The most expensive U.S. states to retire—No. 1 requires over $2 million in savings
This is a snippet from the weekly CNBC Make It Money newsletter, written by Kamaron McNair.
Many of us dream of retiring with $1 million or more. But in some states, having that much saved is somewhat of a requirement.
In addition to Social Security income, you’ll need at least $1 million in savings to retire in 15 states, according to a recent GOBankingRates analysis. And that’s just to cover basic living costs like housing, groceries and transportation.
GOBankingRates calculated estimated savings needed for a 25-year retirement in each state, assuming a withdrawal rate of 4% per year.
I would love to retire on the beaches of Hawaii. But doing so would take at least $2.2 million in savings, the most of any state, GOBankingRates finds. The Aloha State may come with dreamy landscapes and plenty of activities, but its island location and limited real estate contribute to significantly higher living costs there.
You can retire for a little less in Massachusetts, but it still takes over $1.6 million to cover the basics. Here are the most expensive states to retire, and the estimated amount you'll need in savings:
Check out the full story for the full top 15 list of the most expensive states to retire.
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1moJean. Thanks for the information. 1.6 million is why we moved to New Hampshire. Good to hear from you.
/ doorman / custodian/ cleaning/
1moJobs pay less and refuse to. Add more to retirement benefits
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2moCan't wait
writer & entrepreneur
2moWow. The figure gets higher, making more and more Americans can't afford it.
Retirement is becoming increasingly expensive, and the numbers we consider "comfortable" today may not hold up in the future. Inflation, rising healthcare costs, and unexpected economic shifts mean that what feels sufficient now could fall short in 20 or 30 years. It’s crucial to plan with future costs in mind, not just today's standards. Always aim to save more than the minimum and start as early as possible to let compound growth work in your favor. Building a financial cushion ensures you’re better prepared to handle rising expenses and enjoy a secure retirement, no matter how the economy evolves.