Retirement is a significant consideration for many Americans, whether it’s just on the horizon or still years away. The amount of money necessary to retire comfortably is crucial and can vary greatly depending on various factors like location and income sources during retirement.
Recent research has been released, illustrating what a “comfortable” retirement looks like without relying on Social Security, and outlining the annual costs retirees face across all states in the U.S. This study was prompted by concerns over the sustainability of Social Security funding.
According to the latest trustees’ report for Social Security and Medicare, the combined trust funds can fully cover benefits until 2034, which is a year earlier than previously projected. After that, they anticipate only being able to pay around 81% of scheduled benefits, implying that retirees could face reductions.
A survey found that those aiming for a comfortable retirement should ideally save enough to cover two times their living expenses.
On one end of the spectrum, Hawaii tops the list for the highest retirement savings requirement, while West Virginia is noted to require significantly less in savings for a “comfortable” retirement without Social Security.
Here’s a glimpse at what one might need at age 60 in various states without the assistance of Social Security:
- Alabama: $1,409,839 (annual cost: $70,492)
- Alaska: $2,209,137 (annual cost: $110,457)
- Arizona: $2,005,627 (annual cost: $100,281)
- Arkansas: $1,350,045 (annual cost: $67,502)
- California: $3,102,333 (annual cost: $155,117)
- Colorado: $2,294,882 (annual cost: $114,744)
- Idaho: $2,038,236 (annual cost: $101,912)
- Illinois: $1,594,716 (annual cost: $79,736)
- Indiana: $1,480,575 (annual cost: $74,029)
- Iowa: $1,427,463 (annual cost: $71,373)
- Kansas: $1,430,672 (annual cost: $71,534)
- Kentucky: $1,428,204 (annual cost: $71,410)
- Louisiana: $1,349,639 (annual cost: $67,482)
- Maryland: $2,039,812 (annual cost: $101,991)
- Main: $1,972,231 (annual cost: $98,612)
- Massachusetts: $2,732,517 (annual cost: $136,626)
- Michigan: $1,475,595 (annual cost: $73,780)
- Minnesota: $1,766,414 (annual cost: $88,321)
- Mississippi: $1,310,451 (annual cost: $65,523)
- Missouri: $1,473,335 (annual cost: $73,667)
- Montana: $2,058,322 (annual cost: $102,916)
- Nebraska: $1,535,846 (annual cost: $76,792)
- Nevada: $2,073,215 (annual cost: $103,661)
- New Hampshire: $2,215,216 (annual cost: $110,761)
- New Jersey: $2,366,765 (annual cost: $118,338)
- New Mexico: $1,632,542 (annual cost: $81,627)
- New York: $2,112,384 (annual cost: $105,619)
- North Carolina: $1,737,146 (annual cost: $86,857)
- North Dakota: $1,574,682 (annual cost: $78,734)
- Ohio: $1,462,391 (annual cost: $73,120)
- Oklahoma: $1,383,214 (annual cost: $69,161)
- Oregon: $2,230,814 (annual cost: $111,541)
- Pennsylvania: $1,571,642 (annual cost: $78,582)
- Rhode Island: $2,196,222 (annual cost: $109,811)
- South Carolina: $1,631,721 (annual cost: $81,586)
- South Dakota: $1,638,979 (annual cost: $81,949)
- Tennessee: $1,629,482 (annual cost: $81,474)
- Texas: $1,639,693 (annual cost: $81,985)
- Utah: $2,212,458 (annual cost: $110,623)
- Vermont: $1,959,971 (annual cost: $97,999)
- Virginia: $1,922,813 (annual cost: $96,141)
- Washington: $2,539,048 (annual cost: $126,952)
- West Virginia: $1,294,300 (annual cost: $64,715)
- Wisconsin: $1,689,700 (annual cost: $84,485)
- Wyoming: $1,775,841 (annual cost: $88,792)
A Gallup survey from early June reported that half of non-retired adults in the U.S. felt that their retirement savings would be at least “hopefully enough to live comfortably.” On the flip side, many who lacked savings were less optimistic, with only about a third thinking they would have sufficient funds for retirement.
