California and New York are among the five priciest states for retirement in the U.S.

People 65 and older tend to spend 20 percent less than younger adults in the U.S. (Credit: Freepik)

California and New York are among the five most expensive U.S. states for older citizens to spend their retirement years in the United States, according to a recent study by DepositAccounts.

The website states that people 65 and older tend to spend 20 percent less than younger adults in the U.S.

However, this figure varies "significantly" from state to state, with Hawaii being the most expensive state to live in at an annual cost of $56,757 and West Virginia being the cheapest at $33,388, as per the report.

California, the state with the largest Hispanic and Latino population in the U.S., is the second most expensive state to live in, with an estimated monthly cost of $4,716 and an annual cost of $56,597, just $160 below Hawaii.

The ranking of the places in the U.S. that are less affordable for people to live during their retirement years follows with three east coast states.

An individual of 65 and older will need at least $55,660 per year to live in New Jersey, $53,985 in Massachusetts, and $52,181 in New York.

The report was based on an analysis from data sources on different topics, such as housing, food, transportation, health care, entertainment and personal care.

The category in which people of 65 and older spend more is transportation with an annual average spending of $8,172, which is 33.5% less than the $12,295 spended on average by all consumers. Older adults also spend 21.8% less on food.

Older adults spend 21.8% less on food than the average consumer, according to the report. (Credit: Freepik)

In fact, the only category in which people 65 and older spend more than the average is health care. While an older adult spends an average of $7,540 annually, the average for all consumers is $5,850.

Among other key findings, the report also highlights average expenditures for those 65 and older have "significantly increased" in the past decade. Overall spending increased by 16.7% between 2017 and 2022 and 43.1% between 2012 and 2022.

Between 2012 and 2022, there were increases of 44.4% in food, 32.3% in entertainment and 25.0% in transportation expenses, the document says.

Annual cost of retirement ranking, by state

The following ranking lists U.S. states for their annual cost for living during retirement years (65 or older people), according to the study by DepositAccounts, based on data from the Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, CMS and ValuePenguin data.

1. Hawaii $56,757
2. California $56,597
3. New Jersey $55,660
4. Massachusetts $53,985
5. New York $52,181
6. Connecticut $50,335
7. Washington $50,268
8. Maryland $49,471
9. New Hampshire $49,409
10. Rhode Island $47,675
11. Colorado $46,922
12. Alaska $46,890
13. Oregon $46,557
14. Virginia $45,696
15. Illinois $44,430
16. Texas $43,773
17. Vermont $43,396
18. Minnesota $43,163
19. Florida $42,552
20. Utah $42,127
21. Nevada $41,838
22. Delaware $41,527
23. Arizona $41,142
24. Pennsylvania $40,768
25. Maine $40,423
26. Georgia $40,032
27. Wyoming $39,717
28. Montana $39,655
29. North Dakota $39,462
30. Wisconsin $39,348
31. Nebraska $38,529
32. Kansas $38,279
33. South Dakota $38,202
34. Idaho $38,054
35. North Carolina $38,003
36. Michigan $37,876
37. Louisiana $37,312
38. New Mexico $37,087
39. Tennessee $37,070
40. South Carolina $36,978
41. Ohio $36,918
42. Missouri $36,722
43. Iowa $36,249
44. Oklahoma $36,181
45. Kentucky $35,298
46. Indiana $35,222
47. Alabama $35,044
48. Mississippi $34,566
49. Arkansas $33,546
50. West Virginia $33,388

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