Mississippi is the state where your dollar will last the longest amount of time in retirement, while Hawaii is the state where your dollar will last the shortest, a new study found. How much money do you need to retire? How long will your retirement savings last? A study by GoBankingRates.com is offering the answer depending on where you live.
Georgia came in at sixth on the list of best places to stretch your retirement savings; $1 million will last a retiree in the state 24 years and 11 months. Georgia is also a member of the sub-$12,000 club with housing costs that average just $11,600. Every other category is also cheaper than the national average, as well, but not by nearly as much. If you retire in here, you can get away with spending just $40,198 a year.
Ten thousand people turn 65 in the United States every single day while the average American retirement age is 63, and the life expectancy for retirees is about 85. That means Americans should plan to spend 22 years in retirement, a span that AARP suggests preparing for with a nest egg of at least $1 million.
It’s a common refrain that retirees should save at least $1 million for retirement, but how much does where they live affect their saving needs? Personal finance website GOBankingRates found the average total annual expenses for people 65 and older (adding up groceries, housing, utilities, transportation and healthcare costs), then determined the state-specific yearly cost by multiplying total expenses by each state’s cost of living index.
Top 5 States Where Your Dollar Will Last the Longest
- Mississippi: $1 million will last: 26 years, 4 months
- Arkansas: $1 million will last: 25 years, 6 months
- Oklahoma: $1 million will last: 25 years, 2 months
- Michigan: $1 million will last: 25 years
- Tennessee: $1 million will last: 25 years
Top 5 States Where Your Dollar Will Last the Shortest
- Hawaii: $1 million will last: 11 years, 11 months
- California: $1 million will last: 16 years, 5 months
- Alaska: $1 million will last: 17 years, 0 months
- New York: $1 million will last: 17 years, 1 month
- Massachusetts: $1 million will last: 17 years, 4 months
Additional Study Insights
- Hawaii’s expenses top out at $83,834 annually, while Mississippi’s are a low of $37,964.
- Alaska’s healthcare costs the most annually, at $8,479.
- The largest expenditure discrepancy is in housing: Hawaii’s costs a whopping $15,964 more annually than the runner-up, California.