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Here’s Exactly How Much Savings You Need To Retire in Your State

·9 min read
Brainsil / iStock.com
Brainsil / iStock.com

The average American's lack of savings paints a fairly discouraging picture of retirement.

A GOBankingRates survey found that 40% of Americans have less than $300 in savings - putting a crimp in retirement funds. Many Americans see themselves working past age 65 out of financial necessity, according to the Pew Charitable Trusts, with some people planning to never retire at all. The pandemic also threw some people's futures into question, especially those who had to draw from retirement savings during job loss or furlough.

Related: 27 Ugly Truths About Retirement
Read More: 6 Signs You Can't Afford To Retire

But the amount of money you need to retire depends on where you live, due to state-by-state differences in the cost of living. In some areas of the country, a nest egg of a bit more than $500,000 may be sizable enough for retirement. In other regions, you have to build up your savings even more to reach at least $1.8 million in retirement funds.

To find out exactly how much you need saved to retire, GOBankingRates calculated annual expenditures for a retired person in every state after deducting Social Security income, based on data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center. The study assumed that you would draw down your savings by 4% every year to cover your living expenses, and states were ranked from the smallest nest egg needed to the biggest.

Poll: Do You Think You Will Be Able To Retire at Age 65?

GOBankingRates found that residents of many Southeastern and Southwestern states won't have to put away nearly as much money for retirement, with states such Mississippi and Kansas requiring less than $550,000 in savings to retire. However, the residents of the Northeastern states aren't so lucky -- they claimed seven spots among the bottom 10 states for the cost of retirement.

To ensure smooth sailing in your golden years, make sure you're using the right tools to save for retirement.

DenisTangneyJr / Getty Images
DenisTangneyJr / Getty Images

1. Mississippi

  • Annual cost of living: $39,633.31

  • Cost of living after using Social Security income: $20,213.83

  • How much you need in savings to retire: $505,346

Tyler Mabie / Shutterstock.com
Tyler Mabie / Shutterstock.com

2. Kansas

  • Annual cost of living: $41,155.84

  • Cost of living after using Social Security income: $21,736.36

  • How much you need in savings to retire: $543,409

Sean Pavone / Getty Images/iStockphoto
Sean Pavone / Getty Images/iStockphoto

3. (tie) Alabama

  • Annual cost of living: $41,821.94

  • Cost of living after using Social Security income: $22,402.46

  • How much you need in savings to retire: $560,062

Sean Pavone / Shutterstock.com
Sean Pavone / Shutterstock.com

3. (tie) Oklahoma

  • Annual cost of living: $41,821.94

  • Cost of living after using Social Security income: $22,402.46

  • How much you need in savings to retire: $560,062

Nate Hovee / Getty Images/iStockphoto
Nate Hovee / Getty Images/iStockphoto

5. Georgia

  • Annual cost of living: $42,250.15

  • Cost of living after using Social Security income: $22,830.67

  • How much you need in savings to retire: $570,767

benedek / Getty Images
benedek / Getty Images

6. Tennessee

  • Annual cost of living: $42,345.31

  • Cost of living after using Social Security income: $22,925.83

  • How much you need in savings to retire: $573,146

STLJB / Shutterstock.com
STLJB / Shutterstock.com

7. Missouri

  • Annual cost of living: $42,795.94

  • Cost of living after using Social Security income: $23,306.46

  • How much you need in savings to retire: $582,662

pabradyphoto / Getty Images
pabradyphoto / Getty Images

8. Iowa

  • Annual cost of living: $42,773.52

  • Cost of living after using Social Security income: $23,354.04

  • How much you need in savings to retire: $583,851

DavidByronKeener / Getty Images/iStockphoto
DavidByronKeener / Getty Images/iStockphoto

