How Long $1 Million in Retirement Will Last in Every State
You might need to save more depending on where you live.
by Joel Anderson GoBankingRates, August 7, 2019
About 10,000 people turn 65 years old every day in the U.S. The average American retirement age is 63, and the life expectancy for retirees is about 79. That means Americans should plan to spend 16 years in retirement. However, many Americans lack the savings needed to survive their golden years.
Conventional wisdom 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. In order to determine how long $1 million will last the average retiree in every state, GOBankingRates found the total annual expenditures for people 65 and older, then factored in the cost-of-living indices in each state. Dividing a theoretical $1 million by the average retiree budget reveals the number of years that $1 million will last in every state.
On average, a $1 million retirement nest egg will last 19 years, 7 months and 6 days across America. However, in some states, that time frame is significantly shorter….
- $1 million will last: 10 years, 3 months, 27 days
- Annual cost of housing: $53,279
- Annual cost of transportation: $11,103
- Annual cost of healthcare: $7,826
- Annual cost of groceries: $6,613
- Annual cost of utilities: $6,854
If you retire with $1 million in Hawaii, you’ll have less than a dozen years to ride out your savings. Thanks to the Aloha State’s high cost of living, your retirement nest egg will deplete the fastest here compared to the rest of America….
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