AI Generated Image
How Much a Typical Couple Needs to Retire in Every State and What Size Nest Egg Is Required
AOL.com • • business
Key Points:
- A typical American couple aged 65 or older needs approximately $1.16 million saved to retire comfortably, with required savings varying significantly by state—from about $800,000 in the cheapest states to $1.33 million in the most expensive.
- Housing costs are the largest factor in retirement expenses, making up about 27% of a couple’s budget, while everyday goods and services vary less but still impact costs depending on location.
- Dual-earner couples generally require smaller nest eggs (around $916,000) compared to single-earner couples (about $1.21 million) due to higher combined Social Security benefits.
- The most expensive states for retired couples include New Jersey, Hawaii, California, and the District of Columbia, while the most affordable are mainly in the Plains and Appalachia regions, such as North Dakota and Arkansas.
- The analysis considers average spending patterns for a comfortable retirement including discretionary expenses but excludes state income taxes on retirement income, long-term care costs, and local property tax exemptions, which vary widely by location and individual circumstances.
