Disturbing new study reveals how little $1 million in retirement savings will last in every US state
A disturbing new study shows how little $1 million in retirement savings will last in every US state.
Personal finance site GOBankingRates analyzed data from each state to show how far you could end up with a $1 million retirement fund when looking at annual expenses.
The site took into account groceries, housing services, transportation and health care when compiling their findings.
States including Hawaii, New York and California help make up the five worst places to live, with $1 million covering less than 15 years.
Meanwhile, states in the Midwest and South offer a bit more bang for your buck, with some seeing $1 million last 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 at groceries, housing services, transportation and healthcare when compiling its findings
Hawaii: 9 years, 7 months, 25 days
Island life can be expensive. According to the report, Hawaii’s scenic beaches are the fastest places to see your $1 million retirement funds go down the drain.
With annual groceries costing $5,339 and housing costs totaling $35,813, the site estimates that $1 million will take less than a decade — just 9 years, 7 months and 25 days.
Other expensive living costs include $6,913 in utilities and another $6,328 in transportation and $9,485 in health care, bringing total annual expenses to $103,610.
Massachusetts: 11 years, 8 months, 9 days
It is very expensive. The second-worst state on the list was Massachusetts, where your $1 million in savings could be depleted in just over 11 years and 8 months, the site estimates.
Annual groceries totaled $5,080 in the Bay State and annual housing costs for one year increased to $26,553.
In addition, those planning to move to Massachusetts can expect to pay $5,867 in utilities and another $5,813 in transportation and $8,694 in health care, bringing the total annual cost to $85,571.
District of Columbia: 11 years, 10 months, 25 days
Following closely behind 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 about $5,166 and housing reaching nearly $27,000, GOBankingRates believes $1 million will last 11 years, 10 months and 25 days.
Other costs such as utilities would cost $4,664 per year, while transportation would cost $5,348.
Overall, anyone looking to retire in the state should expect $84,010 a year, with health care also costing $8,784.
Washington, DC in the Tidal Basin during cherry blossom season with the Rosslyn Business District cityscape seen here
The skyline of Downtown Riverside, located in the Greater Los Angeles area, is seen here
California: 12 years, 8 months, 5 days
Those dreaming of retiring to the Golden State sunshine will fare a little 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 about $22,530 and utilities totaling $5,202.
Other annual bills for transportation, which totaled $5,304, and health care costing $8,173 — a total annual spending bill would reach $73,140.
New York: 13 years, 8 months, 1 day
Surprisingly, New York State rounded out the top five on the list, with $1 million to last for 13 years and 8 months.
The site said the annual cost for those in The Empire State was $73,140, with the highest cost being $20,695 for housing.
Other estimated costs include an average annual grocery bill totaling $4,994, transportation costing about $5,304 and utilities totaling $4,363.
While in-state health care would set retirees back $8,173.
Surprisingly, New York State rounded out the top five on the list, with $1 million to last for 13 years and 8 months.
States in the Midwest and South offer a bit more bang for your buck, with some states seeing $1 million last up to 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 retirement, the best place for the best state to spend the twilight years was West Virginia.
With an annual expense of just $49,261, $1 million in retirement funds will last more than two decades.
This was broken down into $4,701 in groceries, another $7,284 in housing, $4,067 in utilities.
Other bills included $7,163 for health care and another $44,528 in transportation costs.
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 at $1 million.
With an annual grocery bill of $4,644, another $8,488 in housing and $3,685 in utilities, the annual expense came to $50,128.
While other bills such as health care and transportation reached $7,427 and $4,216 respectively.
Those with $1 million saved can 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 at $1 million.
While those looking to spend their retirement in Kansas, the state capital of Topeka seen here, can expect their savings to see almost 20 years
Oklahoma: 19 years, 11 months, 5 days
Third on the list was Oklahoma State, which closely followed Mississippi by just one week.
Annual groceries totaled $4,519 and annual housing expenses for one year increased to $8,313.
Those planning to move to the Sooner State could expect to pay $4,003 in utilities and another $4,651 in transportation and $6,982 in health care, bringing the total annual cost to $50,186.
All in all, $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 can expect their savings to last almost 20 years.
With annual groceries costing $4,629 and housing at $7,974, the $1 million site is estimated to last just 19 years, 9 months and 15 days.
Other costs include $4,444 in utilities and another $4,429 in transportation and $7,382 in health care, bringing the total annual expense to $50,533.
Alabama: 19 years, 7 months, 11 days
Rounding out the top five states to retire 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 coming in at $4,596, housing costing about $8,243 and utilities coming in at $4,312.
Other annual bills for transportation, which total $4,404, and health care, which cost $6,469 — a total annual spending bill would reach $50,995.
In reaching the findings, the site found the national average annual spending for people 65 and older using data from the US Bureau of Labor Statistics.
The site created annual state-level spending estimates by multiplying the national figure by each state’s overall cost-of-living index score from the Missouri Center for Economic Research and Information.
They then divided each state’s average annual spending estimates by 1 million to get the results.
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