Thinking About Retirement? Where You Live Matters More Than You Think
When planning for retirement, most people zero in on their savings—how much they’ve put aside, whether it’s enough, and how long it’ll last. But one critical factor often gets overlooked: where you choose to retire.
Why does location matter so much? Because the cost of living can vary dramatically depending on the state.
According to a GOBankingRates analysis, the price tag for a comfortable retirement can differ by as much as $67,981 per year based on location. That’s a staggering gap.
For instance, Hawaii is the most expensive state to retire in, with an average annual cost of $129,296. Meanwhile, Mississippi comes in as the most affordable, where retirees can live comfortably on $61,315—less than half the cost.
How These Numbers Were Calculated
To estimate the cost of a comfortable retirement, the study looked at the average expenses for Americans aged 65 and older—covering necessities like housing, food, transportation, healthcare, and utilities. Then, they added a 20% comfort buffer to allow for extras like travel, hobbies, and unexpected expenses. Because retirement shouldn’t just be about getting by—it should be enjoyable, too.
Unsurprisingly, housing is the biggest factor behind these cost differences. Places like Hawaii have high real estate prices due to demand and limited land. On the flip side, states like Mississippi and Kansas offer lower housing costs and property taxes, making them more budget-friendly for retirees.
What Does a Comfortable Retirement Cost in Your State?
Here’s a state-by-state breakdown of the annual cost of a comfortable retirement, including the 20% cushion. States are listed alphabetically, so you can quickly find your own—or explore where your dollar stretches furthest:
| State | Total Expenditures | Comfort Buffer (20%) | Annual Retirement Cost |
|---|---|---|---|
| Alabama | $50,980 | $10,196 | $61,176 |
| Alaska | $72,390 | $14,478 | $86,868 |
| Arizona | $63,942 | $12,788 | $76,730 |
| Arkansas | $51,211 | $10,242 | $61,454 |
| California | $83,906 | $16,781 | $100,687 |
| Colorado | $58,908 | $11,782 | $70,689 |
| Connecticut | $65,504 | $13,101 | $78,605 |
| Delaware | $58,387 | $11,677 | $70,064 |
| Florida | $59,660 | $11,932 | $71,592 |
| Georgia | $52,832 | $10,566 | $63,398 |
| Hawaii | $107,746 | $21,549 | $129,296 |
| Idaho | $58,503 | $11,701 | $70,203 |
| Illinois | $53,989 | $10,798 | $64,787 |
| Indiana | $52,253 | $10,451 | $62,704 |
| Iowa | $52,137 | $10,427 | $62,565 |
| Kansas | $50,517 | $10,103 | $60,620 |
| Kentucky | $53,584 | $10,717 | $64,301 |
| Louisiana | $53,295 | $10,659 | $63,954 |
| Maine | $64,405 | $12,881 | $77,286 |
| Maryland | $67,240 | $13,448 | $80,688 |
| Massachusetts | $83,501 | $16,700 | $100,201 |
| Michigan | $53,121 | $10,624 | $63,745 |
| Minnesota | $54,857 | $10,971 | $65,828 |
| Mississippi | $51,096 | $10,219 | $61,315 |
| Missouri | $51,211 | $10,242 | $61,454 |
| Montana | $54,741 | $10,948 | $65,689 |
| Nebraska | $54,047 | $10,809 | $64,856 |
| Nevada | $59,428 | $11,886 | $71,314 |
| New Hampshire | $65,736 | $13,147 | $78,883 |
| New Jersey | $65,794 | $13,159 | $78,952 |
| New Mexico | $54,163 | $10,833 | $64,995 |
| New York | $71,233 | $14,247 | $85,480 |
| North Carolina | $56,998 | $11,400 | $68,398 |
| North Dakota | $53,700 | $10,740 | $64,440 |
| Ohio | $54,394 | $10,879 | $65,273 |
| Oklahoma | $49,996 | $9,999 | $59,995 |
| Oregon | $66,025 | $13,205 | $79,230 |
| Pennsylvania | $55,320 | $11,064 | $66,384 |
| Rhode Island | $65,620 | $13,124 | $78,744 |
| South Carolina | $56,477 | $11,295 | $67,773 |
| South Dakota | $54,047 | $10,809 | $64,856 |
| Tennessee | $52,253 | $10,451 | $62,704 |
| Texas | $53,468 | $10,694 | $64,162 |
| Utah | $59,544 | $11,909 | $71,453 |
| Vermont | $66,372 | $13,274 | $79,647 |
| Virginia | $58,618 | $11,724 | $70,342 |
| Washington | $66,604 | $13,321 | $79,925 |
| West Virginia | $48,492 | $9,698 | $58,190 |
| Wisconsin | $56,130 | $11,226 | $67,356 |
| Wyoming | $55,031 | $11,006 | $66,037 |
The Bottom Line: Saving for retirement is essential—but where you retire could be just as important. By choosing a more affordable location, you can stretch your savings further and enjoy a more comfortable lifestyle.