With its mild climate and friendly people, Virginia can be the perfect state to retire. But if you’re interested in doing that, you should know what it means financially. Data shows you need at least $741,000 saved to comfortably retire in the state.

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Here are three reasons and other financial facts you should know before retiring in Virginia.

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1. Virginia Is More Expensive Than Nearby States

It costs an average of $58,627 to live in Virginia per year. That’s meaningfully more than states like:

• West Virginia: $39,386

• Mississippi: $41,361

• Kentucky: $40,355

• Georgia: $52,556

Even small differences in living costs add up over 20 to 30 years of retirement. That’s why you may need to save six figures or more to retire in Virginia over another nearby state.

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2. Social Security Won’t Cover Everything

The average retired American receives around $36,251 yearly in Social Security income. But that’s across all states. Retired people in Virginia take home an average of $21,566.

This means, that if you receive an average Social Security paycheck, you’ll still be responsible for covering $37,060 in annual living costs. Now, multiply that figure by the number of years you want to cover in retirement.

A 20-year retirement, at $37,060 per year, adds up to just over $741,000. That figure increases to $926,500 for a 25-year retirement or about $1.1 million for a 30-year retirement. This is why you need a lot of retirement savings to stay in Virginia — even if you’re counting on Social Security.

3. Inflation May Increase Costs Over Time

Another factor to consider is that living costs go up over time, due to inflation. This means you may want to save even more for retirement in Virginia than you initially think.

For example, Virginia has seen cumulative inflation of 21.4% since January 2021. This has added about $1,142 in monthly costs to the average budget. If your retirement is still years away, these costs are likely to increase further before you get there.

How To Save Money While Retiring in Virginia

Although Virginia is far from the cheapest state to retire in, there are still ways to bring costs down. The key will be finding ways to spend less than the average Virginian on key expense categories.

For example, here’s what the average state resident currently spends on common annual expenses:

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• Groceries: $4,825

• Housing: $12,346

• Utilities: $4,358

• Transportation: $4,577

• Healthcare: $7,675

You can reduce your annual retirement savings requirement by spending less in any of these categories. That’s just not always easy to do — especially as inflation continues. So here are a few additional tips.

Choose Your Retirement City Strategically

First, your retirement expenses vary quite a bit based on which part of Virginia you call home.

For example, Great Falls, Alexandria and Fairfax are among the richest and most expensive places in the state. Housing and other expenses are higher there than in the cheaper cities of Martinsville, Lynchburg and Portsmouth.

So if you want to retire for less in Virginia, pick a part of the state where that’s easier financially. Moving further away from the center of one of Virginia’s most expensive areas could be enough to reach your goals.

Supplement Your Retirement Income

If you feel like you can’t save enough for the retirement you want, maybe you can continue earning money after your career. This would reduce your annual retirement saving requirement by as much as you earn.

For instance, imagine you make $10,000 driving for a rideshare service. You could subtract that $10,000 from the $37,060 the average Virginian retiree spends out of pocket. You’d only use $27,060 of your savings that year. If you could do this for even five years of your early retirement, that may be enough to fix your financial issues.

There are plenty of ways to make extra money in retirement, including:

Try Another State

If you can’t find a way to make retiring in Virginia work financially, consider another state. Nearby West Virginia is one of the most affordable places to retire in the entire country.

There are also plenty of destinations throughout the South that are beautiful and affordable for retirees. You’ll just need to consider which fits your lifestyle preferences and budget while keeping you close to friends and family.

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This article originally appeared on GOBankingRates.com: 3 Reasons You Need at Least $741K (Plus Social Security) To Retire in Virginia