The question of “How much money do you need to retire in 2025” has been very daunting to answer for most US citizens. The on-going financial uncertainty and impending financial reset has made retirement planning rather complicated. More and more retirees are opting to switch their homes in another state to make it more viable for spending their retirement years in.
The senior citizens who are about to retire in the year 2025 have to be very calculative in planning their retirement. The cost of living rates in the USA are usually on the higher side and can be up to $1.5 million per annum on an average. Therefore, the Americans who are about to retire in 2025 have to plan their retirement accordingly.
How Much Money Do You Need to Retire in 2025?
If only basic needs are to be considered for an average American in their retirement years then it may even get as low as $50,954 per annum. The cost of living rates for retirees depends on many factors such as housing, clothing & grocery expenses, transportation costs, health care bills, utility charges, etc. According to a study conducted on retirees aged above 65 years, the cost of average health spending done by an average American retiree is as high as 35% of their retirement expenses. So, while in their retirement years, a senior American citizen had to reduce their other essential expenses to meet their financial requirement for healthcare.
However the biggest expense that needs to be taken care of in the retirement years is the cost of housing, be it rent or mortgage payment, it overshadows all other post-retirement expenses. Therefore, the average housing rates in any US state, town or city affects the amount of savings required to live there and to make a choice on retirement destination. The US state of Hawaii with upwards of $2.2 million is among the states with highest cost of living rates for retirees aged above 65 years. Whereas the US state of West Virginia with around $700,000 stands among the states with lowest cost of living rates for retirees aged above 65 years.
Money Required at Retirement in 2025 Highlights
| Title Name | How Much Money Do You Need to Retire in 2025? |
| Associated Country | The United States of America |
| Topic | Retirement Planning |
| Year | 2025 |
| State with lowest required savings | West Virginia |
| State with highest required savings | Hawaii |
How Much Savings are Required to Retire in Each US State?
The US states require varying amount of investment and savings for spending the retirement years beyond the age of 65 years and are as follows:
State | Average cost of living every year | Minimum savings required for retirement |
| Alabama | $53,357 | $773,000 |
| Alaska | $74,147 | $1,292,753 |
| Arizona | $67,778 | $1,133,522 |
| Arkansas | $53,477 | $776,005 |
| California | $86,946 | $1,612,716 |
| Colorado | $61,709 | $981,803 |
| Connecticut | $67,117 | $1,116,998 |
| Delaware | $60,207 | $944,248 |
| Florida | $61,529 | $977,296 |
| Georgia | $54,980 | $813,559 |
| Hawaii | $110,921 | $2,212,084 |
| Idaho | $61,289 | $971,288 |
| Illinois | $57,383 | $873,646 |
| Indiana | $54,859 | $810,555 |
| Iowa | $54,319 | $797,035 |
| Kansas | $52,095 | $741,455 |
| Kentucky | $55,821 | $834,590 |
| Louisiana | $56,181 | $843,603 |
| Maine | $68,199 | $1,144,038 |
| Maryland | $59,426 | $924,720 |
| Massachusetts | $88,268 | $1,645,764 |
| Michigan | $55,460 | $825,577 |
| Minnesota | $57,263 | $870,642 |
| Mississippi | $52,576 | $753,472 |
| Missouri | $53,477 | $776,005 |
| Montana | $56,482 | $851,114 |
| Nebraska | $55,761 | $833,087 |
| Nevada | $60,147 | $942,746 |
| New Hampshire | $66,997 | $1,113,994 |
| New Jersey | $68,980 | $1,163,566 |
| New Mexico | $55,821 | $834,590 |
| New York | $74,147 | $1,292,753 |
| North Carolina | $55,645 | $905,192 |
| North Dakota | $55,340 | $822,572 |
| Ohio | $57,023 | $864,633 |
| Oklahoma | $52,816 | $759,481 |
| Oregon | $66,096 | $1,091,462 |
| Pennsylvania | $57,023 | $864,633 |
| Rhode Island | $67,538 | $1,127,514 |
| South Carolina | $57,203 | $869,140 |
| South Dakota | $55,460 | $825,577 |
| Tennessee | $54,078 | $791,027 |
| Texas | $55,641 | $830,083 |
| Utah | $65,795 | $1,083,951 |
| Vermont | $68,559 | $1,153,051 |
| Virginia | $60,387 | $948,755 |
| Washington | $68,259 | $1,145,540 |
| West Virginia | $50,954 | $712,913 |
| Wisconsin | $59,666 | $930,729 |
| Wyoming | $57,323 | $872,144 |
The actual amount required for retirement is subject to vary as per the essential needs and preferences of the retirees. So based on the aforementioned state-wise data the American retirees might plan their retirement in 2025.
Retirement Planning in 2025
Each of the US states is trying to make it easier and cost-effective for its retirees to spend their retirement years by means of various income security programs along with federal programs such as Supplemental Security Income. However, despite these efforts the retirees have to still thoroughly plan for their retirement while actively working and make investments or savings. Any and all long-term investments that are thoughtfully made to keep all necessary and preferred expenses in check will ensure financial stability and self-sufficiency to live-out the retirement years.
The retirees can plan in advance to invest into diverse financial instruments to get return on their investment during their retirement years. Further, the most intensive post-retirement expenses such as housing or health care needs to be sorted-out by the means of repaying the house mortgage before retirement or availing adequate health insurance coverage respectively.
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James Foster is a passionate writer at KnitCrate.com, specializing in finance, taxation, and public aid topics. With a knack for breaking down complex subjects, he delivers clear and insightful content for readers worldwide. When he’s not writing, James enjoys exploring economic trends and staying updated on global news.