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You must be a millionaire covering basic retirement expenses In 15 US states, a New analysis from GOBankingRates.
The states with the highest retirement costs also tend to have the highest housing costs, in metropolitan areas like New York and California or Hawaii, where the natural beauty and mild climate attract many retirees.
In fact, Hawaii is the most expensive state in which to retire. The cost of essentials – housing, groceries, transportation, utilities and health care – is about $2.21 billion over 25 years. That’s far more than Massachusetts and California, where retirees need about $1.6 million each to get by.
Estimates come from the latest average cost of living data from the US Bureau of Labor Statistics. After subtracting the average Social Security income from annual expenses, GOBankingRates divided the remaining amount by 4%, common rule to safely withdraw your retirement savings.
They represent the minimum required to retire without totals considering other factors such as rising inflation, discretionary spending or unexpected spending.
Here are the 15 most expensive states to retire in, ranked by total savings required:
1. Hawaii
- Annual cost of living: $110,921
- Savings you need for retirement: $2,212,084
2. Massachusetts
- Annual cost of living: $88,268
- Savings you need for retirement: $1,645,764
3. California
- Annual cost of living: $86,946
- Savings you need for retirement: $1,612,716
4. Alaska
- Annual cost of living: $74,147
- Savings you need for retirement: $1,292,753
5. New York
- Annual cost of living: $74,147
- Savings you need for retirement: $1,292,753
6. New Jersey
- Annual cost of living: $68,980
- Savings you need for retirement: $1,163,566
7. Vermont
- Annual cost of living: $68,559
- Savings you need for retirement: $1,153,051
8. Washington
- Annual cost of living: $68,259
- Savings you need for retirement: $1,145,540
9. Maine
- Annual cost of living: $68,199
- Savings you need for retirement: $1,144,038
10. Arizona
- Annual cost of living: $67,778
- Savings you need for retirement: $1,133,522
11. Rhode Island
- Annual cost of living: $67,538
- Savings you need for retirement: $1,127,514
12. Connecticut
- Annual cost of living: $67,117
- Savings you need for retirement: $1,116,998
13. New Hampshire
- Annual cost of living: $66,997
- Savings you need for retirement: $1,113,994
14. Oregon
- Annual cost of living: $66,096
- Savings you need for retirement: $1,091,462
15. Utah
- Annual cost of living: $65,795
- Savings you need for retirement: $1,083,951
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