On average, Americans estimate they should save about $1.46 million before retiring, according to Northwestern Mutual’s 2024 Planning and Progress study.
But in some states, like Hawaii, you would need more than that. The minimum amount of savings you would need to retire in the Aloha State is $2,051,077, according to a GOBankingRates study.
The personal finance site calculates that this amount, plus Social Security benefits, would be enough to cover basic necessities like groceries, housing, utilities, car expenses, discretionary spending and savings on a 25-year retirement.
To determine the minimum retirement savings requirements in each state, GOBankingRates looked at how much Americans 65 and older spend each year on groceries, transportation, housing, utilities and health care at home. using data from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey.
It also looked at each state’s cost of living through the Missouri Economic Research and Information Center’s State-by-State Cost of Living Index, based on survey data from the Council for Community and Economic Research.
Here are the 10 states where you’d most need to retire comfortably, according to GOBankingRates data shared with CNBC Make It.
1. Hawaii
- Minimum retirement savings required: $2,051,077
2. Massachusetts
- Minimum retirement savings required: $1,600,097
3. California
- Minimum retirement savings required: $1,432,425
4. New York
- Minimum retirement savings required: $1,289,325
5. Alaska
- Minimum retirement savings required: $1,287,880
6.Washington
- Minimum retirement savings required: $1,133,217
7. New Hampshire
- Minimum retirement savings required: $1,131,771
8. Vermont
- Minimum retirement savings required: $1,121,653
9. Maryland
- Minimum retirement savings required: $1,120,208
10. Oregon
- Minimum retirement savings required: $1,118,762
It’s no secret that Hawaii can be an expensive place to live. The median home sale price was around $813,000 in March 2024, according to Redfin. And $1 million in retirement savings would run out in about 10 years — the fastest of any state.
Although the state does not tax Social Security income, income from retirement savings accounts, such as 401(k)s and Roth IRAs, is fully taxed.
However, Hawaii offers a number of features that retirees may find attractive, such as stunning scenery and easy access to pristine beaches.
How to plan for retirement
It’s important to remember that everyone’s definition of a “comfortable retirement” will be different.
Even if you don’t necessarily want to retire as a millionaire, having a clear savings goal in mind can help you determine how much you’ll need to start putting aside now to retire comfortably.
If you’re not sure where to start, CNBC Make It’s retirement calculator can help you determine how much you might need, based on factors like your age, current income and savings.
And while the cost of living in a given location can be an important factor when deciding where to retire, it’s not the only thing to consider. Your decision will depend on a number of personal preferences, such as whether you want to live closer to family or how much you plan to spend on activities like travel.
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