The consumer price index surged by 7% in December of 2021, the fastest rate in four decades. Surging inflation is a troubling development for the millions of American retirees relying on fixed incomes and those whose savings are invested in equities markets – and should serve as a wake-up call for the one in every four American adults with no retirement savings.
While budgeting for retirement can be difficult, it is essential for those who want financial security throughout their retirement. Including a small financial cushion for unforeseen expenditures and economic challenges, the average 65-year-old American can expect to spend about $1,067,000 throughout retirement. Here are 19 things to do if you want to retire early.
Exactly how much Americans should plan on spending throughout retirement, however, varies based on where they live. Using data from the Bureau of Labor Statistics and the Bureau of Economic Analysis, 24/7 Wall St. calculated what it costs to retire in every state. Our calculations are based on average annual consumer spending, adjusted for regional cost of living and life expectancy.
Depending on the state, average expected retirement spending ranges from less than $850,000 to nearly $1.3 million. States with the highest retirement costs are those with higher than average living expenses and where average life expectancy at age 65 exceeds the 19.5 additional years (to age 84.5) national average. This is the state where retirees are most likely to move.
Of course, estimated retirement spending is not synonymous with retirement savings. For example, once Americans reach age 62, they can start collecting Social Security retirement benefits, which amounts to an average monthly payment of $1,560 and can be as high as $3,240 per month. While this is not nearly enough to cover most spending, it is a significant source of income that should be considered when deciding on savings needs. Retirement spending and financial needs also vary considerably from one person to the next, depending on their lifestyle.
Click here to see what is costs to retire comfortably in every state
Click here for our detailed methodology
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50. Mississippi
> Estimated total retirement spending: $840,470
> Avg. cost of living: 12.2% less than avg. (the lowest)
> Typical monthly housing costs, 65 and older pop.: $1,007 w/ mortgage; $345 w/o mortgage
> Avg. life expectancy at age 65: age 82.5 (2nd lowest)
> Population 65 and older: 16.4% (19th lowest)
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Source: benedek / Getty Images
49. West Virginia
> Estimated total retirement spending: $847,044
> Avg. cost of living: 12.0% less than avg. (2nd lowest)
> Typical monthly housing costs, 65 and older pop.: $953 w/ mortgage; $313 w/o mortgage
> Avg. life expectancy at age 65: age 82.6 (5th lowest)
> Population 65 and older: 20.5% (3rd highest)
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48. Alabama
> Estimated total retirement spending: $859,496
> Avg. cost of living: 10.7% less than avg. (4th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,069 w/ mortgage; $358 w/o mortgage
> Avg. life expectancy at age 65: age 82.6 (5th lowest)
> Population 65 and older: 17.4% (20th highest)
Source: alexeys / Getty Images
47. Kentucky
> Estimated total retirement spending: $859,649
> Avg. cost of living: 10.2% less than avg. (5th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,045 w/ mortgage; $373 w/o mortgage
> Avg. life expectancy at age 65: age 82.5 (2nd lowest)
> Population 65 and older: 16.9% (24th lowest)
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Source: BlazenImages / Getty Images
46. Arkansas
> Estimated total retirement spending: $873,451
> Avg. cost of living: 10.8% less than avg. (3rd lowest)
> Typical monthly housing costs, 65 and older pop.: $971 w/ mortgage; $348 w/o mortgage
> Avg. life expectancy at age 65: age 82.9 (8th lowest)
> Population 65 and older: 17.4% (22nd highest)
Source: Sean Pavone / iStock via Getty Images
45. Oklahoma
> Estimated total retirement spending: $879,430
> Avg. cost of living: 8.7% less than avg. (8th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,112 w/ mortgage; $407 w/o mortgage
