How Long Will $1 Million Stretch in Retirement? Here's a State By State Comparison! by 30Seconds Mom
It's a common refrain that retirees should save at least $1 million for retirement, but how much does where they live affect their saving needs? Personal finance website GOBankingRates found the average total annual expenses for people 65 and older (adding up groceries, housing, utilities, transportation and healthcare costs), then determined the state-specific yearly cost by multiplying total expenses by each state's cost of living index.
Here are the top five states where your dollar will last the longest:
- Mississippi – $1 million will last 26 years, 4 months
- Arkansas – $1 million will last 25 years, 6 months
- Oklahoma – $1 million will last 25 years, 2 months
- Michigan – $1 million will last 25 years
- Tennessee – $1 million will last 25 years
Here are the top five states where your dollar will last the shortest:
- Hawaii – $1 million will last 11 years, 11 months
- California – $1 million will last 16 years, 5 months
- Alaska – $1 million will last 17 years, 0 months
- New York – $1 million will last 17 years, 1 month
- Massachusetts – $1 million will last 17 years, 4 months
Hawaii's expenses top out at $83,834 annually, while Mississippi's are a low of $37,964. Alaska's healthcare costs the most annually, at $8,479. The largest expenditure discrepancy is in housing: Hawaii's costs a whopping $15,964 more annually than the runner-up, California.
For full study results and more details on methodology visit How Long $1 Million Will Last in Retirement in Every State.