$1 Million Retirement Goal in these 15 Most Expensive U.S. States: United States have a combination of States where the inflation and cost of living are different from each other. While there are many states where low income citizens can live with their minimum salary as there are minimum rents, travel expenses, food expenses etc.
However there is a list of the top expensive states in the country where the standard of living is very good but it requires a good saving to avail all the facilities in these States. Today we are sharing with you 15 most expensive US states list in 2025 which are a good option for retirees to live the rest of their life with enjoyment and peace. However you need to maintain at least 1 million or more to avail expenses in these States.
Top 15 highly expensive states in USA
There is no official announcement by the government or any document to list most expensive states in the country. But it is calculated by following multiple factors such as how much is the rent in these localities, What are the cost of living investment in the specific state. How much seniors need to invest in their medical fitness and treatments. What are the tax percentages in different states where individuals are required to pay annual tax to the government etc.
Hawaii
Hawaii’s breathtaking scenery and idyllic climate come at a premium. Housing, groceries, and transportation costs are all significantly higher than the national average.
- Home Rent: $2,500 – $5,000+ per month
- Travel: $5,000 – $10,000+ per year (domestic and international)
- Medical Expenses: $10,000 – $20,000+ per year (depending on health conditions and insurance)
- COLA (Cost of Living Adjustment): High (reflecting high inflation)
- Inflation Rate: 4-6% (projected for 2025)
- Annual State Tax: 11%
California
California is home to some of the nation’s most expensive cities, like San Francisco and Los Angeles. Housing costs are a major factor, but overall expenses tend to be high.
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Massachusetts
Massachusetts boasts a high cost of living, particularly in the Boston area. Housing, healthcare, and taxes are all on the higher side.
New York
New York City is one of the most expensive cities globally, and the cost of living extends to the surrounding areas. Housing, transportation, and entertainment are major expenses.
Oregon
Oregon’s beautiful coast and outdoor recreation opportunities come with a high cost of living. Housing costs have been rising steadily in recent years.
Maryland
Maryland, particularly the areas around Baltimore and Washington D.C., has a high cost of living. Housing, transportation, and taxes contribute to this.
Alaska
Alaska’s remote location results in higher costs for goods and services. Housing and transportation can be expensive, especially in more populated areas.
Colorado
Colorado’s stunning mountain scenery and outdoor activities attract many retirees. However, housing costs have been rising rapidly, making it an expensive place to retire.
Washington
Washington state, particularly Seattle, has a high cost of living. Housing, healthcare, and taxes are all significant expenses.
Connecticut
Connecticut has a high cost of living, especially in Fairfield County. Housing costs are a major factor, but overall expenses tend to be high.
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New Jersey
New Jersey, particularly areas close to New York City, has a high cost of living. Housing, transportation, and taxes contribute to this.
Rhode Island
Rhode Island’s small size means the cost of living is relatively consistent throughout the state. Housing, healthcare, and taxes are all on the higher side.
Virginia
Virginia, particularly Northern Virginia near Washington D.C., has a high cost of living. Housing, transportation, and taxes are major expenses.
Illinois
Illinois, especially the Chicago area, has a high cost of living. Housing, taxes, and groceries are all more expensive than the national average.
Delaware: Delaware has a high cost of living, particularly in beach communities and areas near Philadelphia.
| State | Home Rent (monthly) | Annual Medical Expenses | Annual Tax | Estimated Savings Needed |
| Hawaii | $2,500 – $5,000+ | $10,000 – $20,000+ | $20,000 – $40,000+ | $1.5M – $2.5M+ |
| California | $2,000 – $4,000+ | $8,000 – $15,000+ | $15,000 – $35,000+ | $1.5M – $2.5M+ |
| Massachusetts | $1,800 – $3,500+ | $7,000 – $12,000+ | $12,000 – $25,000+ | $1.5M – $2.5M+ |
| New York | $2,500 – $5,000+ | $8,000 – $15,000+ | $15,000 – $35,000+ | $1.5M – $2.5M+ |
| Oregon | $1,500 – $3,000+ | $6,000 – $10,000+ | $10,000 – $20,000+ | $1.5M – $2.5M+ |
| Maryland | $1,800 – $3,500+ | $7,000 – $12,000+ | $12,000 – $25,000+ | $1.5M – $2.5M+ |
| Alaska | $1,500 – $3,000+ | $7,000 – $12,000+ | $8,000 – $15,000+ | $1.5M – $2.5M+ |
| Colorado | $1,800 – $3,500+ | $6,000 – $10,000+ | $10,000 – $20,000+ | $1.5M – $2.5M+ |
| Washington | $1,800 – $3,500+ | $7,000 – $12,000+ | $10,000 – $20,000+ | $1.5M – $2.5M+ |
| Connecticut | $1,800 – $3,500+ | $7,000 – $12,000+ | $12,000 – $25,000+ | $1.5M – $2.5M+ |
| New Jersey | $2,000 – $4,000+ | $8,000 – $15,000+ | $15,000 – $35,000+ | $1.5M – $2.5M+ |
| Rhode Island | $1,500 – $3,000+ | $6,000 – $10,000+ | $8,000 – $15,000+ | $1.5M – $2.5M+ |
| Virginia | $1,800 – $3,500+ | $7,000 – $12,000+ | $10,000 – $20,000+ | $1.5M – $2.5M+ |
| Illinois | $1,500 – $3,000+ | $6,000 – $10,000+ | $10,000 – $20,000+ | $1.5M – $2.5M+ |
| Delaware | $1,800 – $3,500+ | $7,000 – $12,000+ | $12,000 – $25,000+ | $1.5M – $2.5M+ |
Tips to manage fund for better retirement live
Such states are so expensive and individuals Earning a regular medium earning are also not able to save approximately 1 million to spend after the retirement life. However there are few methods which can be followed you doing the employment and young age so you can manage your funds for the retirement accordingly:
- Change the lifestyle: The lifestyle is very important to accommodate with a new atmosphere in a new state especially in old age days. So if you are planning to spend your retirement in a mountain or hill station then you should include practices such as using stairs in buildings or managing your body in low temperature etc. So it will help you to accommodate with mountain atmosphere and you will not need to spend extra money for your health care and fitness accordingly
- Invest your money : The investment is very important to increase your savings. If you are an employee and working in a company then you can invest in your retirement fund where the employer will also invest the same amount per month and will add in your retirement payment. apart from this you can also search for other investment programs including stocks, etc.
- Seek tax relaxation: The government is running tax relaxation investment programs including IRA where you can invest and can earn a good money which will be tax free. it is design for only retirement purpose so you can save your money in this program accordingly. The IRS is also offering other tax benefits annually to the regular tax payers, so you can claim all the benefits to save a good money in your bank account.
So by following these tips and checking list of the states in USA you can plan you good retirement life according you your savings.
