Special Report
This Is What It Costs To Retire in California
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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. Here is what you can do if the coronavirus is threatening your retirement.
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.
In California, goods and services are about 16.4% more expensive than average. With the second highest cost of living of any state, California is not a cheap place to retire. On average, a 65 year old will need about $1.4 million for a comfortable retirement, about $271,100 more than what the typical retiree nationwide will need and the second highest retirement cost of all states.
The high retirement costs in California are also attributable to the long average life expectancy in the state. At age 65, the typical Californian is expected to live another 20.7 years — over a year longer than the typical 65 year old American.
State level calculations in this story are based on the average annual expenditure of $50,220 for Americans 65 years and older in 2019, as reported in the BLS Consumer Expenditure Survey. This figure is adjusted by state to account for both cost of living and life expectancy at age 65, and then multiplied by 115% in order to reflect greater financial stability and comfort in retirement. All data in this story is from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation.
| Rank | State | How much you need to comfortably retire | Life expectancy at age 65 (yrs.) | Cost of living |
|---|---|---|---|---|
| 1 | Hawaii | $1,481,336 | 86.5 | 19.3% more than avg. |
| 2 | California | $1,391,547 | 85.7 | 16.4% more than avg. |
| 3 | New York | $1,383,635 | 85.6 | 16.3% more than avg. |
| 4 | New Jersey | $1,359,968 | 85.3 | 16.0% more than avg. |
| 5 | Massachusetts | $1,268,810 | 84.9 | 10.4% more than avg. |
| 6 | Washington | $1,245,825 | 84.9 | 8.4% more than avg. |
| 7 | Connecticut | $1,237,069 | 85.4 | 5.0% more than avg. |
| 8 | Maryland | $1,219,120 | 84.6 | 7.7% more than avg. |
| 9 | Florida | $1,184,110 | 85.3 | 1% more than avg. |
| 10 | New Hampshire | $1,180,933 | 84.2 | 6.5% more than avg. |
| 11 | Vermont | $1,178,958 | 84.8 | 3.1% more than avg. |
| 12 | Colorado | $1,177,006 | 85.0 | 1.9% more than avg. |
| 13 | Alaska | $1,159,339 | 84.1 | 5.1% more than avg. |
| 14 | Oregon | $1,150,960 | 84.5 | 2.2% more than avg. |
| 15 | Minnesota | $1,148,938 | 85.3 | 2.0% less than avg. |
| 16 | Rhode Island | $1,146,674 | 84.6 | 1.3% more than avg. |
| 17 | Virginia | $1,140,824 | 84.5 | 1.3% more than avg. |
| 18 | Arizona | $1,117,884 | 85.1 | 3.7% less than avg. |
| 19 | Delaware | $1,113,686 | 84.4 | 0.6% less than avg. |
| 20 | Illinois | $1,096,903 | 84.5 | 2.6% less than avg. |
| 21 | Utah | $1,086,767 | 84.5 | 3.5% less than avg. |
| 22 | Maine | $1,072,421 | 83.7 | 0.7% less than avg. |
| 23 | Texas | $1,070,048 | 84.2 | 3.5% less than avg. |
| 24 | Pennsylvania | $1,064,388 | 84.0 | 3.0% less than avg. |
| 25 | Nevada | $1,063,152 | 83.9 | 2.6% less than avg. |
| 26 | Wisconsin | $1,045,578 | 84.7 | 8.1% less than avg. |
| 27 | New Mexico | $1,036,476 | 84.7 | 8.9% less than avg. |
| 28 | Idaho | $1,033,016 | 84.4 | 7.8% less than avg. |
| 29 | Wyoming | $1,029,020 | 84.2 | 7.2% less than avg. |
| 30 | Michigan | $1,007,484 | 83.9 | 7.7% less than avg. |
| 31 | North Dakota | $1,005,682 | 84.5 | 10.7% less than avg. |
| 32 | Nebraska | $1,002,765 | 84.4 | 10.5% less than avg. |
| 33 | Iowa | $1,002,303 | 84.5 | 11.0% less than avg. |
| 34 | North Carolina | $1,000,935 | 83.9 | 8.3% less than avg. |
| 35 | Montana | $998,983 | 83.5 | 6.5% less than avg. |
| 36 | Georgia | $995,777 | 83.5 | 6.8% less than avg. |
| 37 | South Dakota | $983,718 | 84.4 | 12.2% less than avg. |
| 38 | Kansas | $978,798 | 84.0 | 10.8% less than avg. |
| 39 | South Carolina | $967,045 | 83.3 | 8.5% less than avg. |
| 40 | Missouri | $952,821 | 83.6 | 11.3% less than avg. |
| 41 | Indiana | $942,575 | 83.4 | 11.3% less than avg. |
| 42 | Tennessee | $937,660 | 83.1 | 10.3% less than avg. |
| 43 | Ohio | $929,176 | 83.2 | 11.6% less than avg. |
| 44 | Louisiana | $918,844 | 83.1 | 12.1% less than avg. |
| 45 | Oklahoma | $901,455 | 82.9 | 12.8% less than avg. |
| 46 | Kentucky | $883,332 | 82.5 | 12.6% less than avg. |
| 47 | West Virginia | $880,300 | 82.5 | 12.9% less than avg. |
| 48 | Alabama | $877,072 | 82.7 | 14.2% less than avg. |
| 49 | Arkansas | $875,611 | 82.9 | 15.3% less than avg. |
| 50 | Mississippi | $857,886 | 82.6 | 15.6% less than avg. |
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