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.
AlabamaAnnual cost of living: $53,999Savings you need to retire: $789,037ArkansasAnnual cost of living: $54,859Savings you need to retire: $810,538FloridaAnnual cost of living: $61,125Savings you need to retire: $967,190GeorgiaAnnual cost of living: $56,395Savings you need to retire: $848,933IdahoAnnual cost of living: $60,818Savings you need to retire: $959,511IllinoisAnnual cost of living: $58,913Savings you need to retire: $911,901IndianaAnnual cost of living: $55,657Savings you need to retire: $830,504IowaAnnual cost of living: $55,473Savings you need to retire: $825,896KansasAnnual cost of living: $54,613Savings you need to retire: $804,395KentuckyAnnual cost of living: $56,456Savings you need to retire: $850,469LouisianaAnnual cost of living: $56,947Savings you need to retire: $862,756MichiganAnnual cost of living: $58,176Savings you need to retire: $893,472MinnesotaAnnual cost of living: $57,869Savings you need to retire: $885,793MississippiAnnual cost of living: $52,524Savings you need to retire: $752,178MissouriAnnual cost of living: $54,674Savings you need to retire: $805,931NebraskaAnnual cost of living: $56,272Savings you need to retire: $845,862NevadaAnnual cost of living: $60,572Savings you need to retire: $953,368New MexicoAnnual cost of living: $56,825Savings you need to retire: $859,684North CarolinaAnnual cost of living: $59,835Savings you need to retire: $934,938North DakotaAnnual cost of living: $56,087Savings you need to retire: $841,254OhioAnnual cost of living: $57,009Savings you need to retire: $864,291OklahomaAnnual cost of living: $51,849Savings you need to retire: $735,284PennsylvaniaAnnual cost of living: $59,650Savings you need to retire: $930,331South CarolinaAnnual cost of living: $56,825Savings you need to retire: $859,684South DakotaAnnual cost of living: $56,395Savings you need to retire: $848,933TennesseeAnnual cost of living: $55,473Savings you need to retire: $825,896TexasAnnual cost of living: $55,780Savings you need to retire: $833,575UtahAnnual cost of living: $60,879Savings you need to retire: $961,047VirginiaAnnual cost of living: $61,493Savings you need to retire: $976,405West VirginiaAnnual cost of living: $54,122Savings you need to retire: $792,109WisconsinAnnual cost of living: $60,019Savings you need to retire: $939,546WyomingAnnual cost of living: $58,545Savings you need to retire: $902,686
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