While building up your retirement savings is important, how much money you'll actually need depends on where you are. That's because the annual cost of living can vary by over $71,000 between U.S. states, according to a recent GOBankingRates analysis.
Hawaii has the highest average retirement expenses, with an estimated $129,296 a year needed to retire comfortably. That's more than twice that of West Virginia, where retirees need $58,190 on average.
To calculate the annual retirement costs for Americans aged 65 and older in each state, the study used Bureau of Labor Statistics estimates for food, shelter, transportation, health care, and utility expenses. A 20% cash buffer was added to this total to ensure retirees could live "comfortably," according to the study.
The large disparity in the cost of living is largely due to high housing costs. In states where housing is in short supply — like Hawaii, California, Massachusetts — the annual cost of retirement exceeds six figures.
The median annual cost of retiring comfortably is $66,870, based on the data. That said, there are 20 states where you can still retire on or under $65,000. They tend to be more rural states in the South, where the cost of living is cheaper lower.
Below is a list of states where annual retirement expenses are $65,000 or less, in alphabetical order.
Alabama
- Total expenditures: $50,980
- 20% comfort buffer: $10,196
- Cost of a comfortable retirement annually: $61,176
Arkansas
- Total expenditures: $51,211
- 20% comfort buffer: $10,242
- Cost of a comfortable retirement annually: $61,454
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Georgia
- Total expenditures: $52,832
- 20% comfort buffer: $10,566
- Cost of a comfortable retirement annually: $63,398
Illinois
- Total expenditures: $53,989
- 20% comfort buffer: $10,798
- Cost of a comfortable retirement annually: $64,787
Indiana
- Total expenditures: $52,253
- 20% comfort buffer: $10,451
- Cost of a comfortable retirement annually: $62,704
Iowa
- Total expenditures: $52,137
- 20% comfort buffer: $10,427
- Cost of a comfortable retirement annually: $62,565
Kansas
- Total expenditures: $50,517
- 20% comfort buffer: $10,103
- Cost of a comfortable retirement annually: $60,620
Kentucky
- Total expenditures: $53,584
- 20% comfort buffer: $10,717
- Cost of a comfortable retirement annually: $64,301
Louisiana
- Total expenditures: $53,295
- 20% comfort buffer: $10,659
- Cost of a comfortable retirement annually: $63,954
Michigan
- Total expenditures: $53,121
- 20% comfort buffer: $10,624
- Cost of a comfortable retirement annually: $63,745
Mississippi
- Total expenditures: $51,096
- 20% comfort buffer: $10,219
- Cost of a comfortable retirement annually: $61,315
Missouri
- Total expenditures: $51,211
- 20% comfort buffer: $10,242
- Cost of a comfortable retirement annually: $61,454
Nebraska
- Total expenditures: $54,047
- 20% comfort buffer: $10,809
- Cost of a comfortable retirement annually: $64,856
New Mexico
- Total expenditures: $54,163
- 20% comfort buffer: $10,833
- Cost of a comfortable retirement annually: $64,995
North Dakota
- Total expenditures: $53,700
- 20% comfort buffer: $10,740
- Cost of a comfortable retirement annually: $64,440
Oklahoma
- Total expenditures: $49,996
- 20% comfort buffer: $9,999
- Cost of a comfortable retirement annually: $59,995
South Dakota
- Total expenditures: $54,047
- 20% comfort buffer: $10,809
- Cost of a comfortable retirement annually: $64,856
Tennessee
- Total expenditures: $52,253
- 20% comfort buffer: $10,451
- Cost of a comfortable retirement annually: $62,704
Texas
- Total expenditures: $53,468
- 20% comfort buffer: $10,694
- Cost of a comfortable retirement annually: $64,162
West Virginia
- Total expenditures: $48,492
- 20% comfort buffer: $9,698
- Cost of a comfortable retirement annually: $58,190
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