Is $1 million enough for retirement?

How far $1 million goes depends where you live and your standard of living, and that regions affordability. As the expression goes, it’s not always what you make that counts, but what you save.

GoBankingRates, a personal finance site, conducted an analysis to determine how far the purchasing power of $1 million will go in various states by determining the cost of groceries, housing, utilities, transportation and healthcare for typical retirees 65 or older.

The current average life expectancy for America’s retirees is 85 years old and the average retirement age is 63, therefore GoBankingRates looked at whether $1 million is enough for the projected average age of 22 years of retirement. 

It found that the best affordable place to settle down was Mississippi and the least affordable was Hawaii.

Based upon their calculations, $1 million will NOT last for 22 years for people who live in the following 16 states:

1.      Pennsylvania -21 years and 11 months

2.      Washington State -21 years and 1 month

3.      Delaware – 21 years and 10 months

4.      Maine – 19 years and 6 months

5.      New Hampshire -19 years

6.      Vermont – 18 years and 7 months

7.      New Jersey – 18 years and 6 months

8.      Rhode Island – 18 years, 2 months

9.      Oregon -17 years and 7 months

10.  Connecticut – 17 years and 4 months

11.  Maryland – 17 years and 4 months

12.  Massachusetts – 17 years and 4 months

13.  New York – 17 years and one month

14.  Alaska – 17 years

15.  California – 16 years and 5 months

16.  Hawaii -11 years and 11 months

 

 

  In the following states being a “millionaire” goes a lot further:

 

1.      Mississippi - 26 years, 4 months

2.      Arkansas - 25 years, 6 months

3.      Oklahoma - 25 years, 2 months

4.      Tennessee - 25 years

5.      Michigan - 25 years

6.      Georgia - 24 years, 11 months

7.      Missouri - 24 years, 10 months

8.      Alabama - 24 years, 9 months

9.      Indiana - 24 years, 9 months

10.  Texas - 24 years, 9 months

11.  Idaho - 24 years, 8 months

12.  Kansas - 24 years, 7 months

13.  Iowa - 24 years, 3 months

14.  Ohio - 24 years, 2 months

15.  Utah - 23 years, 10 months

16.  Louisiana - 23 years, 10 months

17.  Nebraska - 23 years, 10 months

18.  Kentucky - 23 years, 8 months

19.  North Carolina - 23 years, 8 months

20.  Wyoming - 23 years, 8 months

21.  West Virginia - 23 years, 6 months

22.  Wisconsin - 23 years, 3 months

23.  New Mexico - 23 years, 3 months

24.  Arizona - 23 years, 2 months

25.  Illinois - 23 years, 1 month

26.  Montana - 22 years, 10 months

27.  North Dakota - 22 years, 7 months

28.  Minnesota - 22 years, 6 months

29.  Florida - 22 years, 4 months

30.  South Dakota - 22 years, 4 months

31.  South Carolina -22 years, 3 months

32.  Colorado - 22 years

33.  Nevada - 22 years

34.  Virginia - 22 years

 


GoBanking rates used the cost of living index of each state to find the average expenditure cost.  They also surveyed each states’ taxes, average home listing price, median home value, average savings account interest rate and average health insurance premiums and average Social Security benefits and Medicare spending per capita.

For more detailed information on how the study was conducted, click here

https://www.gobankingrates.com/investing/how-long-million-last-retirement-state/

 

 

 

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