The Minimum Savings You Need To Retire in All 50 States

A green-tinted map of North America dotted with shiny green dollar signs.

Saving for retirement should be a lifelong pursuit, but life happens and recessions, inflation, health issues and salary constraints can hamper the ability to save early and consistently. A recent AARP survey found 20% of respondents ages 50 and over had no retirement savings. Over 50% of current retirees without savings cited everyday expenses as the financial obstacle that prevented them from saving adequately followed by housing costs (34%), debt payments (31%) unexpected expenses (18%) and healthcare expenses (16%).

If you are wondering if you have enough saved or are close to the minimum needed to retire in your state, a recent study from GOBankingRates looks at the annual cost of living, your annual expenditures after Social Security, and most importantly, how much savings you need to retire in all 50 states.

The 30 states where you need the least savings to retire

If you are low on savings or simply want a lower cost of living in retirement, West Virginia could be the state for you. Its state capital, Charleston, is number 10 on the Kiplinger list of The 25 Cheapest Places to Live: U.S. Cities Edition. It has among the lowest property taxes in the country and there are no death taxes.

In fact, the 10 states with the lowest savings needs are prominently featured on our list of the cheapest places to live. Cities such as Knoxville, TN and Birmingham, AL are two of the best cities for retirees to rent. They have quality hospitals and doctors, plenty of green space and retiree-friendly amenities.

You might notice that Ohio and Pennsylvania share the same numbers for expenses and savings needs. That doesn’t mean underlying costs are comparable. For example, the average cost of a home in Pennsylvania is $301,000, which is $52,400 more than in Ohio, where the cost averages only $248,600. Pennsylvania is one of the top 10 tax-friendly states for retirees and one of the most expensive states to die in, while Ohio doesn't have an estate or inheritance tax.

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Minimum savings need to retire in cheapest 30 states

30 Cheapest States	How much savings you need to retire:	Annual cost of living (total expenditures):	Annual Social Security income:	Annual expenditures after Social Security:
1 West Virginia	$712,913	$50,954	$22,523.40	$28,517
2 Kansas	$741,455	$52,095	$22,523.40	$29,658
3 Mississippi	$753,472	$52,576	$22,523.40	$30,139
4 Oklahoma	$759,481	$52,816	$22,523.40	$30,379
5 Alabama	$773,000	$53,357	$22,523.40	$30,920
6 Missouri	$776,005	$53,477	$22,523.40	$31,040
7 Arkansas	$776,005	$53,477	$22,523.40	$31,040
8 Tennessee	$791,027	$54,078	$22,523.40	$31,641
9 Iowa	$797,035	$54,319	$22,523.40	$31,881
10 Indiana	$810,555	$54,859	$22,523.40	$32,422
11 Georgia	$813,559	$54,980	$22,523.40	$32,542
12 North Dakota	$822,572	$55,340	$22,523.40	$32,903
13 Michigan	$825,577	$55,460	$22,523.40	$33,023
14 South Dakota	$825,577	$55,460	$22,523.40	$33,023
15 Texas	$830,083	$55,640	$22,523.40	$33,203
16 Nebraska	$833,087	$55,761	$22,523.40	$33,324
17 Kentucky	$834,590	$55,821	$22,523.40	$33,384
18 New Mexico	$834,590	$55,821	$22,523.40	$33,384
19 Louisiana	$843,603	$56,181	$22,523.40	$33,744
20 Montana	$851,114	$56,482	$22,523.40	$34,044
21 Ohio	$864,633	$57,023	$22,523.40	$34,585
22 Pennsylvania	$864,633	$57,023	$22,523.40	$34,585
23 South Carolina	$869,140	$57,203	$22,523.40	$34,766
24 Minnesota	$870,642	$57,263	$22,523.40	$57,263
25 Wyoming	$872,144	$57,323	$22,523.40	$34,886
26 Illinois	$873,646	$57,383	$22,523.40	$34,946
27 North Carolina	$905,192	$58,645	$22,523.40	$36,207
28 Maryland	$924,720	$59,426	$22,523.40	$36,989
29 Wisconsin	$930,729	$59,666	$22,523.40	$37,229
30 Nevada	$942,746	$60,147	$22,523.40	$37,709

The 20 states where you need the highest minimum savings to retire

The states with the highest minimum savings needed to retire are well known for their extraordinary cost of living. These states fill out our rankings and harbor the 10 most expensive cities to live in and the 15 most expensive housing markets in the country.

