Retirement in America now costs $1 million or more in 15 states, according to a new analysis. The cheapest retirement state in 2025 is West Virginia, where you’ll need an estimated $712,913 in savings, and an annual budget of $50,954, to retire in comfort, according to new data released this week by GOBankingRates, a personal finance site. The priciest 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. However, millions of Americans retire with little or no retirement savings. A certified financial planner in Towson, Maryland, mentioned in an AARP report that while $1 million is a useful benchmark, it can also cause anxiety and stress if you’re not hitting that number.
Cost of retirement across states
The GOBankingRates analysis calculates annual living expenses for retirees using data from the federal Bureau of Labor Statistics and a local cost-of-living index for every state. To determine how much savings a retiree would need, the analysis considers annual living costs for states, minus Social Security income, and divides the remainder by 4%.
The 4% rule suggests retirees can withdraw this percentage of their savings per year. Local living costs influence retirees’ choices on where to settle. For example, Florida and South Carolina, popular destinations for retirees, do not require a million dollars in retirement savings.
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 cost of living
Arizona: $1.1 million to retire; $67,778 annual cost of living
California: $1.6 million to retire; $86,946 annual cost of living
Connecticut: $1.1 million to retire; $67,117 annual cost of living
Hawaii: $2.2 million to retire; $110,921 annual cost of living
Maine: $1.1 million to retire; $68,199 annual cost of living
Massachusetts: $1.6 million to retire; $88,268 annual cost of living
New Hampshire: $1.1 million to retire; $66,997 annual cost of living
New Jersey: $1.2 million to retire; $68,980 annual cost of living
New York: $1.3 million to retire; $74,147 annual cost of living
Oregon: $1.1 million to retire; $66,096 annual cost of living
Rhode Island: $1.1 million to retire; $67,538 annual cost of living
Utah: $1.1 million to retire; $65,795 annual cost of living
Vermont: $1.2 million to retire; $68,559 annual cost of living
Washington: $1.1 million to retire; $68,259 annual cost of living
If you don’t have a million dollars in savings, several states offer lower-cost retirement options:
Colorado: $981,803 to retire; $61,709 annual cost of living
Florida: $977,296 to retire; $61,529 annual cost of living
New Mexico: $834,590 to retire; $55,821 annual cost of living
North Carolina: $905,192 to retire; $58,645 annual cost of living
Virginia: $948,755 to retire; $60,387 annual cost of living
West Virginia: $712,913 to retire; $50,954 annual cost of living
As these figures suggest, planning for retirement involves understanding the costs of living in different states and saving accordingly to ensure a comfortable retirement.