Retirement Readiness: How Your State Compares To the Rest of America
There’s no one-size-fits-all retirement strategy, plus even if there was, it would still look different depending on where you live. In some states, high incomes, lower living costs and decent savings rates make it easier to build a comfortable nest egg. In others, rising housing costs, healthcare expenses and everyday bills can make retirement readiness and planning feel like a constant uphill climb.
As Americans continue to navigate inflation, market uncertainty and evolving retirement goals in 2026, MoneyLion did some research to determine how each state compares when it comes to you being able to retire there.
Key Findings
This state-by-state retirement readiness ranking explores which states are facing the biggest retirement savings challenges. Here are some key takeaways:
For perspective, the national average cost of living (total expenditures) is $61,432. This is subsidized by the national average for Social Security income, which is about $24,351 a year.
On average, $927,034 is the amount that is needed to have saved in order to retire in the United States. However, in 16 states it’s estimated you’ll need more than $1 million saved, or even over $2 million, as is the case with Hawaii.
In Alabama, Arkansas, Louisiana, Oklahoma, Tennessee and Washington, you can expect a state and local tax rate over 9%
Whether you're nearing retirement age or looking for ways to boost your 401(k), IRA or overall retirement strategy, these insights can help you understand where your state stands and what it could mean for your long-term financial security. The states were ranked to show where it is easiest to achieve retirement goals.
1. West Virginia
Minimum amount needed to retire: $741,202
Average annual cost of necessities for homeowners: $33,637
Social Security taxes: No
State and local tax rate: 6.59%
2. Mississippi
Minimum amount needed to retire: $715,094
Average annual cost of necessities for homeowners: $33,862
Social Security taxes: No
State and local tax rate: 7.06%
3. Iowa
Minimum amount needed to retire: $751,953
Average annual cost of necessities for homeowners: $38,006
Social Security taxes: No
State and local tax rate: 6.94%
4. Kentucky
Minimum amount needed to retire: $811,849
Average annual cost of necessities for homeowners: $37,482
Social Security taxes: No
State and local tax rate: 6.00%
5. Oklahoma
Minimum amount needed to retire: $673,627
Average annual cost of necessities for homeowners: $36,589
Social Security taxes: No
State and local tax rate: 9.06%
6. Delaware
Minimum amount needed to retire: $956,214
Average annual cost of necessities for homeowners: $51,080
Social Security taxes: No
State and local tax rate: 0.00%
7. Indiana
Minimum amount needed to retire: $747,345
Average annual cost of necessities for homeowners: $39,478
Social Security taxes: No
State and local tax rate: 7.00%
8. Michigan
Minimum amount needed to retire: $833,350
Average annual cost of necessities for homeowners: $39,890
Social Security taxes: No
State and local tax rate: 6.00%
9. North Dakota
Minimum amount needed to retire: $784,205
Average annual cost of necessities for homeowners: $42,621
Social Security taxes: No
State and local tax rate: 7.09%
10. South Dakota
Minimum amount needed to retire: $836,422
Average annual cost of necessities for homeowners: $44,578
Social Security taxes: No
State and local tax rate: 6.11%
11. Alabama
Minimum amount needed to retire: $696,664
Average annual cost of necessities for homeowners: $36,937
Social Security taxes: No
State and local tax rate: 9.46%
12. Nebraska
Minimum amount needed to retire: $793,419
Average annual cost of necessities for homeowners: $41,600
Social Security taxes: No
State and local tax rate: 6.98%
13. Arkansas
Minimum amount needed to retire: $759,632
Average annual cost of necessities for homeowners: $36,171
Social Security taxes: No
State and local tax rate: 9.46%
14. Kansas
Minimum amount needed to retire: $736,595
Average annual cost of necessities for homeowners: $38,301
Social Security taxes: No
State and local tax rate: 8.69%
15. Wyoming
Minimum amount needed to retire: $831,814
