Special Report

What It Costs to Retire in Every State

Source: Image Source / DigitalVision via Getty Images

21. Massachusetts
> Est. total retirement spending: $1,268,810 (5th most)
> Avg. cost of living: 10.4% more than avg. (5th highest)
> Median monthly homeownership cost, pop. 65 & older: $803 (4th highest)
> Pop. 65 & older: 17.0% (25th highest)

Massachusetts is the most expensive state in New England to retire in, and the fifth most expensive state nationwide. The average 65 year old in Massachusetts will spend an estimated $1,268,810 to live comfortably throughout retirement, about $148,400 more than the typical 65 year old American.

A long life expectancy partially explains the higher costs in the state, as the typical 65 year old Massachusetts resident is expected to live half a year longer, on average, than the typical 65 year old American. The most consequential factor, however, is the state’s high cost of living. Goods and services are 10.4% more expensive than average in Massachusetts.

Source: nameinfame / iStock via Getty Images

22. Michigan
> Est. total retirement spending: $1,007,484 (21st least)
> Avg. cost of living: 7.7% less than avg. (22nd lowest)
> Median monthly homeownership cost, pop. 65 & older: $482 (25th lowest)
> Pop. 65 & older: 17.7% (14th highest)

The average 65 year old retiring in Michigan can expect to spend $1,007,484, nearly $113,000 less than the average cost nationwide.

The affordability of a comfortable retirement in Michigan is due in part to the low cost of living in the state. Goods and services are 7.7% cheaper in Michigan than they are on average nationwide. As a result, the average annual expenditure of a retirement-age resident is about $3,900 less than it is across the U.S.

Source: emholk / iStock via Getty Images

23. Minnesota
> Est. total retirement spending: $1,148,938 (15th most)
> Avg. cost of living: 2.0% less than avg. (19th highest)
> Median monthly homeownership cost, pop. 65 & older: $545 (13th highest)
> Pop. 65 & older: 16.3% (18th lowest)

Minnesota is the only state in the Midwest where retirement is estimated to cost more than it will across the U.S. on average. A comfortable retirement will cost the average 65 year old Minnesota resident an estimated $1,148,938 — $28,500 more than the comparable national average.

High retirement costs in the state are driven largely by life expectancy. In Minnesota, 65 year olds are expected to live another 20.3 years on average, about a year longer than the typical American 65 year old. Housing costs are also relatively high in the state. The typical retirement age homeowner without a mortgage in the state spends just $545 a month on housing, above the comparable $499 monthly median nationwide.

Source: emholk / E+ via Getty Images

24. Mississippi
> Est. total retirement spending: $857,886 (the least)
> Avg. cost of living: 15.6% less than avg. (the lowest)
> Median monthly homeownership cost, pop. 65 & older: $345 (2nd lowest)
> Pop. 65 & older: 16.4% (19th lowest)

A comfortable retirement will cost the average 65 year old in Mississippi just $857,886, less than in every other state in the country and about $262,500 less than the national average. The lower than average cost is attributable in part to the state’s low cost of living. Goods and services in the state are 15.6% less expensive than average, the lowest cost of living of any state in the country.

The low retirement spending in Mississippi is also a product of low life expectancy. The average 65 year old in the state is expected to live another 17.6 years — nearly two years fewer than the average American adult.

Source: Lana2011 / iStock via Getty Images

25. Missouri
> Est. total retirement spending: $952,821 (11th least)
> Avg. cost of living: 11.3% less than avg. (11th lowest)
> Median monthly homeownership cost, pop. 65 & older: $452 (21st lowest)
> Pop. 65 & older: 17.2% (23rd highest)

Missouri is one of 16 states where a comfortable retirement costs less than $1 million at age 65. The typical 65 year old in the state will spend an estimated $952,821 on a comfortable retirement, $167,600 less than the typical 65 year old American likely will.

The relative affordability of a comfortable retirement is due in part to the low cost of living in the state. Goods and services are 11.3% cheaper in Missouri than they are on average nationwide. As a result, the average annual expenditure of retirement-age state residents is about $5,700 less than it is across the U.S.