How Long $1 Million Will Last in Retirement in Every State
Anywhere between 12 and 26 years, depending on the state.
by Andrew Lisa, GoBankingRates.com, August 21, 2017
10,000 people turn 65 in the U.S. every single day. The average American retirement age is 63, and the life expectancy for retirees is about 85. That means Americans should plan to spend 22 years in retirement. The AARP suggests a retirement income nest egg of at least $1 million, but the buying power of $1 million varies wildly depending on where you live. So if you're asking "how long will my money last in retirement," the answer depends on your state.
In order to determine how long $1 million will last the average retiree in each state, GOBankingRates found the average total expenditures for people 65 and older, which includes groceries, housing, utilities, transportation and healthcare. Then, we multiplied that by the cost of living index in each state to find the average expenditure cost for each state.
Dividing a theoretical $1 million by the costs per state reveals the number of years $1 million will last retirees in every state. Click through to learn just how long that is, and see which states are best — and worst — if you want to retire rich.
50th -- Hawaii
- $1 million will last: 11 years, 11 months
If you retire with $1 million in Hawaii, you have just shy of a dozen years to ride out your savings. At $5,626 a year, the cost of groceries is by far the highest in the nation, and housing is no picnic, either. At $46,478 a year, housing costs in Hawaii blow away the next-most-expensive state by nearly $16,000 a year. In all, annual expenditures are nearly $23,000 more in Hawaii than the next-priciest state.
See How Hawaii Compares: The Cost of Living Across America
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