What It Costs to Retire Comfortably in Every State

Special Report

Published: January 22, 2019 5:43 pm

Last Updated: March 13, 2020 10:04 pm

As the baby boomer generation continues to age, millions of Americans are due for retirement. Every day, roughly 10,000 U.S. residents turn 65. However, a record number of people 65 and older are remaining in the workforce because of financial insecurity. The number of seniors who continue to work has more than doubled since 2000.

Many senior citizens do not have the luxury of choosing where to spend their retirement. This could be because they depend on younger family members or because relocating is too expensive. Those who choose to exit the workforce and rely on their savings, pensions, and social security face different financial burdens depending on the state where they spend their golden years.

In one state, a retired couple can live comfortably on just $36,000 a year. In another state, the same standard of living costs as much as $56,000. A person who retires at 65 and lives 20 more years could need an extra half a million dollars for living expenses depending on which state they are in.

Click here to see what it cost to retire comfortably in every state.

While many categories of expenses are roughly the same for all Americans regardless of age, retirees can expect some differences in their monthly budget. For example, according to the Bureau of Labor Statistics’ Consumer Expenditure Survey, Americans 65 and over spend 34.3% more per year on health care than the average U.S. consumer. They also, as might be expected, spend far less on what are often major expenses for younger Americans, such as education and childcare.

Methodology

In order to determine what it costs to retire in every state, 24/7 Wall St. reviewed annual expenses at the state level as determined by the Bureau of Labor Statistics’ 2017 Consumer Expenditure Survey. We then reviewed data from the Economic Policy Institute’s Family Budget Calculator for a couple 65 or older with no dependents, which measures the income a family needs in order to attain a modest yet adequate standard of living at the metropolitan level. Using the Consumer Expenditure Survey’s differences in budgetary needs between the average American and residents 65 and over, 24/7 Wall St. calculated the average annual retirement costs by state.

50. Arkansas
> Estimated annual retirement costs: $36,378
> Avg. annual earnings for 65+ households: $22,276 (8th lowest)
> Avg. annual homeownership costs for seniors: $11,112 (2nd lowest)
> Pct. residents 65+: 16.5% (19th highest)

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49. New Mexico
> Estimated annual retirement costs: $36,628
> Avg. annual earnings for 65+ households: $29,384 (11th highest)
> Avg. annual homeownership costs for seniors: $14,280 (22nd lowest)
> Pct. residents 65+: 16.8% (13th highest)

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48. Kentucky
> Estimated annual retirement costs: $36,680
> Avg. annual earnings for 65+ households: $22,698 (10th lowest)
> Avg. annual homeownership costs for seniors: $11,832 (5th lowest)
> Pct. residents 65+: 15.9% (24th lowest)

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47. Ohio
> Estimated annual retirement costs: $36,767
> Avg. annual earnings for 65+ households: $25,388 (25th highest)
> Avg. annual homeownership costs for seniors: $12,864 (10th lowest)
> Pct. residents 65+: 16.6% (18th highest)

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46. Michigan
> Estimated annual retirement costs: $37,844
> Avg. annual earnings for 65+ households: $23,394 (16th lowest)
> Avg. annual homeownership costs for seniors: $13,572 (15th lowest)
> Pct. residents 65+: 16.7% (15th highest)

See all stories featuring: Michigan

45. Indiana
> Estimated annual retirement costs: $37,874
> Avg. annual earnings for 65+ households: $19,728 (3rd lowest)
> Avg. annual homeownership costs for seniors: $11,436 (4th lowest)
> Pct. residents 65+: 15.4% (16th lowest)

See all stories featuring: Indiana

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44. Nevada
> Estimated annual retirement costs: $39,043
> Avg. annual earnings for 65+ households: $29,038 (12th highest)
> Avg. annual homeownership costs for seniors: $15,156 (24th highest)
> Pct. residents 65+: 15.3% (15th lowest)

