Many Americans set a goal of reaching the $1 million milestone for retirement savings. While it may be enough for some retirees, $1 million may not last long enough in some states, according to a study by GoBankingRates.
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The website found that $1 million will last a retiree anywhere between 11 and 26 years, depending on each state’s typical cost of living.
For example, a nest egg of $1 million will last 25 years, 11 months and 30 days in Mississippi, longer than any other state. Mississippi boasts the lowest cost of living for people ages 65 and over, an estimated $38,435 per year. The most expensive state is Hawaii, where $1 million will cover 11 years, 8 months and 20 days in retirement expenses such as housing, transportation, groceries and health care.
GoBankingRates noted that $1 million in Florida, a popular state for retirees, lasts 22 years and 29 days, the 27th-best state on the list.
The same amount of retirement dollars lasts about 15-and-a-half years in California, where housing costs are high. Hawaii and California are the only two states in the nation where annual retirement expenditures top $60,000 on average. Hawaii is by far the most expensive at $85,243, compared to California’s $64,516.
Here are the five best states for retirees with $1 million in savings:
- Mississippi ($1 million lasts 25 years, 11 months, 30 days)
- Oklahoma (24 years, 8 months, 24 days)
- Michigan (24 years, 7 months, 14 days)
- Arkansas (24 years, 7 months, 4 days)
- Alabama (24 years, 7 months, 4 days)
Here are the five worst states:
- Hawaii ($1 million lasts 11 years, 8 months, 20 days)
- California (15 years, 5 months, 27 days)
- New York (16 years, 3 months, 22 days)
- Alaska (16 years, 8 months, 6 days)
- Maryland (16 years, 8 months, 29 days)