The Minimum Savings to Retire in All 50 States — Latest Survey Reveals

Retirement planning in the United States is heavily influenced by geography. A recent nationwide analysis by GOBankingRates shows that the minimum savings required to retire comfortably varies dramatically by state, largely due to differences in living costs, taxation, and regional price pressures.

The study calculates required savings using the 4% rule. It estimates annual living expenses for residents aged 65 and older, subtracts the average annual Social Security income of $22,437.24, and divides the remaining gap by 0.04 to determine the savings needed. The results reveal a dramatic gap between low-cost and high-cost states.

Methodology

• Annual expenditures: Based on the 2024 Bureau of Labor Statistics Consumer Expenditure Survey for residents aged 65+.
• State adjustments: Using the Missouri Economic Research & Information Center 2025 Q3 cost-of-living index.
• Social Security: Average annual benefit of $22,437.24 (SSA).
• Savings calculation: Annual post-Social Security gap ÷ 0.04 (4% withdrawal rule).

Data is current as of January 7, 2026.

Minimum Savings Needed by State

Below is the complete table of all 50 states ranked by the minimum savings needed to retire comfortably.

Americans Are Not Saving Enough

Median retirement savings are far below the required levels in any state:

For those aged 55–64, the median balance of $185,000 is insufficient to retire in any state. Many retirees are heavily reliant on Social Security, which is projected to fund only 77% of scheduled benefits by 2033 if no reforms are enacted.

Here's a fully updated article section with actionable saving tips for each tier of states. You can insert this right after the main tables:

How to Save More for Retirement

Retirement planning isn't just about knowing how much you need. It's about taking actionable steps today to close the savings gap. Depending on your state's cost of living, strategies can vary. Here's a practical guide for different tiers of states:

1. Tips for Cheapest States (Oklahoma, Mississippi, Alabama, etc.)

Even in lower-cost states, retirees face gaps of $29K–$33K annually. To stay ahead:

• Automate contributions to 401(k)s, IRAs, or state retirement plans.
• Take full advantage of employer matching — free money that compounds over time.
• Consider downsizing your home or relocating to more affordable towns within the state to free up cash.
• Build an emergency fund to prevent withdrawals from retirement savings for unexpected expenses.

2. Tips for Middle-Tier States (Texas, Georgia, Nevada, Utah, etc.)

With savings needs approaching $950K, planning becomes crucial:

• Increase retirement contributions gradually each year, even 1–2% annually can compound significantly.
• Pay down high-interest debts, such as credit cards, to free more income for investing.
• Explore side income streams — part-time work, freelancing, or passive income investments.
• Review spending annually and adjust lifestyle choices to maximize savings without sacrificing quality of life.

3. Tips for Most Expensive States (Hawaii, California, Massachusetts, New York, etc.)

In high-cost states, retirees may need over $1.5M, making aggressive saving and smart investing critical:

• Start as early as possible. Compounding works best over decades.
• Diversify investments across stocks, bonds, and real estate, balancing risk and potential growth.
• Consider tax-advantaged accounts, such as Roth IRAs, and explore state-specific tax breaks for retirees.
• Think strategically about location within the state, even small differences in city living costs can reduce retirement gaps.
• Regularly monitor progress and adjust investment allocations, contributions, and lifestyle choices as costs evolve.

Pro Tip: No matter your state, small, consistent steps like increasing contributions, reducing debt, and investing wisely can have a huge long-term impact. Even modest increases today can shrink a $752K gap in Mississippi or a $2.2M gap in Hawaii significantly over 20–30 years.