A recent study by MoneyLion analyzed the monthly savings required to retire comfortably across different U.S. states, factoring in national average expenses for retired households, Social Security income, and the age at which individuals begin saving for retirement [1]. The report identified Hawaii as the state with the highest annual cost of living for retirees, with necessities costing $90,752 per year and a comfortable retirement estimated at $181,505 annually. After accounting for Social Security income, the annual cost of living in Hawaii as a retiree was estimated at $156,610 [1]. To meet these expenses, an individual would need to save $5,800 per month over 45 years starting at age 20, or $7,458 per month over 35 years starting at age 30, assuming Social Security income. Without Social Security, these figures rise to $6,722 and $8,643 per month, respectively [1].
California ranked as the second-most expensive state for retirees, with an annual necessities cost of $73,387 and a comfortable retirement costing $121,879 per year with Social Security income. Monthly savings targets for California were $4,514 starting at age 20 or $5,804 at age 30 with Social Security, increasing to $5,436 and $6,989 without it [1]. Ted Jenkin, managing partner at Exit Wealth Advisors, emphasized that state income taxes and real estate property taxes are significant factors in retirement budgets, which has contributed to migration out of high-cost states like California and New York [1].
On the other end of the spectrum, West Virginia was found to be the most affordable state for retirees, with an annual necessities cost of $29,059 and a comfortable retirement costing $58,117 per year, or $33,223 after factoring in Social Security income. The monthly savings target in West Virginia would be $1,230 starting at age 20 or $1,582 at age 30 with Social Security, rising to $2,152 and $2,767 without it [1].
Other popular relocation states such as Florida, Tennessee, and Texas were found to have mid-range costs. For example, Florida's annual necessities cost was $44,170, with a comfortable retirement costing $88,339, dropping to $63,445 with Social Security income. The monthly savings targets in Florida were $2,350 starting at age 20 or $3,021 at age 30 with Social Security [1].
CONCLUSION
The MoneyLion study highlights significant disparities in retirement costs across U.S. states, with Hawaii and California being the most expensive and West Virginia the most affordable. High state taxes and living expenses are driving retirees to seek more budget-friendly destinations. These findings underscore the importance of location and early savings in retirement planning.