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This Is What It Costs To Retire in Minnesota

imageForEntry1 oZQA 2019 report from the Federal Reserve found that nearly one in every four American adults have no retirement savings. During the economic crisis brought on by the COVID-19 pandemic, that share has likely grown. Despite stimulus payments and enhanced unemployment benefits, millions of Americans have reduced retirement account contributions or stopped them entirely — some have even been forced to make withdrawals. Here is what you can do if the coronavirus is threatening your retirement.

At age 65, Americans are expected to live an average of another 19.4 years, and the typical retirement-age American spends $50,220 a year. Multiply those figures, and add in a little extra for unforeseen expenses and additional financial security, and a comfortable retirement costs an estimated $1,120,408 in the United States.

Minnesota is the only state in the Midwest where retirement is estimated to cost more than it will across the U.S. on average. A comfortable retirement will cost the average 65 year old Minnesota resident an estimated $1,148,938 — $28,500 more than the comparable national average.

High retirement costs in the state are driven largely by life expectancy. In Minnesota, 65 year olds are expected to live another 20.3 years on average, about a year longer than the typical American 65 year old. Housing costs are also relatively high in the state. The typical retirement age homeowner without a mortgage in the state spends just $545 a month on housing, above the comparable $499 monthly median nationwide.

State level calculations in this story are based on the average annual expenditure of $50,220 for Americans 65 years and older in 2019, as reported in the BLS Consumer Expenditure Survey. This figure is adjusted by state to account for both cost of living and life expectancy at age 65, and then multiplied by 115% in order to reflect greater financial stability and comfort in retirement. All data in this story is from the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Institute for Health Metrics and Evaluation.

Rank State How much you need to comfortably retire Life expectancy at age 65 (yrs.) Cost of living
1 Hawaii $1,481,336 86.5 19.3% more than avg.
2 California $1,391,547 85.7 16.4% more than avg.
3 New York $1,383,635 85.6 16.3% more than avg.
4 New Jersey $1,359,968 85.3 16.0% more than avg.
5 Massachusetts $1,268,810 84.9 10.4% more than avg.
6 Washington $1,245,825 84.9 8.4% more than avg.
7 Connecticut $1,237,069 85.4 5.0% more than avg.
8 Maryland $1,219,120 84.6 7.7% more than avg.
9 Florida $1,184,110 85.3 1% more than avg.
10 New Hampshire $1,180,933 84.2 6.5% more than avg.
11 Vermont $1,178,958 84.8 3.1% more than avg.
12 Colorado $1,177,006 85.0 1.9% more than avg.
13 Alaska $1,159,339 84.1 5.1% more than avg.
14 Oregon $1,150,960 84.5 2.2% more than avg.
15 Minnesota $1,148,938 85.3 2.0% less than avg.
16 Rhode Island $1,146,674 84.6 1.3% more than avg.
17 Virginia $1,140,824 84.5 1.3% more than avg.
18 Arizona $1,117,884 85.1 3.7% less than avg.
19 Delaware $1,113,686 84.4 0.6% less than avg.
20 Illinois $1,096,903 84.5 2.6% less than avg.
21 Utah $1,086,767 84.5 3.5% less than avg.
22 Maine $1,072,421 83.7 0.7% less than avg.
23 Texas $1,070,048 84.2 3.5% less than avg.
24 Pennsylvania $1,064,388 84.0 3.0% less than avg.
25 Nevada $1,063,152 83.9 2.6% less than avg.
26 Wisconsin $1,045,578 84.7 8.1% less than avg.
27 New Mexico $1,036,476 84.7 8.9% less than avg.
28 Idaho $1,033,016 84.4 7.8% less than avg.
29 Wyoming $1,029,020 84.2 7.2% less than avg.
30 Michigan $1,007,484 83.9 7.7% less than avg.
31 North Dakota $1,005,682 84.5 10.7% less than avg.
32 Nebraska $1,002,765 84.4 10.5% less than avg.
33 Iowa $1,002,303 84.5 11.0% less than avg.
34 North Carolina $1,000,935 83.9 8.3% less than avg.
35 Montana $998,983 83.5 6.5% less than avg.
36 Georgia $995,777 83.5 6.8% less than avg.
37 South Dakota $983,718 84.4 12.2% less than avg.
38 Kansas $978,798 84.0 10.8% less than avg.
39 South Carolina $967,045 83.3 8.5% less than avg.
40 Missouri $952,821 83.6 11.3% less than avg.
41 Indiana $942,575 83.4 11.3% less than avg.
42 Tennessee $937,660 83.1 10.3% less than avg.
43 Ohio $929,176 83.2 11.6% less than avg.
44 Louisiana $918,844 83.1 12.1% less than avg.
45 Oklahoma $901,455 82.9 12.8% less than avg.
46 Kentucky $883,332 82.5 12.6% less than avg.
47 West Virginia $880,300 82.5 12.9% less than avg.
48 Alabama $877,072 82.7 14.2% less than avg.
49 Arkansas $875,611 82.9 15.3% less than avg.
50 Mississippi $857,886 82.6 15.6% less than avg.
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