The average household headed by someone 65 or older spent $61,432 in 2024, according to the Bureau of Labor Statistics. That works out to about $5,119 a month.
That number is a useful starting point, but it hides a huge range. The same lifestyle that costs around $4,300 a month in Oklahoma costs well over $7,000 in California and more than $9,000 in Hawaii. If you are planning where to spend your retirement, or simply checking whether your savings will stretch far enough where you already live, the state matters as much as the size of your nest egg.
Below you’ll find an estimate for every state, how we built it, and what the averages leave out.
Key numbers at a glance
- National average for 65+ households: $5,119 a month ($61,432 a year) in 2024
- Households headed by someone 65 to 74: $65,354 a year
- Households headed by someone 75 or older: $55,834 a year
- Average Social Security retirement benefit: about $2,071 a month in January 2026, or about $3,208 for a retired couple
- Lowest estimated state: Oklahoma, about $4,280 a month
- Highest estimated state: Hawaii, about $9,200 a month
Spending tends to fall as people get older. Households 75 and older spend about 15% less than those 65 to 74, mostly because they spend less on transportation, entertainment and clothing. Health care is the exception, and it keeps rising with age.
How we estimated each state
There is no official federal figure for retiree spending by state, so we built one from two public sources.
- What older households spend, by category. We took BLS Consumer Expenditure Survey data for households headed by someone 65 or older and split it into six parts: housing, utilities, food, transportation, health care and everything else.
- How prices differ by state. We adjusted each part using the Missouri Economic Research and Information Center (MERIC) cost of living index for the second quarter of 2026. MERIC publishes a separate index for housing, groceries, utilities, transportation and health for every state.
So if housing costs 45% more than the national average in a state, we raise the housing portion of the budget by 45%, and so on for each category. This is more accurate than simply multiplying the national total by one index, because retirees spend differently than younger households. They spend less on work-related costs and more on health.
Here is the national monthly budget we started from:
| Category | Average monthly spending, 65+ household |
| Housing (mortgage or rent, property tax, insurance, repairs, furnishings) | $1,385 |
| Utilities | $364 |
| Food | $664 |
| Transportation | $894 |
| Health care | $604 |
| Everything else (clothing, entertainment, gifts, personal care, insurance, other) | $1,207 |
| Total | $5,119 |
Estimated monthly retirement costs in all 50 states
States are ranked from least to most expensive. The last two columns show two things that often decide where people retire: whether the state taxes Social Security, and what assisted living costs if care becomes necessary.
| Rank | State | Estimated monthly spending, 65+ household | Cost of living index (US = 100) | State tax on Social Security | Assisted living median per month |
| 1 | Oklahoma | $4,280 | 83.0 | No | $6,150 |
| 2 | Alabama | $4,390 | 86.0 | No | $4,425 |
| 3 | Iowa | $4,440 | 86.1 | No | $5,380 |
| 4 | Kansas | $4,440 | 87.1 | No | $5,975 |
| 5 | Mississippi | $4,450 | 87.4 | No | $4,369 |
| 6 | West Virginia | $4,490 | 87.0 | No | $6,340 |
| 7 | Missouri | $4,510 | 88.2 | No | $5,400 |
| 8 | Arkansas | $4,530 | 89.0 | No | $4,637 |
| 9 | Tennessee | $4,590 | 89.7 | No state income tax | $5,845 |
| 10 | Indiana | $4,610 | 89.7 | No | $5,639 |
| 11 | Nebraska | $4,620 | 90.1 | No | $6,480 |
| 12 | Georgia | $4,630 | 90.1 | No | $5,300 |
| 13 | New Mexico | $4,650 | 90.2 | Yes, with exemptions | $5,950 |
| 14 | North Dakota | $4,670 | 90.5 | No | $4,729 |
| 15 | Texas | $4,680 | 90.8 | No state income tax | $5,666 |
| 16 | Louisiana | $4,690 | 91.3 | No | $5,162 |
| 17 | Michigan | $4,710 | 92.1 | No | $5,818 |
| 18 | Ohio | $4,760 | 93.0 | No | $6,102 |
| 19 | South Carolina | $4,770 | 92.7 | No | $5,350 |
| 20 | Kentucky | $4,800 | 94.0 | No | $5,528 |
| 21 | Wyoming | $4,800 | 94.4 | No state income tax | $5,325 |
| 22 | South Dakota | $4,830 | 93.5 | No state income tax | $4,900 |
| 23 | Minnesota | $4,830 | 93.4 | Yes, with exemptions | $6,572 |
| 24 | Illinois | $4,890 | 94.5 | No | $6,219 |
| 25 | Pennsylvania | $4,890 | 95.3 | No | $6,350 |
| 26 | Wisconsin | $4,920 | 95.7 | No | $6,540 |
| 27 | North Carolina | $4,970 | 96.7 | No | $6,496 |
| 28 | Utah | $5,040 | 98.4 | Yes, with exemptions | $5,475 |
| 29 | Virginia | $5,060 | 99.0 | No | $6,945 |
| 30 | Idaho | $5,110 | 99.4 | No | $5,175 |
| 31 | Delaware | $5,130 | 100.6 | No | $7,600 |
| 32 | Florida | $5,180 | 100.8 | No state income tax | $5,610 |
| 33 | Colorado | $5,230 | 102.7 | Yes, with exemptions | $6,584 |
| 34 | Connecticut | $5,280 | 103.6 | Yes, with exemptions | $9,118 |
| 35 | Montana | $5,400 | 106.0 | Yes, with exemptions | $6,075 |
| 36 | Nevada | $5,480 | 105.4 | No state income tax | $6,241 |
| 37 | New Hampshire | $5,500 | 108.5 | No state income tax | $8,025 |
| 38 | Arizona | $5,530 | 108.6 | No | $6,250 |
| 39 | Rhode Island | $5,580 | 110.9 | Yes, with exemptions | $7,780 |
| 40 | Oregon | $5,730 | 110.4 | No | $6,874 |
| 41 | Vermont | $5,740 | 113.4 | Yes, with exemptions | $8,597 |
| 42 | Maine | $5,740 | 112.9 | No | $8,205 |
| 43 | Washington | $5,970 | 115.1 | No state income tax | $7,600 |
| 44 | Maryland | $6,010 | 118.8 | No | $7,172 |
| 45 | New Jersey | $6,060 | 119.2 | No | $8,710 |
| 46 | Alaska | $6,270 | 124.5 | No state income tax | $9,882 |
| 47 | New York | $6,670 | 132.6 | No | $7,110 |
| 48 | California | $7,160 | 140.3 | No | $7,000 |
| 49 | Massachusetts | $7,420 | 148.1 | No | $9,600 |
| 50 | Hawaii | $9,200 | 185.8 | No | $12,096 |
Sources: BLS Consumer Expenditure Surveys 2024; MERIC Cost of Living Data Series, Q2 2026; CareScout Cost of Care Survey 2025; state tax rules for 2026. Monthly estimates are rounded to the nearest $10 and are our calculation.
