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The 15 states where $1 million in retirement savings will last the longest
The 15 states where $1 million in retirement savings will last the longest
Liz KnuevenAug 13, 2019, 18:08 IST
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New data from GOBankingRates shows that $1 million in retirement savings could last more than two decades in some states. In Mississippi, a retiree could live on $1 million for 23 years.
The 15 states where $1 million in savings would last the longest include New Mexico, Wyoming, Georgia, and Michigan.
GOBankingRates estimates that on average, $1 million in retirement savings will last 19 years. Meanwhile, $1 million in retirement savings will last at least 21 years for retirees living in every state in the top 15.
Where you decide to retire might have a big impact on how long your retirement money lasts, according to new data from GOBankingRates.
On average, GOBankingRates estimates that $1 million in savings will last about 19 years in the US. In some places, those savings will cover many fewer years: Those retiring in expensive states like Hawaii can expect their $1 million of savings to last 10 years and three months from their retirement funds, while those in California will see 13 years.
Meanwhile, $1 million in retirement savings will last at least 21 years for every state in the list below.
To find this data, GOBankingRates looked at the total annual expenses of people 65 and older, including housing, transportation, healthcare, utilities, and groceries, as well as a cost of living index. Dividing $1 million by the annual cost of living then yielded the years those retirement savings could last.
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Here are the 15 states where $1 million in retirement funds will last the longest:
With low costs of living and three major cities to choose from, Ohio is a great place to stretch your retirement dollars over 20 years.
Time $1 million would last: 21 years and 11 months
Total cost of living for one year: $32,995
14. Nebraska
Nebraska offers low costs of living, and affordable housing makes it a very attractive option.
Time $1 million would last: 22 years and 11 months
Total cost of living for one year: $37,862
13. Iowa
Affordable housing in Iowa makes it a very attractive option for retirees.
Time $1 million would last: 21 years and 1 month
Total cost of living for one year: $33,862
12. Indiana
Indiana's low costs of living will help retirees live comfortably for 20 years. According to GOBankingRates' data, housing costs come out to just about $12,280 per year.
Time $1 million would last: 22 years and 1 month
Total cost of living for one year: $33,048
11. Alabama
In Alabama, affordable living costs helps $1 million stretch pretty far. A warm climate and many beaches on the Gulf Coast make it a good alternative to Florida for those looking to live affordably.
Time $1 million would last: 22 years and 3 months
Total cost of living for one year: $31,966
10. Wyoming
While many states in the west have higher costs of living, Wyoming has managed to hold onto its affordability.
Time $1 million would last: 22 years and 3 months
Total cost of living for one year: $32,584
9. Georgia
Georgia residents will find low costs of living and mild winters to be nice perks.
Time $1 million would last: 22 years and 3 months
Total cost of living for one year: $33,069
8. Kansas
Kansas' housing costs are very affordable, and it makes it very easy to live over 20 years comfortably on $1 million.
Time $1 million would last: 22 years and 4 months
Total cost of living for one year: $32,925
7. Michigan
Michigan offers lots of rural communities and small towns that are perfect for retirees. And with such low costs of living, $1 million can last a long time.
Time $1 million would last: 22 years and 4 months
Total cost of living for one year: $32,724
6. Tennessee
With an abundance of mountains and urban areas, Tennessee offers residents a variety of lifestyles while still being affordable.
Time $1 million would last: 22 years and 5 months
Total cost of living for one year: $32,724
5. New Mexico
With lower costs of living, New Mexico retirees will have plenty of leftover funds to spend on leisure activities.
Time $1 million would last: 22 years and 9 months
Total cost of living for one year: $33,324
4. Missouri
Missouri's low costs of living and second-lowest housing costs on this list make it a very affordable place to retire.
Time $1 million would last: 22 years and 10 months
Total cost of living for one year: $31,877
3. Oklahoma
Oklahoma is the third best state for making retirement dollars last — with some of the lowest overall costs in the US, retirees can get a lot of time with the $1 million they have saved.
Time $1 million would last: 22 years and 10 months
Total cost of living for one year: $31,814
2. Arkansas
Arkansas boasts both the Ozarks and many natural hot springs, and it might just be ideal for retirees on a budget with such low costs of living.
Time $1 million would last: 22 years and 10 months
Total cost of living for one year: $30,960
1. Mississippi
Mississippi offers the lowest housing costs in the US. In Mississippi, $1 million will last over twice as long as it would in the most expensive state, Hawaii, where the same amount would last just 10 years.
