Where you live in retirement can have a big impact on your annual expenses. While the average annual cost of living in the U.S. is $51,624, that figure can fluctuate significantly — from nearly double that amount in the most expensive state to just under 90 percent in the least expensive. Consider the average retirement age in each state and your life expectancy, and you’re looking at a sizable amount of money needed to cover your retirement years.
Of course, Social Security can help cover those expenses, but knowing when you’re eligible to take those benefits and how to maximize them when you do can help to ensure your financial comfort. Likewise, knowing how states tax Social Security benefits can help you decide which states are the most financially attractive. As you think about moving or potentially downsizing in retirement, you need to weight how much it costs to retire by location.
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Methodology
To put this list together, we looked at data compiled by HowMuch.net, based on figures from the Bureau of Labor Statistics along with cost of living and life expectancy data.
The yearly figure needed for retirement comes from the BLS’ 2018 Consumer Expenditure Survey. The expenditures HowMuch considered were those of the age group “65 years or more”.
To obtain the total amount required for a comfortable retirement, HowMuch used IHME-based life expectancy figures published by National Geographic. They then subtracted the average retirement year published on MoneyTalks to the previous figure and multiplied it by the state-adjusted yearly expenditures, to obtain the total amount required to retire.
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The cost to retire in every state
According to the data, the average American retirement age is 64 and the average life expectancy is 78.6 years, meaning retirees need an average of $904,000 to cover their living expenses in retirement.
Here’s a look at the data in every state, including the average retirement age, cost of living, annual expenses, life expectancy and total amount needed to cover retirement costs.
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Alaska
Average retirement age: 61
Cost of living index: 1.29
Average annual expenses: $66,956
Life expectancy: 77.7
Retirement funds needed: $1,341,805
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Alabama
Average retirement age: 62
Cost of living index: 0.89
Average annual expenses: $46,049
Life expectancy: 75
Retirement funds needed: $712,832
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Arizona
Average retirement age: 63
Cost of living index: 1.01
Average annual expenses: $52,140
Life expectancy: 79.1
Retirement funds needed: $1.01 million
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Arkansas
Average retirement age: 62
Cost of living index: 0.88
Average annual expenses: $45,274
Life expectancy: 75.4
Retirement funds needed: $728,010
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California
Average retirement age: 64
Cost of living index: 1.39
Average annual expenses: $86,171
Life expectancy: 80.9
Retirement funds needed: $1.45 million
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Colorado
Average retirement age: 65
Cost of living index: 1.06
Average annual expenses: $54,670
Life expectancy: 79.9
Retirement funds needed: $977,496
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Connecticut
Average retirement age: 65
Cost of living index: 1.29
Average annual expenses: $79,852
Life expectancy: 80
Retirement funds needed: $1.25 million
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Delaware
Average retirement age: 63
Cost of living index: 1.07
Average annual expenses: $55,289
Life expectancy: 78.2
Retirement funds needed: $1.01 million
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Florida
Average retirement age: 64
Cost of living index: 0.99
Average annual expenses: $51,159
Life expectancy: 79.1
Retirement funds needed: $927,008
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Georgia
Average retirement age: 63
Cost of living index: 0.91
Average annual expenses: $46,771
Life expectancy: 77.2
Retirement funds needed: $796,984
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Hawaii
Average retirement age: 66
Cost of living index: 1.92
Average annual expenses: $119,004
Life expectancy: 81.5
Retirement funds needed: $1.84 million
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Idaho
Average retirement age: 64
Cost of living index: 0.94
Average annual expenses: $58108
Life expectancy: 79
Retirement funds needed: $871,620
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Illinois
Average retirement age: 64
Cost of living index: 0.95
Average annual expenses: $49,043
Life expectancy: 79
Retirement funds needed: $882,770
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Indiana
Average retirement age: 63
Cost of living index: 0.91
Average annual expenses: $46,720
Life expectancy: 77
Retirement funds needed: $784,891
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Iowa
Average retirement age: 65
Cost of living index: 0.92
Average annual expenses: $47,494
Life expectancy: 79.4
Retirement funds needed: $820,698
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Kansas
Average retirement age: 65
Cost of living index: 0.90
Average annual expenses: $46,255
Life expectancy: 78.2
Retirement funds needed: $732,681
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Kentucky
Average retirement age: 62
Cost of living index: 0.92
Average annual expenses: $47,339
Life expectancy: 75
Retirement funds needed: $738,492
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Louisiana
Average retirement age: 62
Cost of living index: 0.94
Average annual expenses: $48,320
Life expectancy: 75.4
Retirement funds needed: $776,987
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Maine
Average retirement age: 63
Cost of living index: 1.17
Average annual expenses: $60,555
Life expectancy: 78
Retirement funds needed: $1.09 million
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Maryland
Average retirement age: 65
Cost of living index: 1.30
Average annual expenses: $67,214
Life expectancy: 78.8
Retirement funds needed: $1.11 million
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Massachusetts
Average retirement age: 66
Cost of living index: 1.34
Average annual expenses: $69,279
