The Social Security Administration announced recently that it would not be able to pay full benefits beginning in 2034, a full year earlier than had been anticipated before the pandemic. This could leave many older Americans without the financial safety net they had been counting on.
The average Social Security benefit was just over $1,500 per month in January of 2021 — not nearly enough to live on for most retirees. The average American needs an estimated $1,078,777 to retire comfortably at age 65, though this figure can vary by hundreds of thousands of dollars from state to state.
To determine what it costs to retire comfortably in every state, 24/7 Wall St. calculated the amount of money the average retiree needs for the rest of his or her life using data from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation. The calculation was based on the cost of living and life expectancy at 65 in each state.
The most and least expensive states to retire tend to cluster in certain areas. All 20 of the states in which someone can expect to comfortably retire on less than $975,000 are either located in the South or Midwest. In each of these states, the costs of goods, services, and housing are all below the average costs nationwide.
Conversely, 12 of the 13 most expensive states to retire are in the West and Northeast, where the cost of living tends to be much higher. Retirement also tends to be more expensive in these areas because older residents in these regions have much longer life expectancies compared to other areas. These are the states where people live the longest.
Click here to see what it costs to retire comfortably in every state
Click here to read our detailed methodology
Source: Kruck20 / Getty Images
Alabama
> Est. total retirement spending: $835,405 (2nd least)
> Avg. cost of living: 14.2% less than avg. (3rd lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $358 per month (6th lowest)
> Pop. 65 and older: 17.4% (20th highest)
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Source: sorincolac / Getty Images
Alaska
> Est. total retirement spending: $1,116,352 (12th most)
> Avg. cost of living: 5.1% more than avg. (9th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $536 per month (15th highest)
> Pop. 65 and older: 12.4% (2nd lowest)
Source: tonda / Getty Images
Arizona
> Est. total retirement spending: $1,044,190 (21st most)
> Avg. cost of living: 3.7% less than avg. (25th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $419 per month (16th lowest)
> Pop. 65 and older: 18.0% (13th highest)
Source: BlazenImages / Getty Images
Arkansas
> Est. total retirement spending: $838,752 (3rd least)
> Avg. cost of living: 15.3% less than avg. (2nd lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $348 per month (4th lowest)
> Pop. 65 and older: 17.4% (22nd highest)
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Source: choness / Getty Images
California
> Est. total retirement spending: $1,307,212 (2nd most)
> Avg. cost of living: 16.4% more than avg. (2nd highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $588 per month (11th highest)
> Pop. 65 and older: 14.8% (6th lowest)
Source: Planet Unicorn / Getty Images
Colorado
> Est. total retirement spending: $1,127,460 (11th most)
> Avg. cost of living: 1.9% more than avg. (13th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $485 per month (25th highest)
> Pop. 65 and older: 14.7% (5th lowest)
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Source: SeanPavonePhoto / Getty Images
Connecticut
> Est. total retirement spending: $1,179,186 (7th most)
> Avg. cost of living: 5.0% more than avg. (10th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $898 per month (2nd highest)
> Pop. 65 and older: 17.6% (16th highest)
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Source: DenisTangneyJr / Getty Images
Delaware
> Est. total retirement spending: $1,055,807 (18th most)
> Avg. cost of living: 0.6% less than avg. (17th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $448 per month (20th lowest)
> Pop. 65 and older: 19.5% (5th highest)
Source: Sean Pavone / Getty Images
Florida
> Est. total retirement spending: $1,111,915 (14th most)
> Avg. cost of living: 1.0% more than avg. (16th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $516 per month (20th highest)
> Pop. 65 and older: 20.9% (2nd highest)
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Source: Sean Pavone / Getty Images
Georgia
> Est. total retirement spending: $948,704 (15th least)
