirement funds needed: $823,764
32. Wyoming
Average retirement age: 64
Cost of living index: 0.96
Average annual expenses: $49,404
Life expectancy: 77.9
Retirement funds needed: $824,062
31. Montana
Average retirement age: 64
Cost of living index: 1.05
Average annual expenses: $54,205
Life expectancy: 76.9
Retirement funds needed: $839,096
30. Pennsylvania
Average retirement age: 64
Cost of living index: 0.99
Average annual expenses: $51,005
Life expectancy: 78
Retirement funds needed: $856,876
29. Michigan
Average retirement age: 62
Cost of living index: 0.89
Average annual expenses: $46,203
Life expectancy: 77.6
Retirement funds needed: $864,929
28. North Carolina
Average retirement age: 63
Cost of living index: 0.94
Average annual expenses: $48,733
Life expectancy: 77.8
Retirement funds needed: $865,499
27. Idaho
Average retirement age: 64
Cost of living index: 0.94
Average annual expenses: $58108
Life expectancy: 79
Retirement funds needed: $871,620
26. Utah
Average retirement age: 65
Cost of living index: 0.98
Average annual expenses: $50,850
Life expectancy: 79.3
Retirement funds needed: $872,580
25. Illinois
Average retirement age: 64
Cost of living index: 0.95
Average annual expenses: $49,043
Life expectancy: 79
Retirement funds needed: $882,770
24. New Mexico
Average retirement age: 62
Cost of living index: 0.91
Average annual expenses: $47,184
Life expectancy: 77.6
Retirement funds needed: $883,291
23. Virginia
Average retirement age: 65
Cost of living index: 1.01
Average annual expenses: $52,295
Life expectancy: 79.1
Retirement funds needed: $884,833
22. Wisconsin
Average retirement age: 64
Cost of living index: 0.96
Average annual expenses: $49,714
Life expectancy: 79.5
Retirement funds needed: $924,679
21. Florida
Average retirement age: 64
Cost of living index: 0.99
Average annual expenses: $51,159
Life expectancy: 79.1
Retirement funds needed: $927,008
20. New Hampshire
Average retirement age: 65
Cost of living index: 1.08
Average annual expenses: $55,960
Life expectancy: 79.1
Retirement funds needed: $946,850
19. Colorado
Average retirement age: 65
Cost of living index: 1.06
Average annual expenses: $54,670
Life expectancy: 79.9
Retirement funds needed: $977,496
18. Minnesota
Average retirement age: 65
Cost of living index: 1.02
Average annual expenses: $52,605
Life expectancy: 80.7
Retirement funds needed: $991,075
17. Arizona
Average retirement age: 63
Cost of living index: 1.01
Average annual expenses: $52,140
Life expectancy: 79.1
Retirement funds needed: $1.01 million
16. Delaware
Average retirement age: 63
Cost of living index: 1.07
Average annual expenses: $55,289
Life expectancy: 78.2
Retirement funds needed: $1.01 million
15. Nevada
Average retirement age: 63
Cost of living index: 1.09
Average annual expenses: $56,373
Life expectancy: 77.9
Retirement funds needed: $1.01 million
14. Washington, D.C.
Average retirement age: 67
Cost of living index: 1.62
Average annual expenses: $83,683
Life expectancy: 77.1
Retirement funds needed: $1.01 million
13. Rhode Island
Average retirement age: 65
Cost of living index: 1.21
Average annual expenses: $62,413
Life expectancy: 79.3
Retirement funds needed: $1.07 million
12. Washington
Average retirement age: 64
Cost of living index: 1.10
Average annual expenses: $56,890
Life expectancy: 79.9
Retirement funds needed: $1.08 million
11. Vermont
Average retirement age: 65
Cost of living index: 1.17
Average annual expenses: $60,348
Life expectancy: 79.9
Retirement funds needed: $1.08 million
10. Maine
Average retirement age: 63
Cost of living index: 1.17
Average annual expenses: $60,555
Life expectancy: 78
Retirement funds needed: $1.09 million
9. Maryland
Average retirement age: 65
Cost of living index: 1.30
Average annual expenses: $67,214
Life expectancy: 78.8
Retirement funds needed: $1.11 million
8. Massachusetts
Average retirement age: 66
Cost of living index: 1.34
Average annual expenses: $69,279
Life expectancy: 79.9
Retirement funds needed: $1.15 million
7. New Jersey
Average retirement age: 65
Cost of living index: 1.25
Average annual expenses: $64,736
Life expectancy: 80.5
Retirement funds needed: $1.20 million
6. Connecticut
Average retirement age: 65
Cost of living index: 1.29
Average annual expenses: $79,852
Life expectancy: 80
Retirement funds needed: $1.25 million
5. Alaska
Average retirement age: 61
Cost of living index: 1.29
Average annual expenses: $66,956
Life expectancy: 77.7
Retirement funds needed: $1.34 million
4. Oregon
Average retirement age: 63
Cost of living index: 1.33
Average annual expenses: $68,712
Life expectancy: 79.2
Retirement funds needed: $1.36 million
3. New York
Average retirement age: 64
Cost of living index: 1.35
Average annual expenses: $69,847
Life expectancy: 80.8
Retirement funds needed: $1.41 million
2. California
Average retirement age: 64
Cost of living index: 1.39
Average annual expenses: $86,171
Life expectancy: 80.9
Retirement funds needed: $1.45 million
1. Hawaii
Average retirement age: 66
Cost of living index: 1.92
Average annual expenses: $119,004
Life expectancy: 81.5
Retirement funds needed: $1.84 million
This article originally appeared on SimplyWise and was syndicated by MediaFeed.
