The Average Retirement Age in Every State and the Savings Needed for a Comfortable Retirement

Written by: Daniel Gleich

Are you in the process of retirement planning and wondering how much to save for retirement? An important step in the process is ensuring that you have enough retirement savings to live a comfortable life in the years following your retirement. Since the cost of living is so varied across the U.S., the team at Madison Trust Company put together this retirement guide that explores the average age of retirement in each state as well as the average annual cost that would be needed to live a comfortable retirement in each of the states.

The annual retirement costs for each state were found through GoBankingRates’s analysis of data from the Bureau of Labor Statistics Consumer Expenditure Survey 2019. Using this data, they found the total annual costs of groceries, housing, transportation, health care, and utilities, which were then adjusted to each state’s cost-of-living index. These expenditures would cover 80% of one’s retirement budget, with an additional 20% in savings included, to add up to the annual cost of a comfortable retirement in that state. How much will you need to retire? Read on to see how much to save for retirement in your state.

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What Is the Average Retirement Age in the United States?

The average retirement age in U.S. is 64 years old, with the average retirement age across all states spanning from 61 to 67 years old. The Social Security Act sets the minimum age to retire at 65 to receive full retirement benefits, although the minimum retirement age will continue to rise.

Which states have the youngest and oldest average age of retirement in the U.S.? Alaska and West Virginia both have the youngest average retirement age in the USA, 61 years old. Interestingly, Alaska has the youngest U.S. retirement age but was also found to require the fourth-highest amount of retirement savings to live comfortably. The District of Columbia has an average retirement age of 67, the oldest in the United States. The average retirement age in Hawaii, Massachusetts, and South Dakota is a close second, averaging 66 years old.

Which State Has the Highest Annual Cost for Retirement?

Hawaii has the highest annual cost for retirement, with an average of $120,909 needed in retirement savings each year to pay for groceries, housing, transportation, health care, utilities, as well as putting some in savings. How much money do you need to retire in Hawaii? With the average age of retirement in Hawaii being 66 years old, one would need a total of $1,692,722 in retirement savings to live comfortably until the age of 80. Why do people living in Hawaii need so much in retirement savings? The high annual cost is due to Hawaii being the most expensive state in the U.S. to live in. Hawaii’s cost of living index is 193.3, nearly twice the national average. On the other end, Mississippi was found to have the lowest annual retirement cost at just $46,993 per year, nearly a third of the annual amount needed to retire in Hawaii.

The 10 States With the Highest Annual Cost for Retirement

  1. Hawaii: $120,909
  2. District of Columbia: $94,248
  3. California: $83,279
  4. Alaska: $79,249
  5. Oregon: $78,439
  6. New York: $77,911
  7. Massachusetts: $77,122
  8. Maryland: $73,111
  9. Connecticut: $70,817
  10. New Jersey: $67,764

Next time you’re wondering, “How long will my retirement savings last?” refer back to our guide to find the median retirement savings that will be needed to live a comfortable life in retirement where you live. Then, learn more about the benefits a self-directed IRA or Roth IRA can offer when it comes to saving for retirement.

Average Retirement Age in Every State

StateAverage Retirement Age
District of Columbia67
Hawaii66
Massachusetts66
South Dakota66
Maryland65
Connecticut65
New Jersey65
Vermont65
Rhode Island65
New Hampshire65
Colorado65
Virginia65
North Dakota65
Minnesota65
Utah65
Nebraska65
Iowa65
Texas65
Kansas65
California64
New York64
Washington64
Pennsylvania64
Wisconsin64
Florida64
Montana64
Illinois64
Idaho64
Wyoming64
Tennessee64
Oregon63
Maine63
Nevada63
Delaware63
Arizona63
North Carolina63
South Carolina63
Ohio63
Indiana63
Missouri63
Georgia63
Mississippi63
Louisiana62
New Mexico62
Michigan62
Kentucky62
Alabama62
Oklahoma62
Arkansas62
Alaska61
West Virginia61

States Ranked by the Highest Annual Cost for a Comfortable Retirement

StateAverage Retirement AgeAnnual Cost of a Comfortable RetirementRetirement Savings Needed for the Years Between Retirement Age and 80
1Hawaii66$120,909$1,692,722
2District of Columbia67$94,248$1,225,222
3California64$83,279$1,332,457
4Alaska61$79,249$1,505,740
5Oregon63$78,439$1,333,467
6New York64$77,911$1,246,578
7Massachusetts66$77,122$1,079,710
8Maryland65$73,111$1,096,666
9Connecticut65$70,817$1,062,257
10New Jersey65$67,764$1,016,461
11Vermont65$67,651$1,014,762
12Rhode Island65$67,594$1,013,904
13Maine63$66,752$1,134,778
14Washington64$64,636$1,034,174
15Nevada63$63,300$1,076,107
16New Hampshire65$62,011$930,159
17Colorado65$60,357$905,350
18Delaware63$58,418$993,101
19Arizona63$58,327$991,560
20Virginia65$58,120$871,793
21Pennsylvania64$57,941$927,056
22North Dakota65$57,060$855,904
23Minnesota65$56,869$853,040
24Wisconsin64$56,434$902,942
25Florida64$56,382$902,116
26South Dakota66$56,178$786,497
27Montana64$55,711$891,368
28North Carolina63$54,687$929,686
29Illinois64$54,657$874,507
30Utah65$54,363$815,449
31South Carolina63$53,207$904,527
32Idaho64$52,962$847,388
33Louisiana62$52,695$948,503
34Nebraska65$52,439$786,583
35Iowa65$52,399$785,982
36Texas65$52,341$785,109
37Wyoming64$52,330$837,287
38Ohio63$51,817$880,889
39New Mexico62$51,556$928,181
40Michigan62$51,356$924,415
41Kentucky62$51,082$919,469
42Indiana63$50,697$861,848
43Missouri63$50,247$854,197
44Kansas65$50,223$753,339
45Tennessee64$50,186$802,977
46Georgia63$50,066$851,122
47West Virginia61$49,439$939,341
48Alabama62$49,099$883,790
49Oklahoma62$48,716$876,879
50Arkansas62$47,836$861,053
51Mississippi63$46,993$798,874

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