> Avg. cost of living: 6.8% less than avg. (24th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $409 per month (14th lowest)
> Pop. 65 and older: 14.3% (4th lowest)
Source: Art Wager / Getty Images
Hawaii
> Est. total retirement spending: $1,392,579 (the most)
> Avg. cost of living: 19.3% more than avg. (the highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $534 per month (16th highest)
> Pop. 65 and older: 19.0% (7th highest)
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Source: vkbhat / Getty Images
Idaho
> Est. total retirement spending: $984,431 (23rd least)
> Avg. cost of living: 7.8% less than avg. (21st lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $384 per month (9th lowest)
> Pop. 65 and older: 16.2% (16th lowest)
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Source: Sean Pavone / Getty Images
Illinois
> Est. total retirement spending: $1,045,340 (20th most)
> Avg. cost of living: 2.6% less than avg. (21st highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $617 per month (8th highest)
> Pop. 65 and older: 16.1% (14th lowest)
Source: Davel5957 / Getty Images
Indiana
> Est. total retirement spending: $897,991 (9th least)
> Avg. cost of living: 11.3% less than avg. (10th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $406 per month (12th lowest)
> Pop. 65 and older: 16.1% (13th lowest)
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Source: pabradyphoto / Getty Images
Iowa
> Est. total retirement spending: $950,264 (16th least)
> Avg. cost of living: 11.0% less than avg. (12th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $498 per month (22nd highest)
> Pop. 65 and older: 17.5% (17th highest)
Source: Davel5957 / Getty Images
Kansas
> Est. total retirement spending: $927,726 (12th least)
> Avg. cost of living: 10.8% less than avg. (13th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $512 per month (21st highest)
> Pop. 65 and older: 16.4% (20th lowest)
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Source: Davel5957 / Getty Images
Kentucky
> Est. total retirement spending: $846,148 (4th least)
> Avg. cost of living: 12.6% less than avg. (6th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $373 per month (7th lowest)
> Pop. 65 and older: 16.9% (24th lowest)
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Source: f11photo / Getty Images
Louisiana
> Est. total retirement spending: $870,440 (7th least)
> Avg. cost of living: 12.1% less than avg. (8th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $346 per month (3rd lowest)
> Pop. 65 and older: 16.0% (11th lowest)
Source: sara_winter / Getty Images
Maine
> Est. total retirement spending: $1,049,252 (19th most)
> Avg. cost of living: 0.7% less than avg. (18th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $521 per month (19th highest)
> Pop. 65 and older: 21.3% (the highest)
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Source: Davel5957 / Getty Images
Maryland
> Est. total retirement spending: $1,155,885 (8th most)
> Avg. cost of living: 7.7% more than avg. (7th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $602 per month (9th highest)
> Pop. 65 and older: 15.9% (9th lowest)
Source: SeanPavonePhoto / Getty Images
Massachusetts
> Est. total retirement spending: $1,215,400 (5th most)
> Avg. cost of living: 10.4% more than avg. (5th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $803 per month (4th highest)
> Pop. 65 and older: 17.0% (25th highest)
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Source: pawel.gaul / Getty Images
Michigan
> Est. total retirement spending: $965,074 (19th least)
> Avg. cost of living: 7.7% less than avg. (22nd lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $482 per month (25th lowest)
> Pop. 65 and older: 17.7% (14th highest)
Source: RudyBalasko / Getty Images
Minnesota
> Est. total retirement spending: $1,084,309 (16th most)
> Avg. cost of living: 2.0% less than avg. (19th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $545 per month (13th highest)
> Pop. 65 and older: 16.3% (18th lowest)
Source: SeanPavonePhoto / Getty Images
Mississippi
> Est. total retirement spending: $817,104 (the least)
> Avg. cost of living: 15.6% less than avg. (the lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $345 per month (2nd lowest)
> Pop. 65 and older: 16.4% (19th lowest)
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Source: f11photo / Getty Images
Missouri
> Est. total retirement spending: $902,898 (11th least)