Life expectancy: 79.9
Retirement funds needed: $1.15 million
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Michigan
Average retirement age: 62
Cost of living index: 0.89
Average annual expenses: $46,203
Life expectancy: 77.6
Retirement funds needed: $864,929
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Minnesota
Average retirement age: 65
Cost of living index: 1.02
Average annual expenses: $52,605
Life expectancy: 80.7
Retirement funds needed: $991,075
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Mississippi
Average retirement age: 63
Cost of living index: 0.86
Average annual expenses: $44,758
Life expectancy: 74.5
Retirement funds needed: $617,661
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Missouri
Average retirement age: 63
Cost of living index: 0.88
Average annual expenses: $45,584
Life expectancy: 77.1
Retirement funds needed: $771,281
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Montana
Average retirement age: 64
Cost of living index: 1.05
Average annual expenses: $54,205
Life expectancy: 76.9
Retirement funds needed: $839,096
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Nebraska
Average retirement age: 65
Cost of living index: 0.92
Average annual expenses: $47,649
Life expectancy: 79.1
Retirement funds needed: $806,220
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Nevada
Average retirement age: 63
Cost of living index: 1.09
Average annual expenses: $56,373
Life expectancy: 77.9
Retirement funds needed: $1.01 million
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New Hampshire
Average retirement age: 65
Cost of living index: 1.08
Average annual expenses: $55,960
Life expectancy: 79.1
Retirement funds needed: $946,850
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New Jersey
Average retirement age: 65
Cost of living index: 1.25
Average annual expenses: $64,736
Life expectancy: 80.5
Retirement funds needed: $1.20 million
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New Mexico
Average retirement age: 62
Cost of living index: 0.91
Average annual expenses: $47,184
Life expectancy: 77.6
Retirement funds needed: $883,291
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New York
Average retirement age: 64
Cost of living index: 1.35
Average annual expenses: $69,847
Life expectancy: 80.8
Retirement funds needed: $1.41 million
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North Carolina
Average retirement age: 63
Cost of living index: 0.94
Average annual expenses: $48,733
Life expectancy: 77.8
Retirement funds needed: $865,499
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North Dakota
Average retirement age: 65
Cost of living index: 0.98
Average annual expenses: $50,850
Life expectancy: 78.5
Retirement funds needed: $823,764
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Oklahoma
Average retirement age: 62
Cost of living index: 0.87
Average annual expenses: $45,016
Life expectancy: 75.4
Retirement funds needed: $723,859
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Ohio
Average retirement age: 63
Cost of living index: 0.92
Average annual expenses: $47,597
Life expectancy: 76.6
Retirement funds needed: $776,788
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Oregon
Average retirement age: 63
Cost of living index: 1.33
Average annual expenses: $68,712
Life expectancy: 79.2
Retirement funds needed: $1.36 million
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Pennsylvania
Average retirement age: 64
Cost of living index: 0.99
Average annual expenses: $51,005
Life expectancy: 78
Retirement funds needed: $856,876
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Rhode Island
Average retirement age: 65
Cost of living index: 1.21
Average annual expenses: $62,413
Life expectancy: 79.3
Retirement funds needed: $1.07 million
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South Carolina
Average retirement age: 63
Cost of living index: 0.96
Average annual expenses: $49,507
Life expectancy: 76.2
Retirement funds needed: $784,197
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South Dakota
Average retirement age: 66
Cost of living index: 0.98
Average annual expenses: 78.1
Life expectancy: 78.1
Retirement funds needed: $738,337
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Tennessee
Average retirement age: 64
Cost of living index: 0.89
Average annual expenses: $45,894
Life expectancy: 76
Retirement funds needed: $660,870
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Texas
Average retirement age: 65
Cost of living index: 0.91
Average annual expenses: $47,236
Life expectancy: 78.5
Retirement funds needed: $765,223
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Utah
Average retirement age: 65
Cost of living index: 0.98
Average annual expenses: $50,850
Life expectancy: 79.3
Retirement funds needed: $872,580
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Vermont
Average retirement age: 65
Cost of living index: 1.17
Average annual expenses: $60,348
Life expectancy: 79.9
Retirement funds needed: $1.08 million
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Virginia
Average retirement age: 65
Cost of living index: 1.01
Average annual expenses: $52,295
Life expectancy: 79.1
Retirement funds needed: $884,833
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Washington
Average retirement age: 64
Cost of living index: 1.10
Average annual expenses: $56,890
Life expectancy: 79.9
Retirement funds needed: $1.08 million
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Washington, D.C.
Average retirement age: 67
Cost of living index: 1.62
Average annual expenses: $83,683
Life expectancy: 77.1
Retirement funds needed: $1.01 million
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West Virginia
Average retirement age: 61
Cost of living index: 0.92
Average annual expenses: $47,546
Life expectancy: 74.8
Retirement funds needed: $787,357
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Wisconsin
Average retirement age: 64
Cost of living index: 0.96
Average annual expenses: $49,714
Life expectancy: 79.5
Retirement funds needed: $924,679
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Wyoming
Average retirement age: 64
Cost of living index: 0.96
Average annual expenses: $49,404
Life expectancy: 77.9
Retirement funds needed: $824,062
This article originally appeared on SimplyWise.com and was syndicated by MediaFeed.org.
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