What does “retirement savings by state” actually mean?

It is an estimate of how much a 65-year-old needs to fund typical expenses in a specific U.S. state. Analysts total housing, healthcare, food, transport, utilities, and taxes, then back out Social Security income to size the required nest egg. Different prices and taxes create large differences across states.

How does the cost of living index affect my retirement pot?

A lower index means local prices are cheaper, so you can withdraw less each year to cover the same lifestyle. Housing and healthcare are the biggest levers. If you pick a lower-cost area, your savings may last longer, or you can spend more without raising risk. Always test multiple scenarios.

Should I convert amounts to pounds when planning from the UK?

Yes, plan in GBP and USD. Model withdrawals, taxes, and fees in both currencies to see FX risk. Keep an eye on exchange-rate ranges and costs of currency transfers. If you expect USD spending, hold some USD income sources. Revisit assumptions at least annually and after large currency moves.

Where can I find the latest state estimates?

Start with recent media summaries and independent lists that compile state-level budgets and savings needs. For example, CNBC has coverage of the latest findings, and Cheapism publishes a state-by-state view. Update your plan yearly, and check local taxes, insurance, and healthcare networks before choosing a location.

Global Market Insights

January 26: 32 U.S. States Where You Can Retire at 65 With Under $1M in Savings

ByDanny Kontos January 26, 2026January 26, 2026

Retirement savings by state is back in focus after new data shows 32 U.S. states let you retire at 65 with under $1 million. The gap between the most and least expensive states is as high as $1.46 million. That difference flows from housing, healthcare, taxes, and insurance. For UK readers, this shapes where Americans move, how they spend, and which local economies grow. It also affects portfolio exposure to U.S. housing, healthcare, and municipal credit, plus planning around Social Security income.