Investopedia Puts Single Retirees' Savings Need at $898,000 as 4 States and D.C. Top $1 Million
Updated
Updated · HousingWire · Jun 1
Investopedia Puts Single Retirees' Savings Need at $898,000 as 4 States and D.C. Top $1 Million
1 articles · Updated · HousingWire · Jun 1
$898,000 is the estimated nest egg a single American retiring at 65 needs for a comfortable retirement, based on average annual spending of about $59,600 and a 4% withdrawal rule.
Social Security covers roughly $23,700 of that spending, leaving a $35,900 annual gap that the analysis converts into required savings by multiplying the shortfall by 25.
State costs vary sharply, from about $644,000 in North Dakota to more than $1 million in New Jersey, Hawaii, California, Washington, D.C., with several Northeastern states clustering around $915,000 to $950,000.
Housing drives much of the gap: it accounts for about 27% of spending for solo retirees, with annual housing costs ranging from roughly $7,000 in West Virginia to more than $19,000 in California.
The estimates include discretionary spending and exclude factors such as state taxes, long-term care and senior property-tax breaks, meaning actual retirement needs can still differ widely by health, housing and location.