Most workers in the U.S. aspire to one day retire comfortably, with a degree of financial security. But a growing number of Americans are not optimistic about their prospects. A recent Gallup poll found that only 43% of workers in 2023 expect to live comfortably in retirement, down from 57% in 2019. Such widespread pessimism may be warranted. 

In an era of historic inflation, many workers are prioritizing their immediate financial needs over saving for retirement, and a growing number of Americans are remaining in the workforce well past retirement age. 

According to the latest Household Pulse Survey from the U.S. Census Bureau, 26% of adults 18 and older either sold assets or withdrew money from savings or retirement accounts to meet spending needs in the last week. Additionally, the Bureau of Labor Statistics projects that the number of workers aged 65 and older will increase by 5.8 million over the decade ending in 2029. 

Exactly what comfort and financial security looks like in retirement varies, depending on the individual. But for the typical American, it is not cheap. 

Using data from the BLS, the Bureau of Economic Analysis, and the National Center for Health Statistics, 24/7 Wall St. calculated the estimated average expenditures throughout retirement in each state. 

The average annual expenditure in 2022 among the 65 and older population is $57,818, according to the BLS. Accounting for average life expectancy at age 65, as well as for inflation and a 15% financial cushion, the typical American can expect to spend about $1,461,000 throughout retirement. 

Adjusting for variations in cost of living, the range of estimated retirement spending in every state differs by nearly $400,000 from the cheapest state to the most expensive. While a portion of retirement expenses can be covered by Social Security, supplemental income sources such as investment income, a pension plan or savings are critical. (These are the 13 massive mistakes you can make getting ready to retire.)

Older Americans on tighter budgets can significantly reduce expenses in retirement by residing in states with a low cost of living. In many Southern states, as well as several states in the Midwest, goods and services cost well below the national average – in some cases over 10% lower. On the other hand, living expenses in certain mid-Atlantic, Northeastern, and West Coast states can be anywhere from 6% to 13% higher than the national average. (Here is a look at the best and worst states to retire in.)

A detailed methodology is available at the bottom of this story.

50. Mississippi

• Estimated total retirement spending: $1,265,465
• Avg. cost of living: 13.4% lower than avg.
• Median income for 65 & older households, 2022: $41,013 (the lowest)
• Pop. 65 and older, 2022: 17.5% (23rd lowest)

49. Alabama

• Estimated total retirement spending: $1,287,939
• Avg. cost of living: 11.9% lower than avg.
• Median income for 65 & older households, 2022: $47,114 (6th lowest)
• Pop. 65 and older, 2022: 18.0% (25th highest)

48. Kentucky

• Estimated total retirement spending: $1,302,332
• Avg. cost of living: 10.9% lower than avg.
• Median income for 65 & older households, 2022: $43,927 (5th lowest)
• Pop. 65 and older, 2022: 17.5% (24th lowest)

47. Arkansas

• Estimated total retirement spending: $1,307,023
• Avg. cost of living: 10.6% lower than avg.
• Median income for 65 & older households, 2022: $42,943 (4th lowest)
• Pop. 65 and older, 2022: 17.7% (25th lowest)

46. Iowa

• Estimated total retirement spending: $1,308,820
• Avg. cost of living: 10.4% lower than avg.
• Median income for 65 & older households, 2022: $52,006 (23rd lowest)
• Pop. 65 and older, 2022: 18.4% (19th highest)

45. New Mexico

• Estimated total retirement spending: $1,313,774
• Avg. cost of living: 10.1% lower than avg.
• Median income for 65 & older households, 2022: $50,240 (15th lowest)
• Pop. 65 and older, 2022: 19.2% (11th highest)

44. South Dakota

• Estimated total retirement spending: $1,317,281
• Avg. cost of living: 9.9% lower than avg.
• Median income for 65 & older households, 2022: $50,665 (18th lowest)
• Pop. 65 and older, 2022: 18.2% (21st highest)

43. Oklahoma

• Estimated total retirement spending: $1,319,064
• Avg. cost of living: 9.7% lower than avg.
• Median income for 65 & older households, 2022: $47,259 (7th lowest)
• Pop. 65 and older, 2022: 16.5% (7th lowest)

