We have a retirement crisis all over America.
A recent study by personal finance site GoBankingRates unveils a harsh reality for retirees: even a hefty $1 million nest egg might not stretch as far as one would hope in many states.
Take California, for example. Seniors there are projected to burn through $1 million in just 12 years, eight months, and five days. The exorbitant costs of living and healthcare, coupled with everyday expenses, create a financial black hole. Annual expenses break down as follows: $5,387 for groceries, $22,530 for housing, $5,202 for utilities, $6,283 for transportation, and a whopping $8,226 for healthcare, amounting to nearly $80,000 a year.
But California isn’t alone in this predicament. New Yorkers can expect their million-dollar savings to last about 13 years, eight months, and one day. The situation is even grimmer in the District of Columbia, where retirees might deplete their funds in just 11 years, ten months, and 25 days. Massachusetts presents a similar bleak outlook.
🚩 New Study Reveals How Long $1 Million in Retirement Savings Would Last
“Nowhere in the US would it last longer than 22 years, 8 months and 12 days.
That is how long seven figures would stretch in Mississippi, the state where a $1 million retirement fund would last the… pic.twitter.com/BttX2gXpFH
— Chief Nerd (@TheChiefNerd) January 2, 2024
The worst-case scenario? Hawaii. Here, retirees face the terrifying prospect of exhausting their savings in a mere nine years, seven months, and 25 days, thanks to the state’s sky-high cost of living.
However, the news isn’t all doom and gloom. In Texas, retirees could potentially stretch their $1 million to last about 18 years, seven months, and seven days. The Southeastern states, including Tennessee, Georgia, Alabama, Mississippi, the Carolinas, and Florida, offer a slightly rosier picture, with retirement savings lasting at least 17 years, some even nearing the 20-year mark.
Ask a Financial Pro: I Have $1 Million in Retirement Savings. How Much Can I Withdraw Each Year in Retirement? https://t.co/9df0COPN22 pic.twitter.com/0rOG4GBeFu
— Jerry Kruger (@open_realestate) June 7, 2024
The Midwest holds promise too. States like Iowa, Arkansas, Missouri, Kansas, Nebraska, Illinois, and Indiana show that $1 million can last a substantial period, providing a sense of financial security.
The crown jewel? West Virginia. Here, the study suggests that $1 million in savings could sustain retirees for an impressive 20 years, three months, and 19 days, making it the most senior-friendly state in terms of financial longevity.
Major Points
- A GoBankingRates study highlights that $1 million in retirement savings might not last long in several states.
- California retirees could see their savings depleted in about 12 years, eight months, and five days.
- New York and the District of Columbia show concerning figures, with savings potentially running out in around 13 and 11 years, respectively.
- Hawaii presents the worst scenario, with savings possibly exhausted in just over nine years.
- States like Texas, and those in the Southeast and Midwest, show more favorable projections, with West Virginia offering the longest sustainability at over 20 years.
Susan Guglielmo – Reprinted with permission of Whatfinger News