> Avg. life expectancy at age 65: age 82.6 (5th lowest)
> Population 65 and older: 16.1% (12th lowest)
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Source: Kruck20 / iStock via Getty Images
44. Tennessee
> Estimated total retirement spending: $902,530
> Avg. cost of living: 7.8% less than avg. (15th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,105 w/ mortgage; $388 w/o mortgage
> Avg. life expectancy at age 65: age 82.9 (8th lowest)
> Population 65 and older: 16.7% (22nd lowest)
Source: Jaimie Tuchman / Getty Images
43. Louisiana
> Estimated total retirement spending: $908,073
> Avg. cost of living: 7.3% less than avg. (21st lowest)
> Typical monthly housing costs, 65 and older pop.: $1,148 w/ mortgage; $346 w/o mortgage
> Avg. life expectancy at age 65: age 82.9 (8th lowest)
> Population 65 and older: 16.0% (11th lowest)
Source: aceshot / iStock
42. Ohio
> Estimated total retirement spending: $923,109
> Avg. cost of living: 8.3% less than avg. (12th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,109 w/ mortgage; $469 w/o mortgage
> Avg. life expectancy at age 65: age 83.4 (12th lowest)
> Population 65 and older: 17.5% (19th highest)
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Source: Maksymowicz / Getty Images
41. Indiana
> Estimated total retirement spending: $926,213
> Avg. cost of living: 7.5% less than avg. (20th lowest)
> Typical monthly housing costs, 65 and older pop.: $996 w/ mortgage; $406 w/o mortgage
> Avg. life expectancy at age 65: age 83.3 (9th lowest)
> Population 65 and older: 16.1% (13th lowest)
Source: marekuliasz / Getty Images
40. Missouri
> Estimated total retirement spending: $931,203
> Avg. cost of living: 7.5% less than avg. (19th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,144 w/ mortgage; $452 w/o mortgage
> Avg. life expectancy at age 65: age 83.4 (12th lowest)
> Population 65 and older: 17.2% (23rd highest)
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39. South Carolina
> Estimated total retirement spending: $932,705
> Avg. cost of living: 8.4% less than avg. (11th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,152 w/ mortgage; $374 w/o mortgage
> Avg. life expectancy at age 65: age 83.6 (13th lowest)
> Population 65 and older: 18.2% (11th highest)
Source: RickSause / Getty Images
38. North Carolina
> Estimated total retirement spending: $939,694
> Avg. cost of living: 8.2% less than avg. (13th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,164 w/ mortgage; $402 w/o mortgage
> Avg. life expectancy at age 65: age 83.7 (15th lowest)
> Population 65 and older: 16.7% (23rd lowest)
Source: ricardoreitmeyer / Getty Images
37. Kansas
> Estimated total retirement spending: $950,110
> Avg. cost of living: 7.6% less than avg. (17th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,280 w/ mortgage; $512 w/o mortgage
> Avg. life expectancy at age 65: age 83.8 (16th lowest)
> Population 65 and older: 16.4% (20th lowest)
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Source: Sean Pavone / Getty Images
36. Georgia
> Estimated total retirement spending: $951,812
> Avg. cost of living: 5.5% less than avg. (25th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,241 w/ mortgage; $409 w/o mortgage
> Avg. life expectancy at age 65: age 83.4 (12th lowest)
> Population 65 and older: 14.3% (4th lowest)
Source: aoldman / Getty Images
35. Wyoming
> Estimated total retirement spending: $959,105
> Avg. cost of living: 7.7% less than avg. (16th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,225 w/ mortgage; $415 w/o mortgage
> Avg. life expectancy at age 65: age 84.0 (19th lowest)
> Population 65 and older: 17.1% (24th highest)
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34. Iowa
> Estimated total retirement spending: $961,471
> Avg. cost of living: 9.0% less than avg. (6th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,132 w/ mortgage; $498 w/o mortgage
> Avg. life expectancy at age 65: age 84.3 (24th highest)
> Population 65 and older: 17.5% (17th highest)
Source: mattalberts / Getty Images
33. Idaho
> Estimated total retirement spending: $963,044
