The 15 most expensive U.S. states to retire—No. 1 requires over $2 million in savings

You need to be a millionaire just to cover basic retirement costs in 15 U.S. states, according to a new analysis by GOBankingRates.

The states with the highest retirement expenses tend to also have the highest housing costs, whether it’s big-city hubs like New York and California, or Hawaii, where the natural beauty and mild climate attracts numerous retirees.

In fact, Hawaii is the most expensive state to retire in. The cost of essentials — housing, groceries, transportation, utilities and health care — for 25 years adds up to about $2.21 million. That’s significantly more than Massachusetts and California, where retirees need around $1.6 million each to get by.

The estimates come from the latest average cost of living data from the U.S. Bureau of Labor Statistics. After subtracting average Social Security income from the annual expenditures, GOBankingRates divided the remaining amount by 4%, following a common rule of thumb for safely drawing down retirement savings.

The totals represent the bare minimum needed to retire without accounting for other factors like rising inflation, discretionary spending or unexpected expenses.

Here’s a look the 15 most expensive states to retire in, ranked by total savings needed:

Annual cost of living: $110,921
Savings you need to retire: $2,212,084

Annual cost of living: $88,268
Savings you need to retire: $1,645,764

Annual cost of living: $86,946
Savings you need to retire: $1,612,716

Annual cost of living: $74,147
Savings you need to retire: $1,292,753

Annual cost of living: $74,147
Savings you need to retire: $1,292,753

Annual cost of living: $68,980
Savings you need to retire: $1,163,566

Annual cost of living: $68,559
Savings you need to retire: $1,153,051

Annual cost of living: $68,259
Savings you need to retire: $1,145,540

Annual cost of living: $68,199
Savings you need to retire: $1,144,038

Annual cost of living: $67,778
Savings you need to retire: $1,133,522

Annual cost of living: $67,538
Savings you need to retire: $1,127,514

Annual cost of living: $67,117
Savings you need to retire: $1,116,998

Annual cost of living: $66,997
Savings you need to retire: $1,113,994

Annual cost of living: $66,096
Savings you need to retire: $1,091,462

Annual cost of living: $65,795
Savings you need to retire: $1,083,951

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