Retirement Cost by State
Comprehensive 2024 data on retirement expenses across all 50 states, helping you plan where to retire based on your budget.
Quick Answer: What does retirement cost by state?
Short Answer: Annual retirement costs range from approximately $49,000 in Mississippi to over $117,000 in Hawaii. The national average is about $65,244 per year for a comfortable retirement. Key cost factors include housing, healthcare, taxes, and general cost of living. Southern and Midwestern states typically offer the most affordable retirement.
Key Takeaways
- ✓Retirement costs vary dramatically by state - up to 2.5x difference
- ✓Hawaii and California are the most expensive states for retirement
- ✓Southern and Midwestern states offer significantly lower retirement costs
- ✓Healthcare costs are a major factor in state-by-state differences
- ✓Tax policies (income, property, estate) significantly impact retirement affordability
Retirement Costs by State (2024)
| State | Annual Cost | Monthly Cost | Cost Index |
|---|---|---|---|
| Hawaii | $117,668 | $9,806 | 193 |
| California | $96,540 | $8,045 | 149 |
| Massachusetts | $88,212 | $7,351 | 135 |
| New York | $85,668 | $7,139 | 131 |
| Alaska | $84,024 | $7,002 | 129 |
| Oregon | $75,996 | $6,333 | 116 |
| Connecticut | $75,384 | $6,282 | 115 |
| Washington | $73,836 | $6,153 | 113 |
| Colorado | $72,816 | $6,068 | 111 |
| New Jersey | $71,580 | $5,965 | 110 |
| National Average | $65,244 | $5,437 | 100 |
| Florida | $63,516 | $5,293 | 97 |
| Arizona | $61,284 | $5,107 | 94 |
| Texas | $58,212 | $4,851 | 89 |
| Georgia | $56,880 | $4,740 | 87 |
| Tennessee | $54,600 | $4,550 | 83 |
| Oklahoma | $51,996 | $4,333 | 80 |
| Arkansas | $50,412 | $4,201 | 77 |
| Mississippi | $48,984 | $4,082 | 75 |
Source: Bureau of Labor Statistics, Missouri Economic Research and Information Center 2024
Typical Retirement Budget Breakdown
Housing
Varies most by location
Healthcare
Increases with age
Food
Relatively consistent
Transportation
Lower if debt-free
Utilities
Climate dependent
Entertainment
Lifestyle dependent
Other
Insurance, misc.
State Tax Considerations for Retirees
No Income Tax States (9)
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
States That Don't Tax Social Security
37 states don't tax Social Security benefits, including California, New York, Florida, Texas, and Pennsylvania.
Property Tax Exemptions
Many states offer property tax exemptions or freezes for seniors. Florida's homestead exemption can save retirees thousands annually.
Frequently Asked Questions
What is the cheapest state to retire in?
Mississippi consistently ranks as the most affordable state for retirement, with annual costs around $49,000. Other affordable options include Arkansas, Oklahoma, and Tennessee.
Is it better to retire in a no-income-tax state?
Not necessarily. States without income tax often have higher property or sales taxes. Consider your total tax burden, including property taxes, sales taxes, and taxes on retirement income.
How much should I budget for healthcare in retirement?
Plan for $300,000-$400,000 in healthcare costs throughout retirement (for a couple). This includes Medicare premiums, supplemental insurance, and out-of-pocket expenses.
Plan Your Retirement Location
Our advisors can help you evaluate retirement locations based on your financial situation and lifestyle goals.