Average annual cost of necessities for homeowners: $46,831
Social Security taxes: No
State and local tax rate: 5.56%
16. Ohio
Minimum amount needed to retire: $830,279
Average annual cost of necessities for homeowners: $39,482
Social Security taxes: No
State and local tax rate: 7.29%
17. Missouri
Minimum amount needed to retire: $755,024
Average annual cost of necessities for homeowners: $40,000
Social Security taxes: No
State and local tax rate: 8.44%
18. Wisconsin
Minimum amount needed to retire: $887,103
Average annual cost of necessities for homeowners: $46,174
Social Security taxes: No
State and local tax rate: 5.72%
19. Louisiana
Minimum amount needed to retire: $790,348
Average annual cost of necessities for homeowners: $35,663
Social Security taxes: No
State and local tax rate: 10.11%
20. Texas
Minimum amount needed to retire: $788,812
Average annual cost of necessities for homeowners: $42,761
Social Security taxes: No
State and local tax rate: 8.20%
21. Oregon
Minimum amount needed to retire: $1,074,471
Average annual cost of necessities for homeowners: $59,872
Social Security taxes: No
State and local tax rate: 0.00%
22. South Carolina
Minimum amount needed to retire: $802,634
Average annual cost of necessities for homeowners: $43,267
Social Security taxes: No
State and local tax rate: 7.49%
23. Georgia
Minimum amount needed to retire: $782,669
Average annual cost of necessities for homeowners: $45,387
Social Security taxes: No
State and local tax rate: 7.49%
24. Pennsylvania
Minimum amount needed to retire: $868,674
Average annual cost of necessities for homeowners: $42,957
Social Security taxes: No
State and local tax rate: 6.34%
25. Tennessee
Minimum amount needed to retire: $756,560
Average annual cost of necessities for homeowners: $43,476
Social Security taxes: No
State and local tax rate: 9.61%
26. North Carolina
Minimum amount needed to retire: $874,817
Average annual cost of necessities for homeowners: $46,175
Social Security taxes: No
State and local tax rate: 7.00%
27. New Hampshire
Minimum amount needed to retire: $1,082,150
Average annual cost of necessities for homeowners: $61,534
Social Security taxes: No
State and local tax rate: 0.00%
28. Idaho
Minimum amount needed to retire: $953,143
Average annual cost of necessities for homeowners: $54,875
Social Security taxes: No
State and local tax rate: 6.03%
29. Montana
Minimum amount needed to retire: $1,017,646
Average annual cost of necessities for homeowners: $55,444
Social Security taxes: Yes
State and local tax rate: 0.00%
30. Virginia
Minimum amount needed to retire: $913,212
Average annual cost of necessities for homeowners: $51,594
Social Security taxes: No
State and local tax rate: 5.77%
31. New Mexico
Minimum amount needed to retire: $771,918
Average annual cost of necessities for homeowners: $43,266
Social Security taxes: Yes
State and local tax rate: 7.67%
32. Illinois
Minimum amount needed to retire: $851,780
Average annual cost of necessities for homeowners: $43,648
Social Security taxes: No
State and local tax rate: 8.96%
33. Florida
Minimum amount needed to retire: $946,999
Average annual cost of necessities for homeowners: $50,197
Social Security taxes: No
State and local tax rate: 6.98%
34. Nevada
Minimum amount needed to retire: $937,785
Average annual cost of necessities for homeowners: $55,209
Social Security taxes: No
State and local tax rate: 8.24%
35. Arizona
Minimum amount needed to retire: $1,043,755
Average annual cost of necessities for homeowners: $52,445
Social Security taxes: No
State and local tax rate: 8.52%
36. Alaska
Minimum amount needed to retire: $1,372,416
Average annual cost of necessities for homeowners: $58,443
Social Security taxes: No
State and local tax rate: 1.82%
37. Maine
Minimum amount needed to retire: $1,151,261
Average annual cost of necessities for homeowners: $54,054
Social Security taxes: No
State and local tax rate: 5.50%
38. Minnesota
Minimum amount needed to retire: $825,671
Average annual cost of necessities for homeowners: $47,925
Social Security taxes: Yes
State and local tax rate: 8.14%
39. Maryland
Minimum amount needed to retire: $1,251,088
