10 Cheapest and 10 Most Expensive States to Retire Early
GOBankingRates determines how much would be needed by state to retire at 50
Dreaming of retiring at 50? Not many can—or should, but for those that really want to have a go at it, the folks over at GOBankingRates have ranked all 50 states in terms of how much you would need in savings to attempt such a thing.
Whether a FIRE devotee (Financial Independence, Retire Early) focused on extreme saving and investment techniques to allow them to retire far earlier than traditional budgets and retirement plans would permit, or someone in a situation where an early retirement seems likely for any variety of reasons, retiring early successfully requires plenty of preparation.
“If you are looking to retire early, the first step is to calculate how much savings you’ll need to afford your annual expenses,” Andrew Murray, Lead Data Content Researcher at GOBankingRates, told 401(k) Specialist. “Our research shows that in every single U.S. state, the average person will need at least $1 million to retire by 50—but that figure may need to be significantly larger if you live an above-average lifestyle or if you live in a more expensive part of the country.”
For example, while the savings needed to retire at 50 is roughly $1.1 million in states like Mississippi and West Virginia, it is more than double that amount in states like California, Massachusetts and Washington.
“And those are just the figures to be retired for 30 years. If you want to plan on being retired until 90, you’ll need as much as $3 million in America’s most expensive states,” Murray added.
In order to make these calculations, GOBankingRates analyzed the latest cost of living data for all 50 states from two different sources: the Bureau of Labor Statistics and the Missouri Economic and Research Information Center. “Using this data, we calculated both the savings needed to retire at 50 and live for 30 years, and separately, the savings needed to live for 40 years,” Murray said. “We considered the savings you’d need both with Social Security benefits and without them.”
Click below to see the 10 cheapest states for retiring early, while the following page features the 10 most expensive states. You can find the complete report, which includes an interactive U.S. map and table with data for every state, here.
10 Cheapest States for Retiring at 50
In more than half of all U.S. states, to retire at 50 you need more than $1.5M to be retired for 30 years and more than $2M to be retired for 40 years. Mississippi is the cheapest state to retire by 50, but you still need more than $1.1M for 30 years and $1.5M for 40 years.
1. Mississippi
• $1,144,014 needed to live to 80 with Social Security
• $1,516,020 needed to live to 90 with Social Security
2. West Virginia
• $1,150,765 needed to live to 80 with Social Security
• $1,525,021 needed to live to 90 with Social Security
3. Arkansas
• $1,195,741 needed to live to 80 with Social Security
• $1,584,989 needed to live to 90 with Social Security
4. Louisiana
• $1,209,426 needed to live to 80 with Social Security
• $1,603,236 needed to live to 90 with Social Security
5. Oklahoma
• $1,220,785 needed to live to 80 with Social Security
• $1,618,381 needed to live to 90 with Social Security
6. Kentucky
• $1,227,978 needed to live to 80 with Social Security
• $1,627,972 needed to live to 90 with Social Security
7. Alabama
• $1,258,915 needed to live to 80 with Social Security
• $1,669,221 needed to live to 90 with Social Security
8. Iowa
• $1,287,886 needed to live to 80 with Social Security
• $1,707,850 needed to live to 90 with Social Security
9. Kansas
• $1,289,612 needed to live to 80 with Social Security
• $1,710,151 needed to live to 90 with Social Security
10. Missouri
• $1,302,087 needed to live to 80 with Social Security
• $1,726,784 needed to live to 90 with Social Security
Next Page: 10 Most Expensive States for Retiring at 50
10 Most Expensive States for Retiring at 50
The GOBankingRates research found Hawaii, California and Massachusetts all require more than $2M in savings, if you want to retire at 50 and be retired for 30 years. For 40 years of retirement, you’ll need more than $3M.
50. Hawaii
• $3,207,130 needed to live to 80 with Social Security
• $4,266,840 needed to live to 90 with Social Security
49. California
• $2,709,302 needed to live to 80 with Social Security
• $3,603,070 needed to live to 90 with Social Security
48. Massachusetts
• $2,367,092 needed to live to 80 with Social Security
• $3,146,791 needed to live to 90 with Social Security
47. Washington
• $2,254,421 needed to live to 80 with Social Security
• $2,996,562 needed to live to 90 with Social Security
46. Colorado
• $2,042,179 needed to live to 80 with Social Security
• $2,713,573 needed to live to 90 with Social Security
45. New Jersey
• $2,025,698 needed to live to 80 with Social Security
• $2,691,599 needed to live to 90 with Social Security
44. New Hampshire
• $2,011,601 needed to live to 80 with Social Security
• $2,672,803 needed to live to 90 with Social Security
43. Oregon
• $1,990,732 needed to live to 80 with Social Security
• $2,644,977 needed to live to 90 with Social Security
42. Utah
• $1,955,239 needed to live to 80 with Social Security
• $2,597,653 needed to live to 90 with Social Security
41. Alaska
• $1,913,507 needed to live to 80 with Social Security
• $2,542,010 needed to live to 90 with Social Security
SEE ALSO:
• 10 Best, Worst States for Retirement 2024
• 10 Most Expensive U.S. Retirement Communities
• 10 U.S. Cities with the Highest Retirement Income
• Most Expensive Cities to Retire: Where $1 Million Isn’t Enough (And Where it Is)