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NASHVILLE, Tenn. (WKRN) — Most Americans believe that saving a nest egg of $1 million may allow them to rest comfortably in their post-work years. However, a new analysis shows that may not be enough to sustain a living based on where you live.
Depending on the state where retirees plan to live post-work, $1 million is retirement savings can reportedly last anywhere from 12 to 88 years, marking a 70-plus year difference.
To determine how long $1 million in retirement savings and Social Security benefits lasts in every state, GoBankingRates analyzed data from the U.S. Census American Community Survey.
The analysis examined the cost of living for all 50 states, including the cost of groceries, healthcare, housing utilities, transportation and other expenses.
Retirees looking to stretch their savings should flock to states in the South and Midwest, according to the data.
For example, the numbers show a retirement nest egg of $1 million could last up to 88.79 years in West Virginia. This is due to the fact that the annual cost of living in the state is $11,263 and residents would need about $1,833 in monthly expenses.
Meanwhile, those looking forward to spending their golden years in Tennessee can expect $1 million in retirement savings to cover an average of 48.86 years. According to the analysis, the cost of living in the Volunteer State is about $20,466 per year. Tennesseans spend an average of $1,713 monthly for expenses.
In comparison, the annual cost of living for one person in Hawaii after Social Security benefits is $80,125 per year. With an average monthly expenditure cost of $2,761, GoBankingRates said retirees in the state can expect to burn through a $1 million nest egg in the span of 12.48 years.
States where $1 million would last less than 20 years:
- Hawaii: 12.48 years
- California: 16.29 years
- Massachusetts: 19.35 years
To see how long $1 million in retirement savings would last in each state, click here.