The amount of money you need to retire depends on where you live, due to state-by-state differences in the cost of living. In some areas of the country, a nest egg of $700,000 may be sizable enough for retirement. In other regions, you have to build up your savings even more to reach at least $1 million in retirement funds.
To find out exactly how much consumers need saved to retire, GOBankingRates calculated annual expenditures for a retired person in every state after deducting Social Security income, based on data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center.
The study assumed that consumers would draw down savings by four percent every year to cover living expenses. States were ranked from the smallest nest egg needed to the biggest. To find your state’s retirement savings figure, visit GoBankingRates.com.