American retirees may move states to be closer to family or seek a warmer climate, but cost of living can also be a big factor.
One study found that the annual cost of retiring comfortably can vary by up to $66,000 from state to state, with Hawaii by far the most expensive. Recent GOBankingRates analysis Total retirement benefits in all 50 states and the District of Columbia.
To determine annual retirement costs for Americans age 65 and older in each state, the study used estimates from the Bureau of Labor Statistics for food, housing, transportation, health care, and utilities. According to the study, an additional cash buffer worth 20% of the total amount was added to help retirees live “comfortably”.
Hawaii has the highest annual retirement benefits in the country, costing retirees an estimated $121,228 annually. It’s also the only state or district that requires retirees to spend six figures.
The cost of living in the Aloha State is high for all residents, primarily due to high transportation costs since most goods are transported by boat. Those extra costs are passed on to consumers through more expensive goods. Land in Hawaii is both desirable and limited, making it some of the highest housing costs in the country.
Hawaii has the lowest retirement benefits in the country, in sharp contrast to Mississippi, which costs retirees $55,074 a year.
Mississippi has some of the lowest home prices and property taxes in the country, helping keep retirement costs low.
Like Mississippi, states with the lowest retirement benefits tend to be rural. Such states include Alabama, Oklahoma, Iowa, and West Virginia. Rural states tend to have lower housing prices than states with large urban centers where demand for housing is high.
Below is an alphabetical list of annual retirement benefits for all states.
- Total expenditure: $45,415
- 20% comfort buffer: $11,354
- Annual cost of a comfortable retirement: $56,769
- Total expenditure: $65,437
- 20% comfort buffer: $16,359
- Annual cost of a comfortable retirement: $81,796
- Total expenditure: $56,312
- 20% comfort buffer: $14,078
- Annual cost of a comfortable retirement: $70,390
- Total expenditure: $47,083
- 20% comfort buffer: $11,771
- Annual cost of a comfortable retirement: $58,854
- Total expenditure: $72,320
- 20% comfort buffer: $18,080
- Annual cost of a comfortable retirement: $90,399
- Total expenditure: $54,852
- 20% comfort buffer: $13,713
- Annual cost of a comfortable retirement: $68,565
- Total expenditure: $60,171
- 20% comfort buffer: $15,043
- Annual cost of a comfortable retirement: $75,213
- Total expenditure: $54,957
- 20% comfort buffer: $13,739
- Annual cost of a comfortable retirement: $68,696
- Total expenditure: $79,984
- 20% comfort buffer: $19,996
- Annual cost of a comfortable retirement: $99,980
- Total expenditure: $54,487
- 20% comfort buffer: $13,622
- Annual cost of a comfortable retirement: $68,109
- Total expenditure: $46,353
- 20% comfort buffer: $11,588
- Annual cost of a comfortable retirement: $57,942
- Total expenditure: $96,982
- 20% comfort buffer: $24,246
- Annual cost of a comfortable retirement: $121,228
- Total expenditure: $51,567
- 20% comfort buffer: $12,892
- Annual cost of a comfortable retirement: $64,459
- Total expenditure: $47,918
- 20% comfort buffer: $11,979
- Annual cost of a comfortable retirement: $59,897
- Total expenditure: $47,031
- 20% comfort buffer: $11,758
- Annual cost of a comfortable retirement: $58,789
- Total expenditure: $45,988
- 20% comfort buffer: $11,497
- Annual cost of a comfortable retirement: $57,485
- Total expenditure: $45,519
- 20% comfort buffer: $11,380
- Annual cost of a comfortable retirement: $56,899
- Total expenditure: $48,387
- 20% comfort buffer: $12,097
