The 15 most expensive U.S. states to retire—No. 1 requires over $2 million in savings

The 15 most expensive U.S. states to retire—No. 1 requires over  million in savings


You need to be a millionaire just to cover basic retirement costs in 15 U.S. states, according to a new analysis by GOBankingRates.

The states with the highest retirement expenses tend to also have the highest housing costs, whether it’s big-city hubs like New York and California, or Hawaii, where the natural beauty and mild climate attracts numerous retirees.

In fact, Hawaii is the most expensive state to retire in. The cost of essentials — housing, groceries, transportation, utilities and health care — for 25 years adds up to about $2.21 million. That’s significantly more than Massachusetts and California, where retirees need around $1.6 million each to get by.

The estimates come from the latest average cost of living data from the U.S. Bureau of Labor Statistics. After subtracting average Social Security income from the annual expenditures, GOBankingRates divided the remaining amount by 4%, following a common rule of thumb for safely drawing down retirement savings.

The totals represent the bare minimum needed to retire without accounting for other factors like rising inflation, discretionary spending or unexpected expenses.

Here’s a look the 15 most expensive states to retire in, ranked by total savings needed:

1. Hawaii

  • Annual cost of living: $110,921
  • Savings you need to retire: $2,212,084

2. Massachusetts

  • Annual cost of living: $88,268
  • Savings you need to retire: $1,645,764

3. California

  • Annual cost of living: $86,946
  • Savings you need to retire: $1,612,716

4. Alaska

  • Annual cost of living: $74,147
  • Savings you need to retire: $1,292,753

5. New York

  • Annual cost of living: $74,147
  • Savings you need to retire: $1,292,753

6. New Jersey

  • Annual cost of living: $68,980
  • Savings you need to retire: $1,163,566

7. Vermont

  • Annual cost of living: $68,559
  • Savings you need to retire: $1,153,051

8. Washington

  • Annual cost of living: $68,259
  • Savings you need to retire: $1,145,540

9. Maine

  • Annual cost of living: $68,199
  • Savings you need to retire: $1,144,038

10. Arizona

  • Annual cost of living: $67,778
  • Savings you need to retire: $1,133,522

11. Rhode Island

  • Annual cost of living: $67,538
  • Savings you need to retire: $1,127,514

12. Connecticut

  • Annual cost of living: $67,117
  • Savings you need to retire: $1,116,998

13. New Hampshire

  • Annual cost of living: $66,997
  • Savings you need to retire: $1,113,994

14. Oregon

  • Annual cost of living: $66,096
  • Savings you need to retire: $1,091,462

15. Utah

  • Annual cost of living: $65,795
  • Savings you need to retire: $1,083,951

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