Investopedia Puts State Retirement Needs at $644,000 to $1.02 Million After Social Security
Updated
Updated · Yahoo Finance · Oct 7
Investopedia Puts State Retirement Needs at $644,000 to $1.02 Million After Social Security
2 articles · Updated · Yahoo Finance · Oct 7
Summary
Investopedia estimates a single retiree needs about $644,000 in North Dakota and roughly $1.02 million in New Jersey after average Social Security benefits, with a national baseline near $898,000.
That baseline starts from average annual spending of about $59,600 for Americans 65 and older living alone in 2024; subtracting the average retired-worker benefit of $1,975 a month leaves a $35,900 gap, which the 4% rule translates into required savings.
Housing drives most of the state gap: annual housing costs for solo retirees run from about $7,000 in West Virginia to about $19,000 in California, while other goods and services vary far less by state.
Social Security levels sharply change the math: a retiree getting $1,500 a month would need about $786,000 in North Dakota and $1.16 million in New Jersey, while $5,000 a month would cover estimated costs in all but nine high-cost states.
The estimates are only one model—excluding state taxes, long-term care and possible future benefit cuts—and they contrast with survey data showing workers expect to need $1.2 million even as 51% think they will retire with under $500,000.