This article was written with the assistance of A.I. technology, and has been edited and fact-checked by Melly Alazraki.

The average American has less than $120,000 saved for retirement, according to data from accounting firm PwC. This is woefully inadequate, especially when considering that the typical 65-year-old American can expect to spend just over $1.3 million in retirement. The state in which one chooses to retire can have a significant impact on the cost of retirement, and Hawaii is the most expensive state to retire in.

At $1,501,762 – a figure based on average annual expenditure of retirement-age Americans according to Bureau of Labor Statistics data – Hawaii has the highest estimated lifetime retirement spending. This total $1.5 million figure was adjusted for the state’s cost of living, inflation, life expectancy at 65, and a 15% financial cushion. Hawaii’s nation-leading lifetime retirement expenditure is due in part to the high cost of living in the state, which is 13.2% higher than the national average.

It is important to note that the $1.5 million figure represents estimated retirement expenditure only and not the amount of savings necessary to accommodate this amount. The necessary amount tends to be much smaller as retirement savings often provide investment income and are often further supplemented with Social Security payments and pension plans.

Data from the BLS shows that the number of Americans working past retirement age is rising fast, partly due in part to inadequate savings. This is a trend that is likely to continue.

For many Americans, retirement is a distant dream. With inadequate savings and the currently rising cost of living due to inflation, retirement may seem out of reach. However, by carefully planning for retirement, it is possible to have a comfortable retirement.

Click here to see what it costs to retire comfortably in every U.S. state.

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