- Annual cost of a comfortable retirement: $60,484
- Total expenditure: $48,752
- 20% comfort buffer: $12,188
- Annual cost of a comfortable retirement: $60,940
- Total expenditure: $59,701
- 20% comfort buffer: $14,925
- Annual cost of a comfortable retirement: $74,627
- Total expenditure: $64,707
- 20% comfort buffer: $16,177
- Annual cost of a comfortable retirement: $80,884
- Total expenditure: $78,159
- 20% comfort buffer: $19,540
- Annual cost of a comfortable retirement: $97,699
- Total expenditure: $47,813
- 20% comfort buffer: $11,953
- Annual cost of a comfortable retirement: $59,767
- Total expenditure: $49,586
- 20% comfort buffer: $12,397
- Annual cost of a comfortable retirement: $61,983
- Total expenditure: $44,059
- 20% comfort buffer: $11,015
- Annual cost of a comfortable retirement: $55,074
- Total expenditure: $46,979
- 20% comfort buffer: $11,745
- Annual cost of a comfortable retirement: $58,724
- Total expenditure: $54,904
- 20% comfort buffer: $13,726
- Annual cost of a comfortable retirement: $68,631
- Total expenditure: $47,500
- 20% comfort buffer: $11,875
- Annual cost of a comfortable retirement: $59,376
- Total expenditure: $53,132
- 20% comfort buffer: $13,283
- Annual cost of a comfortable retirement: $66,415
- Total expenditure: $59,806
- 20% comfort buffer: $14,951
- Annual cost of a comfortable retirement: $74,757
- Total expenditure: $59,441
- 20% comfort buffer: $14,860
- Annual cost of a comfortable retirement: $74,301
- Total expenditure: $48,908
- 20% comfort buffer: $12,227
- Annual cost of a comfortable retirement: $61,135
- Total expenditure: $70,755
- 20% comfort buffer: $17,689
- Annual cost of a comfortable retirement: $88,444
- Total expenditure: $50,525
- 20% comfort buffer: $12,631
- Annual cost of a comfortable retirement: $63,156
- Total expenditure: $50,785
- 20% comfort buffer: $12,696
- Annual cost of a comfortable retirement: $63,482
- Total expenditure: $46,614
- 20% comfort buffer: $11,654
- Annual cost of a comfortable retirement: $58,268
- Total expenditure: $45,206
- 20% comfort buffer: $11,302
- Annual cost of a comfortable retirement: $56,508
- Total expenditure: $63,716
- 20% comfort buffer: $15,929
- Annual cost of a comfortable retirement: $79,645
- Total expenditure: $51,202
- 20% comfort buffer: $12,801
- Annual cost of a comfortable retirement: $64,003
- Total expenditure: $57,981
- 20% comfort buffer: $14,495
- Annual cost of a comfortable retirement: $72,476
- Total expenditure: $50,212
- 20% comfort buffer: $12,553
- Annual cost of a comfortable retirement: $62,765
- Total expenditure: $50,108
- 20% comfort buffer: $12,527
- Annual cost of a comfortable retirement: $62,634
- Total expenditure: $47,083
- 20% comfort buffer: $11,771
- Annual cost of a comfortable retirement: $58,854
- Total expenditure: $48,283
- 20% comfort buffer: $12,071
- Annual cost of a comfortable retirement: $60,353
- Total expenditure: $53,184
- 20% comfort buffer: $13,296
- Annual cost of a comfortable retirement: $66,480
- Total expenditure: $60,692
- 20% comfort buffer: $15,173
- Annual cost of a comfortable retirement: $75,865
- Total expenditure: $53,236
- 20% comfort buffer: $13,309
- Annual cost of a comfortable retirement: $66,545
- Total expenditure: $59,441
- 20% comfort buffer: $14,860
- Annual cost of a comfortable retirement: $74,301
- Total expenditure: $46,823
- 20% comfort buffer: $11,706
- Annual cost of a comfortable retirement: $58,528
- Total expenditure: $48,960
- 20% comfort buffer: $12,240
- Annual cost of a comfortable retirement: $61,200
- Total expenditure: $47,792
- 20% comfort buffer: $11,948
- Annual cost of a comfortable retirement: $59,741
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