For generations, retirement in America was sold as a reward after decades of hard work. A slower pace of life. Warm weather. Financial peace. In 2026, that dream is becoming far more complicated.
A new study by MoneyLion has revealed dramatic differences in retirement costs across the US, with some states demanding enormous savings while others remain relatively affordable for older Americans living on fixed incomes. The findings arrive at a time when inflation, healthcare expenses, and housing costs continue to strain retirees and those nearing retirement age.
At the centre of the divide are two very different states: Hawaii and WestVirginia. One represents paradise with an enormous price tag. The other offers one of the cheapest paths to retirement in America.
According to the MoneyLion study, Hawaii has the highest retirement living costs in the country. The annual necessities cost for retirees in the island state stands at $90,752. A comfortable retirement lifestyle climbs to more than $181,000 annually before Social Security income is considered.
Even after Social Security payments are factored in, retirees are estimated to need around $156,610 each year to live comfortably. Thesavings requiredare equally striking. Someone who begins saving at age 20 would need to put aside roughly $5,800 every month until retirement at age 65. Waiting until age 30 increases the monthly target to more than $7,400.
Despite the financial pressure, Hawaii continues to attract retirees drawn by its climate, scenery, and lifestyle. Yet financial advisers warn that taxation and housing costs can quickly overwhelm retirement budgets.
Ted Jenkin, managing partner at Exit Wealth Advisors, told FOX Business that taxes are often overlooked during retirement planning. He said: 'Two of the biggest expenses a retiree needs to look into are the state income taxes and real estate property taxes that will factor into your budget.'
California ranked as the second most expensive retirement destination. The study estimated the state's annual necessities cost at $73,387, while a comfortable retirement lifestyle rises to nearly $122,000 per year after Social Security adjustments.
For many retirees, California's soaring property values and high living costs have become difficult to manage. The trend has accelerated migration towards lower-tax states in recent years, particularly among older Americans seeking to preserveretirement savings.
At the opposite end of the ranking sits West Virginia. The state recorded the lowest annual retirement necessities cost in the study at just $29,059. A comfortable retirement lifestyle was estimated at $58,117 annually.
Source: International Business Times UK
