These are minimum savings you need to retire in all 50 states – How much money should you have in the bank depending on where in United States?

Retirement planning has become more complex in today’s economic climate, where inflation, healthcare costs, and rising living expenses challenge individuals’ ability to save. According to a recent study from GOBankingRates, the minimum savings required for a comfortable retirement varies dramatically across US states, reflecting differing costs of living, housing expenses, and healthcare needs.

For those nearing retirement age, understanding these factors and how they impact your financial needs is necessary. Research from AARP found that 18% of individuals over 50 have no retirement savings at all, a concerning statistic given that Social Security alone may not suffice to cover expenses in states with higher costs of living.

The top 30 most affordable states for retirement savings

For those looking to retire on a smaller budget, states like West Virginia, Oklahoma, and Kansas rank among the most affordable, offering retirees a relatively low cost of living. West Virginia, for example, requires about $650,356 in savings for a comfortable retirement. Notably, Charleston, the state’s capital, was ranked by Kiplinger as one of the 25 most affordable US cities.

Other affordable states like Alabama and Mississippi feature lower housing costs and tax advantages. Many Southern and Midwestern states have earned reputations for budget-friendly living conditions, making them attractive for retirees with smaller nest eggs.

States with the highest savings requirements for retirement

On the other end of the spectrum, states like Hawaii, California, and Massachusetts top the list of places where retirees need substantial savings. Hawaii’s cost of living is the highest in the country, with residents needing over $2.1 million in savings to maintain their lifestyle. The state’s expenses stem from high housing and food costs, paired with a unique geography that adds additional shipping and import expenses.

Other states with high costs of living, such as California and Massachusetts, also require  savings. These states are home to some of the most expensive cities, pushing retirement costs up substantially.

Why many Americans aren’t saving enough

The challenges in saving for retirement aren’t solely due to high costs. Many Americans face daily expenses, debt, and healthcare costs that reduce their ability to save. According to AARP, more than half of current retirees without savings cited everyday expenses as their main obstacle, with 40% attributing their lack of savings to housing costs and 37% to debt payments.

A Federal Reserve survey further highlights that the median retirement savings for Americans aged 55-64 is just $185,000—below what most will need for a stable retirement. Many individuals also underestimate inflation, healthcare expenses, and longevity, leading to shortfalls in their retirement funds.