Here Is What It Costs To Retire in Indiana

A 2019 report from the Federal Reserve found that nearly one in every four American adults have no retirement savings. During the economic crisis brought on by the COVID-19 pandemic, that share has likely grown. Despite stimulus payments and enhanced unemployment benefits, millions of Americans have reduced retirement account contributions or stopped them entirely — some have even been forced to make withdrawals.

At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year. Multiply those figures, and add in a little extra for unforeseen expenses and additional financial security, and a comfortable retirement costs an estimated $1,120,408 in the United States.

Indiana is one of only 10 states nationwide where a 65 year old can retire and live comfortably with less than $950,000. The average retirement cost in the state of $942,575 is nearly $178,000 less than the national average.

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

To determine how much it costs for the average person to retire comfortably in every state, 24/7 Wall used 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 2019 of $50,220, 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 average life expectancy at age 65, using state-level data from the IMHE’s Global Health Data Exchange for 2017.

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.

State	Cost of retirement	Rank	Population 65+	Rank	Avg. monthly homeownership cost for residents 65+	Rank	65+ households mean earnings	Rank
Mississippi	$857,886	50	16.4%	32	$345	49	$49,422	44
Arkansas	$875,611	49	17.4%	22	$348	47	$47,041	48
Alabama	$877,072	48	17.4%	20	$358	45	$51,601	40
West Virginia	$880,300	47	20.5%	3	$313	50	$45,532	50
Kentucky	$883,332	46	16.9%	27	$373	44	$52,989	33
Oklahoma	$901,455	45	16.1%	39	$407	38	$61,091	19
Louisiana	$918,844	44	16.0%	40	$346	48	$55,809	27
Ohio	$929,176	43	17.5%	19	$469	28	$50,402	42
Tennessee	$937,660	42	16.7%	29	$388	41	$55,990	26
Indiana	$942,575	41	16.1%	38	$406	39	$51,950	38
Missouri	$952,821	40	17.2%	23	$452	30	$51,940	39
South Carolina	$967,045	39	18.2%	11	$374	43	$51,372	41
Kansas	$978,798	38	16.4%	31	$512	21	$53,081	32
South Dakota	$983,718	37	17.4%	21	$493	23	$48,100	46
Georgia	$995,777	36	14.3%	47	$409	37	$59,751	21
Montana	$998,983	35	19.5%	6	$445	32	$48,370	45
North Carolina	$1,000,935	34	16.7%	28	$402	40	$52,481	34
Iowa	$1,002,303	33	17.5%	17	$498	22	$49,521	43
Nebraska	$1,002,765	32	16.1%	36	$532	17	$54,249	30
North Dakota	$1,005,682	31	15.8%	44	$469	28	$62,662	16
Michigan	$1,007,484	30	17.7%	14	$482	26	$52,137	36
Wyoming	$1,029,020	29	17.1%	24	$415	36	$52,054	37
Idaho	$1,033,016	28	16.2%	35	$384	42	$52,216	35
New Mexico	$1,036,476	27	18.0%	12	$355	46	$58,485	23
Wisconsin	$1,045,578	26	17.5%	18	$538	14	$46,908	49
Nevada	$1,063,152	25	16.2%	34	$430	33	$56,563	25
Pennsylvania	$1,064,388	24	18.7%	8	$530	18	$59,513	22
Texas	$1,070,048	23	12.9%	48	$493	23	$64,589	12
Maine	$1,072,421	22	21.3%	1	$521	19	$48,025	47
Utah	$1,086,767	21	11.4%	50	$422	34	$61,313	18
Illinois	$1,096,903	20	16.1%	37	$617	8	$62,797	15
Delaware	$1,113,686	19	19.5%	5	$448	31	$63,962	14
Arizona	$1,117,884	18	18.0%	13	$419	35	$57,469	24
Virginia	$1,140,824	17	15.9%	41	$475	27	$68,435	10
Rhode Island	$1,146,674	16	17.7%	15	$717	6	$69,256	9
Minnesota	$1,148,938	15	16.3%	33	$545	13	$53,272	31
Oregon	$1,150,960	14	18.2%	10	$554	12	$54,612	28
Alaska	$1,159,339	13	12.4%	49	$536	15	$69,443	8
Colorado	$1,177,006	12	14.7%	46	$485	25	$64,403	13
Vermont	$1,178,958	11	20.1%	4	$668	7	$54,525	29
New Hampshire	$1,180,933	10	18.6%	9	$821	3	$62,642	17
Florida	$1,184,110	9	20.9%	2	$516	20	$60,598	20
Maryland	$1,219,120	8	15.9%	42	$602	9	$80,477	2
Connecticut	$1,237,069	7	17.6%	16	$898	2	$79,202	5
Washington	$1,245,825	6	15.9%	43	$600	10	$66,581	11
Massachusetts	$1,268,810	5	17.0%	25	$803	4	$76,131	7
New Jersey	$1,359,968	4	16.6%	30	$1,017	1	$79,112	6
New York	$1,383,635	3	16.9%	26	$766	5	$79,339	4
California	$1,391,547	2	14.8%	45	$588	11	$80,459	3
Hawaii	$1,481,336	1	19.0%	7	$534	16	$81,027	1