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On average, U.S. workers believe they need to save $1.8 million for retirement, according to Charles Schwab’s 2023 401(k) Participant Survey.
According to Empower, the average 401(k) balance for Americans between the ages of 65 and 70 is $185,858, but even those who end up with more than $1 million in retirement savings need to consider how long that money will last. need to do it. important role.
Related article: 401(k)s may be the only retirement option for many Americans – but also a big risk, experts warn
GoBankingRates analyzed how long $1 million in retirement savings lasts in each state and determined that it’s not enough for 25 years of retirement expenses anywhere in the United States.
Research shows that in high-cost-of-living states like Hawaii, New York, and California, even large nest eggs can be depleted quickly, with $1 million gone within 15 years. Retirees in these states can expect to spend roughly $5,000 or more on groceries and $20,000 or more on housing annually.
RELATED: Some retirees are likely to face this ‘life-destroying’ event — here’s how to keep your savings safe no matter what
The farthest this $1 million will go is in states like Kansas, Oklahoma and Mississippi, where it can support retirees for more than 21 years. In fact, Mississippi was recently ranked the number one state to retire in, according to a report from CreditDonkey that looked at nine factors, including food costs and home prices.
According to GoBankingRates, the six U.S. states where you can expect your retirement savings to last the longest are:
6. Georgia
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Annual grocery cost: $4,335.11
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Annual housing cost: $8,070.70
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Annual utility bill: $3,528.90
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Annual transportation fee: $3,668.08
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Annual medical expenses: $6,783.95
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Total annual expenditure: $46,353.35
How long will $1 million in savings last: 21 years, 6 months, 26 days
5. Iowa
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Annual grocery cost: $4,407.06
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Annual housing cost: $7,333.22
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Annual utility bill: $3,744.56
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Annual transportation fee: $3,914.26
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Annual medical expenses: $6,952.67
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Total annual expenditure: $45,988.36
How long will $1 million in savings last: 21 years, 8 months, 26 days
4. Alabama
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Annual grocery cost: $4,416.05
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Annual housing cost: $7,083.93
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Annual utility bill: $3,928.84
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Annual transportation fee: $3,614.74
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Annual medical expenses: $6,291.85
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Total annual expenditure: $45,414.81
How long will $1 million in savings last: 22 years 0 months 6 days
3. Kansas
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Annual grocery cost: $4,240.67
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Annual housing cost: $7,478.64
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Annual utility bill: $3,870.03
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Annual transportation fee: $3,951.19
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Annual medical expenses: $7,107.33
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Total annual expenditure: $45,519.09
How long will $1 million in savings last: 21 years, 11 months, 19 days
2. Oklahoma
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Annual grocery cost: $4,258.66
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Annual housing cost: $7,520.19
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Annual utility bill: $3,724.95
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Annual transportation fee: $3,750.14
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Annual medical expenses: $6,432.45
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Total annual expenses: $45,206.25
How long will $1 million in savings last: 22 years, 1 month, 12 days
1. Mississippi
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Annual grocery cost: $4,132.74
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Annual housing cost: $7,115.10
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Annual utility bill: $3,470.09
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Annual transportation fee: $3,799.38
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Annual medical expenses: $6,994.85
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Total annual expenditure: $44,059.15
How long will $1 million in savings last: 22 years, 8 months, 12 days
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