The 15 most expensive U.S. states to retire—No. 1 requires over $2 million in savings
A new analysis by GOBankingRates reveals that retirees need at least $1 million in savings just to cover basic living expenses in 15 U.S. states.
The most expensive states, such as Hawaii, Massachusetts, and California, have high costs driven largely by housing. Hawaii tops the list, requiring an estimated $2.21 million for 25 years of essential expenses, including housing, groceries, transportation, utilities, and healthcare. In contrast, Massachusetts and California each demand around $1.6 million.
These figures are based on cost-of-living data from the U.S. Bureau of Labor Statistics, with retirement savings calculations following the 4% withdrawal rule after accounting for Social Security income.
The study highlights that these estimates represent the bare minimum needed for retirement and do not account for inflation, discretionary spending, or unexpected costs.
Other high-cost states include Alaska, New York, and New Jersey, where retirees must save over $1.1 million to maintain a basic standard of living.
Even states like Oregon and Utah, which are not traditionally seen as the most expensive, require over $1 million in retirement savings. The findings underscore the growing financial challenges of retirement, especially in states with high housing and living costs.
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