Roughly 10,000 U.S. residents turn 65 every day, yet a record number of people that age and older are keeping their jobs and putting off retirement due to financial insecurity, and the number of seniors working has more than doubled since 2000.
Many people don’t even have the luxury of being able to decide where to spend their retirement because of family or relocating is too expensive. Those who choose to finally leave the workforce rely on savings, pensions and Social Security to get them by, but there are different financial burdens to consider in every state.
In one state, a retired couple can live for $36,000 a year while in another, it could be $56,000.
Generally speaking, a person who retires at 65 and lives another 20 years could need an extra half-million dollars for expenses depending on which state they live in.
Many categories of expenses are roughly the same for all Americans regardless of age, but retirees can expect differences in their monthly budgets.
USA Today broke down exactly what you can expect to pay per state in retirement, and ranked each state in terms of expenses:
Methodology
In order to determine what it costs to retire in every state, 24/7 Wall St. reviewed annual expenses at the state level as determined by the Bureau of Labor Statistics’ 2017 Consumer Expenditure Survey. We then reviewed data from the Economic Policy Institute’s Family Budget Calculator for a couple 65 or older with no dependents, which measures the income a family needs in order to attain a modest yet adequate standard of living at the metropolitan level. Using the Consumer Expenditure Survey’s differences in budgetary needs between the average American and residents 65 and over, 24/7 Wall St. calculated the average annual retirement costs by state.
State by State
50. Arkansas
• Estimated annual retirement costs: $36,378
• Avg. annual earnings for 65+ households: $22,276 (8th lowest)
• Avg. annual homeownership costs for seniors: $11,112 (2nd lowest)
• Pct. residents 65+: 16.5 percent (19th highest)49. New Mexico
• Estimated annual retirement costs: $36,628
• Avg. annual earnings for 65+ households: $29,384 (11th highest)
• Avg. annual homeownership costs for seniors: $14,280 (22nd lowest)
• Pct. residents 65+: 16.8 percent (13th highest)48. Kentucky
• Estimated annual retirement costs: $36,680
• Avg. annual earnings for 65+ households: $22,698 (10th lowest)
• Avg. annual homeownership costs for seniors: $11,832 (5th lowest)
• Pct. residents 65+: 15.9 percent (24th lowest)47. Ohio
• Estimated annual retirement costs: $36,767
• Avg. annual earnings for 65+ households: $25,388 (25th highest)
• Avg. annual homeownership costs for seniors: $12,864 (10th lowest)
• Pct. residents 65+: 16.6 percent (18th highest)46. Michigan
• Estimated annual retirement costs: $37,844
• Avg. annual earnings for 65+ households: $23,394 (16th lowest)
• Avg. annual homeownership costs for seniors: $13,572 (15th lowest)
• Pct. residents 65+: 16.7 percent (15th highest)45. Indiana
• Estimated annual retirement costs: $37,874
• Avg. annual earnings for 65+ households: $19,728 (3rd lowest)
• Avg. annual homeownership costs for seniors: $11,436 (4th lowest)
• Pct. residents 65+: 15.4 percent (16th lowest)44. Nevada
• Estimated annual retirement costs: $39,043
• Avg. annual earnings for 65+ households: $29,038 (12th highest)
• Avg. annual homeownership costs for seniors: $15,156 (24th highest)
• Pct. residents 65+: 15.3 percent (15th lowest)43. Idaho
• Estimated annual retirement costs: $39,099
• Avg. annual earnings for 65+ households: $24,868 (23rd lowest)
• Avg. annual homeownership costs for seniors: $13,332 (13th lowest)
• Pct. residents 65+: 15.3 percent (14th lowest)42. Mississippi
• Estimated annual retirement costs: $39,139
• Avg. annual earnings for 65+ households: $23,196 (15th lowest)
• Avg. annual homeownership costs for seniors: $11,280 (3rd lowest)
• Pct. residents 65+: 15.6 percent (20th lowest)41. North Dakota
• Estimated annual retirement costs: $39,470
• Avg. annual earnings for 65+ households: $19,205 (2nd lowest)
• Avg. annual homeownership costs for seniors: $14,292 (23rd lowest)
• Pct. residents 65+: 14.9 percent (9th lowest)40. Iowa
• Estimated annual retirement costs: $39,491
• Avg. annual earnings for 65+ households: $20,968 (5th lowest)
• Avg. annual homeownership costs for seniors: $13,068 (11th lowest)
• Pct. residents 65+: 16.7 percent (16th highest)39. Missouri
• Estimated annual retirement costs: $39,696
• Avg. annual earnings for 65+ households: $22,969 (13th lowest)
• Avg. annual homeownership costs for seniors: $13,176 (12th lowest)
