Nov 3, 2022 Show
 The average American’s lack of savings paints a fairly discouraging picture of retirement. A GOBankingRates survey found that 40% of Americans have less than $300 in savings – putting a crimp in retirement funds. Many Americans see themselves working past age 65 out of financial necessity, according to the Pew Charitable Trusts, with some people planning to never retire at all. The pandemic also threw some people’s futures into question, especially those who had to draw from retirement savings during job loss or furlough. Related: 6 Types of Retirement Income That Aren’t Taxable But the amount of money you need to retire depends on where you live, due to state-by-state differences in the cost of living. In some areas of the country, a nest egg of a bit more than $500,000 may be sizable enough for retirement. In other regions, you have to build up your savings even more to reach at least $1.8 million in retirement funds. To find out exactly how much you need saved to retire, GOBankingRates calculated annual expenditures for a retired person in every state after deducting Social Security income, based on data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center. The study assumed that you would draw down your savings by 4% every year to cover your living expenses, and states were ranked from the smallest nest egg needed to the biggest. GOBankingRates found that residents of many Southeastern and Southwestern states won’t have to put away nearly as much money for retirement, with states such Mississippi and Kansas requiring less than $550,000 in savings to retire. However, the residents of the Northeastern states aren’t so lucky — they claimed seven spots among the bottom 10 states for the cost of retirement. To ensure smooth sailing in your golden years, make sure you’re using the right tools to save for retirement. 1. Mississippi
2. Kansas3. (tie) Alabama
3. (tie) Oklahoma
5. Georgia
6. Tennessee
7. Missouri
8. Iowa
9. West Virginia
10. Indiana
11. Arkansas
12. New Mexico
13. (tie) Michigan
13. (tie) Ohio
15. Texas
16. Louisiana
17. Kentucky
18. South Carolina
19. Nebraska
20. (tie) Illinois
20. (tie) Wyoming
22. North Carolina
23. Wisconsin
24. North Dakota
25. Utah
26. Minnesota
27. Florida
28. Montana
29. South Dakota
30. Virginia
31. Idaho
32. Pennsylvania
33. Arizona
34. Colorado
35. Nevada
36. Delaware
37. New Hampshire
38. Washington
39. Maine
40. New Jersey
41. Vermont
42. Rhode Island
43. Connecticut
44. Maryland
45. Alaska
46. Oregon
47. Massachusetts
48. California
49. New York
50. Hawaii
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Jami Farkas and Alexandria Bova contributed to the reporting for this article. Methodology: In order to find out exactly how much you need to retire in your state, GOBankingRates found the annual cost of expenditures for a retired person in each state by multiplying the 65 year and older expenditures from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey by the cost of living index for each state from the Missouri Economic Research and Information Center’s 2021 cost of living series. To find how much money a retired person would need to save, we divided each state’s annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration’s Monthly Statistical Snapshot, March 2022, by .04, assuming drawing down savings by 4 percent each year to pay for living expenses. All data was collected and is up to date as of May 9, 2022. About the AuthorWhat is the average retirement income in Missouri?As of Oct 27, 2022, the average annual pay for the Retirement jobs category in Missouri is $55,714 a year. Just in case you need a simple salary calculator, that works out to be approximately $26.79 an hour. This is the equivalent of $1,071/week or $4,642/month.
How much is needed to retire in Missouri?The typical 65 year old in the state will spend an estimated $952,821 on a comfortable retirement, $167,600 less than the typical 65 year old American likely will. The relative affordability of a comfortable retirement is due in part to the low cost of living in the state.
Is Missouri a good state to retire to?Missouri placed third in the study's affordability ratings and was named the fifth-best state to retire overall. However, though did not rank nearly as high in other sub-criteria, including weather (19th), culture and diversity (32nd), well-beingness (36th) and crime (42nd).
What is the average amount of money needed to retire?To determine just how much you will need to save to generate the income that you need, one easy-to-use formula is to divide your desired annual retirement income by 4%, which is known as the 4% rule. For an income of $80,000, you would need a retirement nest egg of about $2 million ($80,000 /0.04).
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How much money do you need to retire in Missouri?
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