A new report reveals how the value of $250,000 in retirement savings varies sharply across the United States. In some states, it lasts fewer than three years—while in others, it stretches beyond nine.
With the median retirement savings in the U.S. hovering around $200,000 in 2025, understanding how long a fixed amount will last has become increasingly relevant. GOBankingRates analyzed all 50 states to determine how far $250,000 goes for retirees, using cost-of-living data from the Bureau of Labor Statistics and Social Security Administration figures.
Wide Gaps in Affordability Shape Retirement Prospects
The study highlights vast differences in retirement costs from state to state. In Hawaii, retirees face the steepest expenses, with $250,000 covering just 2.8 years when Social Security is included. The state’s average annual expenditure for those 65 and older is $112,303, driven largely by high housing and food costs.
At the opposite end of the spectrum, West Virginia offers the longest duration—9.13 years with Social Security—thanks to a comparatively low annual cost of $50,533. Close behind are states like Oklahoma (8.82 years), Kansas (8.58 years), and Mississippi (8.43 years), where lower housing, healthcare, and daily expenses ease the financial burden on retirees.
According to GOBankingRates, these rankings were calculated using a combination of local cost-of-living indices and the national average Social Security income of $23,150. The estimates assume no other income sources, and the results show a clear connection between a state’s overall affordability and the sustainability of retirement savings.
Expensive Coastal States Shorten Retirement Savings Lifespan
Coastal states in the Northeast and on the West Coast significantly limit how long savings can last. In Massachusetts, California, and New York, $250,000 covers fewer than five years with Social Security. Without those benefits, retirees in these states would see their savings run out in under three years.
According to the report, these high-cost states all exceed $74,000 in annual spending for older adults, with major contributors being elevated housing costs and healthcare expenses. In Alaska, for example, retirees spend an average of $74,388 per year—putting it among the least affordable states despite its rural nature.
For Americans nearing retirement, these differences could have a major impact on quality of life. Choosing a lower-cost state could mean doubling the number of years covered by savings.