> Avg. cost of living: 8.8% less than avg. (7th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,147 w/ mortgage; $384 w/o mortgage
> Avg. life expectancy at age 65: age 84.3 (24th highest)
> Population 65 and older: 16.2% (16th lowest)
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32. Michigan
> Estimated total retirement spending: $972,547
> Avg. cost of living: 6.0% less than avg. (24th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,176 w/ mortgage; $482 w/o mortgage
> Avg. life expectancy at age 65: age 83.9 (18th lowest)
> Population 65 and older: 17.7% (14th highest)
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Source: Davel5957 / Getty Images
31. New Mexico
> Estimated total retirement spending: $976,982
> Avg. cost of living: 8.4% less than avg. (10th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,194 w/ mortgage; $355 w/o mortgage
> Avg. life expectancy at age 65: age 84.5 (16th highest)
> Population 65 and older: 18.0% (12th highest)
Source: wellesenterprises / Getty Images
30. Nebraska
> Estimated total retirement spending: $980,933
> Avg. cost of living: 7.1% less than avg. (22nd lowest)
> Typical monthly housing costs, 65 and older pop.: $1,285 w/ mortgage; $532 w/o mortgage
> Avg. life expectancy at age 65: age 84.3 (24th highest)
> Population 65 and older: 16.1% (15th lowest)
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29. Montana
> Estimated total retirement spending: $986,329
> Avg. cost of living: 7.6% less than avg. (18th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,299 w/ mortgage; $445 w/o mortgage
> Avg. life expectancy at age 65: age 84.5 (16th highest)
> Population 65 and older: 19.5% (6th highest)
Source: pabradyphoto / Getty Images
28. South Dakota
> Estimated total retirement spending: $986,475
> Avg. cost of living: 8.5% less than avg. (9th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,186 w/ mortgage; $493 w/o mortgage
> Avg. life expectancy at age 65: age 84.7 (12th highest)
> Population 65 and older: 17.4% (21st highest)
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27. North Dakota
> Estimated total retirement spending: $992,112
> Avg. cost of living: 8.0% less than avg. (14th lowest)
> Typical monthly housing costs, 65 and older pop.: $1,251 w/ mortgage; $469 w/o mortgage
> Avg. life expectancy at age 65: age 84.7 (12th highest)
> Population 65 and older: 15.8% (7th lowest)
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Source: 4kodiak / iStock via Getty Images
26. Nevada
> Estimated total retirement spending: $993,064
> Avg. cost of living: 2.9% less than avg. (23rd highest)
> Typical monthly housing costs, 65 and older pop.: $1,392 w/ mortgage; $430 w/o mortgage
> Avg. life expectancy at age 65: age 83.7 (15th lowest)
> Population 65 and older: 16.2% (17th lowest)
Source: JamesBrey / Getty Images
25. Wisconsin
> Estimated total retirement spending: $994,278
> Avg. cost of living: 6.8% less than avg. (23rd lowest)
> Typical monthly housing costs, 65 and older pop.: $1,258 w/ mortgage; $538 w/o mortgage
> Avg. life expectancy at age 65: age 84.5 (16th highest)
> Population 65 and older: 17.5% (18th highest)
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24. Maine
> Estimated total retirement spending: $1,011,380
> Avg. cost of living: 3.2% less than avg. (24th highest)
> Typical monthly housing costs, 65 and older pop.: $1,274 w/ mortgage; $521 w/o mortgage
> Avg. life expectancy at age 65: age 84.1 (21st lowest)
> Population 65 and older: 21.3% (the highest)
Source: CodyHaskell / Getty Images
23. Utah
> Estimated total retirement spending: $1,017,047
> Avg. cost of living: 4.7% less than avg. (25th highest)
> Typical monthly housing costs, 65 and older pop.: $1,332 w/ mortgage; $422 w/o mortgage
> Avg. life expectancy at age 65: age 84.5 (16th highest)
> Population 65 and older: 11.4% (the lowest)
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22. Pennsylvania
> Estimated total retirement spending: $1,019,615
> Avg. cost of living: 2.4% less than avg. (22nd highest)
> Typical monthly housing costs, 65 and older pop.: $1,310 w/ mortgage; $530 w/o mortgage
> Avg. life expectancy at age 65: age 84.1 (21st lowest)
> Population 65 and older: 18.7% (8th highest)
