Americans face vastly different retirement costs across states as potential cuts to Social Security loom on the horizon. A recent study by GOBankingRates has calculated the amount of money a “comfortable” retirement would require without factoring in income from Social Security. The study also detailed the yearly expenses a retiree would face in each U.S. state.
Hawaii tops the list for the highest retirement costs, requiring $3.7 million for a comfortable retirement, while West Virginia demands the least, at $1.3 million. Financial expert George Kamel weighed in on this issue, noting the importance of planning and investing wisely as Americans increasingly work past traditional retirement age. The analysis highlighted potential financing issues for future Social Security benefits.
Retirement savings needs across states
According to the trustees for Social Security and Medicare, if the Social Security’s Old-Age and Survivors Insurance and Disability Insurance trust funds were combined, they could pay 100% of scheduled benefits until 2034. After that, the ability to pay would drop to 81%, mandating a 19% cut in benefits.
The GOBankingRates study used a benchmark where the required retirement savings amount is double the annual living expenses. Below is a list of the cost of living per year and the total amount needed for a comfortable retirement in each state:
Alabama ($70,492): $1,409,839
Alaska ($110,457): $2,209,137
Arizona ($100,281): $2,005,627
Arkansas ($67,502): $1,350,045
California ($155,117): $3,102,333
Colorado ($114,744): $2,294,882
Connecticut ($105,428): $2,108,563
Delaware ($94,392): $1,887,834
Florida ($97,119): $1,942,374
Georgia ($86,005): $1,720,096
Hawaii ($186,062): $3,721,237
Idaho ($101,912): $2,038,236
Illinois ($79,736): $1,594,716
Indiana ($74,029): $1,480,575
Iowa ($71,373): $1,427,463
Kansas ($71,534): $1,430,672
Kentucky ($71,410): $1,428,204
Louisiana ($67,482): $1,349,639
Maine ($98,612): $1,972,231
Maryland ($101,991): $2,039,812
Massachusetts ($136,626): $2,732,517
Michigan ($73,780): $1,475,595
Minnesota ($88,321): $1,766,414
Mississippi ($65,523): $1,310,451
Missouri ($73,667): $1,473,335
Montana ($102,916): $2,058,322
Nebraska ($76,792): $1,535,846
Nevada ($103,661): $2,073,215
New Hampshire ($110,761): $2,215,216
New Jersey ($118,338): $2,366,765
New Mexico ($81,627): $1,632,542
New York ($105,619): $2,112,384
North Carolina ($86,857): $1,737,146
North Dakota ($78,734): $1,574,682
Ohio ($73,120): $1,462,391
Oklahoma ($69,161): $1,383,214
Oregon ($111,541): $2,230,814
Pennsylvania ($78,582): $1,571,642
Rhode Island ($109,811): $2,196,222
South Carolina ($81,586): $1,631,721
South Dakota ($81,949): $1,638,979
Tennessee ($81,474): $1,629,482
Texas ($81,985): $1,639,693
Utah ($110,623): $2,212,458
Vermont ($97,999): $1,959,971
Virginia ($96,141): $1,922,813
Washington ($126,952): $2,539,048
West Virginia ($64,715): $1,294,300
Wisconsin ($84,485): $1,689,700
Wyoming ($88,792): $1,775,841
A Gallup survey conducted in early June found that 50% of non-retired U.S. adults with retirement savings expect to have enough to live comfortably in retirement. Confidence was lower among those without a retirement savings account, with only 31% anticipating sufficient funds for their golden years.
As Americans navigate the complexities of retirement planning, this study sheds light on the varying costs and emphasizes the importance of individualized financial strategies.
