The cost of retirement is hitting historic highs.
According to a new analysis by GOBankingRates, 23 state require at least $1 million in savings to fund a “comfortable” retirement.
The study calculates the monthly savings needed to retire comfortably in every state—if you start saving at age 20 (or age 30). The analysis first assumes a retirement age of 65 and a life expectancy of 85, meaning that the typical retiree needs to have enough savings to last 20 years.
To find the cost of a “comfortable” retirement, the study doubles the cost-of-living figure in each state based on a 50/30/20 budgeting rule, which states that needs should not exceed 50% of household income.
The underlying data is drawn from the Bureau of Labor Statistics and the Missouri Economic and Research Information Center, which includes information on groceries, healthcare costs, housing, utilities, transportation and other miscellaneous expenses.
Hawaii tops the list as the most expensive retirement destination, requiring over $3 million in savings for 20 years of comfortable retirement.
Unsurprisingly, the earlier one starts saving to hit this 20-year retirement target, the better. The difference in what you need to put away between starting to save at age 20 vs. age 30 can be as much as $3,000 a month.
Here are the 23 states where a comfortable retirement costs the most:
