Social Security serves as the lifeline for millions across the United States. As of April, around 73.9 million individuals, which is about one-fifth of the U.S. population, rely on benefits from various Social Security programs, according to an analysis from the Pew Research Center. The bulk of these recipients—52.6 million—are retirees who, on average, receive about $1,997 monthly. The data indicates that, in 2022, Social Security represented at least half of the total personal income for 38.3 million people, making up 63.2% of adult recipients’ income. Notably, 26.5 million individuals—or 43.6% of the total—depend on it for three-quarters of their income, while 16.4 million (27%) receive only Social Security as their income.
So, what happens if Social Security isn’t available? Just how much would someone need to comfortably cover living expenses after retiring? GobanKingrates recently conducted a survey exploring retirement costs in all 50 states. This analysis assumes a life expectancy of 80 years and outlines what constitutes a “comfortable retirement.” The cost of living in each state plays a crucial role in determining the savings needed for retirement.
For instance, in Alabama, the annual cost for a comfortable living is estimated at $70,492. If one were to retire at 60 without Social Security, they would need a whopping $1.49 million saved. Conversely, retiring at 70 would require about $704,919.
Here’s a look at what different states require for a comfortable retirement without Social Security:
- Alaska: $2,209,137 (60), $1,104,569 (70)
- Arizona: $2,005,627 (60), $1,002,814 (70)
- Arkansas: $1,350,045 (60), $675,022 (70)
- California: $3,102,333 (60), $1,551,166 (70)
- Colorado: $2,294,882 (60), $1,147,441 (70)
- Connecticut: $2,108,563 (60), $1,054,281 (70)
…and the list continues.
In Florida, for example, you’d need approximately $1.94 million by age 60 and about $971,187 by age 70. Meanwhile, in Hawaii, the figures climb steeply to $3.72 million at 60 and $1.86 million at 70.
Each state has its unique requirements, making the financial landscape for retirement quite variable. Those considering retirement should carefully examine the figures relevant to their specific situation.
For a complete analysis of the savings required in every state, you can check the full report.
