For most families in Johnson City, Oak Ridge, Crossville, and the surrounding region, retirement savings of roughly $650,000 to $1.2 million may support a comfortable retirement, depending on lifestyle, Social Security benefits, housing costs, and other income sources. East Tennessee’s lower cost of living and Tennessee’s tax-friendly structure mean some households can retire comfortably with less than they’d need in higher-cost states.
This guide is for East Tennessee families within about 5 to 15 years of retirement who want a realistic number to plan around. It covers three lifestyle scenarios with savings targets, how Tennessee’s tax structure changes the math, how Social Security fits in, the most common mistakes families make, and when to revisit your plan.
What are realistic retirement savings targets for East Tennessee?
The following scenarios assume a retired couple draws part of their income from Social Security and supplements the rest with retirement account withdrawals, using the widely referenced 4% withdrawal guideline.
- Modest retirement = roughly $650,000 in savings. Key assumptions: a completely paid-off home, minimal travel, and a monthly budget around $3,800 ($45,600/year).
- Comfortable retirement = roughly $900,000 in savings. Key assumptions: a completely paid-off home, regular travel, some dining out, and a monthly budget around $5,000 ($60,000/year).
- Upscale retirement = roughly $1.2 million in savings. Key assumptions: larger home, frequent travel, more discretionary spending, monthly budget around $6,500 ($78,000/year).
What does retirement actually cost in East Tennessee?
Living costs across much of East Tennessee run below the U.S. average, with Johnson City, Oak Ridge, and Crossville offering lower housing and everyday expenses than many metro areas. Healthcare costs are often lower than national averages too, though this varies by location, insurance coverage, and individual needs.
For most retired couples in the region, monthly expenses typically range from about $3,800 to $6,500, depending on housing, travel, healthcare, and lifestyle choices. Home values across much of East Tennessee also remain below the national median, though prices vary by community and shift with local market conditions.
How Tennessee’s tax structure changes the math
Tennessee has no state income tax, so Social Security, 401(k) and IRA distributions, pension payments, and investment income aren’t taxed at the state level. There’s also no state estate, inheritance, or gift tax.
For a retired couple drawing $60,000 to $80,000 per year, this can mean thousands of dollars in annual savings compared to states with income taxes. Over a 25-year retirement, that difference can add up to well over $100,000 in preserved wealth. The trade-off is a relatively high sales tax: Tennessee’s state rate is 7%, and combined state-and-local rates typically land between 9.25% and 9.75% depending on where you live.
How does social security fit into your Retirement number?
As of January 2026, the average Social Security retirement benefit is approximately $2,071 per month, or about $24,850 per year, per the Social Security Administration. The exact amount changes each year with cost-of-living adjustments and depends on your earnings history and the age you claim.
For a couple where both spouses have work histories, combined Social Security income commonly falls between $36,000 and $50,000 per year, depending on each spouse’s earnings record and claiming age.
Claiming age matters as much as the benefit amount. Claiming at 62 permanently reduces the benefit by up to 30%. For workers with a full retirement age of 67, waiting until 70 can increase the benefit by up to 24%. When the higher-earning spouse delays claiming, that decision alone can meaningfully increase lifetime household income.
What mistakes do East Tennessee families make when calculating their number?
Three common mistakes consistently throw off the “how much do I need” calculation:
- Underestimating longevity. A healthy 65-year-old couple today has a real chance that at least one spouse lives into their late 80s or beyond. A plan built to last only until 85 isn’t a complete plan.
- Underestimating healthcare costs. Medicare covers less than most retirees expect. Healthcare expenses for a retired couple can total several hundred thousand dollars over the course of retirement, particularly if long-term care is needed.
- Ignoring withdrawal order. How you withdraw from accounts matters as much as how much you’ve saved. Pulling too aggressively from tax-deferred accounts early in retirement creates unnecessary tax liability and shortens how long your money lasts.
When should you revisit your retirement number?
Contrary to popular belief, your retirement number isn’t a one-time calculation. It’s worth revisiting when:
- You’re within 5 years of your target retirement date
- Your income, savings rate, or expenses change significantly
- Social Security rules or cost-of-living adjustments shift the benefit landscape
- Market performance meaningfully changes your account balances
- Your health situation or family circumstances change
Working with a fee-only fiduciary advisor
The “how much do I need” question sounds simple, but the answer depends on a dozen interconnected variables: your Social Security claiming strategy, withdrawal sequence, tax situation, healthcare plan, and specific East Tennessee cost of living. A general online calculator can’t give you a personalized answer.
At Roan Capital Partners, we work with East Tennessee families across Johnson City, Oak Ridge, and Crossville to build retirement plans around the full picture. Because we operate on a fee-only model, our recommendations are based on your goals, not commissions from financial products.
The bottom line
The right number depends on your specific situation: your Social Security benefit, withdrawal strategy, whether your mortgage is paid off, and the lifestyle you want. The best way to know where you stand is a conversation with a fee-only fiduciary advisor who understands East Tennessee cost of living, Tennessee’s tax structure, and how the pieces of your plan work together.
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Frequently asked questions
Most East Tennessee households need between $650,000 and $1.2 million in savings, depending on lifestyle, Social Security income, and whether the home is paid off. These are only general numbers – working with a fee-only financial advisor like Roan Capital Partners can help you figure out your ideal retirement number.
Yes. Tennessee has no state income tax and no estate, inheritance, or gift tax, which can preserve tens of thousands of dollars over a typical retirement, though the state’s sales tax runs higher than average.
Claiming at 62 permanently reduces your benefit by up to 30%. Waiting until 70 can increase it by up to 24% for those with a full retirement age of 67. The right choice depends on health, other income, and household strategy.
Underestimating healthcare costs and longevity are the two most common. Many plans are built to last only into the late 70s or early 80s, which is often too short.
Yes, significantly. The savings targets in this guide assume the home is owned outright. Carrying a mortgage into retirement adds a fixed monthly cost that increases the required savings.
