You need $1 million in savings to retire in these 15 states

On By Littum

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Retirement in America now costs $1 million or more in 15 states, according to a new analysis.

The cheapest state to retire in 2025 is West Virginia, where you’ll need an estimated $712,913 in savings and an annual budget of $50,954 to retire comfortably, according to new data published this week by GOBankingRates, the personal finance website.

The most expensive state is Hawaii: You’ll need $2.2 million in savings, and you can expect annual expenses of $110,921 for a comfortable retirement.

Many Americans consider $1 million in savings the new benchmark for a happy retirement. A 2024 report by Schroders said the average saver believes they will need it $1.2 million in savings to retire comfortably. Northwestern Mutual put the number at 1.46 million dollars.

On the other hand, millions of Americans are entering retirement with little or no retirement savings, and many of them appear to be doing just fine.

And remember: $1 million is just a number.

“I think it’s easy to explain concepts using that number, and it’s more realistic than using $100,000 or $10 million,” said Colin Exelbya certified financial planner in Towson, Maryland, in an AARP report that sought to calm fear about a million dollar retirement. “But other than that, I don’t think it’s really helpful and can probably cause anxiety and stress if you don’t hit that number.”

The GOBankingRates analysis calculates the annual cost of living for retirees using data from the federal Bureau of Labor Statistics and a local cost of living index for each state.

To determine how much savings a retiree would need, the analysis considers the annual cost of living for states, minus Social Security income, and divides the remainder by 4%. The 4% rule suggests that retirees spend 4% of their savings per year.

Local cost of living appears to influence some retirees when deciding where to retire. According to one 2024 report from AARPFlorida and South Carolina are the most popular destinations for retirees relocating. Neither state requires a million dollars in retirement savings, according to the new analysis.

Here are the 15 states where you need 1 million. USD to retire

Here are the states where you’ll need $1 million to retire comfortably, according to GOBankingRates:

  • Alaska: $1.3 million to retire; $74,147 annual living expenses
  • Arizona: $1.1 million to retire; $67,778 annual living expenses
  • California: $1.6 million to retire; $86,946 annual living expenses
  • Connecticut: $1.1 million to retire; $67,117 annual living expenses
  • Hawaii: $2.2 million to retire; $110,921 annual living expenses
  • Maine: $1.1 million to retire; $68,199 annual cost of living
  • Massachusetts: $1.6 million to retire; $88,268 annual living expenses

  • New Hampshire: $1.1 million to retire; $66,997 annual living expenses
  • New Jersey: $1.2 million to retire; $68,980 annual living expenses
  • New York: $1.3 million to retire; $74,147 annual living expenses
  • Oregon: $1.1 million to retire; $66,096 annual living expenses
  • Rhode Island: $1.1 million to retire; $67,538 annual living expenses
  • Utah: $1.1 million to retire; $65,795 annual living expenses
  • Vermont: $1.2 million to retire; $68,559 annual living expenses
  • Washington: $1.1 million to retire; $68,259 annual living expenses

And what if I’m not a millionaire?

Don’t you have a million dollars? Here are a few popular retirement states with lower costs.

  • Colorado: $981,803 to retire; $61,709 annual cost of living
  • Florida: $977,296 to retire; $61,529 annual living expenses
  • New Mexico: $834,590 to retire; $55,821 annual living expenses
  • North Carolina: $905,192 to retire; $58,645 annual living expenses
  • Virginia: $948,755 to retire; $60,387 annual living expenses
  • West Virginia: $712,913 to retire; $50,954 annual living expenses