How Much Money You Should Start Saving Every Month To Retire In Hawaii

Ask a random person in the United States where they dream of retiring, and chances are, Hawaii is at the top of their list. Sure, with its lush green mountain ranges and sun-soaked beaches perfect for relaxing, it's a great place to make the most out of the golden years. However, choosing to settle down in the Aloha state will cost you. In fact, it's one of the worst states to retire in because of its expensive cost of living for retirees.

According to a GoBankingRates analysis that looked at data from the U.S. Census, Bureau of Labor Statistics, Social Security Administration, and other agencies, to have a comfortable retirement of at least 20 years in Hawaii, you would need $3 million in retirement savings. To build that amount of wealth by the age of 65, an individual would need to save $5,751 a month beginning at the age of 20, but by waiting 10 years to begin saving, the amount needed would go up to $7,394 a month.

The staggering savings amount is not random or an overly conservative estimate; it reflects the state's high cost of living. To live comfortably in Hawaii, you need a household income somewhere in the range of $200,000 a year. While retirees may get some discounts and draw on Social Security, their retirement income while living in Hawaii would still need to be somewhere in that ballpark.

Retiring in the Aloha state requires nearly triple the savings as in many other states, where you can retire with some $1 million in savings. Housing may be one of the biggest contributors to high retirement costs. According to Zillow, the median home price is north of $800,000; meanwhile. the average rent for an apartment in Hawaii goes for $3,100. So whether renting or paying a mortgage, it would require a large portion of your monthly income. But if you still seek island retirement without the inflated prices, places like the remote island of Mauritius can be a more affordable option, however, you may lose social security benefits if you reside outside the country for too long.