Having at least $1 million in retirement savings is a common —
if increasingly lofty — goal for American seniors, but a new breakdown shows
even that amount can disappear quickly.
Retirees in a handful of
southern states can stretch their $1 million nest egg the farthest, according
to a new analysis from GoBankingRates, a personal finance website. Those seven
figures will last 26 years in Mississippi, the longest out of any of the 50
states, followed by Oklahoma at 24.8. Alabama, Arkansas, and lone northern
holdout Michigan all came in at 24.6 years.
On the other end of the
spectrum, Hawaii — where consumers have to deal with higher prices for everyday
goods due to the state’s relative isolation — will eat through $1 million
within just 11.7 years, the website found. California came next at 15.5, with
New York, Alaska, and Maryland rounding out the top five most expensive states
numbers contrast with GoBankingRates’ suggestion that older Americans should
plan for at least 16 retirement years, based on the average retirement age of
63 and life expectancy of 79.
website took into account a variety of retirement costs, including health care
expenditures, grocery bills, and housing expenses.
wisdom suggests a retirement income nest egg of at least $1 million, but the
buying power of $1 million varies wildly depending on where you live,” writer
Joel Anderson noted. “So if you’re asking ‘how long will my money last in
retirement,’ the answer is: ‘It depends on your state.'