Are you getting close to retirement? Or are you just so tired of your job already that you want to crunch some numbers? If you are like the average American, you want to know just how much you have to save in order to get out of the workforce. With prices continuing to rise, the thought of retiring can seem a bit daunting. However, depending on where you live in the USA, life can be more or less expensive. So, here it is...the breakdown of how much to save if you want to retire, per state.
If You Want To Retire Here Is How Much To Save Per State
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Unsurprisingly, the state you live in determines how much you will need to save. I should point out that we are talking about living comfortably here. Not struggling to pay your bills but also not living a lavish lifestyle. If you have dreams of retiring on a yacht then you will need to store up some extra cash. Travel + Leisure shares the details about your necessary budget if you want to retire and they break it down per state.
They got these numbers from GoBankingRates. They shared that "It reached its conclusion by analyzing data from the U.S. Census American Community Survey, the Missouri Economic and Research Information Center, the Bureau of Labor Statistics Consumer Expenditure Survey, the Zillow Home Value Index, the Federal Reserve Economic Data, and the Social Security Administration." So these numbers are legit, which may surprise you when you see them. After crunching all of the numbers here is a rough estimate of how much you have to save if you want to retire per state.
The Summary
These amounts reflect how much you would need in order to comfortably retire for 20 years. Honestly, the numbers surprised me quite a bit. Some states that I expected to be cheaper were not, and others that I expected to be in the most expensive were not. However I must admit that they were all a bit higher than I anticipated. The top three most expensive states to retire in were Hawaii, California, and Massachusetts. The first two on that list were over 3 and 2 million dollars to live comfortably for 20 years. Additionally, Massachusetts was very close to that 2 million mark, coming in at $1,977,309.
Luckily, not every state is so expensive. The three cheapest states to live in if you want to retire are West Virginia, Mississippi, and Arkansas. West Virginia came in as the cheapest state with a $434,501 retirement value for 20 years. Mississippi was close behind with $442,620, followed by Arkansas with $489,937. They were the only states, apart from Louisiana, that came in under $500,000. A general breakdown of the states is below.
How much to save if you want to retire, per state. You need to save more than 2 million dollars to live in the following states: Hawaii and California. Additionally, you need to save more than 1 million dollars to retire in the following states: Alaska, Arizona, Colorado, Connecticut, Delaware, Florida, Idaho, Maine, Maryland, Massachusetts, Montana, Nevada, New Hampshire, New Jersey, New York, Oregon, Rhode Island, Utah, Vermont, Virginia, and Washington.
Next, you will need to save at least $500,000 (but less than 1 million) to live in the following states. Alabama, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Wisconsin and Wyoming.
The only states you can retire with less than $500,000 for 20 years are: Arkansas, Louisiana, Mississippi, and West Virginia. Do these numbers alarm you? I know they shocked me a bit. I tell you one thing, after looking at these numbers I realize I need to start saving today. Now that I know how much to save for retirement, it is truly shocking.
The Break Down Of How Much To Save To Retire Per State
Screenshot of Spreadsheet made in Google Spreadsheet ( Spreadsheet 1)
Screenshot of Google Spreadsheet chart (Spreadsheet 2)
*Note: Wyoming was cut off from the graph but the necessary amount to save is $949,365.
