You need to be a millionaire to Pay basic retirement expenses According to one report, in 15 U.S. states New analysis for GOBankingRates.
The states with the highest retirement costs also tend to have the highest housing costs, whether it’s large urban centers like New York and California or Hawaii, where the natural beauty and mild climate attract many retirees.
In fact, Hawaii is the most expensive state to retire in. That’s much higher than in Massachusetts and California, where retirees need about $1.6 million each to get by.
This estimate comes from the latest average cost of living data from the U.S. Bureau of Labor Statistics. After subtracting average Social Security income from annual expenses, GOBankingRates divides the remaining amount by 4%, as follows: common rules of thumb Safely withdraw your retirement savings.
These totals represent the minimum required for retirement Consider other factors Examples include rising inflation, discretionary spending, or unexpected expenses.
Here are the 15 most expensive states to retire, ranked by total savings required:
1.Hawaii
- Annual living expenses: $110,921
- Savings needed for retirement: $2,212,084 USD
2.Massachusetts
- Annual living expenses: $88,268
- Savings needed for retirement: $1,645,764
3.California
- Annual living expenses: $86,946
- Savings needed for retirement: $1,612,716
4.Alaska
- Annual living expenses: $74,147
- Savings needed for retirement: $1,292,753 USD
5.New York
- Annual living expenses: $74,147
- Savings needed for retirement: $1,292,753 USD
6. New Jersey
- Annual living expenses: $68,980
- Savings needed for retirement: $1,163,566
7. Vermont
- Annual living expenses: $68,559
- Savings needed for retirement: $1,153,051 USD
8. Washington
- Annual living expenses: $68,259
- Savings needed for retirement: $1,145,540 USD
9. Maine
- Annual living expenses: $68,199
- Savings needed for retirement: $1,144,038
10. Arizona
- Annual living expenses: $67,778
- Savings needed for retirement: $1,133,522 USD
11. Rhode Island
- Annual living expenses: $67,538
- Savings needed for retirement: $1,127,514 USD
12. Connecticut
- Annual living expenses: $67,117
- Savings needed for retirement: $1,116,998 USD
13.New Hampshire
- Annual living expenses: $66,997
- Savings needed for retirement: $1,113,994 USD
14. Oregon
- Annual living expenses: $66,096
- Savings needed for retirement: $1,091,462 USD
15. Utah
- Annual living expenses: $65,795
- Savings needed for retirement: $1,083,951 USD
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