> Avg. cost of living: 11.3% less than avg. (11th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $452 per month (21st lowest)
> Pop. 65 and older: 17.2% (23rd highest)
Source: peeterv / Getty Images
Montana
> Est. total retirement spending: $1,008,657 (25th most)
> Avg. cost of living: 6.5% less than avg. (25th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $445 per month (19th lowest)
> Pop. 65 and older: 19.5% (6th highest)
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Source: Davel5957 / Getty Images
Nebraska
> Est. total retirement spending: $955,603 (17th least)
> Avg. cost of living: 10.5% less than avg. (15th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $532 per month (17th highest)
> Pop. 65 and older: 16.1% (15th lowest)
Source: photoquest7 / Getty Images
Nevada
> Est. total retirement spending: $1,007,622 (25th least)
> Avg. cost of living: 2.6% less than avg. (20th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $430 per month (18th lowest)
> Pop. 65 and older: 16.2% (17th lowest)
Source: DenisTangneyJr / Getty Images
New Hampshire
> Est. total retirement spending: $1,148,898 (9th most)
> Avg. cost of living: 6.5% more than avg. (8th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $821 per month (3rd highest)
> Pop. 65 and older: 18.6% (9th highest)
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Source: SeanPavonePhoto / Getty Images
New Jersey
> Est. total retirement spending: $1,277,051 (4th most)
> Avg. cost of living: 16.0% more than avg. (4th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $1,017 per month (the highest)
> Pop. 65 and older: 16.6% (21st lowest)
Source: ferrantraite / Getty Images
New Mexico
> Est. total retirement spending: $982,766 (22nd least)
> Avg. cost of living: 8.9% less than avg. (17th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $355 per month (5th lowest)
> Pop. 65 and older: 18.0% (12th highest)
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Source: TomasSereda / Getty Images
New York
> Est. total retirement spending: $1,299,655 (3rd most)
> Avg. cost of living: 16.3% more than avg. (3rd highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $766 per month (5th highest)
> Pop. 65 and older: 16.9% (25th lowest)
Source: Sean Pavone / Getty Images
North Carolina
> Est. total retirement spending: $948,654 (14th least)
> Avg. cost of living: 8.3% less than avg. (19th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $402 per month (11th lowest)
> Pop. 65 and older: 16.7% (23rd lowest)
Source: DenisTangneyJr / Getty Images
North Dakota
> Est. total retirement spending: $973,228 (20th least)
> Avg. cost of living: 10.7% less than avg. (14th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $469 per month (22nd lowest – tied)
> Pop. 65 and older: 15.8% (7th lowest)
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Source: Davel5957 / Getty Images
Ohio
> Est. total retirement spending: $899,844 (10th least)
> Avg. cost of living: 11.6% less than avg. (9th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $469 per month (22nd lowest – tied)
> Pop. 65 and older: 17.5% (19th highest)
Source: DenisTangneyJr / Getty Images
Oklahoma
> Est. total retirement spending: $849,036 (6th least)
> Avg. cost of living: 12.8% less than avg. (5th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $407 per month (13th lowest)
> Pop. 65 and older: 16.1% (12th lowest)
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Source: 4nadia / Getty Images
Oregon
> Est. total retirement spending: $1,113,818 (13th most)
> Avg. cost of living: 2.2% more than avg. (12th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $554 per month (12th highest)
> Pop. 65 and older: 18.2% (10th highest)
Source: f11photo / Getty Images
Pennsylvania
> Est. total retirement spending: $1,024,949 (23rd most)
> Avg. cost of living: 3.0% less than avg. (22nd highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $530 per month (18th highest)
> Pop. 65 and older: 18.7% (8th highest)
Source: SeanPavonePhoto / Getty Images
Rhode Island
> Est. total retirement spending: $1,092,801 (15th most)
> Avg. cost of living: 1.3% more than avg. (15th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $717 per month (6th highest)
> Pop. 65 and older: 17.7% (15th highest)
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Source: traveler1116 / Getty Images
South Carolina
> Est. total retirement spending: $941,523 (13th least)
> Avg. cost of living: 8.5% less than avg. (18th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $374 per month (8th lowest)