Average annual cost of necessities for homeowners: $55,618
Social Security taxes: No
State and local tax rate: 6.00%
40. Utah
Minimum amount needed to retire: $936,249
Average annual cost of necessities for homeowners: $58,863
Social Security taxes: Yes
State and local tax rate: 7.42%
41. Colorado
Minimum amount needed to retire: $954,678
Average annual cost of necessities for homeowners: $60,206
Social Security taxes: Yes
State and local tax rate: 7.89%
42. Vermont
Minimum amount needed to retire: $1,126,688
Average annual cost of necessities for homeowners: $52,052
Social Security taxes: Yes
State and local tax rate: 6.39%
43. New Jersey
Minimum amount needed to retire: $1,215,764
Average annual cost of necessities for homeowners: $66,594
Social Security taxes: No
State and local tax rate: 6.60%
44. Washington
Minimum amount needed to retire: $1,151,261
Average annual cost of necessities for homeowners: $67,807
Social Security taxes: No
State and local tax rate: 9.51%
45. Rhode Island
Minimum amount needed to retire: $1,099,044
Average annual cost of necessities for homeowners: $60,658
Social Security taxes: Yes
State and local tax rate: 7.00%
46. Connecticut
Minimum amount needed to retire: $1,145,118
Average annual cost of necessities for homeowners: $58,453
Social Security taxes: Yes
State and local tax rate: 6.35%
47. New York
Minimum amount needed to retire: $1,306,377
Average annual cost of necessities for homeowners: $58,748
Social Security taxes: No
State and local tax rate: 8.54%
48. Massachusetts
Minimum amount needed to retire: $1,661,146
Average annual cost of necessities for homeowners: $75,834
Social Security taxes: No
State and local tax rate: 6.25%
49. California
Minimum amount needed to retire: $1,549,033
Average annual cost of necessities for homeowners: $82,765
Social Security taxes: No
State and local tax rate: 8.99%
50. Hawaii
Minimum amount needed to retire: $2,229,392
Average annual cost of necessities for homeowners: $99,320
Social Security taxes: No
State and local tax rate: 4.50%
Methodology: For this study, MoneyLion analyzed each US state to find out how ready the average person is for retirement. Using the cost-of-living indexes and the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each location can be calculated. The average single-family home value was sourced from Zillow Home Value Index for June 2026. Assuming a 10% down payment and using the national average 30-year mortgage rate, as sourced from the Federal Reserve Economic Data on July 23, 2026, the average mortgage can be calculated for each state. The cost of living indexes were sourced from the 2026 Q1 Missouri Economic and Research Information's Cost of Living data series and using the national average expenditure costs for retired households, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for retired consumer units, the average expenditure costs can be calculated for each state. The average mortgage and expenditure costs can be used to calculate the overall cost of living. The state and local tax rate for each state was sourced from TaxFoundation for 2026. The minimum needed to retire was sourced from a previous MoneyLion study with methodology below. The minimum needed to retire was weighted at 2x, the average total cost of living was scored and weighted at 1.00, the state and local tax rate was scored and weighted at 1.00, and the states that tax Social Security income were scored and weighted at 0.25. All the scores were summed and sorted to show the retirement readiness of each state. The states were sorted to show the highest retirement readiness state first. All data was collected on and is up to date as of July 29, 2026.
To find out exactly how much you need to retire in your state, MoneyLion 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' 2024 Consumer Expenditure Survey by the cost of living index for each state from the Missouri Economic Research and Information Center's 2026 Q1 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, June 2026, 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 July 29, 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.