42. West Virginia

• Estimated total retirement spending: $1,326,282
• Avg. cost of living: 9.2% lower than avg.
• Median income for 65 & older households, 2022: $41,438 (2nd lowest)
• Pop. 65 and older, 2022: 21.2% (4th highest)

41. Tennessee

• Estimated total retirement spending: $1,327,612
• Avg. cost of living: 9.1% lower than avg.
• Median income for 65 & older households, 2022: $48,478 (11th lowest)
• Pop. 65 and older, 2022: 17.3% (19th lowest)

40. North Dakota

• Estimated total retirement spending: $1,331,251
• Avg. cost of living: 8.9% lower than avg.
• Median income for 65 & older households, 2022: $56,319 (16th highest)
• Pop. 65 and older, 2022: 16.7% (8th lowest)

39. Kansas

• Estimated total retirement spending: $1,332,040
• Avg. cost of living: 8.8% lower than avg.
• Median income for 65 & older households, 2022: $52,203 (25th lowest)
• Pop. 65 and older, 2022: 17.2% (18th lowest)

38. Louisiana

• Estimated total retirement spending: $1,333,779
• Avg. cost of living: 8.7% lower than avg.
• Median income for 65 & older households, 2022: $42,215 (3rd lowest)
• Pop. 65 and older, 2022: 17.0% (14th lowest)

37. Wyoming

• Estimated total retirement spending: $1,335,854
• Avg. cost of living: 8.6% lower than avg.
• Median income for 65 & older households, 2022: $53,229 (23rd highest)
• Pop. 65 and older, 2022: 18.6% (17th highest)

36. Montana

• Estimated total retirement spending: $1,338,031
• Avg. cost of living: 8.4% lower than avg.
• Median income for 65 & older households, 2022: $48,165 (8th lowest)
• Pop. 65 and older, 2022: 20.1% (8th highest)

35. Nebraska

• Estimated total retirement spending: $1,340,720
• Avg. cost of living: 8.2% lower than avg.
• Median income for 65 & older households, 2022: $51,974 (22nd lowest)
• Pop. 65 and older, 2022: 17.0% (16th lowest)

34. Idaho

• Estimated total retirement spending: $1,341,085
• Avg. cost of living: 8.2% lower than avg.
• Median income for 65 & older households, 2022: $52,132 (24th lowest)
• Pop. 65 and older, 2022: 17.0% (15th lowest)

33. Missouri

• Estimated total retirement spending: $1,344,680
• Avg. cost of living: 8.0% lower than avg.
• Median income for 65 & older households, 2022: $48,298 (9th lowest)
• Pop. 65 and older, 2022: 18.0% (24th highest)

32. Ohio

• Estimated total retirement spending: $1,351,065
• Avg. cost of living: 7.5% lower than avg.
• Median income for 65 & older households, 2022: $49,081 (12th lowest)
• Pop. 65 and older, 2022: 18.4% (18th highest)

31. Indiana

• Estimated total retirement spending: $1,355,098
• Avg. cost of living: 7.3% lower than avg.
• Median income for 65 & older households, 2022: $48,309 (10th lowest)
• Pop. 65 and older, 2022: 16.9% (12th lowest)

30. Wisconsin

• Estimated total retirement spending: $1,364,041
• Avg. cost of living: 6.7% lower than avg.
• Median income for 65 & older households, 2022: $50,167 (14th lowest)
• Pop. 65 and older, 2022: 18.7% (16th highest)

29. South Carolina

• Estimated total retirement spending: $1,369,097
• Avg. cost of living: 6.3% lower than avg.
• Median income for 65 & older households, 2022: $50,287 (16th lowest)
• Pop. 65 and older, 2022: 19.1% (12th highest)

28. North Carolina

• Estimated total retirement spending: $1,370,734
• Avg. cost of living: 6.2% lower than avg.
• Median income for 65 & older households, 2022: $49,781 (13th lowest)
• Pop. 65 and older, 2022: 17.4% (22nd lowest)