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43. Idaho
> Estimated annual retirement costs: $39,099
> Avg. annual earnings for 65+ households: $24,868 (23rd lowest)
> Avg. annual homeownership costs for seniors: $13,332 (13th lowest)
> Pct. residents 65+: 15.3% (14th lowest)

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42. Mississippi
> Estimated annual retirement costs: $39,139
> Avg. annual earnings for 65+ households: $23,196 (15th lowest)
> Avg. annual homeownership costs for seniors: $11,280 (3rd lowest)
> Pct. residents 65+: 15.6% (20th lowest)

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41. North Dakota
> Estimated annual retirement costs: $39,470
> Avg. annual earnings for 65+ households: $19,205 (2nd lowest)
> Avg. annual homeownership costs for seniors: $14,292 (23rd lowest)
> Pct. residents 65+: 14.9% (9th lowest)

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40. Iowa
> Estimated annual retirement costs: $39,491
> Avg. annual earnings for 65+ households: $20,968 (5th lowest)
> Avg. annual homeownership costs for seniors: $13,068 (11th lowest)
> Pct. residents 65+: 16.7% (16th highest)

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39. Missouri
> Estimated annual retirement costs: $39,696
> Avg. annual earnings for 65+ households: $22,969 (13th lowest)
> Avg. annual homeownership costs for seniors: $13,176 (12th lowest)
> Pct. residents 65+: 16.5% (20th highest)

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38. Utah
> Estimated annual retirement costs: $39,725
> Avg. annual earnings for 65+ households: $27,703 (19th highest)
> Avg. annual homeownership costs for seniors: $15,408 (21st highest)
> Pct. residents 65+: 10.8% (the lowest)

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37. Texas
> Estimated annual retirement costs: $39,814
> Avg. annual earnings for 65+ households: $25,827 (22nd highest)
> Avg. annual homeownership costs for seniors: $15,480 (20th highest)
> Pct. residents 65+: 12.2% (3rd lowest)

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36. Wisconsin
> Estimated annual retirement costs: $39,870
> Avg. annual earnings for 65+ households: $24,233 (19th lowest)
> Avg. annual homeownership costs for seniors: $14,472 (25th lowest)
> Pct. residents 65+: 16.5% (21st highest)

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35. Kansas
> Estimated annual retirement costs: $40,237
> Avg. annual earnings for 65+ households: $20,935 (4th lowest)
> Avg. annual homeownership costs for seniors: $14,100 (18th lowest)
> Pct. residents 65+: 15.4% (18th lowest)

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34. Alabama
> Estimated annual retirement costs: $40,780
> Avg. annual earnings for 65+ households: $24,427 (20th lowest)
> Avg. annual homeownership costs for seniors: $12,288 (7th lowest)
> Pct. residents 65+: 16.5% (22nd highest)

See all stories featuring: Alabama

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33. Tennessee
> Estimated annual retirement costs: $40,855
> Avg. annual earnings for 65+ households: $23,518 (17th lowest)
> Avg. annual homeownership costs for seniors: $12,720 (8th lowest)
> Pct. residents 65+: 15.9% (25th highest)

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32. South Dakota
> Estimated annual retirement costs: $40,923
> Avg. annual earnings for 65+ households: $24,863 (22nd lowest)
> Avg. annual homeownership costs for seniors: $14,028 (17th lowest)
> Pct. residents 65+: 16.3% (23rd highest)

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31. Rhode Island
> Estimated annual retirement costs: $40,954
> Avg. annual earnings for 65+ households: $25,316 (25th lowest)
> Avg. annual homeownership costs for seniors: $19,452 (8th highest)
> Pct. residents 65+: 16.7% (17th highest)

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30. Louisiana
> Estimated annual retirement costs: $41,107
> Avg. annual earnings for 65+ households: $23,089 (14th lowest)
> Avg. annual homeownership costs for seniors: $12,252 (6th lowest)
> Pct. residents 65+: 14.9% (7th lowest)

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29. Oklahoma
> Estimated annual retirement costs: $41,296
> Avg. annual earnings for 65+ households: $21,927 (6th lowest)
> Avg. annual homeownership costs for seniors: $12,756 (9th lowest)
> Pct. residents 65+: 15.3% (13th lowest)

