What Does It Cost to Retire in All 50 States?

February 21, 2020
Retired Couple in Florida
By Fabio

Who wants to be a millionaire? To retire comfortably in California, that is more than a fleeting question: Total retirement spending there averages $1,389,909, so having over a million in savings, assets, and retirement plans such as social security will make your retirement less stressful. If someone is retiring in Alabama, however, they will spend nearly half a million lessthe United States may be one country, but the cost of retirement in each state varies substantially. When you are on a fixed income, planning ahead is crucial to financial success, so knowing the cost of living, homeownership, and total retirement spending can help homeowners decide where their next move may be. Read this list to scope out the best state to retire and fantasize about the day you can finally put up your feet and relax. 

1. Alabama

> Est. total retirement spending: $897,566 (3rd least)

> Avg. cost of living: 13.3% less than avg.

> Avg. monthly homeownership cost for senior citizens: $357 (5th lowest)

> Pop. 65 and older: 17.0% (18th highest)

In Alabama, residents need an average of about $898,000 to live out their retirement years in relative comfort — below the national average of about $1.1 million. Retirees in Alabama need less retirement savings because of both lower average life expectancy and lower cost of living.

Life expectancy at age 65 in the state is slightly less than 17.7 years, nearly two years below the national average. Additionally, goods and services are about 13% less expensive on average in Alabama than they are nationwide.

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