Americans in workplace retirement plans indicate that on average, they need $1.2 million to have a "comfortable retirement." Schroders The 2026 U.S. Retirement Survey provides this figure.

If this number makes you can't help but take another look at your 401(k) account, you're not alone. In the same survey, 51% of the participants stated that they expected to have savings of less than $500,000 by retirement, with 24% anticipating less than $250,000. Only 30% believed they could save up to $1 million. The survey polled 1,500 American investors aged 30 to 79 in March and April.

Some Wall Street executives have set even higher thresholds. Larry Fink, the CEO of BlackRock ( Larry Fink ), has warned that Americans need at least $2 million to retire, and "almost no one comes close to that level."

Vanguard Group’s ( Vanguard ) retirement plan data also shows that a seven-figure goal is still out of reach for many savers. According to Vanguard’s data on participants in its contribution plans, as of the end of 2025, the average account balance for participants aged 65 and above was $330,186, while the median was only $103,202. These balances reflect only the assets accumulated by participants in the workplace plans managed by Vanguard; they may also have IRA accounts, pensions, other workplace accounts, or other assets. Even so, most Americans are still far from the amount they consider necessary.

So, exactly how much money is needed? There is no official price tag for a “comfortable retirement.” Where you live, how much money you spend, and how much your social security benefits can cover will all significantly affect the answer. If these assumptions change, so will the figures.

In a recent analysis, Investopedia estimated that a single retiree in North Dakota would need approximately $644,000, while in New Jersey it would be around $1.02 million. According to data from the U.S. Bureau of Labor Statistics, the national benchmark shows that in 2024, Americans aged 65 and above living alone had an average annual expenditure of about $59,600. Social Security coverage accounts for about $23,700 of this amount, as retirees received an average monthly benefit of $1,975 in December 2024. This leaves an annual shortfall of about $35,900. Based on a 4% savings rate, to cover this gap, one would need a reserve of approximately $898,000.

There are conditions attached to each of these figures. The "comfortable" budget mentioned by Investopedia reflects the average expenditure, which includes travel, dining out, and entertainment. According to this media source, retirees with median spending levels typically need 15% to 20% less. Their estimates do not take into account state income taxes on retirement income, long-term care costs, or local tax exemptions for elderly residents. They also assume that current welfare levels will remain unchanged, despite the funding gap in the social security system; if Congress does not take action, welfare cuts may be necessary.

The amount of the check you receive is just as important as your postal code. Investopedia Data provided by state authorities shows that if a retiree receives $1,500 per month, it would cost approximately $786,000 in North Dakota and $1.16 million in New Jersey. If they receive $3,000 per month, these figures drop to around $336,000 and $711,000 respectively. If they receive $5,000 per month, social security benefits alone would be sufficient to cover the estimated annual expenses in all states except for nine high-cost ones, which are California, Connecticut, Hawaii, Maryland, Massachusetts, New Hampshire, New Jersey, New York, and Washington.

The differences between states mainly stem from local costs. Investopedia calculates housing costs separately, using census data to measure the expenditures of single elderly renters, homeowners with mortgages, and homeowners without mortgages in each state, and then adjusts other expenses of retirees according to regional prices.

Housing is where the geographical differences are most evident. Investopedia has found that for Americans aged 65 and above living alone, the annual cost of housing ranges from about $7,000 in West Virginia to about $19,000 in California. These costs include rent or mortgage payments, insurance, property taxes, and utilities. The differences in the prices of everyday goods and services are smaller. The prices of goods and services in Hawaii are about 6% higher than the national average, while in South Dakota they are about 7% lower.

Retirement Living uses the same 4% rule, but the results are quite different. It starts with the national average retirement expenditure, then adjusts it according to each state's cost of living index, and finally subtracts the average social security benefits for that state. Investopedia, on the other hand, uses a uniform national average benefit, as the state averages reflect where retirees worked in the past, not where they currently live. According to the Retirement Living model, retirees in Oklahoma would need approximately $729,000, while in Hawaii it's close to $2.17 million. Both Massachusetts and California require more than $1.5 million. Previous reports on how long $1 million would last in different states also reached similar conclusions: in Hawaii, this amount of money would be spent in about 12 years.