> Pop. 65 and older: 18.2% (11th highest)
Source: pabradyphoto / Getty Images
South Dakota
> Est. total retirement spending: $956,881 (18th least)
> Avg. cost of living: 12.2% less than avg. (7th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $493 per month (23rd highest – tied)
> Pop. 65 and older: 17.4% (21st highest)
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Source: Sean Pavone / Getty Images
Tennessee
> Est. total retirement spending: $888,265 (8th least)
> Avg. cost of living: 10.3% less than avg. (16th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $388 per month (10th lowest)
> Pop. 65 and older: 16.7% (22nd lowest)
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Source: Sean Pavone / Getty Images
Texas
> Est. total retirement spending: $1,008,988 (24th most)
> Avg. cost of living: 3.5% less than avg. (24th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $493 per month (23rd highest – tied)
> Pop. 65 and older: 12.9% (3rd lowest)
Source: johnnya123 / Getty Images
Utah
> Est. total retirement spending: $1,041,020 (22nd most)
> Avg. cost of living: 3.5% less than avg. (23rd highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $422 per month (17th lowest)
> Pop. 65 and older: 11.4% (the lowest)
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Source: Jonathanking / Wikimedia Commons
Vermont
> Est. total retirement spending: $1,129,330 (10th most)
> Avg. cost of living: 3.1% more than avg. (11th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $668 per month (7th highest)
> Pop. 65 and older: 20.1% (4th highest)
Source: SeanPavonePhoto / Getty Images
Virginia
> Est. total retirement spending: $1,081,593 (17th most)
> Avg. cost of living: 1.3% more than avg. (14th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $475 per month (24th lowest)
> Pop. 65 and older: 15.9% (10th lowest)
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Source: Ben Babusis, www.BenBabusis.com / iStock via Getty Images
Washington
> Est. total retirement spending: $1,187,385 (6th most)
> Avg. cost of living: 8.4% more than avg. (6th highest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $600 per month (10th highest)
> Pop. 65 and older: 15.9% (8th lowest)
Source: Sean Pavone / Getty Images
West Virginia
> Est. total retirement spending: $848,063 (5th least)
> Avg. cost of living: 12.9% less than avg. (4th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $313 per month (the lowest)
> Pop. 65 and older: 20.5% (3rd highest)
Source: Sean Pavone / Getty Images
Wisconsin
> Est. total retirement spending: $991,396 (24th least)
> Avg. cost of living: 8.1% less than avg. (20th lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $538 per month (14th highest)
> Pop. 65 and older: 17.5% (18th highest)
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Source: aoldman / Getty Images
Wyoming
> Est. total retirement spending: $975,436 (21st least)
> Avg. cost of living: 7.2% less than avg. (23rd lowest)
> Avg. homeownership cost for citizens 65 and older with no mortgage: $415 per month (15th lowest)
> Pop. 65 and older: 17.1% (24th highest)
Methodology
To determine what it costs to retire comfortably in every state, 24/7 Wall St. calculated the amount of money the average retiree needs so it would last for the rest of his or her life using data from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation. Our calculation was based on the average annual expenditure for U.S. residents 65 years and older in the third quarter of 2019 through the second quarter 2020 of $48,106, according to the BLS Consumer Expenditure Survey. We adjusted that figure by local cost of living, using state-level data on regional price parity in 2019 from the BEA and multiplied the result by 115% in order to reflect greater financial stability and comfort in retirement.
Finally, to determine the amount needed to last the average retiree for the rest of his or her life, we multiplied the adjusted annual expenditure figure by the number of years residents are expected to live at age 65, using state-level data from the Centers for Disease Control and Prevention’s National Vital Statistics System for 2018.
Data on the share of the population that is 65 and over, the mean annual earnings for 65+ households, the share of 65+ households with earnings, the 65+ homeownership rate, and homeownership costs came from the U.S. Census Bureau’s 2019 American Community Survey. All data are for the most recent period available.
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