A Million-Dollar Retirement: Can You Afford It in These 15 States?
Retirement has long been viewed as the time to relax, travel, and enjoy the fruits of a lifetime of hard work. However, for many Americans, the dream of a comfortable retirement comes with a hefty price tag. Recent data from GOBankingRates highlights that in some U.S. states, you’ll need upwards of $1 million in savings to sustain a comfortable lifestyle in retirement.
The Rising Cost of Retirement
Gone are the days when $1 million was a guaranteed ticket to carefree golden years. Today, that benchmark often falls short due to inflation, healthcare expenses, housing costs, and a longer life expectancy. A 2024 report from Schroders found that the average saver believes they need $1.2 million to retire comfortably, while Northwestern Mutual pegs the figure even higher at $1.46 million. These estimates reveal the growing financial challenges facing retirees, especially in states with a high cost of living.
Let’s look into the 15 states where retirees need to save $1 million or more to maintain their standard of living, based on the average annual cost of living.
1. Alaska: $1.3 Million to Retire
Annual Cost of Living: $74,147
Alaska’s remote location and harsh climate contribute to its high cost of living. Retirees face expensive groceries, utilities, and healthcare costs. However, the state’s breathtaking natural beauty and unique lifestyle remain a strong draw for adventure-loving retirees.
2. Arizona: $1.1 Million to Retire
Annual Cost of Living: $67,778
Known for its warm climate and retiree-friendly communities, Arizona is more affordable than many states on this list. The state’s low taxes and abundance of active adult communities make it a popular destination for those seeking an affordable yet comfortable retirement.
3. California: $1.6 Million to Retire
Annual Cost of Living: $86,946
California tops the list as one of the most expensive states for retirees. Housing costs, taxes, and healthcare expenses push the required savings well above $1 million. However, the state offers unparalleled weather, cultural attractions, and scenic landscapes.
4. Connecticut: $1.1 Million to Retire
Annual Cost of Living: $67,117
Connecticut combines New England charm with a high cost of living. Retirees here need significant savings to cover housing, utilities, and healthcare. Its proximity to major cities like New York and Boston makes it an attractive yet pricey choice.
5. Hawaii: $2.2 Million to Retire
Annual Cost of Living: $110,921
Hawaii is in a league of its own when it comes to retirement expenses. With the highest cost of living in the country, retirees here need over $2 million to sustain their lifestyle. That said, the state’s idyllic beaches, warm weather, and aloha spirit are unmatched.
6. Maine: $1.1 Million to Retire
Annual Cost of Living: $68,199
Maine offers a peaceful retirement among picturesque coastlines and forests, but its high cost of living—especially for healthcare and utilities—requires a healthy nest egg.
7. Massachusetts: $1.6 Million to Retire
Annual Cost of Living: $88,268
Massachusetts’ rich history, excellent healthcare, and vibrant cultural scene come with a high price. Retirees need $1.6 million to enjoy their golden years in this New England state.
8. New Hampshire: $1.1 Million to Retire
Annual Cost of Living: $66,997
With no state income or sales tax, New Hampshire is attractive for retirees, but its high property taxes and healthcare costs require careful financial planning.
9. New Jersey: $1.2 Million to Retire
Annual Cost of Living: $68,980
Close proximity to New York City adds to New Jersey’s living expenses, including housing and taxes. However, the state offers vibrant suburban communities and excellent healthcare.
10. New York: $1.3 Million to Retire
Annual Cost of Living: $74,147
Living in the Empire State comes at a premium. From city life to rural upstate retreats, retirees face significant costs for housing, utilities, and healthcare.
11. Oregon: $1.1 Million to Retire
Annual Cost of Living: $66,096
Oregon’s natural beauty and progressive lifestyle attract retirees, but high housing and healthcare expenses make $1 million a necessity.
12. Rhode Island: $1.1 Million to Retire
Annual Cost of Living: $67,538
Rhode Island offers a cozy coastal vibe, but its high property taxes and utility costs require substantial retirement savings.
13. Utah: $1.1 Million to Retire
Annual Cost of Living: $65,795
Utah stands out as one of the more affordable options on this list. Its mix of natural beauty, outdoor recreation, and relatively low living expenses make it appealing to retirees.
14. Vermont: $1.2 Million to Retire
Annual Cost of Living: $68,559
Vermont’s peaceful lifestyle and natural charm come with higher healthcare and housing costs, making $1.2 million necessary for a comfortable retirement.
15. Washington: $1.1 Million to Retire
Annual Cost of Living: $68,259
Washington’s scenic views and lack of state income tax make it a favorite for retirees, but housing and utilities push up the cost of living.
Planning for Retirement
While $1 million remains a symbolic benchmark, it may not be sufficient in many states, particularly those with high living costs. To ensure a financially secure retirement:
Start Early: Maximize contributions to retirement accounts such as 401(k)s or IRAs.
Minimize Debt: Enter retirement without significant liabilities.
Budget Realistically: Account for inflation, healthcare, and potential long-term care needs.
Diversify Investments: Protect against market fluctuations with a diversified portfolio.
Retirement planning is deeply personal, and factors like lifestyle preferences, health, and family proximity should guide your decisions. By saving diligently and planning strategically, you can achieve the retirement lifestyle you’ve always envisioned—even in one of these high-cost states.
Schedule your appontment with me by clicking here. Together we will evaluate your personal circumstances.
Warm regards,
Sharon, Your Safe Money Lady™
Sharon Ben-David
Phone: (954) 261-5200
Licensed Mortgage Broker, Certified Professional Retirement Planning Adviser, and Financial Advocate
Protecting Your Nest Egg, Inc.
NMLS #2308601
