For many Americans, $1 million is seen as a savings benchmark for retirement. But in 32 U.S. states, the estimated minimum needed to retire at 65 is less than that.
That’s according to a state-by-state analysis from personal finance website GOBankingRates, which estimates the minimum household savings needed to retire at 65 and cover essential living expenses over 25 years, including housing, groceries, transportation, utilities and health care.
To determine savings minimums in each state, GOBankingRates looked at cost of living data for retirees 65 and older from the U.S. Bureau of Labor Statistics, minus average Social Security income. It then used a 4% annual withdrawal rate to estimate the total amount of savings needed to cover remaining expenses.
These estimates focus on the minimum needed to cover day-to-day living costs, not a comfortable retirement. They exclude discretionary spending and don’t account for factors like inheritances or paid-off mortgages.
The analysis is also based on household expenses, meaning that retirement costs could be supported by more than one person’s savings or income for a given home.
Even so, basic living costs in retirement can exceed what many people expect. About half of U.S. workers say they’ll need at least $500,000 to retire comfortably — not just cover essentials — according to a 2025 Bankrate survey.
Here’s a look at the U.S. states where the estimated minimum savings needed to retire at 65 comes in below $1 million.
Alabama
- Annual cost of living: $53,999
- Savings you need to retire: $789,037
Arkansas
- Annual cost of living: $54,859
- Savings you need to retire: $810,538
Florida
- Annual cost of living: $61,125
- Savings you need to retire: $967,190
Georgia
- Annual cost of living: $56,395
- Savings you need to retire: $848,933
Idaho
- Annual cost of living: $60,818
- Savings you need to retire: $959,511
Illinois
- Annual cost of living: $58,913
- Savings you need to retire: $911,901
Indiana
- Annual cost of living: $55,657
- Savings you need to retire: $830,504
Iowa
- Annual cost of living: $55,473
- Savings you need to retire: $825,896
Kansas
- Annual cost of living: $54,613
- Savings you need to retire: $804,395
Kentucky
- Annual cost of living: $56,456
- Savings you need to retire: $850,469
Louisiana
- Annual cost of living: $56,947
- Savings you need to retire: $862,756
Michigan
- Annual cost of living: $58,176
- Savings you need to retire: $893,472
Minnesota
- Annual cost of living: $57,869
- Savings you need to retire: $885,793
Mississippi
- Annual cost of living: $52,524
- Savings you need to retire: $752,178
Missouri
- Annual cost of living: $54,674
- Savings you need to retire: $805,931
Nebraska
- Annual cost of living: $56,272
- Savings you need to retire: $845,862
Nevada
- Annual cost of living: $60,572
- Savings you need to retire: $953,368
New Mexico
- Annual cost of living: $56,825
- Savings you need to retire: $859,684
North Carolina
- Annual cost of living: $59,835
- Savings you need to retire: $934,938
North Dakota
- Annual cost of living: $56,087
- Savings you need to retire: $841,254
Ohio
- Annual cost of living: $57,009
- Savings you need to retire: $864,291
Oklahoma
- Annual cost of living: $51,849
- Savings you need to retire: $735,284
Pennsylvania
- Annual cost of living: $59,650
- Savings you need to retire: $930,331
South Carolina
- Annual cost of living: $56,825
- Savings you need to retire: $859,684
South Dakota
- Annual cost of living: $56,395
- Savings you need to retire: $848,933
Tennessee
- Annual cost of living: $55,473
- Savings you need to retire: $825,896
Texas
- Annual cost of living: $55,780
- Savings you need to retire: $833,575
Utah
- Annual cost of living: $60,879
- Savings you need to retire: $961,047
Virginia
- Annual cost of living: $61,493
- Savings you need to retire: $976,405
West Virginia
- Annual cost of living: $54,122
- Savings you need to retire: $792,109
Wisconsin
- Annual cost of living: $60,019
- Savings you need to retire: $939,546
Wyoming
- Annual cost of living: $58,545
- Savings you need to retire: $902,686
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