(NewsNation) — Americans may often wonder how much they should have saved before retiring. The reality is that it depends vastly on where you live and which of the 50 states you are retiring in.
A 2024 study by Northwestern Mutual said surveyed Americans believed they needed $1.5 million to retire comfortably.
Now, GOBankingRates has released a compiled study using data from the Bureau Labor of Statistics, among others, to reveal how long that total would last while living comfortably.
New York, California some of the most expensive states: Study
The analysis by GOBankingRates showed that while the $1.5 million in retirement savings could last 54 years in West Virginia, it would likely only last 17 years in Hawaii and won’t hold out three decades in a handful of other states.
The most expensive states, according to the study, are:
- Hawaii (17 years): Annual cost of living after Social Security would be $87,770
- Massachusetts (23 years): Annual cost of living after Social Security would be $65,117
- California (24 years): Annual cost of living after Social Security would be $63,795
- New York (29 years): Annual cost of living after Social Security would be $50,997
- Alaska (29 years): Annual cost of living after Social Security would be $50,997
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West Virginia was the cheapest state, with an annual cost of living after Social Security at $27,803. $1.5 million in retirement savings would likely last 54 years in this state. As for some other states, the guideline retirement sum would last at least a half-century in:
- Kansas
- Mississippi
- Oklahoma
- Alabama
- Missouri
The annual cost of living after Social Security benefits in West Virginia, Kansas, Mississippi and Oklahoma were all under $30,000 per year.
GOBankingRates has the full list of state-by-state projections on its website.
Create a plan for retirement
Shaun Scott, Chief Revenue Officer of benefits administration company Aptia Group, told NewsNation that forward thinking is essential to get the most out of retirement.
“We encourage all of our employees and our clients across the country to create a plan for retirement,” Scott said. “Through guided benefits planning and evaluation of Social Security, investments, personal savings and your benefits package, families and individuals can be confident in their retirement decisions.”