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Source: ymn / Getty Images
21. Delaware
> Estimated total retirement spending: $1,028,189
> Avg. cost of living: 2.1% less than avg. (21st highest)
> Typical monthly housing costs, 65 and older pop.: $1,375 w/ mortgage; $448 w/o mortgage
> Avg. life expectancy at age 65: age 84.2 (23rd lowest)
> Population 65 and older: 19.5% (5th highest)
Source: Barbara Smyers / iStock via Getty Images
20. Texas
> Estimated total retirement spending: $1,029,393
> Avg. cost of living: 0.5% less than avg. (17th highest)
> Typical monthly housing costs, 65 and older pop.: $1,407 w/ mortgage; $493 w/o mortgage
> Avg. life expectancy at age 65: age 83.9 (18th lowest)
> Population 65 and older: 12.9% (3rd lowest)
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Source: Davel5957 / Getty Images
19. Arizona
> Estimated total retirement spending: $1,062,468
> Avg. cost of living: 0.9% less than avg. (19th highest)
> Typical monthly housing costs, 65 and older pop.: $1,274 w/ mortgage; $419 w/o mortgage
> Avg. life expectancy at age 65: age 84.6 (15th highest)
> Population 65 and older: 18.0% (13th highest)
Source: Sean Pavone / iStock via Getty Images
18. Virginia
> Estimated total retirement spending: $1,066,344
> Avg. cost of living: 1.0% more than avg. (14th highest)
> Typical monthly housing costs, 65 and older pop.: $1,534 w/ mortgage; $475 w/o mortgage
> Avg. life expectancy at age 65: age 84.3 (24th highest)
> Population 65 and older: 15.9% (10th lowest)
Source: standret / iStock
17. Illinois
> Estimated total retirement spending: $1,066,540
> Avg. cost of living: 0.5% more than avg. (16th highest)
> Typical monthly housing costs, 65 and older pop.: $1,437 w/ mortgage; $617 w/o mortgage
> Avg. life expectancy at age 65: age 84.4 (22nd highest)
> Population 65 and older: 16.1% (14th lowest)
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Source: Sean Pavone / iStock
16. Vermont
> Estimated total retirement spending: $1,076,299
> Avg. cost of living: 0.7% less than avg. (18th highest)
> Typical monthly housing costs, 65 and older pop.: $1,447 w/ mortgage; $668 w/o mortgage
> Avg. life expectancy at age 65: age 84.8 (10th highest)
> Population 65 and older: 20.1% (4th highest)
Source: LIKE HE / Getty Images
15. Minnesota
> Estimated total retirement spending: $1,079,270
> Avg. cost of living: 1.4% less than avg. (20th highest)
> Typical monthly housing costs, 65 and older pop.: $1,376 w/ mortgage; $545 w/o mortgage
> Avg. life expectancy at age 65: age 85.0 (5th highest)
> Population 65 and older: 16.3% (18th lowest)
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Source: mtnmichelle / Getty Images
14. Alaska
> Estimated total retirement spending: $1,084,571
> Avg. cost of living: 3.2% more than avg. (10th highest)
> Typical monthly housing costs, 65 and older pop.: $1,595 w/ mortgage; $536 w/o mortgage
> Avg. life expectancy at age 65: age 84.2 (23rd lowest)
> Population 65 and older: 12.4% (2nd lowest)
Source: DenisTangneyJr / Getty Images
13. Rhode Island
> Estimated total retirement spending: $1,086,644
> Avg. cost of living: 1.8% more than avg. (13th highest)
> Typical monthly housing costs, 65 and older pop.: $1,642 w/ mortgage; $717 w/o mortgage
> Avg. life expectancy at age 65: age 84.5 (16th highest)
> Population 65 and older: 17.7% (15th highest)
Source: PC Photography / iStock via Getty Images
12. Florida
> Estimated total retirement spending: $1,096,587
> Avg. cost of living: 0.7% more than avg. (15th highest)
> Typical monthly housing costs, 65 and older pop.: $1,338 w/ mortgage; $516 w/o mortgage
> Avg. life expectancy at age 65: age 84.9 (7th highest)
> Population 65 and older: 20.9% (2nd highest)
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Source: tomwachs / E+ via Getty Images
11. Oregon
> Estimated total retirement spending: $1,106,165
> Avg. cost of living: 2.6% more than avg. (12th highest)
> Typical monthly housing costs, 65 and older pop.: $1,485 w/ mortgage; $554 w/o mortgage
> Avg. life expectancy at age 65: age 84.7 (12th highest)
> Population 65 and older: 18.2% (10th highest)
Source: DenisTangneyJr / Getty Images
