A new analysis by MoneyLion utilizing data from the MIT Living Wage Calculator has estimated the annual income required for a single adult without children to retire comfortably across all U.S. states, revealing significant regional variation [1]. The analysis shows retirement income requirements ranging from a high of $64,504 in Hawaii to a low of $40,627 in West Virginia, with Hawaii and California identified as the most expensive states for retirement and West Virginia as the most affordable [1]. The findings come as households across the country face financial stress amid persistent inflation, making it critical for retirees to ensure their income streams adequately cover rising expenses [1].
According to the Social Security Administration, the average annual Social Security benefit amounts to $24,852, based on a monthly average of $2,071 reported in January 2026 [1]. This means that Social Security alone covers only a portion of the income needed for comfortable retirement in most states—for example, it represents approximately 38% of the required income in Hawaii but about 61% in West Virginia [1]. The analysis highlights that American retirees derive income from multiple sources, including personal retirement savings through 401(k) plans or IRAs, annuities, pension plans, and Social Security benefits [1].
The key takeaway from the analysis is that retirees will need to supplement Social Security with additional income sources such as personal retirement savings, annuities, and pension plans to meet state-specific income requirements for comfortable retirement [1]. The significant gap between average Social Security benefits and required retirement income underscores the importance of building supplemental retirement savings during working years, with the necessary amount varying substantially based on geographic location and associated cost-of-living differences [1].
CONCLUSION
Americans face substantial retirement income gaps that vary dramatically by state, with Social Security benefits covering only a portion of what is needed for comfortable retirement. Retirees must rely on multiple income sources including personal savings, pensions, and annuities to bridge the gap between average Social Security benefits of $24,852 and state-specific requirements ranging from $40,627 to $64,504 annually.