Retirees are drawn to Arizona for various reasons, including its favorable climate, senior-friendly population, and tax-friendly financial opportunities. However, it is important to consider how much money retirees should have in the bank for a comfortable retirement in the state, especially since the cost of living in Arizona is approximately 4% higher than the national average. Financial experts provide insights into these considerations unique to Arizona and offer recommendations for retirement savings. Arizona is known for its tax-friendly policies, with a flat 2.5% income tax rate and no taxation on Social Security income. In addition, the state does not impose state or inheritance taxes, providing benefits for generational planning. While retirement income typically comes from retirement accounts and Social Security benefits, experts stress the importance of having savings in a readily accessible account for emergencies and unexpected expenses. The amount of savings needed varies depending on individual circumstances and financial needs. It is also advised to consult a financial advisor to strategize retirement planning and optimize cash flow while minimizing tax burden. Retirees who have not met their savings goals may consider working part-time as a supplemental income source and to delay taking Social Security benefits. Overall, retirement planning should be a personalized and proactive process, regardless of the chosen retirement location.