A study by GOBankingRates found that $1 million in retirement savings would last less than 15 years in expensive states like Hawaii, New York, and California, while states in the Midwest and South allow savings to stretch nearly 20 years due to lower living costs.
Study Reveals $1 Million in Retirement Savings Lasts Significantly Longer in Midwest and Southern States Compared to Hawaii, New York, and California
According to a recent study from GOBankingRates featured in the Daily Mail Online, $1 million in retirement savings does not stretch far in numerous US states, as it was analyzed against annual expenses such as groceries, housing, utilities, transportation, and healthcare. In states like Hawaii, New York, and California, known for high living costs, $1 million would sustain retirement for fewer than 15 years. Hawaii, particularly expensive, would only support retirement for approximately 9 years, 7 months, and 25 days.
In cheaper states in the Midwest and South, retirement savings can last much longer. West Virginia is the best state for making $1 million last, with the money expected to last 20 years, 3 months, and 19 days because of lower yearly costs. Other states like Mississippi, Oklahoma, Kansas, and Alabama also offer better value for retirees, with savings lasting nearly 20 years.
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$1 Million in Retirement Savings: A Shrinking Nest Egg in Many US States – Only 9 Years of Comfort in Hawaii, 20+ Years in Affordable States (PHOTO: Kiplinger)
Choosing the Best Retirement Location: Understanding Cost-of-Living Variations and Financial Planning Tips
The study’s findings show big differences in the cost of living across the US, highlighting how important it is to choose the right place for retirement. Financial planners say there isn’t a “magic number” for retirement savings because everyone’s needs and state costs are different. Retirees should think about these factors when planning their finances to make sure they have a comfortable and lasting retirement.
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