Ensuring a comfortable retirement requires making a lot of decisions: How much should you save? How should you invest? When should you take Social Security? How much should you withdraw each month in retirement and from which accounts?
The answers to these questions can all have a material effect on your retirement. But one important question — one that not everyone considers — is where you’ll live during your golden years. More specifically, which state will give you the biggest bang for your retirement bucks?
While you need $2.2 million to retire in Hawaii, you don’t have to be a millionaire to lead a comfortable life in retirement in every state: For instance, to retire at age 65 in Oklahoma, you’ll need a minimum of $735,284 in savings — a more than $1.25 million difference, according to recent findings (1).
The study, based on Bureau of Labor Statistics’ 2024 Consumer Expenditure Survey (2), calculates how much a person would need to save in each state to live comfortably in retirement (when combined with Social Security and assuming retirees follow the 4% rule for withdrawals from savings).
The study averaged annual cost of living for Americans 65 and over and then multiplied this by the cost of living index for each state from the Missouri Economic Research and Information Center’s 2025 Q3 cost-of-living series (3).
According to these calculations, the five states requiring the least amount of savings are:
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Oklahoma ($735,284)
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Mississippi ($752,178)
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Alabama ($789,037)
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West Virginia ($792,109)
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Kansas ($804,395)
By contrast, the five most expensive states are:
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Hawaii ($2,198,902)
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Massachusetts ($1,755,055)
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California ($1,538,508)
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Alaska ($1,400,286)
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New York ($1,383,392) (1)
A study by NetCredit came up with similar rankings but found, for instance, that West Virginia requires the least savings ($712,921), while Hawaii is the most expensive state in which to retire, at $1,097,790 (4).
Armed with this information, you may want to consider relocating to a state with a lower cost of living once you retire — or you may decide you need to start saving more to stay where you are.
When it comes to cost of living, you’ll want to compare everything from housing to groceries, utilities and transportation costs. Also consider state income tax, as well as how the state taxes Social Security, pensions and investment income.
Cost isn’t the only consideration either. Research the quality and accessibility of healthcare (as well as specialized care if you need it), as well as lifestyle factors from the weather to recreational possibilities and proximity to family and friends.
For these reasons, the states that retirees move to aren’t necessarily the ones with the lowest cost of living.
According to an analysis of U.S. Census Bureau data by SmartAsset, the top five states where people 60+ moved in 2023 were Florida, North Carolina, Arizona, South Carolina and Georgia (5).
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If your retirement savings are falling short of what you expect you’ll need, you’re not alone.
Nearly half (48%) of workers surveyed by Betterment believe they’ll need at least $1 million to retire comfortably, but only 27% believe they’ll build a nest egg that size (6).
If you’re in this boat, then you’ll want to look for ways to ramp up your retirement savings.
A good place to start is by paying down any non-housing debt, since it’s difficult to get ahead when you’re paying high-interest debt, like credit cards and personal loans, each month.
Next, make sure you’re managing risks that could derail your retirement plans.
Your future earnings are likely one of your major assets, so talk to an insurance broker to evaluate — and improve where needed — your health, disability and critical illness insurance coverage. Also check your home and auto coverage.
In a similar vein, avoid any shocks to your savings plan by building an emergency fund that will cover at least three to six months of expenses. If your work is precarious or it could take you a long time to find another job, consider setting aside six to 12 months of expenses.
Track your expenditures and look for extra savings.
Your goals with these savings will be to max out your retirement accounts, especially those with employer matching. If you’re over 50, these plans have higher ‘catch-up’ limits (7). These are even higher if you’re aged 60 to 63.
If you’ve already accomplished these steps, you may be able to ramp up your savings by paying off your mortgage and then putting the amount of the mortgage payment into savings each month. This means you’ll own your house free and clear when you retire.
To ramp up your savings even further, consider increasing your income by exploring if you’re due for a raise, finding a new job or side hustle or even moving to a less expensive state now — before you retire. After all, West Virginia is a beautiful state.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
GOBankingRates (1); U.S. Bureau of Labor Statistics (2); Missouri Economic Research and Information Center (3); NetCredit (4); smartasset (5); Betterment (6); IRS (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
