Saved $1 million for retirement? Here's where your money will last the longest around the U.S. (2024)

Retirement saving tips in your 20s and 30s

Americans looking to stretch their retirement savings may want to head to states in the South or the Midwest, a recent analysis suggests.

Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.

Tapping government data, the personal finance site estimated the number of years retirees aged 65 or older could live off $1 million in savings based on the cost of housing, transportation, utilities, health care and groceries in each of the 50 U.S. states.

The key finding: Retirees can get the biggest bang for their buck in Mississippi, where the combined cost of food, utilities, housing, health care and other essentials is $44,000 per year. Saving of $1 million in the state would last you nearly 23 years, the personal finance site said.

By contrast, retirees in Hawaii — where the annual living costs are roughly $97,000, or more than double those of retirees in Mississippi — will burn through $ 1 million in just over 10 years, according to GoBankingRates.

It's worth noting that most Americans are nowhere near having that much money socked away. According to data from financial services firm Credit Karma, Baby boomers have median retirement savings of $120,000, while nearly 30% of people aged 59 or older have saved nothing for their golden years.

That's despite the fact that many retirements now last more than 25 years, according to financial services firm Fidelity. Those meager savings also fall well below the $1.8 million in savings Americans say they need to live out their golden years comfortably, according to a recent Charles Schwab poll.

Elizabeth Napolitano

Saved $1 million for retirement? Here's where your money will last the longest around the U.S. (2)

Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News' BizTech Unit and worked on The Associated Press' web scraping team.

Saved $1 million for retirement? Here's where your money will last the longest around the U.S. (2024)

FAQs

Saved $1 million for retirement? Here's where your money will last the longest around the U.S.? ›

The key finding: Retirees can get the biggest bang for their buck in Mississippi, where the combined cost of food, utilities, housing, health care and other essentials is $44,000 per year. Saving of $1 million in the state would last you nearly 23 years, the personal finance site said.

How long will $1 million last in retirement by state? ›

For instance, in California, an average retiree requires approximately $100,965 to lead a comfortable life, whereas in Kansas, that figure is just above $63,000. Retirees in certain states can enjoy between 15 and 16 years of life if they save one million dollars.

How many Americans have $1000000 in retirement savings? ›

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

Where will my retirement money go the furthest? ›

Southern and Midwestern states are best for retirees looking to make their money last, according to a Jan. 5 analysis from GoBankingRates.

Can you live off the interest of $1 million dollars? ›

Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose. But let's be even more conservative.

How many people have $2000000 in savings? ›

Among the 47 million households headed by someone age 60 or older, 7% had household investable assets of at least $2 million, Drinkwater said. Only 6% of the 89 million households in the U.S. headed by someone 40 to 85 years old has that amount, Drinkwater said.

How many years will $300 000 last in retirement? ›

$300,000 can last for roughly 26 years if your average monthly spend is around $1,600. Social Security benefits help bolster your retirement income and make retiring on $300k even more accessible. It's often recommended to have 10-12 times your current income in savings by the time you retire.

How many people have $3,000,000 in savings in usa? ›

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

What percentage of Americans have a net worth of $1000000? ›

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

How much does the average 70 year old have in savings? ›

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

How long will 1 million last in retirement with Social Security? ›

For retirees in California, the annual cost of living expenses would be $72,319.57, meaning a $1 million retirement fund would last for about 14 years. Retirement can often last 25 years or more, according to Fidelity.

How much money do most people have in the bank when they retire? ›

What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

Can a couple retire on $1 million dollars? ›

How long will $1 million in retirement savings last? In more than 20 U.S. states, a million-dollar nest egg can cover retirees' living expenses for at least 20 years, a new analysis shows. It's worth noting that most Americans are nowhere near having that much money socked away.

What is the 4 rule in retirement? ›

The 4% rule says people should withdraw 4% of their retirement funds in the first year after retiring and take that dollar amount, adjusted for inflation, every year after. The rule seeks to establish a steady and safe income stream that will meet a retiree's current and future financial needs.

How rich are you if you have $1 million dollars? ›

Vanguard, the investment management company, defines $1 million in investments as high net worth. The average American family now reports a net worth of nearly $1.1 million, according to the new Fed survey. That sounds like a lot of money. But the super-rich skew the average.

What is the average age to make your first million? ›

The average age of millionaires is 57, indicating that, for most people, it takes three or four decades of hard work to accumulate substantial wealth.

How long will money last using 4% rule? ›

This rule is based on research finding that if you invested at least 50% of your money in stocks and the rest in bonds, you'd have a strong likelihood of being able to withdraw an inflation-adjusted 4% of your nest egg every year for 30 years (and possibly longer, depending on your investment return over that time).

How much does the average American need to retire? ›

Americans have lofty goals for their retirement, with the typical worker believing they need $1.46 million to retire comfortably — a jump of 53% from their savings target in 2020, according to a new survey from Northwestern Mutual.

What is the best state to retire in 2024? ›

Out of all 50 states, the Sunshine State topped WalletHub's list of best states to retire, but with Florida's considerably high cost of living -- some might wonder why it's still the favorite among retirees. Get South Florida local news, weather forecasts and entertainment stories to your inbox.

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