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How Long Does $1 Million Last in Retirement Across the U.S.?

The length of time $1 million can sustain a retiree in the United States varies dramatically depending on the state. According to a recent analysis by GOBankingRates, in some states, this sum could last over 80 years, while in others, it may run out in less than 20.

Cost of Living and Key Factors

The study examined how far $1 million in retirement savings, supplemented by Social Security benefits, would stretch in each state. The analysis incorporated essential cost-of-living factors, including housing, groceries, utilities, transportation, health care, and miscellaneous expenses, using data from the Missouri Economic Research and Information Center and the Bureau of Labor Statistics. Taxes were excluded from the calculations.

Additionally, the study considered home prices from Zillow, assuming a 10% down payment and a 6.91% mortgage rate, to factor in housing costs—one of the largest expenses in retirement.

States Where $1 Million Runs Out Quickly

Hawaii ranks as the most expensive state for retirees, where $1 million covers only 12 years of retirement. This is primarily due to high housing, grocery, and utility costs. California follows closely, with $1 million lasting just 16 years, while Massachusetts offers only 19 years before savings deplete. These states share high living costs that significantly shorten the longevity of retirement funds.

States Where $1 Million Lasts the Longest

On the other hand, some of the least expensive states allow retirees to stretch their savings for much longer. In Mississippi, $1 million lasts an impressive 87 years, while in West Virginia, it extends up to 89 years. These states benefit from lower housing, healthcare, and general living expenses.

A State-by-State Breakdown

Below is a closer look at how long $1 million would last in retirement for a single person in select states:

• Alabama: 67 years (Monthly expenses: $1,794)

• Alaska: 28 years ($2,601)

• Arizona: 32 years ($1,890)

• Arkansas: 77 years ($1,725)

• California: 16 years ($2,269)

• Colorado: 25 years ($1,899)

• Connecticut: 29 years ($2,154)

• Delaware: 36 years ($1,930)

• Florida: 34 years ($1,893)

• Georgia: 43 years ($1,863)

• Hawaii: 12 years ($2,761)

• Idaho: 31 years ($1,887)

• Illinois: 50 years ($1,931)

• Indiana: 59 years ($1,854)

• Iowa: 66 years ($1,836)

• Kansas: 65 years ($1,801)

• Kentucky: 69 years ($1,864)

• Louisiana: 77 years ($1,785)

• Maine: 33 years ($2,070)

• Maryland: 32 years ($1,931)

• Massachusetts: 19 years ($2,340)

• Michigan: 60 years ($1,835)

• Minnesota: 41 years ($1,936)

• Mississippi: 87 years ($1,784)

• Missouri: 61 years ($1,780)

• Montana: 32 years ($1,825)

• Nebraska: 55 years ($1,857)

• Nevada: 31 years ($1,855)

• New Hampshire: 26 years ($2,081)

• New Jersey: 24 years ($2,001)

• New Mexico: 48 years ($1,829)

• New York: 29 years ($2,028)

• North Carolina: 43 years ($1,883)

• North Dakota: 53 years ($1,862)

• Ohio: 62 years ($1,853)

• Oklahoma: 71 years ($1,832)

• Oregon: 27 years ($2,017)

• Pennsylvania: 53 years ($1,878)

• Rhode Island: 27 years ($2,113)

• South Carolina: 49 years ($1,838)

• South Dakota: 47 years ($1,834)

• Tennessee: 49 years ($1,713)

• Texas: 47 years ($1,851)

• Utah: 26 years ($1,893)

• Vermont: 33 years ($2,050)

• Virginia: 35 years ($1,927)

• Washington: 22 years ($2,096)

• West Virginia: 89 years ($1,833)

• Wisconsin: 45 years ($1,895)

• Wyoming: 40 years ($1,864)

Lessons for Retirees

For those planning retirement, location plays a crucial role in determining financial security. Retirees seeking to maximize their savings should consider lower-cost states, where expenses allow for a significantly longer period of financial stability. Conversely, those who prefer high-cost states must account for the need for additional savings or alternative income sources.

Ultimately, where one chooses to retire can make all the difference in how long $1 million will last.

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.