Retiring on $1.2 Million? See Which States Have the Highest and Lowest Grocery Costs
As grocery costs continue taking significant bites out of budgets, some retirees may consider relocating to states where annual grocery costs aren’t quite so expensive. This is true even of those retirees who have a substantial nest egg ready to cover everyday expenses.
MoneyLion pulled the Missouri Economic Research and Information Center's data on the states where groceries cost the most and least for retirees from an existing study on how long $1.2 million in savings lasts in retirement.
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According to our research, there are six states, including Missouri, North Dakota, Alabama and three more locations revealed below, where grocery costs amount to less than $5,000 annually.
Here’s how much you can expect to spend on groceries annually in every U.S. state, in order of most to least expensive total amounts.
1. Hawaii
Annual grocery costs: $7,157
2. Alaska
Annual grocery costs: $6,648
3. California
Annual grocery costs: $5,802
4. Maryland
Annual grocery costs: $5,739
5. New Jersey
Annual grocery costs: $5,729
6. Massachusetts
Annual grocery costs: $5,608
7. Washington
Annual grocery costs: $5,571
8. Connecticut
Annual grocery costs: $5,566
9. Florida
Annual grocery costs: $5,550
10. Oregon
Annual grocery costs: $5,487
11. Nevada
Annual grocery costs: $5,451
12. Rhode Island
Annual grocery costs: $5,451
13. Delaware
Annual grocery costs: $5,440
14. Idaho
Annual grocery costs: $5,430
15. Montana
Annual grocery costs: $5,377
16. Maine
Annual grocery costs: $5,335
17. Kentucky
Annual grocery costs: $5,325
18. Wisconsin
Annual grocery costs: $5,298
19. Colorado
Annual grocery costs: $5,298
20. North Carolina
Annual grocery costs: $5,293
21. New York
Annual grocery costs: $5,267
22. Michigan
Annual grocery costs: $5,256
23. New Hampshire
Annual grocery costs: $5,251
24. Arizona
Annual grocery costs: $5,230
25. Vermont
Annual grocery costs: $5,230
26. Nebraska
Annual grocery costs: $5,225
27. Virginia
Annual grocery costs: $5,214
28. Illinois
Annual grocery costs: $5,209
29. Pennsylvania
Annual grocery costs: $5,198
30. Wyoming
Annual grocery costs: $5,193
31. Ohio
Annual grocery costs: $5,193
32. Minnesota
Annual grocery costs: $5,188
33. South Carolina
Annual grocery costs: $5,177
34. Utah
Annual grocery costs: $5,177
35. Indiana
Annual grocery costs: $5,141
36. South Dakota
Annual grocery costs: $5,125
37. Georgia
Annual grocery costs: $5,088
38. Iowa
Annual grocery costs: $5,072
39. West Virginia
Annual grocery costs: $5,051
40. New Mexico
Annual grocery costs: $5,041
41. Texas
Annual grocery costs: $5,036
42. Tennessee
Annual grocery costs: $5,030
43. Louisiana
Annual grocery costs: $5,009
44. Kansas
Annual grocery costs: $5,004
45. Alabama
Annual grocery costs: $4,988
46. Missouri
Annual grocery costs: $4,973
47. North Dakota
Annual grocery costs: $4,941
48. Oklahoma
Annual grocery costs: $4,910
49. Arkansas
Annual grocery costs: $4,904
50. Mississippi
Annual grocery costs: $4,894
Methodology: To find how long $1.2 million will last across the country with AND without Social Security, MoneyLion first found (1) the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics' 2024 Consumer Expenditure Survey data, and (2) annual Social Security income as sourced from the Social Security Administration's July 2026 data. Then, MoneyLion created (2) state-level annual expenditure estimates by multiplying the national figure by each state's overall cost-of-living index score for 2026 Q1 from the Missouri Economic Research and Information Center. Finally, MoneyLion found (3) how many years $1,200,000 will last in each state by dividing $1.2 million by each state's average annual expenditure estimate minus yearly Social Security income. All 50 states were then ranked, with No. 1 being the state where $1.2 million and $1.2 million plus Social Security will last the longest and No. 50 being the state where it will run out most quickly. MoneyLion provided supplemental information on the average annual cost of groceries, housing, utilities, transportation and healthcare for people 65 and older in each state, again using MERIC's cost-of-living indices for each category to factor out national estimates from the CEX. All data points were collected and are up-to-date as of Aug. 20, 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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