What stands out
The Midwest and South are the cheapest places to retire. Oklahoma, Alabama, Iowa, Kansas, Mississippi and West Virginia all come in below $4,500 a month, mainly because housing costs 20% to 35% less than the national average.
Housing drives almost all of the difference. Grocery prices in most states sit within about 5% to 10% of the national average. Housing costs, on the other hand, range from about 35% below average in Oklahoma to three times the average in Hawaii.
Popular retirement states are not always cheap. Florida lands close to the national average. Arizona, Nevada and Oregon come in above it, largely because of housing. Texas, Tennessee and Georgia remain well below average and have no state tax on Social Security.
Taxes matter less than people think for most retirees. Only eight states tax Social Security in 2026, and most of them exempt lower and middle incomes. State taxes on pensions and IRA withdrawals, plus property taxes, usually make a bigger difference. See our 50-state retirement income tax table for details.
Can Social Security alone cover it?
For most people, no. At about $2,071 a month for the average retired worker, Social Security covers roughly 40% to 50% of our estimated budget in the cheapest states and less than a third in the most expensive ones.
A retired couple both collecting benefits averages about $3,208 a month. That still leaves a gap of roughly $1,000 to $1,500 a month in the lowest-cost states before counting any big one-off costs.
This is where the rest of your plan comes in: savings withdrawals, a pension, part-time work, or cutting housing costs by paying off a mortgage or downsizing.
What these averages leave out
An average budget is a starting line, not a finish line. These are the gaps you should fill in with your own numbers.
- Paid-off house or not. Homeowners without a mortgage can spend far less on housing than the average suggests. Renters, and anyone still paying a mortgage, may spend more.
- Home insurance. Premiums have jumped in states with hurricane, wildfire and hail risk. In parts of Florida, Louisiana and California, insurance alone can add hundreds of dollars a month.
- Property taxes. Effective rates vary widely, and many states offer senior exemptions or freezes that can cut the bill sharply if you apply.
- Medicare costs. The standard Part B premium in 2026 is $202.90 a month per person, before any supplement, drug plan or income-related surcharge. Supplement premiums also vary by state.
- Long-term care. Assisted living medians range from about $4,400 a month in Alabama and Mississippi to more than $12,000 in Hawaii. A few years of care can cost more than a decade of regular living expenses.
- Where in the state you live. A cheap state can have expensive cities, and an expensive state can have affordable small towns.
How to build your own state budget
- Start with your real spending today. Pull 12 months of bank and card statements and add up each category.
- Remove work costs such as commuting, work clothes and retirement contributions.
- Adjust for your target state. Use the index for that state and category. If housing costs 20% less where you are moving, lower that line by 20%.
- Add retirement-specific costs: Medicare premiums, a supplement or Advantage plan, dental and vision, and travel if you plan to do more of it.
- Set aside a line for big irregular costs: a new roof, a car replacement every 10 years, and a long-term care fund.
- Compare it with your guaranteed income. Your Social Security estimate is in your my Social Security account. Anything above that comes from savings or other income.
Frequently asked questions
How much money do you need to retire comfortably in the US? The average 65+ household spends about $5,119 a month. Whether that is comfortable depends on your housing costs, health and lifestyle. Build your budget from your own spending, then compare it with your expected income.
What is the cheapest state to retire in? On our estimate, Oklahoma, Alabama, Iowa, Kansas and Mississippi are the least expensive, all around $4,300 to $4,450 a month for an average 65+ household.
What is the most expensive state to retire in? Hawaii, followed by Massachusetts, California, New York and Alaska.
Which states do not tax Social Security? In 2026, 42 states plus Washington, D.C. do not. The eight that do are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont, and most exempt lower and middle incomes.
Sources
- U.S. Bureau of Labor Statistics, Consumer Expenditure Surveys, 2024 (via FRED series for households 65+, 65 to 74 and 75+)
- Missouri Economic Research and Information Center, Cost of Living Data Series, second quarter 2026
- CareScout, Cost of Care Survey 2025, state median tables
- Social Security Administration, 2026 COLA fact sheet
- Centers for Medicare and Medicaid Services, 2026 Medicare Part B premium
- State revenue department rules on Social Security taxation, 2026
Estimates are averages for households headed by someone 65 or older, and actual costs will vary. This article is for general information and is not financial advice.
