Map Shows Best States To Retire Comfortably in US - Newsweek

0ShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.A new analysis of retirement costs across the United States shows there are wide disparities in what it takes to live comfortably after leaving the workforce depending upon where you live, with annual expenses exceeding $100,000 in some states. According to the Federal Reserve Bank of St. Louis, those aged 65 and older spent an average of $61,432 in 2024, up 2.2 percent from the previous year: this is less than half of the cost of living in the most expensive state to retire in, according to new data provided by Money Lion. Seniors across the U.S. are facing rising living costs nationwide, and in many states, the price of maintaining a comfortable standard of living in retirement now exceeds six figures annually. At the top of the list, retirees in Hawaii face the highest costs in the country, needing an estimated $156,610 per year for a comfortable retirement. Coming in second is California ($121,879) and third Massachusetts ($111,145), with Washington ($95,099) and New Jersey ($90,511) also ranking among the most expensive states. Overall, 13 states require more than $100,000 annually to retire comfortably, and they are overwhelmingly concentrated in the West and Northeast: Hawaii, California, Massachusetts, Washington, New Jersey, Colorado, New Hampshire, Oregon, Rhode Island, Utah, Alaska, New York and Connecticut. These same states also tend to report some of the highest median household incomes in the dataset. Massachusetts leads at $104,828, followed closely by New Jersey ($104,294) and Maryland ($102,905), while California ($100,149) and Washington ($99,389) also sit around the $100,000 per year mark. At the other end of the scale, retirement becomes more affordable in parts of the South and Midwest. West Virginia stands out as the least expensive state in the analysis, with a comfortable retirement costing $33,223 per year. In the second least expensive state, Mississippi, annual expenses will cost you $35,130. In Louisiana you're looking to spend around $37,570 per year, $37,811 in Arkansas , and $39,286 in Oklahoma. These states also tend to have lower median household incomes that exceed annual retirement costs, including Mississippi ($59,127), West Virginia ($60,798), Louisiana ($60,986), Arkansas ($62,106), and Oklahoma ($66,148). Of the annual average of $61,432 spent by American retirees over 65 each year, the majority of this goes on housing, which costs an average of $22,193 per year: around a third of all spending, according to the Federal Reserve Bank of St. Louis. This includes rent/mortgage costs, property taxes, maintenance and repairs, and insurance as well as utilities such as electricity, water, and fuel. Transport is the next biggest expense at $9,538 annually, driven by vehicle purchases, insurance, fuel, and upkeep. Food follows at around $7,940 per year, split between groceries and eating out, while healthcare costs average about $7,799 and include insurance premiums, medical services, and prescription drugs. Smaller spending categories include personal insurance and pensions, cash contributions, entertainment, and household goods. Despite some parts of the U.S. being more affordable to see out retirement in, many American seniors do not feel confident their savings will last them through later life. According to Schroders’ 2026 U.S. Retirement Survey, 49 percent of retirees say their expenses in retirement are higher than expected, while 58 percent say they do not know how long their savings will last. Inflation ranks as the most common concern among retirees, with 90 percent reporting at least some concern about its impact on the value of their assets. Healthcare costs follow closely, with 87 percent concerned about higher-than-expected medical expenses. Additional concerns include market downturns reducing retirement assets (81 percent), uncertainty about how to draw down savings efficiently (69 percent), and the risk of outliving assets (68 percent).