WASHINGTON (TNND) — A new analysis is highlighting just how dramatically retirement costs vary across the United States — with some Americans needing well into six figures annually to retire comfortably, depending on the state they call home.
According to a recent report from MoneyLion, the gap between the cheapest and most expensive states to retire in is staggering, driven largely by housing costs, healthcare expenses, taxes, utilities, and the overall cost of living.
The analysis found that Hawaii was the most expensive state for retirees. The estimated annual cost for a “comfortable” retirement there reached roughly $181,505 per year. After factoring in Social Security income, retirees would still need an estimated $156,610 annually to maintain that lifestyle.
NEW YORK – MARCH 26: Senior citizens attend a meeting with U.S. Senator Charles Schumer (D-NY) about Social Security at the Isabella Geriatric Center March 26, 2004 in New York City. Schumer met with the seniors to discuss new efforts including a petition drive to protect seniors from Social Security cuts following Federal Reserve Chairman Alan Greenspan’s proposed cuts in the program last month. (Photo by Mario Tama/Getty Images)
By contrast, West Virginia ranked as the least expensive state analyzed. A comfortable retirement there was estimated to cost about $58,117 annually — or roughly $33,223 after accounting for Social Security benefits.
Other high-cost retirement states included California, Massachusetts, and New York. Meanwhile, lower-cost states included Mississippi, Arkansas, and Oklahoma.
The report points to several major factors driving retirement costs:
Many retirees have increasingly relocated to states like Florida, Tennessee, and Texas, partly because those states do not impose state income taxes and often have lower overall living expenses than states such as California or New York.
The findings also raise broader concerns about whether Americans are financially prepared for retirement.
According to the U.S. Social Security Administration, the average monthly Social Security retirement benefit is now around $2,000 per month — or roughly $25,000 annually.
Financial experts generally say that amount alone is not enough to sustain a comfortable retirement in most parts of the country, especially as housing, healthcare, and grocery prices remain elevated.
Recent retirement surveys show many Americans expect to rely heavily on Social Security during retirement, despite the program originally being designed to supplement retirement income rather than fully replace wages earned during a person’s working years.
Experts continue to emphasize the importance of saving for retirement as early as possible.
The MoneyLion analysis found that Americans who begin saving in their 20s typically need to contribute far less each month than those who wait until their 30s or 40s to begin building retirement savings.
Financial planners also warn that many people underestimate healthcare costs in retirement. They often recommend strategies such as:
Still, many Americans face financial challenges that make retirement savings difficult. Rising living costs, debt burdens, and housing expenses continue to leave many households with little room to consistently put money aside for the future.
The report underscores a growing reality for retirees: where you choose to live may be just as important as how much you save.
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