For many Americans, $1 million is seen as a savings benchmark for retirement. But in 32 U.S. states, the estimated minimum needed to retire at 65 is less than that.
That’s according to a state-by-state analysis from personal finance website GOBankingRates, which estimates the minimum household savings needed to retire at 65 and cover essential living expenses over 25 years, including housing, groceries, transportation, utilities and health care.
To determine savings minimums in each state, GOBankingRates looked at cost of living data for retirees 65 and older from the U.S. Bureau of Labor Statistics, minus average Social Security income. It then used a 4% annual withdrawal rate to estimate the total amount of savings needed to cover remaining expenses.
These estimates focus on the minimum needed to cover day-to-day living costs, not a comfortable retirement. They exclude discretionary spending and don’t account for factors like inheritances or paid-off mortgages.
The analysis is also based on household expenses, meaning that retirement costs could be supported by more than one person’s savings or income for a given home.
Even so, basic living costs in retirement can exceed what many people expect. About half of U.S. workers say they’ll need at least $500,000 to retire comfortably — not just cover essentials — according to a 2025 Bankrate survey.
Here’s a look at the U.S. states where the estimated minimum savings needed to retire at 65 comes in below $1 million.
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