Retirement planning is becoming increasingly complex as life expectancy rises and the cost of living continues to evolve.
While many people envision retirement as a time of relaxation and reduced spending, financial research suggests that retirees still need a substantial savings cushion.
A 2025 study published in Financial Planning Review indicates that couples aged 65 withdraw roughly 2.1% of their retirement savings annually, while single retirees withdraw about 1.9%.
These conservative withdrawal patterns show that retirees are cautious about stretching their savings across potentially decades of post-work life.
For those considering relocating to the southern United States, an area known for its warmer climate and relatively moderate living costs – knowing the required retirement savings can help shape long-term financial plans.
Using data from CNBC along with housing figures from Zillow, rental estimates from RentCafe, and senior care cost analysis from CareScout, researchers estimated the minimum savings required to retire comfortably at age 65 in several Southern states.
Below are 5 states where retirees frequently consider settling down and the approximate savings required to maintain a stable lifestyle.
1. Sunshine Living Comes With a Price Tag: Florida
Florida has long been one of the most popular retirement destinations in the United States. Its warm weather, coastal lifestyle, and absence of a state income tax make it particularly attractive to retirees seeking both comfort and financial efficiency.
However, these advantages come with a cost. To retire comfortably in Florida at 65, experts estimate that individuals will need approximately $967,190 in retirement savings.
Housing costs play a major role in pushing this number higher. Florida’s property market has seen significant growth over the past decade, particularly in cities like Tampa, Miami, and Orlando. Additionally, healthcare expenses and insurance premiums can be higher in coastal regions prone to natural disasters.
Despite the higher savings requirement, many retirees still consider Florida worthwhile due to its climate, active senior communities, and abundant recreational opportunities.
2. Affordable Size and Opportunity: Texas
Texas offers a diverse lifestyle, from large metropolitan areas to quieter suburban communities, and generally maintains a lower cost of living than many coastal states. Retiring here at age 65 requires a minimum nest egg of about $833,575.
One reason Texas remains appealing for retirees is its relatively affordable housing market compared to states like Florida. Although property taxes can be higher, the lack of a state income tax helps offset some financial pressure.
Healthcare accessibility is also strong in major cities such as Houston and Dallas, which host some of the country’s largest medical centers.
Combined with a wide variety of cultural and recreational activities, Texas presents a balanced option for retirees seeking affordability and amenities.
Also See: How Much Net Worth Makes You Upper Class in 2026?
3. Southern Charm Meets Practical Living: Georgia
Georgia blends historical charm with modern urban development, making it another attractive retirement destination. To retire comfortably at 65 in Georgia, financial estimates suggest savings of around $848,933.
Atlanta’s thriving economy has increased housing prices in some areas, but retirees can still find affordable communities in suburban or rural parts of the state.
Georgia also offers moderate living costs, relatively mild winters, and access to both mountains and coastal regions.
For retirees who enjoy cultural events, outdoor activities, and a slower pace of life without sacrificing modern conveniences, Georgia can be an appealing middle-ground option.
4. Budget-Friendly Retirement: Tennessee
Tennessee stands out as one of the more economical states for retirees. The estimated savings required to retire comfortably at 65 here is approximately $825,896, making it the lowest among the states on this list.
One major financial advantage is Tennessee’s tax structure. The state does not tax earned income, which can significantly reduce the financial burden for retirees relying on pensions, Social Security, or investment withdrawals.
Cities like Nashville and Knoxville provide vibrant cultural scenes, while smaller towns offer quiet communities and scenic landscapes.
Combined with relatively affordable housing and lower everyday costs, Tennessee has become an increasingly popular choice for retirees seeking financial efficiency.
5. Balanced Living in North Carolina
North Carolina offers retirees a unique blend of mountain landscapes, coastal towns, and growing urban centers.
However, the state requires a slightly larger retirement cushion than some of its southern neighbors. To retire at 65 comfortably, individuals are estimated to need about $934,938 in savings.
The state’s rising popularity has driven housing demand, particularly in cities like Raleigh and Charlotte. Still, North Carolina maintains a reputation for strong healthcare infrastructure and diverse lifestyle options.
Retirees who enjoy outdoor recreation, from hiking in the Blue Ridge Mountains to relaxing along the Atlantic coastline, often find North Carolina an attractive and well-rounded retirement destination.
Planning Ahead for a Comfortable Retirement
The savings needed to retire comfortably varies significantly depending on location, lifestyle preferences, and healthcare needs.
While the southern United States generally offers lower living costs than many northern regions, retirees still require substantial financial preparation.
Understanding withdrawal rates, housing costs, and regional expenses can help future retirees build realistic financial goals.
Whether someone chooses Florida’s sunny beaches, Tennessee’s affordability, or North Carolina’s scenic variety, careful planning today can help ensure financial stability throughout retirement.