27. Michigan

• Estimated total retirement spending: $1,377,280
• Avg. cost of living: 5.7% lower than avg.
• Median income for 65 & older households, 2022: $51,010 (19th lowest)
• Pop. 65 and older, 2022: 18.7% (15th highest)

26. Utah

• Estimated total retirement spending: $1,382,234
• Avg. cost of living: 5.4% lower than avg.
• Median income for 65 & older households, 2022: $63,225 (8th highest)
• Pop. 65 and older, 2022: 11.9% (the lowest)

25. Nevada

• Estimated total retirement spending: $1,396,130
• Avg. cost of living: 4.5% lower than avg.
• Median income for 65 & older households, 2022: $54,959 (21st highest)
• Pop. 65 and older, 2022: 16.9% (13th lowest)

24. Georgia

• Estimated total retirement spending: $1,399,652
• Avg. cost of living: 4.2% lower than avg.
• Median income for 65 & older households, 2022: $51,664 (20th lowest)
• Pop. 65 and older, 2022: 15.1% (4th lowest)

23. Pennsylvania

• Estimated total retirement spending: $1,408,230
• Avg. cost of living: 3.6% lower than avg.
• Median income for 65 & older households, 2022: $50,330 (17th lowest)
• Pop. 65 and older, 2022: 19.6% (9th highest)

22. Arizona

• Estimated total retirement spending: $1,413,344
• Avg. cost of living: 3.3% lower than avg.
• Median income for 65 & older households, 2022: $57,507 (14th highest)
• Pop. 65 and older, 2022: 18.8% (14th highest)

21. Maine

• Estimated total retirement spending: $1,420,417
• Avg. cost of living: 2.8% lower than avg.
• Median income for 65 & older households, 2022: $51,870 (21st lowest)
• Pop. 65 and older, 2022: 22.6% (the highest)

20. Delaware

• Estimated total retirement spending: $1,427,314
• Avg. cost of living: 2.3% lower than avg.
• Median income for 65 & older households, 2022: $62,733 (9th highest)
• Pop. 65 and older, 2022: 20.8% (5th highest)

19. Minnesota

• Estimated total retirement spending: $1,438,215
• Avg. cost of living: 1.6% lower than avg.
• Median income for 65 & older households, 2022: $56,839 (15th highest)
• Pop. 65 and older, 2022: 17.4% (21st lowest)

18. Texas

• Estimated total retirement spending: $1,439,369
• Avg. cost of living: 1.5% lower than avg.
• Median income for 65 & older households, 2022: $52,331 (25th highest)
• Pop. 65 and older, 2022: 13.4% (2nd lowest)

17. Vermont

• Estimated total retirement spending: $1,441,678
• Avg. cost of living: 1.3% lower than avg.
• Median income for 65 & older households, 2022: $53,245 (22nd highest)
• Pop. 65 and older, 2022: 21.6% (2nd highest)

16. Illinois

• Estimated total retirement spending: $1,481,892
• Avg. cost of living: 1.4% higher than avg.
• Median income for 65 & older households, 2022: $55,071 (20th highest)
• Pop. 65 and older, 2022: 17.2% (17th lowest)

15. Florida

• Estimated total retirement spending: $1,482,155
• Avg. cost of living: 1.4% higher than avg.
• Median income for 65 & older households, 2022: $52,625 (24th highest)
• Pop. 65 and older, 2022: 21.6% (3rd highest)

14. Rhode Island

• Estimated total retirement spending: $1,491,697
• Avg. cost of living: 2.1% higher than avg.
• Median income for 65 & older households, 2022: $55,691 (19th highest)
• Pop. 65 and older, 2022: 18.8% (13th highest)

13. Virginia

• Estimated total retirement spending: $1,494,546
• Avg. cost of living: 2.3% higher than avg.
• Median income for 65 & older households, 2022: $61,447 (11th highest)
• Pop. 65 and older, 2022: 16.8% (10th lowest)

