Average Retirement Income by State 2025

Retirement might be decades away or right around the corner for some of us. No matter where you stand on the timeline, it is never too early to start planning for retirement.

Depending on your desired location of retirement, when you would like to retire, and how far away your retirement is, you will need to have a specific amount of money saved in order to live comfortably. Factors such as life expectancy, cost of living, and income are all vital factors.

The average amount of savings required to retire comfortably in the United States is $904,452. Among the 50 states, the savings required to comfortably retire ranges between $617,661 and $1.84 million.

In the table below, to help determine this, each state’s average retirement age, life expectancy, yearly expenses for someone 65+, and the savings required to retire comfortably in that state. An additional 20% is added to the yearly expenses to account for a “comfortable” retirement.

States with the Highest Retirement Income

1. Hawaii

The average annual retirement income in Hawaii is $119,004 to live comfortably. Hawaii’s average retirement age is on the older side at 66 years; however, it has the highest life expectancy of any U.S. state at 81.50 years. To live comfortably in this period, one would need to save $1.84 million before retiring.

2. District of Columbia

The average retirement income in D.C. is $100,419. The District has the oldest average retirement age in 67 years and a life expectancy of 77.10 years. With yearly expenses coming out to about $83,683, a person would need to save about $1.01 million to retire comfortably in the District of Columbia.

3. California

California has the third-highest average income required for a comfortable retirement. Because California’s average retirement age of 64 years is lower than D.C. and its average life expectancy is higher at 80.90 years, the total amount of savings required to live comfortably is $1.46 million, higher than D.C.’s. However, because average yearly expenses are lower, the average annual income to live comfortably is lower at $86,171 per year.

4. New York

The average income required to retire comfortably in New York is $83,817 per year. Retirement in New York is expected to last just over 16 years, with an average retirement age of 64 years and an average life expectancy of 80.80 years. For these 16 years of retirement in New York, the average retiree needs to save $1.41 million, the second-highest among states.

5. Massachusetts

The average retiree in Massachusetts will need an annual income of $83,135 per year, just under New York’s. Massachusetts’s average retirement age is 66 years and the average life expectancy of 79.90 years requires about $1.16 million. Because the expected length of retirement is just under 14 years, the savings required is $1.16 million, significantly less than what is required in New York.

6. Oregon

Oregon has the sixth-highest average annual retirement income of $82,454, equating to $1.34 million in total required savings. The average length of retirement in Oregon is 16.2 years, and yearly expenses come out to about $68,712.

7. Maryland

With yearly expenses amounting to $67,214, Maryland retirees will need about $80,657 annually to retire comfortably. The average age of retirement in Maryland is 65 years, while the average life expectancy is 78.80 years. These 13.8 years of retirement will require $1.11 million in savings to retire.

8. Alaska

Alaska’s average annual retirement income is $80,348 to retire comfortably. Alaska has the youngest average retirement age of 61 years and a life expectancy of 77.70 years. To live comfortably through an average of 16.70 years of retirement, $1.34 million in savings are required for future retirees.

9. Connecticut

With yearly expenses at an average of $66,543 per year for retirees, Connecticut’s required average annual income is $79,852 per year. The average retirement length in Connecticut is 15.6 years, meaning that the average retiree will need $1.25 million saved to live comfortably in retirement.

10. New Jersey

New Jersey’s average annual retirement income to live a comfortable life is $77,684. Annual expenses in New Jersey for someone who is 65 years or older are $64,736. With an average retirement age of 65 years and a life expectancy of 80.50 years, someone planning for retirement can expect their retirement to last about 15.5 years. Those looking to retire comfortably in New Jersey would need to have about $1.20 million saved.

States with the Lowest Retirement Income

1. Mississippi

Mississippi has the lowest average retirement income required to live comfortably of $53,710 per year. Annual expenses in Mississippi come out to only $44,758 per year. Because Mississippi has the lowest life expectancy of 74.50 years and the average retirement age is 63 years, one can expect to need about 11.50 years of retirement savings, which equates to about $617,661.

2. Oklahoma

With average annual expenses coming out to only $45,016 for someone 65 years or older, the average retirement income required in Oklahoma is $54,019. Someone looking to retire in Oklahoma would need to save for about 13.4 years of retirement, coming out to about $723,859 in savings.

3. Arkansas

The average annual retirement income in Arkansas is $54,329, just slightly higher than Oklahoma’s. The average retirement age in Arkansas is 62, and the average life expectancy is 75.40 years. This 13.4 years of expected retirement is the same as Oklahoma’s, meaning that the savings required to retire in Arkansas are only slightly higher than in Oklahoma at $728,010.

4. Missouri

Missouri has the fourth-lowest average annual retirement income required to live a comfortable life at $54,701 per year. This is only a few hundred dollars higher than in Arkansas and Oklahoma. The average length of retirement is higher in Missouri, with the average retirement age at 63 years and the average life expectancy at 77.1 years. This 14.1 years of retirement will require about $771,281 in savings.

5. Tennessee

With yearly expenses amounting to about $45,894 per year, Tennessee’s average retirement income is $55,072 per year. Tennessee’s expected length of retirement is relatively short, with the average person retiring at 64 years old and the average life expectancy at 76 years. To live comfortably through these 12 years of retirement, one should plan to save at least $660,870.

6. Alabama

For the average retiree in Alabama to live comfortably, they will need an income of $55,258. Expenses for those 65 and older in Alabama come out to about $46,049. The average retirement length is 12.9 years, meaning that a future retiree should plan to save at least $712,832.

7. Michigan

Michigan has the seventh-lowest annual retirement income of $55,444 per year. Michigan’s average retirement age is 62 years old, and its average life expectancy is 77.60 years, meaning that the average person should expect to live in retirement for 15.6 years. To live comfortably, a person looking to retire in Michigan should save at least $864,929.

8. Kansas

Kansas’s average annual retirement income to live a comfortable life is $55,506 per year. Annual expenses in Kansas for someone who is 65 years or older are $46,255. With an average retirement age of 65 years and a life expectancy of 78.20 years, someone planning for retirement can expect their retirement to last about 13.2 years. Those looking to retire comfortably in Kansas would need to have about $732,681 saved.

9. Indiana

For someone in Indiana to retire comfortably, they will require an average annual retirement income of $56,064 to cover their $46,720 in yearly expenses. The average length of retirement in Indiana is expected to be 14 years; therefore, one should plan to have at least $784,891 in savings.

10. Georgia

Georgia has the tenth-lowest required annual retirement income of $56,126. With the average person retiring at 63 years old and the average life expectancy at 77.20 years, the average person in Georgia can expect retirement to last 14.2 years. The required savings to live comfortably in retirement in Georgia is $796,984.