Financial Planning for Retirement: Income Needs Vary by State
Many households across the United States are experiencing financial pressures due to ongoing inflation, making it essential for retirees, in particular, to manage their income wisely to keep up with rising costs.
Retirement income for Americans typically comes from multiple sources. These can include personal retirement savings through 401(k) plans or IRAs, as well as pensions, annuities, and Social Security benefits.
The average annual benefit from Social Security is approximately $24,852. This figure is based on the monthly average of $2,071 as reported by the Social Security Administration in January 2026.
A recent study conducted by MoneyLion, which utilized insights from the MIT Living Wage Calculator, estimated how much annual income is necessary for a comfortable retirement in various states. This analysis found that the income requirement varies significantly, with Hawaii needing the highest at $64,504 and West Virginia the lowest at $40,627.
State-by-State Income Requirements
Below is a summary of the annual income needed for a single adult without children to retire comfortably, according to MoneyLion’s findings:
- Alabama: $43,814
- Alaska: $51,965
- Arizona: $50,900
- Arkansas: $41,615
- California: $63,402
- Colorado: $54,071
- Connecticut: $54,178
- Delaware: $49,484
- Florida: $50,117
- Georgia: $50,351
- Hawaii: $64,504
- Idaho: $49,091
- Illinois: $50,796
- Indiana: $45,326
- Iowa: $44,273
- Kansas: $44,994
- Kentucky: $42,040
- Louisiana: $42,378
- Maine: $51,465
- Maryland: $53,949
- Massachusetts: $63,610
- Michigan: $45,914
- Minnesota: $48,475
- Mississippi: $43,025
- Missouri: $44,244
- Montana: $50,409
- Nebraska: $45,241
- Nevada: $50,259
- New Hampshire: $53,604
- New Jersey: $56,884
- New Mexico: $45,607
- New York: $62,167
- North Carolina: $46,745
- North Dakota: $42,874
- Ohio: $43,674
- Oklahoma: $43,119
- Oregon: $55,047
- Pennsylvania: $48,515
- Rhode Island: $52,024
- South Carolina: $46,469
- South Dakota: $42,706
- Tennessee: $44,959
- Texas: $45,290
- Utah: $51,407
- Vermont: $51,831
- Virginia: $53,505
- Washington: $55,316
- West Virginia: $40,627
- Wisconsin: $45,504
- Wyoming: $44,614
These figures suggest that planning ahead is crucial. Each state’s requirements highlight diverse financial landscapes. As retirees navigate these challenges, understanding the necessary income to support a comfortable lifestyle is vital.
For many, Social Security remains a crucial component of their retirement plans, but it’s often not enough to sustain a desired quality of life alone.
