This is how long $1 million in retirement savings will last in your state

[SlugSlinger]

December 1, 2017 2:00 pm

Home Money & Credit

This is how long $1 million in retirement savings will last in your state

When you close your eyes and think about the day when you no longer will have to clock in at work, or perhaps you’re there now, no doubt one of the primary concerns is how much money you’re going to have to live off of. You’d be surprised how tight things could get while paying the bills with just a pension.

But what if you had $1 million? Surely you could make ends meet and then some in retirement — but for how long? The AARP figures that a $1 million nest egg is enough for most Americans, who are expected to live for around 22 years after retirement. But is $1 million really enough? Turns out, a lot has to do with what state you live in.

Stretch your retirement savings by retiring to the right state

Gobankingrates.com has put together a state-by-state analysis that shows how far $1 million in retirement will go — and if it will take you to that 22-year threshold.

The website used a methodology that takes into account the average spending for senior citizens once they hit retirement age.

“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,” the website says. “Then, we multiplied that by the cost of living index in each state to find the average expenditure cost for each state.”

50. Hawaii - $1 million will last: 11 years, 11 months: “At $5,626 a year, the cost of groceries is by far the highest in the nation, and housing is no picnic, either,” the site says.

49. California - $1 million will last: 16 years, 5 months

48. Alaska - $1 million will last: 17 years, 0 months

47. New York - $1 million will last: 17 years, 1 month

46. Massachusetts - $1 million will last: 17 years, 4 months

45. Connecticut - $1 million will last: 17 years, 4 months

44. Maryland - $1 million will last: 17 years, 4 months

43. Oregon - $1 million will last: 17 years, 7 months

42. Rhode Island - $1 million will last: 18 years, 2 months

41. New Jersey - $1 million will last: 18 years, 6 months

40. Vermont - $1 million will last: 18 years, 7 months

39. New Hampshire - $1 million will last: 19 years

38. Maine - $1 million will last: 19 years, 6 months

37. Washington - $1 million will last 21 years, 1 month

36. Delaware - $1 million will last: 21 years, 10 months

35. Pennsylvania - $1 million will last: 21 years, 11 months

34. Virginia - $1 million will last: 22 years

33. Colorado - $1 million will last: 22 years

32. Nevada - $1 million will last: 22 years

31. South Carolina - $1 million will last: 22 years, 3 months

30. Florida - $1 million will last: 22 years, 4 months

29. South Dakota - $1 million will last: 22 years, 4 months

28. Minnesota - $1 million will last: 22 years, 6 months

27. North Dakota - $22 million will last: 22 years, 7 months

26. Montana - $1 million will last: 22 years, 10 months

25. Illinois - $1 million will last: 23 years, 1 month

24. Arizona - $1 million will last: 23 years, 2 months

23. Wisconsin - $1 million will last: 23 years, 3 months

22. New Mexico - $1 million will last: 23 years, 3 months

21. West Virginia - $1 million will last: 23 years, 6 months

20. Wyoming - $1 million will last: 23 years, 8 months

19. Kentucky - $1 million will last: 23 years, 8 months

18. North Carolina - $1 million will last: 23 years, 8 months

17. Utah - $1 million will last: 23 years, 10 months

16. Nebraska - $1 million will last: 23 years, 10 months

15. Louisiana - $1 million will last: 23 years, 10 months

14. Ohio - $1 million will last: 24 years, 2 months

13. Iowa - $1 million will last: 24 years, 3 months

12. Kansas - $1 million will last: 24 years, 7 months

11. Idaho - $1 million will last: 24 years, 8 months

10. Alabama - $1 million will last: 24 years, 9 months

9. Indiana - $1 million will last: 24 years, 9 months

8. Texas - $1 million will last: 24 years, 9 months

7. Missouri - $1 million will last: 24 years, 10 months

6. Georgia - $1 million will last: 24 years, 11 months

5. Tennessee - $1 million will last: 25 years

4. Michigan - $1 million will last: 25 years

3. Oklahoma - $1 million will last: 25 years, 2 months

2. Arkansas - $1 million will last: 25 years, 6 months

1. Mississippi - $1 million will last: 26 years, 4 months

 

[saddlebum]

I just need $999,999 more and im set

 

[dennishoddy]

Interesting stats, but I didn’t see where they took into account getting retirement money from investments.
I’ve been retired for almost 4 years, and have barely touched the principal in my retirement funds.

