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January 03, 2023 at 11:21 AM
Related: 12 States Where $1M Will Last Longest in Retirement
Many retirement specialists consider $1 million in savings the minimum Americans need to live comfortably in retirement. But that figure is out of reach for many people, given that the average amount Americans have saved is a little more than $168,000, according to a recent report from GOBankingRates.
But say someone 65 or older has $1 million saved. How long will that nest egg last?
To find out, GOBankingRates analyzed data from the 2020 Consumer Expenditure Survey (CE) by the Bureau of Labor Statistics and factored in each state’s overall cost-of-living index score for 2021 from the Missouri Economic Research and Information Center (MERIC).
They then broke down annual costs further by multiplying more specific annual expenditure figures from the CE by MERIC’s cost of living for groceries, utilities, transportation and health care. (These numbers do not add up to the “total expenditures” figure.)
They then ranked all 50 states, with No. 1 being the state where $1 million will last the longest and No. 50 being the state where it will run out most quickly.
The analysis showed wide variation across the country. In the cheapest states, retirees with $1 million saved can look forward to at least two decades of comfortable living, whereas their counterparts in pricier states will start to feel the pinch much sooner.
See the gallery for the 12 states where retirees run through $1 million most quickly.
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