It's the same 4% rule, but the assumptions about the costs of real life are quite different.

How much do single retirees need in each state?

The following figures are estimates for Investopedia. It is assumed that a single retiree receives an average social security benefit of $1,975 per month and withdraws 4% of their savings each year. Each item shows the estimated annual expenses for a comfortable retirement, as well as the reserve required to cover the gap in social security benefits. Washington, D.C. is not included in the table below; the estimated cost there is about $1.01 million.

• Alabama: $51,200 per year; reserve fund of $687,000
• Alaska: $57,910 per year; reserve fund of $855,000
• Arizona: $56,210 per year; reserve fund of $813,000
• Arkansas: $49,630 per year; reserve fund of $648,000
• California: $64,300 per year; reserve fund of $1,015,000
• Colorado: $58,810 per year; reserve fund of $878,000
• Connecticut: $60,970 per year; reserve fund of $932,000
• Delaware: $56,000 per year; reserve fund of $807,000
• Florida: $58,030 per year; reserve fund of $858,000
• Georgia: $54,250 per year; reserve fund of $764,000
• Hawaii: $64,350 per year; reserve fund of $1,016,000
• Idaho: $53,110 per year; reserve fund of $735,000
• Illinois: $57,150 per year; reserve fund of $836,000
• Indiana: $52,160 per year; reserve fund of $711,000
• Iowa: $50,400 per year; reserve fund of $667,000
• Kansas: $51,830 per year; reserve fund of $703,000
• Kentucky: $50,780 per year; reserve fund of $677,000
• Louisiana: $50,490 per year; reserve fund of $670,000
• Maine: $55,140 per year; reserve fund of $786,000
• Maryland: $60,880 per year; reserve fund of $930,000
• Massachusetts: $61,160 per year; reserve fund of $937,000
• Michigan: $53,590 per year; reserve fund of $747,000
• Minnesota: $56,430 per year; reserve fund of $818,000
• Mississippi State: $49,820 per year; reserve fund of $653,000
• Missouri: $51,880 per year; reserve fund of $704,000
• Montana: $53,260 per year; reserve fund of $739,000
• Nebraska: $51,920 per year; reserve fund of $705,000
• Nevada: $57,590 per year; reserve fund of $847,000
• New Hampshire: $60,360 per year; reserve fund of $917,000
• New Jersey: $64,440 per year; reserve fund of $1,018,000
• New Mexico: $52,150 per year; reserve fund of $711,000
• New York State: $61,660 per year; reserve fund of $949,000
• North Carolina: $53,380 per year; reserve fund of $742,000
• North Dakota: $49,450 per year; reserve fund of $644,000
• Ohio: $52,700 per year; reserve fund of $725,000
• Oklahoma: $50,800 per year; reserve fund of $677,000
• Oregon: $58,900 per year; reserve fund of $880,000.
• Pennsylvania: $54,550 per year; reserve fund of $771,000
• Rhode Island: $58,490 per year; reserve fund of $870,000
• South Carolina: $52,870 per year; reserve fund of $729,000
• South Dakota: $50,720 per year; reserve fund of $675,000
• Tennessee: $51,070 per year; reserve fund of $684,000
• Texas: $54,790 per year; reserve fund of $777,000
• Utah: $55,890 per year; reserve fund of $805,000
• Vermont: $56,900 per year; reserve fund of $830,000
• Virginia: $57,400 per year; reserve fund of $842,000
• Washington State: $61,270 per year; reserve fund of $939,000
• West Virginia: $50,030 per year; reserve fund of $658,000
• Wisconsin: $53,750 per year; reserve fund of $751,000
• Wyoming: $53,020 per year; reserve fund of $733,000