• Pct. residents 65+: 16.5 percent (20th highest)38. Utah
• Estimated annual retirement costs: $39,725
• Avg. annual earnings for 65+ households: $27,703 (19th highest)
• Avg. annual homeownership costs for seniors: $15,408 (21st highest)
• Pct. residents 65+: 10.8 percent (the lowest)37. Texas
• Estimated annual retirement costs: $39,814
• Avg. annual earnings for 65+ households: $25,827 (22nd highest)
• Avg. annual homeownership costs for seniors: $15,480 (20th highest)
• Pct. residents 65+: 12.2 percent (3rd lowest)36. Wisconsin
• Estimated annual retirement costs: $39,870
• Avg. annual earnings for 65+ households: $24,233 (19th lowest)
• Avg. annual homeownership costs for seniors: $14,472 (25th lowest)
• Pct. residents 65+: 16.5 percent (21st highest)35. Kansas
• Estimated annual retirement costs: $40,237
• Avg. annual earnings for 65+ households: $20,935 (4th lowest)
• Avg. annual homeownership costs for seniors: $14,100 (18th lowest)
• Pct. residents 65+: 15.4 percent (18th lowest)34. Alabama
• Estimated annual retirement costs: $40,780
• Avg. annual earnings for 65+ households: $24,427 (20th lowest)
• Avg. annual homeownership costs for seniors: $12,288 (7th lowest)
• Pct. residents 65+: 16.5 percent (22nd highest)33. Tennessee
• Estimated annual retirement costs: $40,855
• Avg. annual earnings for 65+ households: $23,518 (17th lowest)
• Avg. annual homeownership costs for seniors: $12,720 (8th lowest)
• Pct. residents 65+: 15.9 percent (25th highest)32. South Dakota
• Estimated annual retirement costs: $40,923
• Avg. annual earnings for 65+ households: $24,863 (22nd lowest)
• Avg. annual homeownership costs for seniors: $14,028 (17th lowest)
• Pct. residents 65+: 16.3 percent (23rd highest)31. Rhode Island
• Estimated annual retirement costs: $40,954
• Avg. annual earnings for 65+ households: $25,316 (25th lowest)
• Avg. annual homeownership costs for seniors: $19,452 (8th highest)
• Pct. residents 65+: 16.7 percent (17th highest)30. Louisiana
• Estimated annual retirement costs: $41,107
• Avg. annual earnings for 65+ households: $23,089 (14th lowest)
• Avg. annual homeownership costs for seniors: $12,252 (6th lowest)
• Pct. residents 65+: 14.9 percent (7th lowest)29. Oklahoma
• Estimated annual retirement costs: $41,296
• Avg. annual earnings for 65+ households: $21,927 (6th lowest)
• Avg. annual homeownership costs for seniors: $12,756 (9th lowest)
• Pct. residents 65+: 15.3 percent (13th lowest)28. West Virginia
• Estimated annual retirement costs: $41,696
• Avg. annual earnings for 65+ households: $18,438 (the lowest)
• Avg. annual homeownership costs for seniors: $10,620 (the lowest)
• Pct. residents 65+: 19.3 percent (3rd highest)27. South Carolina
• Estimated annual retirement costs: $42,224
• Avg. annual earnings for 65+ households: $26,211 (21st highest)
• Avg. annual homeownership costs for seniors: $13,776 (16th lowest)
• Pct. residents 65+: 17.2 percent (10th highest)26. Nebraska
• Estimated annual retirement costs: $42,386
• Avg. annual earnings for 65+ households: $22,477 (9th lowest)
• Avg. annual homeownership costs for seniors: $14,340 (24th lowest)
• Pct. residents 65+: 15.4 percent (17th lowest)25. Georgia
• Estimated annual retirement costs: $42,442
• Avg. annual earnings for 65+ households: $28,516 (15th highest)
• Avg. annual homeownership costs for seniors: $14,184 (19th lowest)
• Pct. residents 65+: 13.4 percent (4th lowest)24. Florida
• Estimated annual retirement costs: $42,586
• Avg. annual earnings for 65+ households: $28,161 (17th highest)
• Avg. annual homeownership costs for seniors: $15,180 (22nd highest)
• Pct. residents 65+: 20.1 percent (the highest)23. Montana
• Estimated annual retirement costs: $42,611
• Avg. annual earnings for 65+ households: $24,039 (18th lowest)
• Avg. annual homeownership costs for seniors: $15,180 (22nd highest)
• Pct. residents 65+: 18.1 percent (5th highest)22. New Hampshire
• Estimated annual retirement costs: $42,634
• Avg. annual earnings for 65+ households: $25,477 (24th highest)
• Avg. annual homeownership costs for seniors: $19,236 (10th highest)
• Pct. residents 65+: 17.6 percent (9th highest)21. Washington
• Estimated annual retirement costs: $42,749
• Avg. annual earnings for 65+ households: $27,978 (18th highest)
• Avg. annual homeownership costs for seniors: $18,252 (11th highest)
• Pct. residents 65+: 15.1 percent (11th lowest)20. Pennsylvania
• Estimated annual retirement costs: $42,754
• Avg. annual earnings for 65+ households: $22,765 (11th lowest)
• Avg. annual homeownership costs for seniors: $14,796 (25th highest)
