Having $1 million for retirement is a sizable nest egg, but it may not last as long as you’d think.
GOBankingRates has released a report that shows how long $1 million in retirement savings would last in each U.S. state. The personal finance website based the report on annual living expenses, including groceries, housing, utilities, transportation and healthcare.
GOBankingRates found that if you live in one of the more expensive states, like New York or Hawaii, you’ll want to work as long as possible because $1 million won’t cover 15 years-worth of living expenses.
But what about Florida and Miami?
Here’s the breakdown:
Retirement cost of living in Florida with $1 million
According to the report, $1 million in savings in Florida would last 17 years, 1 month, 13 days.
- Annual groceries cost: $4,783
- Annual housing cost: $12,557
- Annual utilities cost: $4,189
- Annual transportation cost: $4,805
- Annual healthcare cost: $7,321
- Total annual expenditures: $58,396
What about Miami?
- Annual cost of living: $74,107.86
- How many years $1 million will last: 13.49
What the report says: “It’s no surprise that Miami is one of the cities on this list with a higher percentage of adults age 65 or older — 16.3% of the population — but a $1 million nest egg will only last retirees about 13 1/2 years here. All expenses here are above the national average except utilities.”
Methodology
To determine how long $1 million would last in each state, GOBankingRates 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. Finally, GOBankingRates divided each state’s average annual expenditure estimates by 1 million to get the results.
Top 10 states where $1 million retirement would last longest
- West Virginia: 20 years, 3 months, 19 days
- Mississippi: 19 years, 11 months, 12 days
- Oklahoma: 19 years, 11 months, 5 days
- Kansas: 19 years, 9 months, 15 days
- Alabama: 19 years, 7 months, 11 days
- Missouri: 19 years, 7 months, 3 days
- Arkansas: 19 years, 6 months, 15 days
- Iowa: 19 years, 2 months, 26 days
- Tennessee: 19 years, 1 month, 17 days
- Louisiana: 19 years, 0 months, 26 days
Top 10 states where $1 million retirement lasts the least
- Hawaii: 9 years, 7 months, 25 days
- Massachusetts: 11 years, 8 months, 9 days
- District of Columbia: 11 years, 10 months, 25 days
- California: 12 years, 8 months, 5 days
- New York: 13 years, 8 months, 1 day
- Alaska: 13 years, 8 months, 5 days
- Washington: 14 years, 11 months, 12 days
- New Hampshire: 14 years, 11 months, 16 days
- Vermont: 15 years, 0 months, 19 days
- Maryland: 15 years, 0 months, 26 days
Patrick McCreless is the service journalism editor for The State, where he and a team of reporters write about the day’s trending news and topics that help readers in their daily lives and better inform their communities. He attended Jacksonville State University in Alabama and grew up in Tuscaloosa, AL.
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