How much money you need to retire comfortably depends less on where you live and more on how large your Social Security check is. While state-by-state living costs do affect retirement budgets, benefit size plays the biggest role in determining how much savings a single retiree must rely on.
An analysis based on federal spending and benefit data shows that even modest changes in monthly Social Security income can significantly reduce or increase the size of the nest egg required. For retirees planning alone, there is no second benefit to offset shortfalls, making these differences especially important.
Under commonly used retirement planning assumptions, a comfortable retirement for a single person in the United States costs about $59,600 per year. In 2024, the average retired worker received roughly $23,700 annually from Social Security. That gap of about $36,000 must be covered through savings, pensions, or other income sources.
Using the widely cited 4 percent withdrawal rule, which assumes retirees can safely withdraw 4 percent of their savings each year, that income gap translates into a required nest egg of approximately $898,000 on average nationwide.
States
Living costs vary widely across the country, and those differences do affect retirement math. According to the analysis, the least expensive state for a comfortable single-person retirement is North Dakota, where required savings average about $644,000. At the other end of the scale, New Jersey requires about $1.02 million, creating a spread of roughly $375,000 between the lowest- and highest-cost states.
| State Type | Estimated Nest Egg |
|---|---|
| Lowest cost (North Dakota) | $644,000 |
| National average | $898,000 |
| Highest cost (New Jersey) | $1.02 million |
Despite this variation, changes in Social Security income often outweigh state-level cost differences.
Benefits
Under the 4 percent rule, every additional $100 per month in Social Security benefits reduces the savings a single retiree needs by about $30,000. This relationship holds regardless of the state where the retiree lives, because the calculation depends on the income gap rather than geography.
For single retirees, this effect is especially pronounced. Without a spouse’s benefit to share expenses, their personal Social Security check becomes the primary fixed income source.
Couples
The math works differently for couples. Expenses are often shared, and two Social Security checks can significantly change how much savings is needed. Combined benefits, survivor rules, and joint spending patterns all affect the outcome.
Because of these factors, retirement savings targets for couples cannot be estimated by simply doubling the single-retiree figures. Separate state-by-state analyses are typically required to reflect those dynamics accurately.
Earnings
Social Security benefits can vary widely even among retirees with similar careers. Payments are calculated using a worker’s highest 35 years of earnings. If a person worked fewer than 35 years, each missing year is counted as zero, which lowers the final benefit.
Claiming age also matters. Starting benefits at age 62 reduces payments by about 30 percent compared with claiming at full retirement age. Delaying benefits until age 70 increases payments by about 24 percent above the full-retirement-age amount. On the same earnings record, this can make the age-70 benefit roughly 75 percent larger than the age-62 benefit.
Maximum
High earners who paid the maximum Social Security tax for many years receive substantially larger checks. As of 2026, a maximum-benefit retiree can expect about $2,969 per month at age 62, $4,152 at full retirement age, and $5,181 at age 70.
For these retirees, the impact on required savings is dramatic. A maximum earner claiming at 62 may still need roughly $600,000 in savings. By contrast, delaying until age 70 can produce benefits large enough to cover an average comfortable budget without drawing from savings at all.
However, very few people qualify for the maximum benefit. At the end of 2025, about 25,000 out of roughly 54 million retired workers received benefits near that level, representing fewer than 1 in 2,000 retirees.
Reality
For most retirees, Social Security benefits are far lower. About half of retired workers receive less than $2,000 per month, and around 1 in 10 receive less than $1,000. Larger benefits are less common, with only about 1 in 6 retirees receiving $3,000 or more, and fewer than 3 percent receiving more than $4,000.
These figures highlight why personal benefit size often matters more than state borders when planning for retirement.
FAQs
Does state cost of living affect retirement savings needs?
Yes, but Social Security benefit size has a larger impact.
How much does $100 more in monthly benefits reduce savings needs?
About $30,000 under the 4 percent rule.
What is the average nest egg for a single retiree?
Roughly $898,000 nationwide.
Can Social Security fully cover retirement expenses?
Only for a small number of high earners who delay benefits.
