How Much Money Do You Need in Each State for an Early Retirement?

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By on March 4, 2019 in Retirement with 0 Comments

A new analysis from the cost information website How Much shows how much of a nest egg you need in each state to achieve financial independence for an early retirement.

The data used in the analysis were compiled by Go Banking Rates to take into account the annual expenditures of people at 35, 45, and 55 years old. They are then compared to cost of living data from the Bureau of Labor Statistics to arrive at the total in savings one would ideally have in each age group to make his or her nest egg if retiring at that age.

So is it really as simple as hitting this target in your desired state and you’re all set? No, probably not, but it’s certainly going to be a very good start.

The figures in the analysis assume that an individual will withdraw from total savings at an average annual rate of 4%, and there is also no adjustment for inflation. They also assume the cost of living to be constant, so clearly, these are not absolute, set in stone values that will grant a person an instant retirement at the target figures. However, they do provide a solid financial goal to shoot for and a starting point for developing a plan for your golden years with the help of a financial advisor.

The maps from the analysis are below which show the state-by-state breakdown by each age group.

Target Retirement: Age 35

Map of the United States showing how much in total savings one should ideally have to retire at age 35

Target Retirement: Age 45

Map of the United States showing how much in total savings one should ideally have to retire at age 45

Target Retirement: Age 55

Map of the United States showing how much in total savings one should ideally have to retire at age 55

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

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