Troubling new study reveals how little $1m in retirement savings would last in each US state
A troubling new study shows how little $1 million in retirement savings would last in every US state.
The personal finance site GOBankingRates analyzed data from each state to show just how far one could last with a retirement fund worth $1 million when looking at annual expenses.
The site took into account groceries, housing utilities, transportation and healthcare when compiling their findings.
States including Hawaii, New York and California help make up the five worst places to live, with $1 million covering lass than 15 years.
Meanwhile, states in the Midwest and South provide a tiny bit more bang for your buck, with some seeing $1 million last for as long as two decades.
States including Hawaii, seen here, New York and California help make up the five worst places to live, with $1 million not even covering 15 years
The site looked into groceries, housing utilities, transportation and healthcare when compiling their findings
Hawaii: 9 years, 7 months, 25 days
Island life can be costly. According to the report, the picturesque beaches of Hawaii are the fastest places to see your $1 million in retirement funds go down the drain.
With the annual groceries costing $5,339 and housing costs hitting $35,813, the site estimates that $1 million would last less than a decade – just 9 years, 7 months and 25 days.
Other pricey living costs include $6,913 for utilities and a further $6,328 in transportation and $9,485 in healthcare, bringing total annual spending to $103,610.
Massachusetts: 11 years, 8 months, 9 days
It’s mass-ively expensive. The second worst state on the list was Massachusetts, where your $1 million in savings could be emptied out in just over 11 years and 8 months, the site estimates.
Annual groceries hit $5,080 in the Bay State and annual housing expenditure for a year climbed to $26,553.
In addition, those who plan to move to Massachusetts could expect to pay $5,867 for utilities and a further $5,813 in transportation and $8,694 in healthcare, bringing a total annual spend to $85,571.
District of Columbia: 11 years, 10 months, 25 days
Closely following Massachusetts was the capital Washington DC which would give retirees just over 2 months more than the previous state.
With local groceries in the state costing around $5,166 and housing hitting nearly $27,000, GOBankingRates believe $1 million would last 11 years, 10 months and 25 days.
Other costs like utilities would cost $4,664 per year, while transport would cost $5,348.
Overall, anybody looking to retire in the state should expect $84,010 a year, with healthcare also costing $8,784.
Washington, D.C. at the Tidal Basin during cherry blossom season with the Rosslyn business distict citycape is seen here
The skyline of Downtown Riverside, situated in the Greater Los Angeles area, is seen here
California: 12 years, 8 months, 5 days
Those dreaming of retiring to the sunshine of the The Golden State will favor slightly better than those in DC.
Anyone with $1 million in savings should expect their fund to last 12 years and 8 months.
Costs are estimated by the site to include an average annual grocery bill totaling $5,387, housing costing around $22,530 and utilities totaling $5,202.
Other annual bills for transportation, which hit $5,304, and healthcare costing $8,173 – a total annual expenditure bill would hit $73,140.
New York: 13 years, 8 months, 1 day
Unsurprisingly, New York state rounded out the top five of the list, with $1 million set to last for 13 years and 8 months.
The site said that the annual expenditure for those in The Empire State was $73,140, with the highest expenditure being $20,695 in housing.
Other costs estimated include an average annual grocery bill totaling $4,994, transportation costing around $5,304 and utilities totaling $4,363.
While healthcare in the state would set retirees back $8,173.
Unsurprisingly, New York state rounded out the top five of the list, with $1 million set to last for 13 years and 8 months
States in the Midwest and South provide a bit more bang for your buck, with some states seeing $1 million last for as long as two decades. Charleston in West Virginia is seen here
West Virginia: 20 years, 3 months, 19 days
For those looking to take the country roads into their retirement, the top spot for the best state to spend your twilight years in was West Virginia.
With an annual expenditure at just $49,261, $1 million in retirement funds would last for over two decades.
That was broken down as $4,701 in groceries, another $7,284 in housing, $4,067 in utilities.
Other bills included $7,163 in healthcare and a further 44,528 in transportation cost.
Mississippi: 19 years, 11 months, 12 days
Second best on the list was Mississippi, which the site says could last year just under 20 years with $1 million.
With an annual grocery bill of $4,644, a further $8,488 in housing and $3,685 in utilities, the annual spend totaled $50,128.
While other bills like healthcare and transportation totaled $7,427 and $4,216 respectfully.
Those with $1 million saved up could expect to see it last for 19 years, 11 months and 12 days.
Second best on the list was Mississippi, seen here, which the site says could last year just under 20 years with $1 million
While those looking to spend their retirement in Kansas, state capital Topeka is seen here, could expect their savings to see almost 20 years
Oklahoma: 19 years, 11 months, 5 days
Third on the list was the state of Oklahoma, which closely followed Mississippi by just a week.
Annual groceries hit $4,519 and annual housing expenditure for a year climbed to $8,313.
While those who planned to move to the The Sooner State could expect to pay $4,003 for utilities and a further $4,651 in transportation and $6,982 in healthcare, bringing a total annual spend to $50,186.
Overall, $1 million should last a total of 19 years, 11 months and 5 days.
Kansas: 19 years, 9 months, 15 days
There’s no place like home? Those looking to spend their retirement in Kansas could expect their savings to see almost 20 years.
With the annual groceries costing $4,629 and housing hitting $7,974 the site estimate $1 million would last just 19 years, 9 months and 15 days.
Other costs including $4,444 for utilities and a further $4,429 in transportation and $7,382 in healthcare, bringing a total annual spend to $50,533.
Alabama: 19 years, 7 months, 11 days
Rounding out the top five best states to retire to was Alabama.
Anyone with $1 million in savings should expect their fund to last 19 years, 9 months and 15 days.
Costs estimated by the site include an average annual grocery bill totaling $4,596, housing costing around $8,243 and utilities totaling $4,312.
Other annual bills for transportation, which hit $4,404, and healthcare costing $6,469 – a total annual expenditure bill would hit $50,995.
In reaching the findings, the site found the national average annual expenditures for people 65 and older using data from the U.S. Bureau of Labor Statistics.
The site created state-level annual expenditure estimates by multiplying the national figure by each state’s overall cost of living index score from the Missouri Economic Research and Information Center.
They then divided each state’s average annual expenditure estimates by 1 million to get the results.
