Cheapest, most expensive states to retire comfortably

As economic pressures mount across the U.S., more Americans are rethinking how, and where, they plan to retire. Rising inflation, healthcare costs and uncertainty about Social Security have led many to dip into their savings earlier than planned. Knewz.com has learned that a new report by Kiplinger highlights the wide geographic disparities in retirement affordability, identifying the states where savings stretch the furthest — and where they don’t.

Retirement savings under strain, new survey finds

According to a recent AARP survey, about 20% of adults aged 50 and older have no retirement savings, and 61% are worried they won’t have enough to support themselves after leaving the workforce. The survey further found that while Americans are 15 times more likely to save for retirement when they have access to a plan through their employer, 57 million people do not have access to a work-based retirement plan. Ibrahim AlHusseini, managing member of The Husseini Group, said in a statement, “There are tensions… Tariffs, housing affordability, concerns around entitlement spending — but these issues didn’t begin today. What is new is the willingness to confront them head-on. That means Americans should reframe retirement planning not around fear, but around resilience.” AlHusseini further explained, “In this environment, retirement preparation should be more dynamic, incorporating inflation-protected investments (like Treasury Inflation-Protected Securities, or TIPS), flexible retirement age expectations and diversified income streams. Social Security may see adjustments, but by acting now, decades before any potential shortfall hits, this administration is likely protecting the program’s future viability.”

Location is now a key factor in retirement

AlHusseini noted that where a person lives significantly influences how financial challenges impact them, which ultimately affects their ability to retire securely. For instance, people living in high-cost areas should plan more carefully, and so should those in coastal cities with high housing costs and climate-related infrastructure pressures, like California and Florida. “For Americans in high-cost states, that means thinking seriously and strategically about location. … It’s practical to think this way. Remote work, more portable benefits and expanding infrastructure make relocation more feasible than ever,” AlHusseini explained. “Retirement security is no longer just about how much you save; it’s also about where you spend those savings,” he added.

The cheapest American states to retire comfortably

Kiplinger, a publisher of business forecasts and personal finance advice, analyzed cost-of-living data — including housing, healthcare and general expenses — to estimate how much savings are needed to retire comfortably in each state. West Virginia ranked as the most affordable, requiring an estimated $712,913 in retirement savings. Other low-cost states include Kansas ($741,455), Mississippi ($753,472), and Pennsylvania ($864,633). Illinois, North Carolina and Maryland ranked lower on the list, making them more expensive retirement locations.

The most expensive states to retire

On the opposite end, Hawaii tops the list of the most expensive places to retire, with an estimated requirement of more than $2.2 million in savings. Massachusetts ($1,645,764), California ($1,612,716), New York and Alaska ($1,292,753) follow, each requiring well over $1 million to sustain a comfortable retirement. Washington, Maine and Arizona rank lower on the list, although they all require more than $1 million in savings to retire comfortably.

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