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GOBankingRates
Here’s Exactly How Much Savings You Need To Retire In Your State
francescoridolfi.com / iStock.com
francescoridolfi.com / iStock.com
Jordan Rosenfeld
9 min read

The average American's lack of savings paints a fairly discouraging picture of retirement. A GOBankingRates survey found that 64% are expected to retire with less than $10,000 in savings. Many Americans see themselves working past age 65 out of financial necessity, according to the Pew Charitable Trusts, with some people planning to never retire at all. The pandemic may have also thrown some people's futures into question, for those who had to draw from retirement savings during job loss or furlough.

See: 42 Easy Ways To Save For Retirement

But the amount of money you need to retire depends on where you live, due to state-by-state differences in the cost of living. In some areas of the country, a nest egg of $550,000 may be sizable enough for retirement. In other regions, you have to build up your savings even more to reach at least $1 million in retirement funds.

To find out exactly how much you need saved to retire, GOBankingRates calculated annual expenditures for a retired person in every state after deducting Social Security income, based on data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center. The study assumed that you would draw down your savings by 4% every year to cover your living expenses, and states were ranked from the smallest nest egg needed to the biggest.

Read: Jaw-Dropping Stats About the State of Retirement in America
Find Out: The Average Retirement Age in Every State

GOBankingRates found that residents of many Southeastern and Southwestern states won't have to put away nearly as much money for retirement, with states like Mississippi and Oklahoma requiring less than $600,000 in savings to retire. However, the Northeastern states aren't so lucky -- they claimed six spots among the bottom 10 states. To ensure smooth sailing in your golden years, make sure you're using the right tools to save for retirement.

DenisTangneyJr / Getty Images
DenisTangneyJr / Getty Images

1. Mississippi

  • Annual cost of living: $40,489.73

  • Cost of living after using Social Security income: $22,312.85

  • How much you need in savings to retire: $557,821

Take Action: Do These 13 Things To Boost Your Retirement Savings Now

Sean Pavone / Getty Images
Sean Pavone / Getty Images

2. Kansas

  • Annual cost of living: $41,346.15

  • Cost of living after using Social Security income: $23,169.27

  • How much you need in savings to retire: $579,232

Are High-Yield Savings Accounts Worth It? Here's Everything You Need To Know

JTSorrell / Getty Images
JTSorrell / Getty Images

3. Oklahoma

  • Annual cost of living: $41,964.68

  • Cost of living after using Social Security income: $23,787.80

  • How much you need in savings to retire: $594,695

Check Out: How Long $1 Million in Savings Will Last in Every State

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