Californians need more than $2M in savings to retire comfortably: study
OAKLAND, Calif. - A new analysis suggests that Californians would need $2.3 million saved up if they want to retire comfortably for 20 years.
According to figures from the personal finance site GOBankingRates, that breaks down to an annual amount of $162,045 for your nest egg.
To achieve the comfortable retirement threshold, that would mean saving $4,334 a month starting at age 20.
And starting at age 30, you would need a monthly savings of $5,573.
GOBankingRate said the findings stressed the importance of starting early for retirement.
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Latest figures from World Population Review show that the average annual household income in California at $130,718 in 2024. The median was $91,905.
California was only behind Hawaii when it came to the amount needed for 20 years of comfortable retirement.
GOBankingRate estimated Hawaii’s cost at $3,105,384.
Figures showed that in 23 states, you’ll need more than $1 million in savings.
If you’re looking to retire in a state where your money might go further, the least expensive was West Virginia, where researchers calculated you’ll need $434,501 to live comfortably in retirement for 20 years.
Here are the top 5 most expensive states:
- Hawaii $3,105,384
- California $2,340,510
- Massachusetts $1,977,309
- Washington $1,749,300
- New Jersey $1,567,009
Here are the 5 least expensive states:
- Oklahoma $539,812
- Louisiana $499,020
- Arkansas $489,937
- Mississippi $442,620
- West Virginia $434,501
The findings were based on a retirement age of 65 and a life expectancy of 85.
Researchers used data including cost of living figures from the Bureau of Labor Statistics and the Missouri Economic and Research Information Center.
The retirement estimates factored in monthly Social Security payments, GOBankingRate noted.