This is one of the most common questions we hear from clients and non‑clients alike. It’s also one of the most important, considering that many retirees will now spend 20 years or more in retirement. The true and most accurate answer is still, “it depends,” but that’s not very satisfying.
So instead, let’s take a few minutes to build a realistic baseline for what the average retirement might look like if you plan to live in Idaho Falls, Idaho, updated for 2026.
If you want to know what your real number is based on your goals, health, benefits, and spending habits, you’ll want to build a personalized retirement plan. But for now, let’s start with some estimates.
Cost of Living in Idaho
Housing
Before we get to the “wants,” let’s start with the needs.
The average annual cost for housing and utilities per person in Idaho is approximately $9,300. While some may find this absurdly low, you have to realize that some have paid off their homes and only have maintenance and insurance costs. So, given the fact that we are using averages we will stick with this number. We will also add in average home maintenance of $4,900, and property taxes of $1,250.
When you combine utilities, maintenance, and property taxes, total housing costs come out to roughly $15,450 per year.
Total Annual Needs in Retirement
Beyond housing and healthcare, the remaining core expenses are fairly self‑explanatory. Using updated Idaho‑specific averages, here’s what an annual retirement budget looks like in 2026:
Category | Average Annual Cost Per Person (Idaho) |
Housing & Utilities (including taxes & maintenance) | $15,450 |
Health Care | $7,500 |
Groceries | $3,800 |
Gas & Energy Goods | $1,700 |
All Other Personal Expenditures | $24,000 |
TOTAL | $52,450 |
This gives us a solid estimate of the cost of needs in retirement. Not luxuries, but a comfortable baseline.
Long-Term Care
Next, we have to account for one of the largest, and most underestimated retirement expenses.
According to data from the U.S. Department of Health and Human Services, about 7 out of every 10 Americans will need some form of long‑term care during their lifetime. This could include home care, assisted living, adult day care, or skilled nursing.
In Idaho Falls, assisted living costs currently average about $3,341 per month. The average length of care is three years, which brings the total cost to approximately $120,276.
Rather than treating this as an annual expense, we will include long‑term care as a separate lump‑sum cost in the total retirement number.
Final Calculation
The cost of living has always increased over time. While inflation spiked in the early 2020s, long‑term data suggests a more sustainable planning assumption of 2.5% annual inflation.
For planning purposes, an 18‑year retirement is a reasonable and conservative assumption in 2026.
When we take:
- $52,450 in annual expenses
- Adjust for 2.5% inflation
- Over 18 years
- And add $120,276 for long‑term care
We arrive at a total retirement need of approximately: $880,000.
This is not a universal rule or a requirement; it’s a baseline using averages. Some retirees may need significantly less, while others may need more depending on lifestyle, health, and longevity. However, for most retirees, a realistic retirement target in Idaho Falls in 2026 falls around $880,000.
If your retirement nest egg is $900,000 or bigger, you are probably feeling pretty good right now. However, if you are like the majority of Idahoans, you may be feeling some stress because you haven’t saved that much for retirement. Don’t worry though, your own nest egg will likely not be your only source of income in retirement. Other income streams such as Social Security, or a Pension can provide additional income that will reduce the amount you need in your retirement nest egg.
A Bucket List Retirement
While having your needs met is great, you may have a few wants in retirement. By the time you reach retirement you will likely have worked for four or five decades of your life. That’s a lot of time to work just to live on the bare minimum. They’re called the golden years because you are supposed to enjoy them. If you really want to travel, play, and enjoy the fruits of your labors, I suggest you plan on aspiring for more.
At 3 Peaks Financial we offer retirement planning services that help our clients cross off their bucket list items, and spend time on things that matter most, with the people that matter most. We give you permission to retire without worries or stress, because we plan out the details and show you where you are headed financially. We use software and our expertise to do the heavy lifting and strategize with you to provide clarity and confidence to your plan.
If you have questions like “When should I retire?”, “How much is enough for me?”, or “How should I invest my nest egg?”, then creating a retirement plan is right for you. Give us a call or book a free consultation by clicking “Schedule Appointment” in the top right corner of our website.
208-881-5505
connor@3peaksfinancial.com
Sources:
- https://www.bea.gov/data/consumer-spending/state
- https://www.consumeraffairs.com/movers/idaho-cost-of-living.html
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