Posted on 01/18/2026 8:02:57 AM PST by zeestephen
The analysis is based on the average living costs for retirees 65 or older in each state, drawn from the latest data published by the U.S. Bureau of Labor Statistics. From there, GOBankingRates subtracted average Social Security payments and estimated the savings needed to cover the remaining expenses, using an annual 4% withdrawal rate.
(Excerpt) Read more at cnbc.com ...
We are in Oklahoma these last nearly ten years retired. Our costs are considerably higher than these. We generally don’t go more than 40 miles from the farm and are very happy about that. In the last ten years we have done many significant improvements and doubled the land we own with adjacent opportunity buying. Building and buying will slow down soon. We drive mature vehicles and new tractors that will last until we are gone. I have been all over the world. My wife has never had a passport and does not want one. I kept two in rotation with many pages sewn in, both are now expired. Our son is a pilot and is hurt we don’t use the family passes to just about anywhere. I may make a fishing trip or few with him sometime. We should do something for our upcoming 50th anniversary. Maybe Alaska or the Panama Canal or the Maratimes. We are a sharp contrast to several of my peers who junket to Africa, Iceland, Portugal, Italy, Greece, Europe river cruises, sports trips and such. Hardly ever see anyone going to deep South America, I really enjoyed it. If someone arranged any of those trips for me and paid the bill, I’d stay home. Shopping online and delivery are the only way to go. We will eventually get new vehicles I suppose but I don’t like any of the complex and extravagant offerings these days.
A friend took a river cruise with all the trappings last summer. He usually brags about such. Silence this time. Asked he said it was nice but not again. I don’t need to find out what I already expect. Plenty of big screen travel documentaries to watch for me now. We are all different and isn’t that great?
What a joke. Doesn’t factor for travel, dining, entertainment, inflation.... They might as well leave out heat and air, gasoline, etc... In OK our car and house insurance alone is thousands of dollars a year.
Is that number for one person, a couple?
Well, we know Oprah can afford it.
Power boaters also wanted lower fuel prices. :)
LOL...yep. And the other saying — “It’s a hole in the water into which you pour all your money”
Agreed...I’m assuming I’ll scale back for a retirement home in a more property tax friendly area.
Averages are helpful in performing comparisons between states. Beyond that everyone’s situation is different.
If you start saving early and don’t touch the savings the magic of compounding does the heavy lifting.
“....Is this an estimate of total assets or cash value of savings? The obvious variable is housing if one owns one’s home....”
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It’s right in the title of the article “Minimum SAVINGS needed to retire....” If you consider the value of your home, car and toybox savings then the answer to your question is yes. For most of us the answer is no because the equity we have in our primary home doesn’t usually pay a dividend that we can use for monthly expenses. Of course, some will chime in and state “what about my HELOC or reverse mortgage?” But once you go down that road you no longer really own your home, you become a co-owner with a bank.
Damn, barely have enough to cover Hawaii, so I won’t be moving there.
Which part? The $60k/yr & $1.5M? or the “largely be tax free” part?
This is useful.
https://www.youtube.com/watch?v=11cY23h7ZY4&list=WL&index=204
https://www.youtube.com/watch?v=iP4DV4ZFYaM
https://www.thrivent.com/insights/taxes/taxes-in-retirement-a-comprehensive-guide
A lot can depend on tax planning before and during retirement.
Having just begun to receive SS, I initially had the same thought. However, according to my research, the funds were not taxed when they were put in, and I guess they'll be taxed at a lower rate once they are pulled out (assuming lower income).
But it does still feel like a poke in the eye. And I suspect the amount paid would be 2x to 3x more were we not wasting money doing such things as keeping illegals in 5-star hotels.
The “largely be tax free” part.
ROTH IRAs are wonderful unless you make too much money to qualify, in which case traditional IRA and 401K accounts are the predominate source of retirement income. The withdrawals (principle + investment returns) are taxed as ordinary income. Although traditional IRAs and 401ks can be converted to ROTH IRAs, the conversion is a taxable event. Life insurance and annuities may be tax free in some instances (no taxes on the money going in or out), the costs are high and and the returns are low compared to other investments, and the big payout is the death benefit when you are no longer alive to enjoy retirement.
...Not to be a party-pooper, but old folks are doomed. It's not if there will be another deadly worldwide pandemic virus that kills the elderly, it's when.
You know the U.S. Government (or any government in the world) does not want people living longer. It's too costly. Let me explain.
Social Security pays benefits to ~70 million people. Medicare covers ~65 million people. Extending average life by one year means tens of millions of people receive one more year of benefits, and Medicare costs rise disproportionately because the last years of life are the most expensive.
Given that: Social Security spending is ~$1.4 trillion per year. Medicare spending is ~$1.0 trillion per year. Combined, that’s ~$2.4 trilliomn right now, and the population over 65 is growing rapidly. A multi‑trillion‑dollar long‑term impact from a one‑year increase in life expectancy is economically reasonable, nor attainable.
Sorry, old folks.
Minimum COL, I stress the minimum. That is bare bones no frills living. So in reality you would need at least double what the estimated savings is just to have some fun. Other factors is mortgage, is the home paid for? Those still strapped might want to rethink those figures. Car? Do you buy outright or installment? Things like regular maintenance on property and vehicles can be devastating if planning on the bare minimum. I call BS on their numbers as they are attempting to lure people into a false since of security. Retirement is the golden years when you should enjoy life not bee dependent on government handouts to keep you in the fold. So many young people don’t understand this principle as well as many seniors who failed to plan. I have friends as we are approaching 70 who still have to work because they never planned. Ironically one is a financial planner with a finance degree and he still scratches his head on how I did it at 60 with a high school education.
Roger that. Thanks.
Yep. Here in Jurassic park I belong to a motorcycle club. We’ve gone up to upstate NY, along the NC blue ridge and out to the Ozarks. We’re heading to bike week at Daytona in March. It’s a lot of fun.
In the typical retirement needs BS these articles put out they take little in to consideration and make massive assumptions and generalities.
What if a person’s home is paid for? Are they paying rent vs owning? What is the income of the retiree? Do they have a pension, 401k and getting SS? Do they massive debts or no debts? Do they live in the city, urban or rural setting?
You don’t need millions to retire you need common sense and a plan. If you don’t that’s on you and SS was never designed as a retirement plan.
I retired 10 years ago. We have no debt and live in two states with paid for homes and cars. I do have a Corvette that mostly stays in the garage because it’s a pain in the a$$ to get in and out of. My wife wants me to get rid of it but I’ve only had it for about 12 years. We have rental properties that are mostly managed by someone we pay to do it. We could do without Social Security but it sure makes life nice for us. We get to eat out when we want to and fly back and forth between FL an Ky when we are too lazy to drive. We don’t have to take luggage with both houses fully stocked. It is a very good retirement.
What we think made all this possible for us is living debt free. We have always saved some of our income, that is what allowed us to purchase our several rental properties. Living on credit is insane. Something else that has helped us is tax planning. For instance when the government was willing to pay for a third of solar we took advantage of it and now nearly nothing for electricity in both houses. When we bought a new car and the tax incentives were still in place we got a plug in hybrid. With the government incentive the car cost less than the same car without hybrid and we get to keep on saving.
I’m retired 8 years now..70yo and bought a 75 C3 and did a 4 year restoration. Just sold it and picked up a 2019 C7 Grand Sport with 4900 miles on it...0-60 in 3.8sec with 460hp but perfect on the twisty mountain roads. Tried the C8 but not a fan.
Go for what you want. You only live once.
Income tax on Social Security is a gift from John S. McCain.
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