12. New Hampshire

• Estimated total retirement spending: $1,497,936
• Avg. cost of living: 2.5% higher than avg.
• Median income for 65 & older households, 2022: $59,946 (13th highest)
• Pop. 65 and older, 2022: 20.2% (7th highest)

11. Connecticut

• Estimated total retirement spending: $1,499,295
• Avg. cost of living: 2.6% higher than avg.
• Median income for 65 & older households, 2022: $65,053 (6th highest)
• Pop. 65 and older, 2022: 18.3% (20th highest)

10. Colorado

• Estimated total retirement spending: $1,505,228
• Avg. cost of living: 3.0% higher than avg.
• Median income for 65 & older households, 2022: $63,445 (7th highest)
• Pop. 65 and older, 2022: 15.7% (5th lowest)

9. Oregon

• Estimated total retirement spending: $1,505,564
• Avg. cost of living: 3.0% higher than avg.
• Median income for 65 & older households, 2022: $55,973 (17th highest)
• Pop. 65 and older, 2022: 19.3% (10th highest)

8. Alaska

• Estimated total retirement spending: $1,526,124
• Avg. cost of living: 4.4% higher than avg.
• Median income for 65 & older households, 2022: $66,292 (3rd highest)
• Pop. 65 and older, 2022: 13.8% (3rd lowest)

7. Maryland

• Estimated total retirement spending: $1,552,193
• Avg. cost of living: 6.2% higher than avg.
• Median income for 65 & older households, 2022: $69,070 (2nd highest)
• Pop. 65 and older, 2022: 16.9% (11th lowest)

6. Massachusetts

• Estimated total retirement spending: $1,557,044
• Avg. cost of living: 6.6% higher than avg.
• Median income for 65 & older households, 2022: $60,810 (12th highest)
• Pop. 65 and older, 2022: 18.0% (23rd highest)

5. Washington

• Estimated total retirement spending: $1,591,092
• Avg. cost of living: 8.9% higher than avg.
• Median income for 65 & older households, 2022: $62,597 (10th highest)
• Pop. 65 and older, 2022: 16.8% (9th lowest)

4. New Jersey

• Estimated total retirement spending: $1,594,219
• Avg. cost of living: 9.1% higher than avg.
• Median income for 65 & older households, 2022: $65,988 (4th highest)
• Pop. 65 and older, 2022: 17.4% (20th lowest)

3. New York

• Estimated total retirement spending: $1,600,137
• Avg. cost of living: 9.5% higher than avg.
• Median income for 65 & older households, 2022: $55,878 (18th highest)
• Pop. 65 and older, 2022: 18.1% (22nd highest)

2. California

• Estimated total retirement spending: $1,633,643
• Avg. cost of living: 11.8% higher than avg.
• Median income for 65 & older households, 2022: $65,628 (5th highest)
• Pop. 65 and older, 2022: 15.8% (6th lowest)

1. Hawaii

• Estimated total retirement spending: $1,654,539
• Avg. cost of living: 13.2% higher than avg.
• Median income for 65 & older households, 2022: $77,957 (the highest)
• Pop. 65 and older, 2022: 20.5% (6th highest)

Methodology

To determine the estimated average expenditures throughout retirement in every state, 24/7 Wall St. calculated the amount of money the average retiree would spend through the rest of his or her life using data from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the National Center for Health Statistics. 

Our calculation was based on the average annual expenditure for U.S. residents 65 years and older in 2022 of $57,818, 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 2021 from the BEA. 

According to 2021 estimates from the NCHS’s National Vital Statistics Reports, average life expectancy in the U.S. at age 65 is 18.4 years. For each year of life beyond age 65, we added 2% of annual expenditures to account for inflation, based on the Federal Reserve’s target inflation rate. For the final 0.4 years of life expectancy beyond age 65, we multiplied both the target inflation rate and annual expenditures by 40%.  

Finally, we took the sum of each year’s cost of living and inflation-adjusted expenditures and multiplied it by 115% in order to reflect greater financial stability and comfort in retirement.

Supplementary data on median income for households age 65 and over and the share of population age 65 and over is from the U.S. Census Bureau’s 2022 American Community Survey.

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