How Much You Need to Save for a Decent Retirement in Each State

posted by admin on 27.01.2020 in Press Release  | Tagged , , , , , , , , , , , , , , , , , , , , , , ,  | Leave a comment

A good retirement means different things to different people — some want to be close to their family, some don’t want to spend their winters hip-deep in snow. Retirees who travel frequently want to be near a good airport, some want to be close to a good hospital, others might want to live in a walkable town.

But the bottom line is, of course, the bottom line: you can compromise on those things, but it’s harder to make concessions with necessary expenses —the cost of living in the state where you retire is going to have a big impact on how much discretionary income you’ll have to enjoy yourself and be comfortable.

The average yearly expenses for someone over the age of 65 in the U.S. is $51,624, according to How Much, a cost information website, which looked at the average annual expenses in each state plus life expectancy and average retirement age to determine how much you need to retire comfortably in every state.

Taking into account life expectancy as well as yearly expenses, the average savings required for retirement in the U.S. is $904,452. States in the Northeast and the West require the highest savings for retirement, at over $1 million, while states in the South and the Midwest require the lowest savings.

To find out the yearly figure needed for retirement in each state, How Much used the Bureau of Labor Statistics’ 2018 Consumer Expenditure Survey’s annual expenses for the age group over 65, and added 20% to allow for a comfortable retirement.

These calculations do not include Social Security benefits. The maximum monthly Social Security benefit that an individual can receive per month in 2020 is $3,790 for someone who files at age 70. For someone at full retirement age the maximum amount is $3,011, and for someone age 62 the maximum amount is $2,265. A person filing for Social Security at full retirement age could receive as much as $36,132 a year.

For all 50 states and D.C., here’s how much you need for a decent retirement, from cheapest to most expensive:

1. Mississippi

Amount needed to retire comfortably: $618,000

Average retirement age: 63

2. Tennessee

Amount needed to retire comfortably: $661,000

Average retirement age: 64

3. Alabama

Amount needed to retire comfortably: $713,000

Average retirement age: 62

4. Oklahoma

Amount needed to retire comfortably: $724,000

Average retirement age: 62

5. Arkansas

Amount needed to retire comfortably: $728,000

Average retirement age: 62

6. Kentucky

Amount needed to retire comfortably: $738,000

Average retirement age: 62

7. Kansas

Amount needed to retire comfortably: $733,000

Average retirement age: 65

8. South Dakota

Amount needed to retire comfortably: $738,000

Average retirement age: 66

9. Texas

Amount needed to retire comfortably: $765,000

Average retirement age: 65

10. Missouri

Amount needed to retire comfortably: $771,000

Average retirement age: 63

11. Louisiana

Amount needed to retire comfortably: $777,000

Average retirement age: 62

12. Ohio

Amount needed to retire comfortably: $777,000

Average retirement age: 63

13. South Carolina

Amount needed to retire comfortably: $784,000

Average retirement age: 63

14. Indiana

Amount needed to retire comfortably: $785,000

Average retirement age: 63

15. West Virginia

Amount needed to retire comfortably: $787,000

Average retirement age: 61

16. Georgia

Amount needed to retire comfortably: $797,000

Average retirement age: 63

17. Nebraska

Amount needed to retire comfortably: $806,000

Average retirement age: 65

18. Iowa

Amount needed to retire comfortably: $821,000

Average retirement age: 65

19. Wyoming

Amount needed to retire comfortably: $824,000

Average retirement age: 64

20. North Dakota

Amount needed to retire comfortably: $824,000

Average retirement age: 65

21. Montana

Amount needed to retire comfortably: $839,000

Average retirement age: 64

22. Pennsylvania

Amount needed to retire comfortably: $857,000

Average retirement age: 64

23. Michigan

Amount needed to retire comfortably: $865,000

Average retirement age: 62

24. North Carolina

Amount needed to retire comfortably: $865,000

Average retirement age: 63

25. Idaho

Amount needed to retire comfortably: $872,000

Average retirement age: 64

26. Utah

Amount needed to retire comfortably: $873,000

Average retirement age: 65

27. New Mexico

Amount needed to retire comfortably: $883,000

Average retirement age: 62

28. Illinois

Amount needed to retire comfortably: $883,000

Average retirement age: 64

29. Virginia

Amount needed to retire comfortably: $885,000

Average retirement age: 65

30. Wisconsin

Amount needed to retire comfortably: $925,000

Average retirement age: 64

31. Florida

Amount needed to retire comfortably: $927,000

Average retirement age: 64

32. New Hampshire

Amount needed to retire comfortably: $947,000

Average retirement age: 65

33. Minnesota

Amount needed to retire comfortably: $991,000

Average retirement age: 65

34. Colorado

Amount needed to retire comfortably: $977,000

Average retirement age: 65

35. Nevada- 36. Arizona- 37. Delaware (tie)

Amount needed to retire comfortably: $1 million

Average retirement age: 63

38. Rhode Island

Amount needed to retire comfortably: $1 million

Average retirement age: 65

39. District of Columbia

Amount needed to retire comfortably: $1 million

Average retirement age: 67

40. Maine

Amount needed to retire comfortably: $1.1 million

Average retirement age: 63

41. Washington

Amount needed to retire comfortably: $1.1 million

Average retirement age: 64

42. Maryland – 43. Vermont (tie)

Amount needed to retire comfortably: $1.1 million

Average retirement age: 65

44. Connecticut

Amount needed to retire comfortably: $1.2 million

Average retirement age: 65

45. New Jersey

Amount needed to retire comfortably: $1.2 million

Average retirement age: 65

46. Massachusetts

Amount needed to retire comfortably: $1.2 million

Average retirement age: 66

47. Oregon

Amount needed to retire comfortably: $1.33 million

Average retirement age: 63

48. Alaska

Amount needed to retire comfortably: $1.34 million

Average retirement age: 61

49. New York

Amount needed to retire comfortably: $1.4 million

Average retirement age: 64

50. California

Amount needed to retire comfortably: $1.5 million

Average retirement age: 64

51. Hawaii

Amount needed to retire comfortably: $1.85 million

Average retirement age: 66

 

Article by Samanda Dorger on msn.com

Leave a Reply

Your email address will not be published. Required fields are marked *