How much do you need to retire comfortably? It’s a question in the mind of every American saving for retirement. Unfortunately, there’s not a one-size-fits-all answer. There are several rules of thumb to help you figure out how much to save to retire. But the exact dollar amount you need will depend on a variety of factors — especially where you plan to live in retirement.
That’s because the cost of living varies from state to state. In some places, you can get by on even a small nest egg, while in others, even $2 million won’t be enough. Your age at retirement also plays a factor. For purposes of this survey, GOBankingRates assumed that retirement would last for 20 years.
To pinpoint the average retirement income you would need to live comfortably throughout the U.S., GOBankingRates looked at four factors in all 50 states and the District of Columbia: per capita spending on groceries, healthcare, housing and transportation. Then, the annual retirement income needed to cover these living expenses was calculated, with an additional 20% to account for the “comfortable” aspect of retirement. Note that suggested annual savings don’t include Social Security payouts, potential pension income or interest earned on savings. As you go through these results, you might discover that the amount you need to live a comfortable retirement across the nation is a little higher — or a little less — than you expected!