Full Breakdown
Retirement Costs Vary Widely Across U.S. States, Raising Concerns Over Financial Security
5/24/2026, 12:23:11 AM
State-by-State Cost of a Comfortable Retirement
MoneyLion’s 2024 analysis estimates that a comfortable retirement costs $156,610 per year in Hawaii after Social Security, while the lowest estimate is $33,223 in West Virginia. Thirteen states require more than $100,000 annually; the most expensive are Hawaii, California ($121,879) and Massachusetts ($111,145). The least-expensive states are West Virginia, Mississippi ($35,130), Louisiana ($37,570), Arkansas ($37,811) and Oklahoma ($39,286). Median household incomes in the high-cost states exceed $100,000 (e.g., Massachusetts $104,828, New Jersey $104,294), whereas the low-cost states have median incomes between $59,127 and $66,148.
Rising Costs and Inflation
The Federal Reserve Bank of St. Louis reports that average retiree spending increased 2.2 % in 2024, reflecting nationwide inflation that has pushed up housing, healthcare and everyday expenses.
Key Drivers of Retirement Expenses
Federal Reserve data show retirees 65+ spent $61,432 on average in 2024. Housing accounts for $22,193 (? one-third), followed by transportation $9,538, food $7,940 and healthcare $7,799. The remaining budget covers insurance, pensions, utilities and other household costs.
Criticism & Opposition: Retiree Concerns
Schroders’ 2026 U.S. Retirement Survey finds 49 % of retirees say expenses exceed expectations, 58 % are unsure how long savings will last, 90 % worry about inflation and 87 % about rising medical costs. The average Social Security benefit is about $25,000 per year.
Official Data Sources and Responses
The analysis draws on three primary sources: the Federal Reserve Bank of St. Louis (average retiree spending $61,432, up 2.2 % YoY), MoneyLion’s state-level cost estimates, and the Social Security Administration (average monthly benefit $2,000). No agency has issued a formal comment on the cost gaps.
Conflicting Estimates and Gaps
MoneyLion lists Hawaii’s post-Social Security cost at $156,610 but also cites a pre-benefit figure of $181,505, a $24,895 difference. West Virginia’s cost is $58,117 before Social Security and $33,223 after, a $24,894 gap. The methodology for tax treatment, cost-of-living adjustments and regional price indices is not disclosed, leaving uncertainty about net affordability.
Implications for Retirement Planning
Geography now rivals savings rate in determining retirement security. Even in high-income states, required budgets exceed $100,000, while low-cost states keep expenses under $40,000. Early contributions, employer 401(k) matches, IRA funding and delayed Social Security claims can lower required monthly outlays, especially as housing and healthcare dominate costs.
What’s Next for Retirees
Future rounds of the Schroders retirement survey and guidance from financial planners will track how inflation, health-care pricing and migration trends affect retirees. Policymakers and individuals are expected to weigh relocation alongside traditional savings strategies.
