(NEXSTAR) — When it comes time to retire, you want to make sure you're financially ready. Depending on where you live (and at what age you retire), how much in retirement savings you'd need to feel comfortable could be a just a few hundred thousand dollars — or a couple million.
In a recently released study, GOBankingRates reviewed data from the Bureau of Labor Statistics' 2022 Consumer Expenditure Survey, the Social Security Administration, and the Missouri Economic Research and Information Center to determine how much you'd need to comfortably retire. In order to calculate that total, they analyzed the annual cost of groceries, housing, utilities, transportation, and healthcare for each state.
GOBankingRates determined that, in 16 states, you would need at least $1 million to fund 25 years of retirement. In one state, Hawaii, the minimum retirement savings was even higher at more than $2 million, GOBankingRates determined.
Massachusetts had the second-highest minimum requirement at $1.6 million. Other states requiring at least $1 million were California, New York, Alaska, Washington, New Hampshire, Vermont, Maryland, Oregon, Connecticut, Rhode Island, Maine, New Jersey, Arizona, and Colorado.
On the other end of the scale was West Virginia, where you'd need just over $692,000 to support a 25-year retirement. It was the only state with an amount below $700,000.
The interactive map below shows how much you'd need to retire in each state, according to GOBankingRates.
That total would, of course, increase if you retired earlier. To fund a 30-year retirement, you'd need at least $1 million in 25 states, the study found. In addition to the aforementioned states, that includes: Utah, Montana, Virginia, Nevada, Florida, Delaware, Idaho, North Carolina, and Wisconsin. Pennsylvania was close behind at roughly $998,000.
As you may have guessed, the city in which you live can also greatly impact how much you need to retire. GOBankingRates also reviewed what it costs to do so in the nation's 100 largest metro areas.
Unsurprisingly, many of the cities where it was the most expensive are in California. Retirees in San Jose are the worst off: GOBankingRates determined that, based on expenses, you would need almost $2.8 million to retire in the Bay Area city. In nearby San Francisco, you'd need $2.5 million.
Those were the only metro areas in which a retiree would require more than $2 million. Honolulu wasn't far behind at $1.9 million. Overall, you'd need more than $1 million to retire in 31 of the nation's largest cities.
The cheapest metro area in the report was McAllen, Texas. In the border city, a retiree needs slightly more than $569,000 to live comfortably.
You can see the minimum retirement savings needed for the nation's largest cities in the table below:
A November report found that those between the ages of 65 and 74 have the highest average net worth of any age group in the U.S. Between 2019 and 2022, the Federal Reserve reports the average net worth for U.S. households was about $1.06 million. For those between the ages of 65 and 74, the average net worth was almost $1.8 million.
Still, that may not feel like enough as the U.S. continues to face inflation. The Labor Department's latest report, released Thursday, shows that overall prices rose 0.3% from November and 3.4% from 12 months earlier. Those gains exceeded the previous 0.1% monthly rise and the 3.1% annual inflation in November and were slightly above economists' forecasts.
Inflation has cooled more or less steadily since hitting 9.1% in mid-2022. Still, despite the slowdown in price increases, along with steady economic growth, low unemployment and healthy hiring, polls show many Americans are dissatisfied with the economy.
That disconnect, a likely issue in the 2024 elections, has puzzled economists and political analysts. A major factor is the lingering financial and psychological effects of the worst bout of inflation in four decades. Much of the public remains exasperated by higher prices. Prices are still 17% higher than they were before the inflation surge began and are still rising.
The Associated Press contributed to this report.
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