• Pct. residents 65+: 17.8 percent (7th highest)19. Illinois
• Estimated annual retirement costs: $43,221
• Avg. annual earnings for 65+ households: $29,890 (10th highest)
• Avg. annual homeownership costs for seniors: $17,028 (15th highest)
• Pct. residents 65+: 15.2 percent (12th lowest)18. Minnesota
• Estimated annual retirement costs: $43,404
• Avg. annual earnings for 65+ households: $25,156 (24th lowest)
• Avg. annual homeownership costs for seniors: $16,044 (19th highest)
• Pct. residents 65+: 15.4 percent (19th lowest)17. Oregon
• Estimated annual retirement costs: $43,992
• Avg. annual earnings for 65+ households: $28,509 (16th highest)
• Avg. annual homeownership costs for seniors: $17,340 (13th highest)
• Pct. residents 65+: 17.1 percent (12th highest)16. Wyoming
• Estimated annual retirement costs: $44,382
• Avg. annual earnings for 65+ households: $25,603 (23rd highest)
• Avg. annual homeownership costs for seniors: $16,332 (18th highest)
• Pct. residents 65+: 15.6 percent (21st lowest)15. Maine
• Estimated annual retirement costs: $44,525
• Avg. annual earnings for 65+ households: $22,892 (12th lowest)
• Avg. annual homeownership costs for seniors: $14,220 (20th lowest)
• Pct. residents 65+: 20.0 percent (2nd highest)14. Arizona
• Estimated annual retirement costs: $44,946
• Avg. annual earnings for 65+ households: $27,184 (20th highest)
• Avg. annual homeownership costs for seniors: $14,232 (21st lowest)
• Pct. residents 65+: 17.1 percent (11th highest)13. North Carolina
• Estimated annual retirement costs: $45,329
• Avg. annual earnings for 65+ households: $24,594 (21st lowest)
• Avg. annual homeownership costs for seniors: $13,512 (14th lowest)
• Pct. residents 65+: 15.9 percent (23rd lowest)12. Colorado
• Estimated annual retirement costs: $45,495
• Avg. annual earnings for 65+ households: $31,180 (8th highest)
• Avg. annual homeownership costs for seniors: $17,268 (14th highest)
• Pct. residents 65+: 13.8 percent (5th lowest)11. Delaware
• Estimated annual retirement costs: $46,150
• Avg. annual earnings for 65+ households: $35,495 (3rd highest)
• Avg. annual homeownership costs for seniors: $16,536 (17th highest)
• Pct. residents 65+: 18.0 percent (6th highest)10. Massachusetts
• Estimated annual retirement costs: $46,265
• Avg. annual earnings for 65+ households: $31,553 (7th highest)
• Avg. annual homeownership costs for seniors: $21,192 (6th highest)
• Pct. residents 65+: 16.1 percent (24th highest)9. Virginia
• Estimated annual retirement costs: $46,758
• Avg. annual earnings for 65+ households: $34,439 (5th highest)
• Avg. annual homeownership costs for seniors: $17,472 (12th highest)
• Pct. residents 65+: 15.0 percent (10th lowest)8. Maryland
• Estimated annual retirement costs: $47,061
• Avg. annual earnings for 65+ households: $36,417 (2nd highest)
• Avg. annual homeownership costs for seniors: $19,896 (7th highest)
• Pct. residents 65+: 14.9 percent (8th lowest)7. New Jersey
• Estimated annual retirement costs: $47,760
• Avg. annual earnings for 65+ households: $28,773 (14th highest)
• Avg. annual homeownership costs for seniors: $23,136 (2nd highest)
• Pct. residents 65+: 15.7 percent (22nd lowest)6. Connecticut
• Estimated annual retirement costs: $48,532
• Avg. annual earnings for 65+ households: $30,190 (9th highest)
• Avg. annual homeownership costs for seniors: $21,624 (5th highest)
• Pct. residents 65+: 16.8 percent (14th highest)5. Vermont
• Estimated annual retirement costs: $49,598
• Avg. annual earnings for 65+ households: $22,041 (7th lowest)
• Avg. annual homeownership costs for seniors: $16,692 (16th highest)
• Pct. residents 65+: 18.8 percent (4th highest)4. California
• Estimated annual retirement costs: $49,640
• Avg. annual earnings for 65+ households: $34,746 (4th highest)
• Avg. annual homeownership costs for seniors: $23,016 (3rd highest)
• Pct. residents 65+: 13.9 percent (6th lowest)3. New York
• Estimated annual retirement costs: $50,321
• Avg. annual earnings for 65+ households: $29,018 (13th highest)
• Avg. annual homeownership costs for seniors: $21,648 (4th highest)
• Pct. residents 65+: 15.9 percent (25th lowest)2. Hawaii
• Estimated annual retirement costs: $54,590
• Avg. annual earnings for 65+ households: $31,603 (6th highest)
• Avg. annual homeownership costs for seniors: $24,768 (the highest)
• Pct. residents 65+: 17.8 percent (8th highest)1. Alaska
• Estimated annual retirement costs: $56,879
• Avg. annual earnings for 65+ households: $36,513 (the highest)
• Avg. annual homeownership costs for seniors: $19,260 (9th highest)
• Pct. residents 65+: 11.2 percent (2nd lowest)
