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Money Guy Show

How Much Do You Need to Retire (By State)?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.62.8K Ratings

🗓️ 30 July 2025

⏱️ 67 minutes

🧾️ Download transcript

Summary

How much do you actually need to retire? It turns out, the answer varies drastically depending on where you live. We break down retirement costs by state using new data and estimate how much you need using the 4% rule. Then, we answer real-time questions from our audience about IRAs, homeownership, and early retirement strategies. Whether you're decades away or nearing the finish line, this episode is packed with insight to help you plan smarter. ⁠⁠⁠⁠ Jump start your journey with our FREE financial resources⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠Reach your goals faster with our products⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠Take the relationship to the next level: become a client⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠Subscribe on YouTube for early access and go beyond the podcast⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠Connect with us on social media for more content⁠⁠⁠⁠⁠⁠⁠⁠ Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. ⁠NordVPN.com/MONEYGUY Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hey, we got some interesting information to share.

0:08.4

How about how much your retirement's going to cost you by where you live?

0:12.4

Brian, I am so excited to talk about this because it's one of the questions that a lot of people have.

0:16.4

Okay, what do I actually need to retire?

0:19.6

What do I actually need to experience financial independence?

0:22.4

And this won't come as a surprise, but where you live will actually likely have a huge

0:28.5

impact on what the answer to that question is. And it's not, you know, one of the big things,

0:32.0

when we do content shows, one of the hardest things for us is we have to use some number

0:37.3

for people who are not retiring

0:39.1

for 20, 30 years. Sometimes we use a percentage of income to assume expenses. But that gets to the

0:45.1

point that what's really the most important, it's not really what you make, it's what you actually

0:50.4

are going to spend in retirement. So visual capital, visual capitalists came out with this really interesting chart that shows the entire United States,

1:00.1

and it shows the annual retirement costs by state.

1:03.7

And this is, again, is across food, shelter, transportation, health care, utilities,

1:09.4

and then like a little bit extra to kind of show you,

1:11.2

okay, well, what would be the annual retirement spend, the annual living retirement need by

1:17.0

states? And unsurprisingly, there are some that are relatively low and reasonable. And there's some

1:22.9

that are pretty high and a hard level hard level to get to.

1:27.6

Well, let's compare and contrast here.

1:29.2

If you want to know on the low side, where would you have to live?

1:31.9

It's West Virginia with $58,000 in average annual retirement spending.

1:37.8

If you want to know the highest, we've got Hawaii coming in in $129,000, and the national average is $71,640. So then we said,

...

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