Arizona Retirement Calculator

Planning a retirement in Arizona starts from Arizona statewide median household income of $65,900. Replacing 80% of that and drawing at the traditional 4% rate implies a portfolio near $1,318,000. That figure scales directly with your own income rather than the median, so treat it as a reference point and run your actual numbers above.

Arizona's cost-of-living index of 103 against a national baseline of 100 matters more here than in most calculations, because retirement spending is locked to local costs for decades. Scaling the target by that index gives roughly $1,357,540 — higher than the unadjusted figure, reflecting what a 103-index location costs to live in.

Arizona taxes income at an approximate effective rate of 2.5%. Whether that applies to retirement income varies — many states exempt Social Security and some exempt pension income entirely, so check the specific treatment before assuming your working-years rate carries into retirement.

The 4% rule comes from historical US market data over 30-year horizons and is a starting heuristic, not a guarantee. Longer retirements, earlier retirement dates, and sequence-of-returns risk all argue for a lower withdrawal rate or a larger portfolio.