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This is how much money is needed to ‘retire comfortably’ in California, study says

For Americans planning to retire soon, having $1 million may seem like enough to retire comfortably, but depending on where someone decides to spend their post-working years, that money may or may not be enough. (Unsplash)

With high inflation and cost of living expenses, it can be hard to feel financially secure, especially for Golden State residents planning to retire soon.

A new study from Go Banking Rates breaks down how much money a retiree in California would need to live comfortably.

Researchers used Bureau of Labor Statistics data to estimate food, shelter, transportation, health care and utility costs. A 20% “buffer” was also added to ensure the retirees had enough money to be comfortable.  

Social Security payouts, potential pension income or interest earned on savings were not included in the study since that can differ for everyone.

A retiree in California would need $90,399 annually to live comfortably during retirement. The annual retirement expenses would be $72,320, while the 20% comfort buffer adds an extra $18,080.

While it costs nearly six figures to have a comfortable retirement in California, it costs even more in other states.

In Hawaii, retirees would need to have $121,228 to enjoy a comfortable retirement; in the District of Columbia, it would cost $99,980 annually.

Mississippi required the least amount of money to enjoy a comfortable retirement, with the total cost being a little over $55,000.

The complete report can be viewed here.