how much it costs to retire

Here’s How Much it Costs to Retire in Every State

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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”.

how much do I need to retire

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 multiplying it by the state-adjusted yearly expenditures, to obtain the total amount required to retire.

The cost to retire in every state

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.

Alaska

Average retirement age:  61

Cost of living index: 1.29

Average annual expenses: $66,956

Life expectancy: 77.7

Retirement funds needed: $1,341,805

Alabama

Average retirement age: 62  

Cost of living index: 0.89

Average annual expenses: $46,049

Life expectancy: 75

Retirement funds needed: $712,832

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

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

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

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

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

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

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

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

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

Idaho

Average retirement age: 64 

Cost of living index: 0.94  

Average annual expenses: $58108

Life expectancy: 79

Retirement funds needed: $871,620

Illinois

Average retirement age: 64 

Cost of living index: 0.95  

Average annual expenses: $49,043 

Life expectancy: 79

Retirement funds needed: $882,770

Indiana

Average retirement age: 63 

Cost of living index: 0.91  

Average annual expenses: $46,720

Life expectancy: 77

Retirement funds needed: $784,891

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

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

Kentucky

Average retirement age: 62 

Cost of living index: 0.92  

Average annual expenses: $47,339

Life expectancy: 75

Retirement funds needed: $738,492

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Pennsylvania

Average retirement age: 64 

Cost of living index: 0.99  

Average annual expenses: $51,005

Life expectancy: 78

Retirement funds needed: $856,876

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

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

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

Tennessee

Average retirement age: 64 

Cost of living index: 0.89  

Average annual expenses: $45,894

Life expectancy: 76

Retirement funds needed: $660,870

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

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

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

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

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

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

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

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

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