As more Americans look to retirement with varying financial needs and lifestyles, determining the amount of money needed to retire comfortably can vary widely across the United States. Recent analyses provide insights into average savings required by state and highlight the best states for retirees based on cost of living. According to a CNBC report, the amount needed for retirement varies significantly, with Hawaii requiring at least $1.8 million, making it the state with the highest retirement savings requirement. Following Hawaii, Massachusetts and California are also on the higher end of the spectrum, needing around $1.7 million and $1.6 million respectively. In contrast, states such as Mississippi and Arkansas show much lower requirements at approximately $1 million and $1.1 million, due to their lower costs of living. Meanwhile, Nasdaq emphasized that individuals who start saving at age 25 should aim to save almost 10 times their salary by retirement age, which can approximate a financial target of $650,000 for a moderate lifestyle in low-cost states like Alabama or West Virginia. Furthermore, MSN noted that states offering the lowest cost of living for retirees include Florida, considered a primary destination for retirees due to its favorable climate and recreational options, along with other states like Delaware and New Mexico. The report suggests that understanding local economies and retirement costs should be essential for anyone planning for their future, especially those who intend to retire early or on a fixed income. Ultimately, comprehensive retirement strategies that consider both savings and living expenses will enable individuals to enjoy a financially secure retirement.
Retirement Planning: How Much You Need to Save by State and the Best Places to Retire
