Planning for retirement is no longer only about deciding when to stop working—it’s increasingly about deciding where you can afford to live. A recent analysis by MoneyLion shows significant differences in retirement affordability across states, revealing that geography can dramatically shape long-term financial needs.

The research explored how much money Americans would need to save for retirement depending on where they live. It examined average retirement expenses, estimated Social Security income, housing costs, and the age at which a person begins building retirement savings.

Taxes also play a major role in the equation. According to financial experts, state tax policies can significantly affect retirement budgets. Income taxes and property taxes, in particular, can create large differences in annual expenses.

Ted Jenkin, managing partner at Exit Wealth Advisors, explained that retirees often underestimate how much taxes affect overall affordability. Beyond everyday living expenses, states with heavier tax burdens can create substantial financial pressure for those living on retirement income.

Tax policy is also influencing migration patterns. Thomas Aiello of the National Taxpayers Union noted that many retirees are relocating to states such as Florida, Texas, and Tennessee. These destinations offer advantages, including no state income tax and more favorable tax environments, potentially saving retirees thousands of dollars every year compared with states such as California or New York.

Hawaii Leads the List for Retirement Costs

Among all states included in the study, Hawaii emerged as the most expensive destination for retirees.

Researchers estimated that retirees in Hawaii spend approximately $90,752 annually on essential expenses. For those seeking a more comfortable lifestyle, yearly costs rise to roughly $181,505. After including projected Social Security income, retirees would still need approximately $156,610 annually to maintain that lifestyle.

The savings requirements are significant. Someone beginning retirement contributions at age 20 would need to save roughly $5,800 per month until retirement at age 65. Delaying savings until age 30 increases the required monthly savings to approximately $7,458.

Without Social Security benefits, the required monthly savings increase even further, climbing above $6,700 for early savers and more than $8,600 for those starting later.

California Also Requires Major Retirement Savings

California ranked second on the list of most expensive states for retirement.

According to the study, retirees there face annual essential expenses of approximately $73,387. A more comfortable retirement lifestyle would cost an estimated $121,879 each year after accounting for Social Security income.

Residents who start saving at age 20 would need to contribute approximately $4,514 each month. Waiting until age 30 increases that amount to roughly $5,804 per month.

Without Social Security support, required savings rise to more than $5,400 and nearly $7,000 per month, respectively.

West Virginia Offers the Lowest Costs

At the opposite end of the rankings, West Virginia was identified as the least expensive state for retirement.

Basic yearly retirement expenses were estimated at approximately $29,059. A comfortable lifestyle would cost about $58,117 annually, while the estimate drops to about $33,223 when Social Security income is included.

Individuals beginning retirement savings at age 20 would need to set aside around $1,230 each month. Starting at age 30, that amount rises to approximately $1,582 monthly.

Without Social Security income, those monthly savings targets increase substantially to more than $2,100 and roughly $2,767.

Popular Retirement Destinations Sit Near the Middle

Some states that have become increasingly popular among retirees landed closer to the middle of the affordability rankings.

Texas and Tennessee, for example, showed annual essential living costs slightly above $38,300. Comfortable retirement estimates exceeded $76,000 annually, or approximately $51,300 after projected Social Security benefits are included.

MoneyLion built the analysis using data from several sources, including the U.S. Census Bureau, Bureau of Labor Statistics, Zillow, and additional federal economic databases.

Researchers combined information on housing costs, household spending, mortgage rates, cost-of-living measurements, and Social Security estimates. The study assumed people retire at age 65 and live through age 85, creating a 20-year retirement period. Data reflected conditions current through February 11, 2026.

This report highlights a reality many Americans are beginning to recognize: retirement planning isn’t simply about how much you save—it may also depend on where you decide to call home.