See all stories featuring: Oklahoma

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28. West Virginia
> Estimated annual retirement costs: $41,696
> Avg. annual earnings for 65+ households: $18,438 (the lowest)
> Avg. annual homeownership costs for seniors: $10,620 (the lowest)
> Pct. residents 65+: 19.3% (3rd highest)

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27. South Carolina
> Estimated annual retirement costs: $42,224
> Avg. annual earnings for 65+ households: $26,211 (21st highest)
> Avg. annual homeownership costs for seniors: $13,776 (16th lowest)
> Pct. residents 65+: 17.2% (10th highest)

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26. Nebraska
> Estimated annual retirement costs: $42,386
> Avg. annual earnings for 65+ households: $22,477 (9th lowest)
> Avg. annual homeownership costs for seniors: $14,340 (24th lowest)
> Pct. residents 65+: 15.4% (17th lowest)

See all stories featuring: Nebraska

25. Georgia
> Estimated annual retirement costs: $42,442
> Avg. annual earnings for 65+ households: $28,516 (15th highest)
> Avg. annual homeownership costs for seniors: $14,184 (19th lowest)
> Pct. residents 65+: 13.4% (4th lowest)

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24. Florida
> Estimated annual retirement costs: $42,586
> Avg. annual earnings for 65+ households: $28,161 (17th highest)
> Avg. annual homeownership costs for seniors: $15,180 (22nd highest)
> Pct. residents 65+: 20.1% (the highest)

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23. Montana
> Estimated annual retirement costs: $42,611
> Avg. annual earnings for 65+ households: $24,039 (18th lowest)
> Avg. annual homeownership costs for seniors: $15,180 (22nd highest)
> Pct. residents 65+: 18.1% (5th highest)

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22. New Hampshire
> Estimated annual retirement costs: $42,634
> Avg. annual earnings for 65+ households: $25,477 (24th highest)
> Avg. annual homeownership costs for seniors: $19,236 (10th highest)
> Pct. residents 65+: 17.6% (9th highest)

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21. Washington
> Estimated annual retirement costs: $42,749
> Avg. annual earnings for 65+ households: $27,978 (18th highest)
> Avg. annual homeownership costs for seniors: $18,252 (11th highest)
> Pct. residents 65+: 15.1% (11th lowest)

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20. Pennsylvania
> Estimated annual retirement costs: $42,754
> Avg. annual earnings for 65+ households: $22,765 (11th lowest)
> Avg. annual homeownership costs for seniors: $14,796 (25th highest)
> Pct. residents 65+: 17.8% (7th highest)

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19. Illinois
> Estimated annual retirement costs: $43,221
> Avg. annual earnings for 65+ households: $29,890 (10th highest)
> Avg. annual homeownership costs for seniors: $17,028 (15th highest)
> Pct. residents 65+: 15.2% (12th lowest)

See all stories featuring: Illinois

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18. Minnesota
> Estimated annual retirement costs: $43,404
> Avg. annual earnings for 65+ households: $25,156 (24th lowest)
> Avg. annual homeownership costs for seniors: $16,044 (19th highest)
> Pct. residents 65+: 15.4% (19th lowest)

See all stories featuring: Minnesota

17. Oregon
> Estimated annual retirement costs: $43,992
> Avg. annual earnings for 65+ households: $28,509 (16th highest)
> Avg. annual homeownership costs for seniors: $17,340 (13th highest)
> Pct. residents 65+: 17.1% (12th highest)

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16. Wyoming
> Estimated annual retirement costs: $44,382
> Avg. annual earnings for 65+ households: $25,603 (23rd highest)
> Avg. annual homeownership costs for seniors: $16,332 (18th highest)
> Pct. residents 65+: 15.6% (21st lowest)

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15. Maine
> Estimated annual retirement costs: $44,525
> Avg. annual earnings for 65+ households: $22,892 (12th lowest)
> Avg. annual homeownership costs for seniors: $14,220 (20th lowest)
> Pct. residents 65+: 20.0% (2nd highest)

