Retirement savings longevity depends on where you live in the U.S. If you save $1 million for your retirement, you might expect it to last a long time. However, the state where you live in the U.S. is a deciding factor. While the $1 million may last for about 80 years in some states, it may run out in less than 20 years in others.
GOBankingRates made these retirement savings longevity findings through a recent study. It examined how long $1 million in retirement savings and Social Security benefits would last in each U.S. state. The study used data from the Missouri Economic Research and Information Center and the Bureau of Labor Statistics. The data was used to estimate a single person’s essential retirement cost. It considered expenses like food, rent, utilities, transportation, health care, and other daily costs except taxes.
Researchers used home prices from Zillow. They assumed a 10% down payment and a 6.91% mortgage interest rate to estimate how long $1 million would last in retirement.
In Hawaii, $1 million would only cover 12 years of retirement, the shortest time in the country. The state is followed by California and Massachusetts, which are 16 and 19 years old, respectively. These states are expensive to live in, mainly because housing costs are high. Other living expenses, like health care, utilities, and groceries, also make things more expensive.
On the other hand, in states like Mississippi, $1 million can last for more than 80 years. It can stretch up to 87 years and, in West Virginia, 89 years.
Retirement Savings Longevity from Hawaii to West Virginia
GOBankingRates put together a list that shows how long $1 million could last for a single retiree in every state in the U.S. The list below is ranked from the most expensive to the least expensive state.
(Note: The annual cost of living listed below represents expenses after Social Security benefits have been applied.)
- Hawaii
- Monthly expenses: $2,761
- Annual cost: $80,125
- $1 million lasts: 12 years
- California
- Monthly expenses: $2,269
- Annual cost: $61,406
- $1 million lasts: 16 years
- Massachusetts
- Monthly expenses: $2,340
- Annual cost: $51,686
- $1 million lasts: 19 years
- Washington
- Monthly expenses: $2,096
- Annual cost: $45,629
- $1 million lasts: 22 years
- New Jersey
- Monthly expenses: $2,001
- Annual cost: $41,315
- $1 million lasts: 24 years
- Colorado
- Monthly expenses: $1,899
- Annual cost: $39,759
- $1 million lasts: 25 years
- New Hampshire
- Monthly expenses: $2,081
- Annual cost: $38,052
- $1 million lasts: 26 years
- Utah
- Monthly expenses: $1,893
- Annual cost: $37,797
- $1 million lasts: 26 years
- Oregon
- Monthly expenses: $2,017
- Annual cost: $37,346
- $1 million lasts: 27 years
- Rhode Island
- Monthly expenses: $2,113
- Annual cost: $36,920
- $1 million lasts: 27 years
- Alaska
- Monthly expenses: $2,601
- Annual cost: $35,853
- $1 million lasts: 28 years
- Connecticut
- Monthly expenses: $2,154
- Annual cost: $34,113
- $1 million lasts: 29 years
- New York
- Monthly expenses: $2,028
- Annual cost: $34,570
- $1 million lasts: 29 years
- Idaho
- Monthly expenses: $1,887
- Annual cost: $32,289
- $1 million lasts: 31 years
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- Nevada
- Monthly expenses: $1,855
- Annual cost: $32,332
- $1 million lasts: 31 years
- Arizona
- Monthly expenses: $1,890
- Annual cost: $31,215
- $1 million lasts: 32 years
- Maryland
- Monthly expenses: $1,931
- Annual cost: $31,301
- $1 million lasts: 32 years
- Montana
- Monthly expenses: $1,825
- Annual cost: $31,651
- $1 million lasts: 32 years
- Maine
- Monthly expenses: $2,070
- Annual cost: $30,194
- $1 million lasts: 33 years
- Vermont
- Monthly expenses: $2,050
- Annual cost: $30,022
- $1 million lasts: 33 years
- Florida
- Monthly expenses: $1,893
- Annual cost: $29,362
- $1 million lasts: 34 years
- Virginia
- Monthly expenses: $1,927
- Annual cost: $28,916
- $1 million lasts: 35 years
- Delaware
- Monthly expenses: $1,930
- Annual cost: $27,919
- $1 million lasts: 36 years
- Wyoming
- Monthly expenses: $1,864
- Annual cost: $24,836
- $1 million lasts: 40 years
- Minnesota
- Monthly expenses: $1,936
- Annual cost: $24,654
- $1 million lasts: 41 years
- Georgia
- Monthly expenses: $1,863
- Annual cost: $23,206
- $1 million lasts: 43 years
- North Carolina
- Monthly expenses: $1,883
- Annual cost: $23,429
- $1 million lasts: 43 years
- Wisconsin
- Monthly expenses: $1,895
- Annual cost: $22,148
- $1 million lasts: 45 years
- South Dakota
- Monthly expenses: $1,834
- Annual cost: $21,074
- $1 million lasts: 47 years
- Texas
- Monthly expenses: $1,851
- Annual cost: $21,155
- $1 million lasts: 47 years
- New Mexico
- Monthly expenses: $1,829
- Annual cost: $20,976
- $1 million lasts: 48 years
- South Carolina
- Monthly expenses: $1,838
- Annual cost: $20,595
- $1 million lasts: 49 years
- Tennessee
- Monthly expenses: $1,713
- Annual cost: $20,466
- $1 million lasts: 49 years
- Illinois
- Monthly expenses: $1,931
- Annual cost: $19,937
- $1 million lasts: 50 years
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- North Dakota
- Monthly expenses: $1,862
- Annual cost: $19,006
- $1 million lasts: 53 years
- Pennsylvania
- Monthly expenses: $1,878
- Annual cost: $18,974
- $1 million lasts: 53 years
- Nebraska
- Monthly expenses: $1,857
- Annual cost: $18,172
- $1 million lasts: 55 years
- Indiana
- Monthly expenses: $1,854
- Annual cost: $16,826
- $1 million lasts: 59 years
- Michigan
- Monthly expenses: $1,835
- Annual cost: $16,561
- $1 million lasts: 60 years
- Missouri
- Monthly expenses: $1,780
- Annual cost: $16,403
- $1 million lasts: 61 years
- Ohio
- Monthly expenses: $1,853
- Annual cost: $16,099
- $1 million lasts: 62 years
- Kansas
- Monthly expenses: $1,801
- Annual cost: $15,315
- $1 million lasts: 65 years
- Iowa
- Monthly expenses: $1,836
- Annual cost: $15,158
- $1 million lasts: 66 years
- Alabama
- Monthly expenses: $1,794
- Annual cost: $14,874
- $1 million lasts: 67 years
- Kentucky
- Monthly expenses: $1,864
- Annual cost: $14,456
- $1 million lasts: 69 years
- Oklahoma
- Monthly expenses: $1,832
- Annual cost: $14,048
- $1 million lasts: 71 years
- Arkansas
- Monthly expenses: $1,725
- Annual cost: $13,000
- $1 million lasts: 77 years
- Louisiana
- Monthly expenses: $1,785
- Annual cost: $13,065
- $1 million lasts: 77 years
- Mississippi
- Monthly expenses: $1,784
- Annual cost: $11,473
- $1 million lasts: 87 years
- West Virginia
- Monthly expenses: $1,833
- Annual cost: $11,263
- $1 million lasts: 89 years
So, if you want your money to last the longest, states like Mississippi and West Virginia are the least expensive places for retirees.