Question 1

How much do I need to retire?

Accepted Answer

Multiply your expected annual retirement expenses by 25. This is based on the 4% safe withdrawal rate. For example, $60,000/year in expenses requires a $1,500,000 portfolio. Subtract guaranteed income like Social Security before calculating — if you expect $24,000/year from Social Security, you only need to fund $36,000/year from savings, requiring a $900,000 portfolio.

Question 2

What is the 4% rule for retirement?

Accepted Answer

The 4% rule states you can withdraw 4% of your portfolio in year one of retirement, adjust for inflation each year, and your money should last 30+ years in most historical market scenarios. It originated from the 1998 Trinity Study. For retirements longer than 30 years, a 3.5% withdrawal rate is considered safer.

Question 3

When should I claim Social Security?

Accepted Answer

Claiming at 70 vs 62 increases your monthly benefit by approximately 77%. The break-even point — where delaying pays off — is typically around age 78-80. If you expect to live past 80 and have other income to bridge the gap, delaying to 70 is usually the better financial choice. For married couples, the higher earner should generally delay to maximize the survivor benefit.

Question 4

How much should I have saved for retirement by age?

Accepted Answer

According to Federal Reserve data, US median retirement savings by age are approximately: age 35: $45,000; age 40: $93,000; age 45: $145,000; age 50: $203,000; age 55: $290,000; age 60: $368,000. A common benchmark is to have 1x your salary saved by 30, 3x by 40, 6x by 50, and 10x by retirement.

Question 5

What is a Monte Carlo simulation for retirement?

Accepted Answer

A Monte Carlo simulation runs your retirement plan through thousands of randomly generated market scenarios to show the probability your savings will last. Instead of assuming average returns every year, it models the full range of possible outcomes including bad sequences of returns. A success rate above 90% is considered very safe; above 80% is generally acceptable.

Question 6

What are the 401k contribution limits for 2026?

Accepted Answer

For 2026, the 401k employee contribution limit is $23,500 (under age 50) or $31,000 (age 50+). Workers aged 60-63 can contribute up to $34,750 under the new super catch-up provision. The IRA contribution limit is $7,000 ($8,000 if 50+). The HSA limit is $4,300 for individuals and $8,550 for families.

Question 7

How does inflation affect retirement savings?

Accepted Answer

At 3% annual inflation, your purchasing power is cut in half every 24 years. For a 30-year retirement, $60,000 in expenses today would cost over $145,000 in year 30. To protect against inflation: stay invested in stocks throughout retirement, delay Social Security to maximize COLA-adjusted benefits, consider TIPS bonds, and use a realistic 2.5-3% inflation assumption in your retirement calculator.

Question 8

Can I retire at 55?

Accepted Answer

Yes, retiring at 55 is achievable but requires more savings than a traditional retirement. With a 40-year retirement horizon, use a 3.5% withdrawal rate (28-30x annual expenses instead of 25x). Key challenges: no Medicare until 65 (budget $800-1,500/month for health insurance), no Social Security until 62 at earliest, and no penalty-free 401k access until 59.5 (except via the Rule of 55 for your current employer's plan).

#	State	Tax	Cost	Health	Climate	Score	Highlights
1	Florida	10	6	7	8	7.9	No income tax, no estate tax, warm climate
2	Tennessee	10	8	6	7	7.9	No income tax, very affordable, mild winters
3	Mississippi	9	10	4	7	7.6	All retirement income exempt, lowest cost of living
4	Texas	10	7	6	6	7.5	No income tax, low cost of living, large metro areas
5	Nevada	10	6	6	7	7.4	No income tax, low property taxes, entertainment
6	Iowa	9	8	7	4	7.3	All retirement income exempt (55+), very affordable
7	South Carolina	7	8	6	8	7.2	$15K deduction (65+), beaches, low cost
8	Illinois	9	7	7	4	7	All retirement income exempt, major metros
9	Georgia	7	7	6	8	7	$65K retirement exclusion (65+), warm, affordable
10	Arizona	7	6	7	8	7	SS exempt, flat 2.5% tax, warm + dry climate
11	Alabama	7	9	5	7	7	SS exempt, pensions exempt, very low cost
12	Arkansas	7	9	5	7	7	$6K retirement exclusion, very affordable
13	South Dakota	10	8	5	3	6.9	No income tax, very affordable, low crime
14	Washington	9	4	8	6	6.9	No income tax, great healthcare, mild west side
15	Pennsylvania	8	7	7	5	6.9	All retirement income exempt, affordable
16	Wyoming	10	7	5	4	6.8	No income tax, no estate tax, very low cost
17	Delaware	7	6	7	7	6.8	No sales tax, low property tax, SS exempt
18	Kentucky	7	9	5	6	6.8	$31K pension exclusion, very low cost
19	Missouri	7	8	6	6	6.8	SS mostly exempt, affordable, central location
20	Oklahoma	7	9	5	6	6.8	$10K retirement exclusion, very low cost
21	North Carolina	6	7	7	7	6.7	Low flat tax, SS exempt, mountains + coast
22	Virginia	6	6	8	7	6.7	SS exempt, $12K age deduction, excellent healthcare
23	Michigan	7	8	7	4	6.7	SS exempt, affordable, Great Lakes
24	Colorado	7	5	8	6	6.6	$24K exemption (65+), active lifestyle, sunshine
25	Hawaii	6	2	9	10	6.6	SS exempt, best climate, highest life expectancy
26	New Hampshire	9	4	8	4	6.5	No income tax on retirement, excellent healthcare
27	New Mexico	6	7	5	8	6.4	SS mostly exempt, warm + dry, affordable
28	Ohio	6	8	7	4	6.4	SS exempt, retirement credit, affordable
29	Indiana	6	8	6	5	6.3	SS exempt, low flat tax, very affordable
30	California	4	2	9	9	5.8	SS exempt, excellent healthcare, great weather
31	Oregon	5	5	7	6	5.7	SS exempt, no sales tax, mild west side
32	Utah	5	5	7	6	5.7	Retirement credit available, outdoor lifestyle
33	Minnesota	4	6	9	3	5.6	Excellent healthcare, SS partially exempt
34	Idaho	5	7	5	5	5.5	SS exempt, affordable, growing state
35	Alaska	10	3	5	2	5.4	No income tax, PFD dividend, natural beauty
36	New York	5	3	9	4	5.3	$20K pension exclusion, world-class healthcare
37	Massachusetts	5	3	9	4	5.3	SS exempt, top healthcare in nation
38	New Jersey	5	3	8	5	5.3	$75K retirement exclusion (62+), near NYC
39	Connecticut	4	3	8	5	5	SS exempt under $75K, good healthcare
40	Montana	5	6	5	3	4.9	No sales tax, natural beauty, affordable rural

Best States to Retire (2025 Rankings)

🏆 Top 10 Overall

Best For...

All States (Sort by Any Factor)

⚠️ Most Challenging States for Retirees

Scoring Methodology