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14. Arizona
> Estimated annual retirement costs: $44,946
> Avg. annual earnings for 65+ households: $27,184 (20th highest)
> Avg. annual homeownership costs for seniors: $14,232 (21st lowest)
> Pct. residents 65+: 17.1% (11th highest)

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13. North Carolina
> Estimated annual retirement costs: $45,329
> Avg. annual earnings for 65+ households: $24,594 (21st lowest)
> Avg. annual homeownership costs for seniors: $13,512 (14th lowest)
> Pct. residents 65+: 15.9% (23rd lowest)

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12. Colorado
> Estimated annual retirement costs: $45,495
> Avg. annual earnings for 65+ households: $31,180 (8th highest)
> Avg. annual homeownership costs for seniors: $17,268 (14th highest)
> Pct. residents 65+: 13.8% (5th lowest)

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11. Delaware
> Estimated annual retirement costs: $46,150
> Avg. annual earnings for 65+ households: $35,495 (3rd highest)
> Avg. annual homeownership costs for seniors: $16,536 (17th highest)
> Pct. residents 65+: 18.0% (6th highest)

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10. Massachusetts
> Estimated annual retirement costs: $46,265
> Avg. annual earnings for 65+ households: $31,553 (7th highest)
> Avg. annual homeownership costs for seniors: $21,192 (6th highest)
> Pct. residents 65+: 16.1% (24th highest)

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9. Virginia
> Estimated annual retirement costs: $46,758
> Avg. annual earnings for 65+ households: $34,439 (5th highest)
> Avg. annual homeownership costs for seniors: $17,472 (12th highest)
> Pct. residents 65+: 15.0% (10th lowest)

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8. Maryland
> Estimated annual retirement costs: $47,061
> Avg. annual earnings for 65+ households: $36,417 (2nd highest)
> Avg. annual homeownership costs for seniors: $19,896 (7th highest)
> Pct. residents 65+: 14.9% (8th lowest)

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7. New Jersey
> Estimated annual retirement costs: $47,760
> Avg. annual earnings for 65+ households: $28,773 (14th highest)
> Avg. annual homeownership costs for seniors: $23,136 (2nd highest)
> Pct. residents 65+: 15.7% (22nd lowest)

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6. Connecticut
> Estimated annual retirement costs: $48,532
> Avg. annual earnings for 65+ households: $30,190 (9th highest)
> Avg. annual homeownership costs for seniors: $21,624 (5th highest)
> Pct. residents 65+: 16.8% (14th highest)

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5. Vermont
> Estimated annual retirement costs: $49,598
> Avg. annual earnings for 65+ households: $22,041 (7th lowest)
> Avg. annual homeownership costs for seniors: $16,692 (16th highest)
> Pct. residents 65+: 18.8% (4th highest)

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4. California
> Estimated annual retirement costs: $49,640
> Avg. annual earnings for 65+ households: $34,746 (4th highest)
> Avg. annual homeownership costs for seniors: $23,016 (3rd highest)
> Pct. residents 65+: 13.9% (6th lowest)

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3. New York
> Estimated annual retirement costs: $50,321
> Avg. annual earnings for 65+ households: $29,018 (13th highest)
> Avg. annual homeownership costs for seniors: $21,648 (4th highest)
> Pct. residents 65+: 15.9% (25th lowest)

See all stories featuring: New York

2. Hawaii
> Estimated annual retirement costs: $54,590
> Avg. annual earnings for 65+ households: $31,603 (6th highest)
> Avg. annual homeownership costs for seniors: $24,768 (the highest)
> Pct. residents 65+: 17.8% (8th highest)

See all stories featuring: Hawaii

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1. Alaska
> Estimated annual retirement costs: $56,879
> Avg. annual earnings for 65+ households: $36,513 (the highest)
> Avg. annual homeownership costs for seniors: $19,260 (9th highest)
> Pct. residents 65+: 11.2% (2nd lowest)

See all stories featuring: Alaska

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