Joe Biden signed the Social Security Fairness Act, expanding benefits for retired Americans, including firefighters, police officers and teachers.
Retirement in America now costs $1 million or more in 15 states, according to a new analysis.
The cheapest retirement state in 2025 is West Virginia, where you'll need an estimated $712,913 in savings, and an annual budget of $50,954, to retire in comfort, according to new data released this week by GOBankingRates, the personal finance site.
The priciest state is Hawaii: You'll need $2.2 million in savings, and you can expect annual expenses of $110,921 for a comfortable retirement.
Many Americans consider $1 million in savings the new benchmark for a happy retirement. A 2024 report from Schroders said the average saver believes they will need $1.2 million in savings to retire comfortably. Northwestern Mutual put the figure at $1.46 million.
On the other hand, millions of Americans retire with little or no retirement savings, and many of them seem to be doing fine.
And remember: $1 million is just a number.
"I think it's easy to explain concepts by using that number, and it's more realistic than using $100,000 or $10 million," said Colin Exelby, a certified financial planner in Towson, Maryland, in an AARP report that sought to calm fears about a million-dollar retirement. "But other than that, I don't think it's really helpful and can probably cause anxiety and stress if you're not hitting that number."
The GOBankingRates analysis calculates annual living expenses for retirees using data from the federal Bureau of Labor Statistics and a local cost-of-living index for every state.
To determine how much savings a retiree would need, the analysis considers annual living costs for states, minus Social Security income, and divides the remainder by 4%. The 4% rule suggests retirees spend 4% of their savings per year.
Local living costs seem to be swaying some retirees as they decide where to retire. According to a 2024 report by AARP, Florida and South Carolina are the most popular destinations for retirees who move. Neither state requires a million dollars in retirement savings, according to the new analysis.
Here are the states where you'll need $1 million to retire comfortably, according to GOBankingRates:
Don't have a million dollars? Here are a few popular retirement states with lower costs.