10. New Hampshire
> Estimated total retirement spending: $1,106,575
> Avg. cost of living: 3.7% more than avg. (8th highest)
> Typical monthly housing costs, 65 and older pop.: $1,708 w/ mortgage; $821 w/o mortgage
> Avg. life expectancy at age 65: age 84.5 (16th highest)
> Population 65 and older: 18.6% (9th highest)
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Source: juliannafunk / Getty Images
9. Colorado
> Estimated total retirement spending: $1,125,680
> Avg. cost of living: 2.9% more than avg. (11th highest)
> Typical monthly housing costs, 65 and older pop.: $1,547 w/ mortgage; $485 w/o mortgage
> Avg. life expectancy at age 65: age 85.0 (5th highest)
> Population 65 and older: 14.7% (5th lowest)
Source: HaizhanZheng / Getty Images
8. Maryland
> Estimated total retirement spending: $1,130,187
> Avg. cost of living: 6.5% more than avg. (7th highest)
> Typical monthly housing costs, 65 and older pop.: $1,741 w/ mortgage; $602 w/o mortgage
> Avg. life expectancy at age 65: age 84.4 (22nd highest)
> Population 65 and older: 15.9% (9th lowest)
Source: DenisTangneyJr / Getty Images
7. Connecticut
> Estimated total retirement spending: $1,148,930
> Avg. cost of living: 3.4% more than avg. (9th highest)
> Typical monthly housing costs, 65 and older pop.: $1,880 w/ mortgage; $898 w/o mortgage
> Avg. life expectancy at age 65: age 85.3 (2nd highest)
> Population 65 and older: 17.6% (16th highest)
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Source: f1monaco31 / iStock
6. Washington
> Estimated total retirement spending: $1,163,099
> Avg. cost of living: 7.4% more than avg. (6th highest)
> Typical monthly housing costs, 65 and older pop.: $1,631 w/ mortgage; $600 w/o mortgage
> Avg. life expectancy at age 65: age 84.8 (10th highest)
> Population 65 and older: 15.9% (8th lowest)
Source: stresstensor / Getty Images
5. Massachusetts
> Estimated total retirement spending: $1,169,877
> Avg. cost of living: 7.4% more than avg. (5th highest)
> Typical monthly housing costs, 65 and older pop.: $1,915 w/ mortgage; $803 w/o mortgage
> Avg. life expectancy at age 65: age 84.9 (7th highest)
> Population 65 and older: 17.0% (25th highest)
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Source: Creative-Family / Getty Images
4. New Jersey
> Estimated total retirement spending: $1,210,393
> Avg. cost of living: 11.2% more than avg. (2nd highest)
> Typical monthly housing costs, 65 and older pop.: $2,074 w/ mortgage; $1,017 w/o mortgage
> Avg. life expectancy at age 65: age 84.9 (7th highest)
> Population 65 and older: 16.6% (21st lowest)
Source: Ingus Kruklitis / iStock via Getty Images
3. New York
> Estimated total retirement spending: $1,218,129
> Avg. cost of living: 10.2% more than avg. (4th highest)
> Typical monthly housing costs, 65 and older pop.: $1,911 w/ mortgage; $766 w/o mortgage
> Avg. life expectancy at age 65: age 85.2 (4th highest)
> Population 65 and older: 16.9% (25th lowest)
Source: Art Wager / Getty Images
2. California
> Estimated total retirement spending: $1,226,026
> Avg. cost of living: 10.4% more than avg. (3rd highest)
> Typical monthly housing costs, 65 and older pop.: $2,048 w/ mortgage; $588 w/o mortgage
> Avg. life expectancy at age 65: age 85.3 (2nd highest)
> Population 65 and older: 14.8% (6th lowest)
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Source: Art Wager / Getty Images
1. Hawaii
> Estimated total retirement spending: $1,292,872
> Avg. cost of living: 12.0% more than avg. (the highest)
> Typical monthly housing costs, 65 and older pop.: $2,187 w/ mortgage; $534 w/o mortgage
> Avg. life expectancy at age 65: age 86.1 (the highest)
> Population 65 and older: 19.0% (7th 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 Centers for Disease Control and Prevention. Our calculation was based on the average annual expenditure for U.S. residents 65 years and older in 2020 of $47,579, 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 2020 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 average life expectancy in years at age 65, using state-level data from the CDC’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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