 

[tRidiot]

Interesting stats, but I didn’t see where they took into account getting retirement money from investments.
I’ve been retired for almost 4 years, and have barely touched the principal in my retirement funds.

Yeah, they're just looking at it as a savings account, essentially, I think.

 

[OKNewshawk]

I just need $999,999 more and im set

I'm ahead of you. I only need $999,998!

 

[SlugSlinger]

$1MM spent over 25 years is $40,000 per year. I think the model they used is not really reasonable. This doesn't include social security, or other retirement benefits, or any return on the $1MM if you invested it in the market. If you just receive a moderate market return of 6% on the $1MM, you could spend $60,000 less any income tax and not touch the $1MM initial amount. And I bet the average person who has saved $1MM by the time they retire have invested in the market and have done so, for a long time.

 

[Rod Snell]

I've used a more detailed retirement estimator that takes account of various income sources, but you can get a good rough idea by estimating your annual retirement income, multiply by their estimated retirement length, then subtract that result from the million. People with good retirement income will come out ahead of their numbers, which is a good feeling and a reward for your years of work, saving, and planning.
Unfortunately, other studies show too many people approaching retirement with little savings or retirement income, leaving few options. Frankly, they made good money, and spent it.
I did a retirement workup for a person who has been making $80K+ annually for a long time, has no retirement prospects except Social Security and Medicare, has saved little. At seeing the projected annual retirement budget, practically went into shock and said "I can't live on that!" And too late to save the million.

 

[saddlebum]

I've used a more detailed retirement estimator that takes account of various income sources, but you can get a good rough idea by estimating your annual retirement income, multiply by their estimated retirement length, then subtract that result from the million. People with good retirement income will come out ahead of their numbers, which is a good feeling and a reward for your years of work, saving, and planning.
Unfortunately, other studies show too many people approaching retirement with little savings or retirement income, leaving few options. Frankly, they made good money, and spent it.
I did a retirement workup for a person who has been making $80K+ annually for a long time, has no retirement prospects except Social Security and Medicare, has saved little. At seeing the projected annual retirement budget, practically went into shock and said "I can't live on that!" And too late to save the million.

I'm 57 and between 3 divorces the stock market dip of '08 and sending an addict stepson to rehab multiple times I got nothing..,......I'm what you call a slow learner

 

[Glocktogo]

I've used a more detailed retirement estimator that takes account of various income sources, but you can get a good rough idea by estimating your annual retirement income, multiply by their estimated retirement length, then subtract that result from the million. People with good retirement income will come out ahead of their numbers, which is a good feeling and a reward for your years of work, saving, and planning.
Unfortunately, other studies show too many people approaching retirement with little savings or retirement income, leaving few options. Frankly, they made good money, and spent it.
I did a retirement workup for a person who has been making $80K+ annually for a long time, has no retirement prospects except Social Security and Medicare, has saved little. At seeing the projected annual retirement budget, practically went into shock and said "I can't live on that!" And too late to save the million.

This is why so many older workers remain in the workforce, which trickles down and suppresses the earning ability of younger workers, and that impacts mental well being.

https://www.theguardian.com/society...least-happy-most-anxious-ons-wellbeing-report

I watched my quite wealthy boss remain in the workforce LONG after he'd peaked, not retiring until he was 75. It really hurt the morale of his staff, preventing promotions and pay increases because his exorbitant salary was soaking up so much of the budget. He already had a 2 star general's military retirement, a decent career as a lawyer and he was 5 years past maximizing his SS benefit. Worse yet, he further held down pay and bonuses for his staff to maximize his annual bonuses. Our retirement benefits directly suffer as a result of his actions. It was maddening to watch him come in for half days and do nothing for years, knowing he was putting the screws to us.

I'll do OK with a modest-decent retirement savings, retirement package and SS benefits. If something happened to SS benefits, I'm not sure I'd be able to stay retired. My current plan is to retire somewhere between 62-65. I hope like hell it's still possible when I get there!

 

[rlongnt]

I'm 57 and between 3 divorces the stock market dip of '08 and sending an addict stepson to rehab multiple times I got nothing..,......I'm what you call a slow learner

Yep... It's a good thing I love my job.. I'm going to be here a very long time...