A new study from personal finance experts at GOBankingRates has delivered the retirement equivalent of a cold shower: depending on your state, you might need anywhere from about $735,000 to a jaw-dropping $2.2 million just to cover the basics after age 65.
Hawaii tops the list at roughly $2.2 million in savings required for 25 years of essentials, while Oklahoma brings up the rear with a far more approachable $735,284. The gap? A cool $1.46 million, proving once again that geography isn’t just about scenery—it’s about how much your wallet has to sweat.
The impact hits harder than a surprise tax bill. For folks eyeing retirement, this map turns dream destinations into financial math problems. Move to paradise like Hawaii, and your nest egg needs to be built like a fortress; stick to the heartland states, and you might actually afford to relax instead of rationing ramen in your golden years.
Housing drives most of the drama, swinging annual costs by up to $30,000 between states, while utilities and health care add their own $5,000 wildcard. Suddenly, that beachfront condo sounds less like retirement and more like a lifelong side hustle.
The numbers come straight from the latest U.S. Bureau of Labor Statistics data on retiree spending, tweaked by subtracting average Social Security checks and applying the classic 4% withdrawal rule.
These figures cover only the must-haves—housing, groceries, transportation, utilities, health care—no extras like spontaneous cruises or upgrading to the good dentures. Inflation? Unexpected medical surprises? Lifestyle creep? Not included, so consider this the bare-minimum baseline before life inevitably adds its own plot complications.
Hawaii leads the pack with an annual retiree cost of living around $110,393, meaning savings must stretch to cover that paradise premium. California follows at $1.54 million, where even the sun seems to charge extra. Massachusetts demands $1.76 million, and New York sits at $1.38 million—proving big-city dreams come with big-city price tags.
On the flip side, Mississippi clocks in at $752,178, and West Virginia at $792,109, where your money apparently stretches further than a Southern drawl.
Oklahoma’s $735,284 figure feels almost charitable by comparison, as if the state whispered, “Come on down, we’ve got low costs and no judgment.” States like Alabama ($789,037) and Arkansas ($810,538) keep things reasonable, reminding everyone that sometimes the quiet places let your savings breathe easier.
The study quietly underscores a national truth: retirement isn’t one-size-fits-all. One person’s tropical escape is another’s budget buster, while another’s modest Midwestern setup feels luxurious. Either way, the message is clear—start saving yesterday, choose your state wisely, or prepare to work until the robots take over the jobs.
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