9. West Virginia

  • Annual cost of living: $43,059.00

  • Cost of living after using Social Security income: $23,639.52

  • How much you need in savings to retire: $590,988

f11photo / Shutterstock.com
f11photo / Shutterstock.com

10. Indiana

  • Annual cost of living: $43,106.57

  • Cost of living after using Social Security income: $23,687.09

  • How much you need in savings to retire: $592,177

plherrera / Getty Images
plherrera / Getty Images

11. Arkansas

  • Annual cost of living: $43,249.31

  • Cost of living after using Social Security income: $23,829.83

  • How much you need in savings to retire: $595,746

Starcevic / Getty Images
Starcevic / Getty Images

12. New Mexico

  • Annual cost of living: $43,296.89

  • Cost of living after using Social Security income: $23,877.41

  • How much you need in savings to retire: $596,935

Davel5957 / Getty Images
Davel5957 / Getty Images

13. (tie) Michigan

  • Annual cost of living: $43,439.63

  • Cost of living after using Social Security income: $24,020.15

  • How much you need in savings to retire: $600,504

aceshot / Getty Images/iStockphoto
aceshot / Getty Images/iStockphoto

13. (tie) Ohio

  • Annual cost of living: $43,439.63

  • Cost of living after using Social Security income: $24,020.15

  • How much you need in savings to retire: $600,504

kanonsky / Getty Images
kanonsky / Getty Images

15. Texas

  • Annual cost of living: $43,820.26

  • Cost of living after using Social Security income: $24,400.78

  • How much you need in savings to retire: $610,019

f11photo / Shutterstock.com
f11photo / Shutterstock.com

16. Louisiana

  • Annual cost of living: $44,248.47

  • Cost of living after using Social Security income: $24,828.99

  • How much you need in savings to retire: $620,725

Thomas Kelley / Shutterstock.com
Thomas Kelley / Shutterstock.com

17. Kentucky

  • Annual cost of living: $44,296.05

  • Cost of living after using Social Security income: $24,876.57

  • How much you need in savings to retire: $621,914

TriggerPhoto / Getty Images
TriggerPhoto / Getty Images

18. South Carolina

  • Annual cost of living: $44,533.94

  • Cost of living after using Social Security income: $25,114.46

  • How much you need in savings to retire: $627,861

MidwestWilderness / Getty Images/iStockphoto
MidwestWilderness / Getty Images/iStockphoto