While it's no surprise that the Polynesian paradise of Hawaii has the highest annual cost of living as a retiree, it also has the lowest property tax in the country, with an effective property tax rate of 0.31% and an average tax paid annually of $3,685.

California (3), Connecticut (12), Massachusetts (2), New Jersey (6), New York (5), Rhode Island (11), Utah (15), and Vermont (7) are the worst states to retire in for taxes when you consider at tax rates on retirement income and property tax bills. For instance, California is the only state that fully taxes military retirement pay.

Colorado (16), Connecticut (12), Rhode Island (11), Utah (15) and Vermont (7) make up five of the nine states that still tax Social Security benefits.

The contrast between the places with the lowest minimum savings needs, West Virginia, and the greatest minimum savings, Hawaii, is stark. Retirees in Hawaii need almost $1.5 million more than in West Virginia. Housing costs in Charleston, West Virginia, are 38.7% below average, while costs in Honolulu are 102.6% above average. Utilities are another place where the states diverge on expenses. West Virginians pay 3.2% below the national average and Hawaiians pay 210% of the national average.

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Minimum savings need to retire in the 20 most expensive states

20 costliest states	How much savings you need to retire:	Annual cost of living (total expenditures):	Annual Social Security income:	Annual expenditures after Social Security:
1 Hawaii	$2,212,084	$110,921	$22,523.40	$88,483
2 Massachusetts	$1,645,764	$88,627	$22,523.40	$65,831
3 California	$1,612,716	$86,945	$22,523.40	$64,509
4 Alaska	$1,292,753	$74,147	$22,523.40	$51,710
5 New York	$1,292,753	$74,147	$22,523.40	$51,710
6 New Jersey	$1,163,566	$68,980	$22,523.40	$46,543
7 Vermont	$1,153,051	$68,559	$22,523.40	$46,122
8 Washington	$1,145,540	$68,259	$22,523.40	$45,282
9 Maine	$1,144,038	$68,199	$22,523.40	$45,762
10 Arizona	$1,133,522	$67,778	$22,523.40	$45,341
11 Rhode Island	$1,127,514	$67,538	$22,523.40	$45,101
12 Connecticut	$ 1,116,998	$67,117	$22,523.40	$44,680
13 New Hampshire	$1,113,994	$66,997	$22,523.40	$44,560
14 Oregon	$1,091,462	$66,096	$22,523.40	$43,658
15 Utah	$1,083,951	$65,795	$22,523.40	$43,358
16 Colorado	$981,803	$61,709	$22,523.40	$39,272
17 Florida	$977,296	$61,529	$22,523.40	$39,092
18 Idaho	$971,288	$61,289	$22,523.40	$38,852
19 Virginia	$948,755	$60,387	$22,523.40	$37,950
20 Delaware	$944,248	$60,207	$22,523.40	$37,770

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Americans are not saving enough

Saving enough for retirement can be a challenge and many people are falling behind. The median retirement savings for those ages 54-64 is $185,000 and the average balance is $538,000. For those aged 65-74 the median retirement savings is $200,000 and average is $609,000 according to The Federal Reserve Survey of Consumer Finances 2022.

Age group	Median savings	Average savings
Under 35	$18,880	$49,130
35-44	$45,000	$141,520
45-54	$115,000	$313,220
55-64	$185,000	$537,560
65-74	$200,000	$609,230

Among the most common retirement planning mistakes are underestimating the impact of inflation (49%), life expectancy (47%) and overestimating investment income (42%), says the Natixis 2022 Financial Professionals Report.

When you look at all of the numbers, the average retiree will be dependent on Social Security to make ends meet. This is a dicey strategy as the Social Security trust fund will become insolvent in 2033. At that point, the fund's continuing income is expected to fund just 79% of scheduled benefits resulting in your benefits being reduced by 21%.

Methodology: In order to find out how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the “65 year and older expenditures” from the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey by the cost-of-living index for each state from the Missouri Economic Research and Information Center’s 2024 Q3 cost-of-living series. To find how much money a retired person would need to save, we divided each state’s annual expenditures, minus the annual Social Security income (sourced from the Social Security Administration’s Monthly Statistical Snapshot, November 2024), by .04, assuming drawing down savings by 4% percent each year to pay for living expenses. All data was collected on and is up to date as of Jan. 2, 2025.