Investopedia analysis reveals a typical American couple requires $1.16 million to retire comfortably.
A new analysis by Investopedia indicates that a typical American couple aged 65 or older needs to save approximately $1.16 million to maintain a comfortable retirement. This national average is based on a model that accounts for average spending patterns, including discretionary costs like travel and dining out, rather than a bare-bones budget. While the national average provides a baseline, the required nest egg varies significantly by geography. The most expensive states for retired couples are New Jersey and Hawaii, both requiring $1.33 million, followed by California and the District of Columbia at $1.32 million. Conversely, the most affordable locations are in the Plains and Appalachia regions, with North Dakota requiring the least at $800,000. Housing costs remain the primary driver of retirement expenses, accounting for about 27% of a couple's budget. The analysis also highlights that dual-earner couples, who both receive full Social Security benefits, may need a smaller nest egg of approximately $916,000 compared to single-earner couples who require roughly $1.21 million.