You Need at Least $1 Million to Retire in These 13 States

The Million-Dollar Threshold Is Real

Americans believe they need about $1. 26 million to retire comfortably.

That sounds like a stretch goal for most people. But in 13 states, it’s not a goal at all.

It’s the minimum. These states have annual retirement costs so high that anything less than seven figures means you’re likely to run out of money before you run out of years.

Housing drives most of the gap, but healthcare, taxes, and everyday expenses pile on too. The difference between the cheapest and most expensive state is nearly $1.5 million.

Hawaii Requires $2.21 Million

Hawaii ranks as the most expensive state to retire in, requiring retirees to save approximately $2. 21 million.

Annual retirement expenses reach nearly $130,000, more than double what retirees pay in the cheapest states. Housing costs in Honolulu run 102.6% above the national average. Groceries and utilities add to the pain.

Hawaiians pay about 210% of the national average for utilities. The beaches are beautiful, but the price tag is brutal.

Massachusetts Needs $1.65 Million

Massachusetts requires retirees to have about $1. 65 million saved, making it the second most expensive state.

High housing and healthcare costs drive the numbers, especially in cities like Boston. The average retiree here needs about $83,135 per year to live comfortably.

Property taxes rank among the highest in the nation, and the state taxes most retirement income. If you’re planning to retire in the Bay State, you better start saving early.

California Demands $1.61 Million

California comes in third at $1. 61 million in required retirement savings.

Annual expenses run about $86,171 per year. The state is one of the worst for retirees when it comes to taxes, fully taxing military retirement pay and most other retirement income.

Housing in San Francisco and Los Angeles can consume half a retirement budget on its own. The weather is perfect, but your savings won’t last as long as the sunshine.

Alaska Ties at $1.29 Million

Alaska requires about $1. 29 million to retire comfortably.

That surprises many people who assume lower population means lower costs. But everything in Alaska costs more because it has to be shipped in.

Heating bills in winter can run hundreds of dollars per month. Healthcare access is limited outside Anchorage, which means travel costs for medical care.

The state has no income tax and even pays residents an annual dividend, but those perks don’t offset the basics.

New York Matches at $1.29 Million

New York ties Alaska at $1. 29 million in required savings.

Retirees need about $83,817 per year to live comfortably here.

The average retirement lasts just over 16 years in New York, with an average retirement age of 64 and life expectancy of 80. 8 years.

New York City is the obvious cost driver, but even upstate areas run above the national average. The state has the highest tax burden in the country.

New Jersey Requires $1.16 Million

New Jersey retirees need about $1. 16 million saved.

Annual expenses run around $77,684, with yearly costs for those 65 and older at about $64,736. The state has some of the highest property taxes in America.

A modest home can cost $10,000 or more per year in property taxes alone. The average retirement in New Jersey lasts about 15.5 years. Many retirees leave for Florida or the Carolinas to stretch their savings.

Vermont Needs $1.15 Million

Vermont requires about $1. 15 million to retire comfortably.

The state is one of nine that still taxes Social Security benefits, though income-based exemptions may reduce or eliminate the tax for some retirees.

Rural living sounds cheap until you factor in heating costs, limited healthcare access, and the price of goods in small towns.

Vermont is beautiful in fall, but your retirement account will feel the chill of those long winters.

Washington State Hits $1.15 Million

Washington requires about $1. 15 million in retirement savings.

Annual expenses run around $68,259. The state has no income tax, which helps.

But Seattle-area housing costs have exploded over the past decade, dragging the statewide average up with them. A median home in Seattle now costs well over $800,000.

Eastern Washington is cheaper, but most jobs and healthcare facilities cluster around Puget Sound.

Maine Crosses at $1.14 Million

Maine retirees need about $1. 14 million saved.

Annual expenses run around $68,199. Heating oil prices hit Maine hard every winter.

The state is also one of the oldest in the nation by median age, which strains healthcare resources.

Rural areas have limited hospital access, meaning retirees often travel to Portland or even Boston for specialized care. Lobster is cheap.

Everything else, not so much.

Arizona Surprises at $1.13 Million

Arizona requires about $1. 13 million to retire comfortably.

That shocks people who think of Arizona as a budget retirement destination.

Popular retirement cities like Scottsdale have become extremely expensive, with average homeowner costs running over $81,000 per year. Phoenix has grown fast, and prices followed.

Air conditioning bills in summer can rival heating bills in northern states. The days of cheap Arizona retirement are fading.

Rhode Island Requires $1.13 Million

Rhode Island ties Arizona at $1. 13 million in required savings.

The state still taxes Social Security benefits, though exemptions exist for lower-income retirees. Providence and the coastal areas drive housing costs above national averages.

It’s a small state, which limits your options for finding cheaper pockets. Healthcare costs also run high in the Northeast.

The Ocean State comes with ocean-sized retirement bills.

Connecticut Needs $1.12 Million

Connecticut retirees need about $1. 12 million saved.

Annual expenses run around $79,852, with yearly costs for retirees at about $66,543. The average retirement in Connecticut lasts 15.6 years, requiring total savings of about $1. 25 million for a comfortable lifestyle.

Connecticut is one of nine states that still taxes Social Security benefits. Property taxes rank among the highest in America.

New Hampshire Barely Crosses $1.11 Million

New Hampshire squeaks onto the list at $1. 11 million in required retirement savings.

The state has no income tax, which sounds great. But property taxes are among the highest in the nation, often exceeding $6,000 per year on an average home.

Housing costs near the Massachusetts border have climbed as Boston workers moved north.

The Granite State offers natural beauty and no sales tax, but your property tax bill will remind you that nothing is free.

The Gap Keeps Growing

The median retirement savings for Americans aged 65-74 is just $200,000, with an average of $609,000. That’s nowhere near what these 13 states require.

West Virginia needs only $713,000 in total savings, the lowest in the nation. The difference between West Virginia and Hawaii is nearly $1.5 million.

Only about 3% of Americans reach millionaire status, which means 97% would struggle to retire comfortably in these states. Where you retire matters as much as how much you save.

This article was created with AI assistance and human editing.

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