How long will $1 million last you in retirement? Report says it depends on the state
When it comes to retirement savings, a cool $1 million is the gold standard.
However, these days, that may not be enough. Depending on where you live, a nest egg of that size will barely last a decade.
Considering rising inflation, cost of living and real estate, $1 million stretches a little less every year, according to Andrew DePietro, a research and data analyst at personal finance site GoBankingRates.
GoBankingRates compared average expenses for people age 65 and older, including groceries, housing, utilities, transportation and health care, in every state to come up with how long a nest egg of $1 million would really last during retirement. The report did not take into account investment income over that period.
The results found that almost every state saw a decrease in the amount of time $1 million will last from the previous year, mostly due to higher costs of living nationwide.
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Top 5 states where your dollar will last the longest:
1. Mississippi: 25 years, 11 months, 30 days
2. Oklahoma: 24 years, 8 months, 24 days
3. Michigan: 24 years, 7 months, 14 days
4. Arkansas: 24 years, 7 months, 4 days
5. Alabama: 24 years, 7 months, 4 days
It's no surprise that dollars stretched the furthest in states like Mississippi, Oklahoma and Arkansas and where retirees could live a life of leisure for a quarter of a century.
Top 5 states where your dollar will last the shortest:
1. Hawaii: 11 years, 8 months, 20 days
2. California: 15 years, 5 months, 27 days
3. New York: 16 years, 3 months, 22 days
4. Alaska: 16 years, 8 months, 6 days
5. Maryland: 16 years, 8 months, 29 days
However, in Hawaii, where residents pay roughly 30 percent more for household items across the board, that amount will only get you just shy of a dozen years largely because of the cost of living and pricey real estate.
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