Ensuring a comfortable retirement requires making many decisions: How much should I save? How should you invest? When should you sign up for Social Security? How much should you withdraw each month during retirement and from what accounts?
All of the answers to these questions can have a material effect on your retirement. But an important question, which not everyone considers, is where you will live during your golden years. More specifically, which state will give you the biggest return on your retirement money?
While it takes $2.2 million to retire in Hawaii, you don’t have to be a millionaire to live a comfortable life in retirement in every state: For example, to retire at age 65 in Oklahoma, you’ll need a minimum of $735,284 in savings, a difference of more than $1.25 million, according to recent findings (1).
The study, based on the Bureau of Labor Statistics’ 2024 Consumer Expenditure Survey (2), estimates how much a person in each state would need to save to live comfortably in retirement (when combined with Social Security and assuming retirees follow the 4% rule for savings withdrawals).
The study averaged the annual cost of living for Americans age 65 and older and then multiplied it by the cost of living index for each state from the Missouri Center for Economic Information and Research’s Q3 2025 cost of living series (3).
Based on these calculations, the five states that require the least savings are:
-
Oklahoma ($735,284)
-
Mississippi ($752,178)
-
Alabama ($789,037)
-
West Virginia ($792,109)
-
Kansas ($804,395)
On the contrary, the five most expensive states are:
-
Hawaii ($2,198,902)
-
Massachusetts ($1,755,055)
-
California ($1,538,508)
-
Alaska ($1,400,286)
-
New York ($1,383,392) (1)
A NetCredit study yielded similar rankings but found, for example, that West Virginia requires the least savings ($712,921), while Hawaii is the most expensive state to retire in, at $1,097,790 (4).
With this information, you may want to consider moving to a state with a lower cost of living once you retire, or you may decide that you need to start saving more to stay where you are.
When it comes to cost of living, you’ll want to compare everything from housing to food, utilities, and transportation costs. Also consider the state income tax, as well as how the state taxes Social Security, pensions, and investment income.
Cost isn’t the only consideration, either. Investigate the quality and accessibility of medical care (as well as specialty care if you need it), as well as lifestyle factors, from climate to recreational possibilities and proximity to family and friends.
For these reasons, the states to which retirees move are not necessarily the ones with the lowest cost of living.
According to an analysis of US Census Bureau data by SmartAsset, the top five states where people over the age of 60 moved in 2023 were Florida, North Carolina, Arizona, South Carolina and Georgia (5).
Read more: The average net worth of Americans is a staggering $620,654. But it almost doesn’t mean anything. Here’s the number that counts (and how to make it fire)
If your retirement savings fall short of what you expect to need, you’re not alone.
Nearly half (48%) of workers surveyed by Betterment believe they will need at least $1 million to retire comfortably, but only 27% believe they will accumulate savings of that size (6).
If you’re in this boat, then you’ll want to look for ways to increase your retirement savings.
A good starting point is to pay off any non-housing debt, as it’s difficult to get ahead when paying off high-interest debt, such as credit cards and personal loans, every month.
Next, be sure to manage the risks that could derail your retirement plans.
Your future income is likely one of your biggest assets, so talk to an insurance broker to evaluate (and upgrade where necessary) your health, disability and critical illness insurance coverage. Also check your home and auto coverage.
Similarly, avoid any hit to your savings plan by creating an emergency fund that covers at least three to six months of expenses. If your job is precarious or it might take you a long time to find another job, consider setting aside six to 12 months of expenses.
Track your spending and look for additional savings.
Your goals with these savings will be to maximize your retirement accounts, especially those with employer matching. If you are over 50, these plans have higher recovery limits (7). These are even higher if you are between 60 and 63 years old.
If you’ve already taken these steps, you may be able to increase your savings by paying off your mortgage and then saving the amount of your mortgage payment each month. This means you will own your home for free when you retire.
To further boost your savings, consider boosting your income by exploring whether you should get a raise, find a new job or side hustle, or even move to a less expensive state now, before you retire. After all, West Virginia is a beautiful state.
Join over 200,000 readers and get the best Moneywise exclusive stories and interviews first – clear insights curated and delivered weekly. Subscribe now.
We rely only on verified sources and credible third-party reports. For more information, see our editorial guidelines and ethics.
GOBankingRates(1); US Bureau of Labor Statistics (2); Missouri Economic Research and Information Center (3); NetCredit(4); smart asset (5); Improve (6); Treasury (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