19. Nebraska

  • Annual cost of living: $44,581.52

  • Cost of living after using Social Security income: $25,162.04

  • How much you need in savings to retire: $629,051

xavierarnau / Getty Images
xavierarnau / Getty Images

20. (tie) Illinois

  • Annual cost of living: $44,867.00

  • Cost of living after using Social Security income: $25,447.52

  • How much you need in savings to retire: $636,188

WitGorski / Getty Images
WitGorski / Getty Images

20. (tie) Wyoming

  • Annual cost of living: $44,867.00

  • Cost of living after using Social Security income: $25,447.52

  • How much you need in savings to retire: $636,188

traveler1116 / Getty Images/iStockphoto
traveler1116 / Getty Images/iStockphoto

22. North Carolina

  • Annual cost of living: $45,533.10

  • Cost of living after using Social Security income: $26,113.62

  • How much you need in savings to retire: $652,841

f11photo / Getty Images/iStockphoto
f11photo / Getty Images/iStockphoto

23. Wisconsin

  • Annual cost of living: $45,866.16

  • Cost of living after using Social Security income: $26,446.68

  • How much you need in savings to retire: $661,167

DenisTangneyJr / Getty Images
DenisTangneyJr / Getty Images

24. North Dakota

  • Annual cost of living: $46,723

  • Cost of living after using Social Security income: $27,303

  • How much you need in savings to retire: $682,577

georgeclerk / iStock.com
georgeclerk / iStock.com

25. Utah

  • Annual cost of living: $47,103.21

  • Cost of living after using Social Security income: $27,683.73

  • How much you need in savings to retire: $692,093

3841128876 / Shutterstock.com
3841128876 / Shutterstock.com

26. Minnesota

  • Annual cost of living: $47,579

  • Cost of living after using Social Security income: $28,159.52

  • How much you need in savings to retire: $703,988

vale_t / Getty Images
vale_t / Getty Images

27. Florida

  • Annual cost of living: $47,721.74

  • Cost of living after using Social Security income: $28,302.26

  • How much you need in savings to retire: $707,556

urbancow / Getty Images
urbancow / Getty Images

28. Montana

  • Annual cost of living: $47,912.05

  • Cost of living after using Social Security income: $28,492.57

  • How much you need in savings to retire: $712,314

SL_Photography / Getty Images
SL_Photography / Getty Images

29. South Dakota

  • Annual cost of living: $48,055

  • Cost of living after using Social Security income: $28,635

  • How much you need in savings to retire: $715,883

Sherry V Smith / Shutterstock.com
Sherry V Smith / Shutterstock.com

30. Virginia

  • Annual cost of living: $48,435

  • Cost of living after using Social Security income: $29,016

  • How much you need in savings to retire: $725,399

KingWu / Getty Images
KingWu / Getty Images

31. Idaho

  • Annual cost of living: $48,578

  • Cost of living after using Social Security income: $29,159

  • How much you need in savings to retire: $728,967

benedek / Getty Images
benedek / Getty Images

32. Pennsylvania

  • Annual cost of living: $48,768

  • Cost of living after using Social Security income: $29,349

  • How much you need in savings to retire: $733,725

Terry Kelly / Shutterstock.com
Terry Kelly / Shutterstock.com

33. Arizona

  • Annual cost of living: $49,102

  • Cost of living after using Social Security income: $29,682

  • How much you need in savings to retire: $742,051

pascaluehli / Getty Images/iStockphoto
pascaluehli / Getty Images/iStockphoto

34. Colorado

  • Annual cost of living: $50,101

  • Cost of living after using Social Security income: $30,681

  • How much you need in savings to retire: $767,030

tobiasjo / Getty Images
tobiasjo / Getty Images

35. Nevada

  • Annual cost of living: $50,576

  • Cost of living after using Social Security income: $31,157

  • How much you need in savings to retire: $778,925

Robert Kirk / Getty Images
Robert Kirk / Getty Images

36. Delaware

  • Annual cost of living: $51,338

  • Cost of living after using Social Security income: $31,918

  • How much you need in savings to retire: $797,957

DenisTangneyJr / Getty Images
DenisTangneyJr / Getty Images

37. New Hampshire

  • Annual cost of living: $52,289

  • Cost of living after using Social Security income: $32,870

  • How much you need in savings to retire: $821,746

AnSyvanych / Getty Images
AnSyvanych / Getty Images

38. Washington

  • Annual cost of living: $53,098

  • Cost of living after using Social Security income: $33,679

  • How much you need in savings to retire: $841,967

Paulaandreaonline / Getty Images/iStockphoto
Paulaandreaonline / Getty Images/iStockphoto

39. Maine

  • Annual cost of living: $54,716

  • Cost of living after using Social Security income: $35,296

  • How much you need in savings to retire: $882,409

littleny / Getty Images
littleny / Getty Images

40. New Jersey

  • Annual cost of living: $54,811

  • Cost of living after using Social Security income: $35,392

  • How much you need in savings to retire: $884,788

Sean Pavone / Shutterstock.com
Sean Pavone / Shutterstock.com

41. Vermont

  • Annual cost of living: $55,667

  • Cost of living after using Social Security income: $36,248

  • How much you need in savings to retire: $906,199

DenisTangneyJr / Getty Images/iStockphoto
DenisTangneyJr / Getty Images/iStockphoto

42. Rhode Island

  • Annual cost of living: $55,763

  • Cost of living after using Social Security income: $36,343

  • How much you need in savings to retire: $908,578

benedek / Getty Images
benedek / Getty Images

43. Connecticut

  • Annual cost of living: $57,856.06

  • Cost of living after using Social Security income: $38,436.58

  • How much you need in savings to retire: $960,915

Rafael Vilches Rey / Getty Images
Rafael Vilches Rey / Getty Images

44. Maryland

  • Annual cost of living: $58,997.96

  • Cost of living after using Social Security income: $39,578.48

  • How much you need in savings to retire: $989,462

emperorcosar / Shutterstock.com
emperorcosar / Shutterstock.com

45. Alaska

  • Annual cost of living: $60,473

  • Cost of living after using Social Security income: $41,053

  • How much you need in savings to retire: $1,026,336

4nadia / Getty Images
4nadia / Getty Images

46. Oregon

  • Annual cost of living: $61,900.28

  • Cost of living after using Social Security income: $42,480.80

  • How much you need in savings to retire: $1,062,020

SeanPavonePhoto / Getty Images
SeanPavonePhoto / Getty Images

47. Massachusetts

  • Annual cost of living: $64,232

  • Cost of living after using Social Security income: $44,812

  • How much you need in savings to retire: $1,120,304

anouchka / Getty Images
anouchka / Getty Images

48. California

  • Annual cost of living: $67,657

  • Cost of living after using Social Security income: $48,238

  • How much you need in savings to retire: $1,205,946

Shutterstock.com
Shutterstock.com

49. New York

  • Annual cost of living: $70,512

  • Cost of living after using Social Security income: $51,093

  • How much you need in savings to retire: $1,277,315

jimfeng / Getty Images
jimfeng / Getty Images

50. Hawaii

  • Annual cost of living: $91,970.21

  • Cost of living after using Social Security income: $72,550.73

  • How much you need in savings to retire: $1,813,768

More From GOBankingRates

Jordan Rosenfeld, Jami Farkas and Alexandria Bova contributed to the reporting for this article.

Methodology: In order to find out exactly how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65 year and older expenditures from the Bureau of Labor Statistics' 2020 Consumer Expenditure Survey by the cost of living index for each state from the Missouri Economic Research and Information Center's 2021 cost of living series. To find how much money a retired person would need to save, we divided each state's annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration's Monthly Statistical Snapshot, March 2022, by .04, assuming drawing down savings by 4 percent each year to pay for living expenses. All data was collected and is up to date as of May 9, 2022.

This article originally appeared on GOBankingRates.com: Here’s Exactly How Much Savings You Need To Retire in Your State