15 Most Expensive US States that need $1 Million for Better Retirement – You Must Know: Retirement planning is a critical financial goal, but the costs of retiring comfortably vary significantly across the United States. In 2025, a new analysis by GOBankingRates reveals that retirees in 15 states need at least $1 million in savings to maintain a comfortable lifestyle. Meanwhile, more affordable retirement options exist for those without such a hefty nest egg. This article explores the retirement costs across the U.S., the factors affecting them, and tips for planning your golden years.
The Most Expensive and Affordable Retirement States
Most Expensive: Hawaii
- Savings Required: $2.2 million
- Annual Living Costs: $110,921
Hawaii tops the list as the priciest retirement destination, with its high cost of living driving up expenses.
Most Affordable: West Virginia
- Savings Required: $712,913
- Annual Living Costs: $50,954
West Virginia offers the lowest retirement costs, making it an attractive option for retirees on a budget.
15 Most Expensive US States 2025
Here’s a breakdown of the 15 states where you’ll need at least $1 million in savings to retire comfortably:
| State | Savings Needed | Annual Living Costs |
|---|---|---|
| Alaska | $1.3 million | $74,147 |
| Arizona | $1.1 million | $67,778 |
| California | $1.6 million | $86,946 |
| Connecticut | $1.1 million | $67,117 |
| Hawaii | $2.2 million | $110,921 |
| Maine | $1.1 million | $68,199 |
| Massachusetts | $1.6 million | $88,268 |
| New Hampshire | $1.1 million | $66,997 |
| New Jersey | $1.2 million | $68,980 |
| New York | $1.3 million | $74,147 |
| Oregon | $1.1 million | $66,096 |
| Rhode Island | $1.1 million | $67,538 |
| Utah | $1.1 million | $65,795 |
| Vermont | $1.2 million | $68,559 |
| Washington | $1.1 million | $68,259 |
Affordable Retirement Options
If you’re not a millionaire, consider these states with lower retirement costs:
| State | Savings Needed | Annual Living Costs |
|---|---|---|
| Colorado | $981,803 | $61,709 |
| Florida | $977,296 | $61,529 |
| New Mexico | $834,590 | $55,821 |
| North Carolina | $905,192 | $58,645 |
| Virginia | $948,755 | $60,387 |
| West Virginia | $712,913 | $50,954 |
Why $1 Million is a Retirement Benchmark
Many financial experts suggest $1 million as a target for retirement savings. This benchmark, though not definitive, serves as a guideline to help retirees plan for long-term financial security.
- Average Expectations:
- A Schroders 2024 report states that the average saver believes they need $1.2 million for a comfortable retirement.
- Northwestern Mutual raises this figure to $1.46 million.
However, some retirees thrive with far less, especially in states with lower living costs.
Methodology: Calculating Retirement Savings
The GOBankingRates analysis determines retirement costs by:
- Calculating annual living expenses based on data from the Bureau of Labor Statistics and a local cost-of-living index.
- Subtracting average Social Security income.
- Using the 4% rule, which suggests retirees spend 4% of their savings annually.
This approach highlights the importance of location in shaping retirement affordability.
Key Takeaways
- Location Matters: Retirement costs vary widely, with some states requiring savings exceeding $1 million while others remain more affordable.
- The $1 Million Myth: While $1 million is a helpful benchmark, actual needs depend on personal circumstances, lifestyle, and location.
- Planning is Essential: Using tools like high-yield savings accounts and retirement calculators can help maximize your savings.
Retirement planning involves more than hitting a specific savings target. While states like Hawaii demand high savings, affordable options like West Virginia and Florida show retirees can live comfortably on less. Understanding your financial needs and leveraging cost-effective locations can help you secure a fulfilling retirement, regardless of your budget.
