According to recent studies by Northwestern Mutual and GOBankingRates, Americans are facing significant financial challenges when it comes to saving for retirement. The average amount Americans believe they should save before retiring is around $1.46 million, but in certain states like Hawaii, that amount is significantly higher.
In Hawaii, for example, retirees would need over $2 million in savings to cover necessities like groceries, housing, utilities, car expenses, discretionary spending, and savings over a 25-year retirement period. This is due to the high cost of living in the state, with the median home sale price currently around $813,000. Additionally, retirement savings in Hawaii would be fully taxed, unlike income from Social Security.
GOBankingRates also highlighted other states where retirees would need substantial savings to live comfortably, such as Massachusetts, California, New York, and Alaska. Factors like state cost of living, healthcare expenses, transportation costs, and housing prices were taken into account when determining the minimum retirement savings requirements.
Ultimately, the decision on where to retire and how much to save will be unique to each individual's circumstances and goals. By carefully planning and considering all aspects of retirement, Americans can work towards a financially secure future.