Disturbing new study reveals how long $1m in retirement savings would last in each US state
New findings show how long a $1 million retirement nest egg would last in each U.S. state.
In a new report from GOBanking RatesThe personal finance website showed how long a $1 million retirement fund will last, taking into account annual expenses.
In collecting its findings, the site looked at food, utilities, transportation and health care.
States like Hawaii, New York and California are among the five worst places to live, with $1 million not even enough for 15 years.
States in the Midwest and South, on the other hand, offer more bang for your buck, with $1 million lasting for 20 years in some states.
States like Hawaii, pictured here, New York and California contribute to the top five worst places to live, with $1 million not covering 15 years
The site looked at food, housing utilities, transportation and health care in compiling their findings
Hawaii: 9 years, 7 months, 25 days
According to the report, Hawaii is the state that will deplete your $1 million pension fund the fastest.
The annual grocery cost is $5,339 and the housing cost is $35,813. The $1 million estimate would take the site only 9 years, 7 months and 25 days to build.
Other costs include $6,913 for utilities, another $6,328 for transportation, and $9,485 for health care, bringing the total annual expenditure to $103,610.
Massachusetts: 11 years, 8 months, 9 days
The second worst state on the list is Massachusetts, which the site estimates will gobble up $1 million in savings in just over 11 years and 8 months.
Annual groceries were $5,080 and annual housing expenses rose to $26,553.
People planning to move to The Bay State could expect to spend $5,867 on utilities, another $5,813 on transportation and $8,694 on health care, bringing the total annual expenditure to $85,571.
District of Columbia: 11 years, 10 months, 25 days
Immediately following Massachusetts was the capital, Washington DC, which would last just over two months longer than its predecessor.
Since local groceries in the state cost about $5,166 and homes cost nearly $27,000, GOBankingRates estimates that $1 million would last 11 years, 10 months and 25 days.
Other costs, such as utilities, would cost $4,664 per year, while transportation would cost $5,348.
All in all, anyone who wants to retire in the state should expect to pay $84,010 per year. Health care costs are $8,784.
Washington, DC at the Tidal Basin during cherry blossom season with the cityscape of the Rosslyn business district seen here
The skyline of Downtown Riverside, located in the Greater Los Angeles area, is seen here
California: 12 years, 8 months, 5 days
People looking to retire in the sunshine of The Golden State will have it a little better than those in Washington DC
If you save $1 million, you can expect your fund to last 12 years and 8 months.
The costs the site estimates include: an average annual grocery bill of $5,387, housing costs of about $22,530, and utilities totaling $5,202.
Other annual bills for transportation, which amounted to $5,304, and health care, which cost $8,173, mean total annual expenses would be $73,140.
New York: 13 years, 8 months, 1 day
Unsurprisingly, New York State rounded out the top five on the list, with a budget of $1 million that will last 13 years and 8 months.
According to the website, annual expenses for residents of The Empire State are $73,140, with the highest expenditure being $20,695 for housing.
Other estimated costs include the average annual grocery bill of $4,994, transportation costs of approximately $5,304, and utilities totaling $4,363.
While health care in the state would cost retirees $8,173.
Unsurprisingly, New York State rounded out the top five on the list, with $1 million that will last 13 years and 8 months.
States in the Midwest and South offer a bit more bang for your buck, with some states where $1 million can last two decades. Charleston, West Virginia is pictured here
West Virginia: 20 years, 3 months, 19 days
The best state to spend your old age in was taken by West Virginia.
At an annual expenditure of just $49,261, $1 million in pension funds would last more than two decades.
That amount was divided as follows: $4,701 for groceries, another $7,284 for housing, and $4,067 for utilities.
Other bills included $7,163 for health care and another $44,528 in transportation costs.
Mississippi: 19 years, 11 months, 12 days
Second on the list was Mississippi, which the site said last year could take less than 20 years to generate $1 million.
With an annual grocery bill of $4,644, another $8,488 for housing, and $3,685 for utilities, annual expenses totaled $50,128.
Other bills, such as health care and transportation, totaled $7,427 and $4,216, respectively.
People who saved $1 million could expect it to last 19 years, 11 months and 12 days.
Second best on the list was Mississippi, seen here, which the site said could last just under 20 years at a profit of $1 million last year.
While those looking to spend their retirement in Kansas, the state capital of Topeka, seen here, can expect their savings to last nearly 20 years
Oklahoma: 19 years, 11 months, 5 days
In third place was Oklahoma State, just one week behind Mississippi.
Annual grocery spending was $4,519 and annual housing spending rose to $8,313.
Those planning to move to The Sooner State could expect to spend $4,003 on utilities, another $4,651 on transportation and $6,982 on health care, bringing the total annual expenditure to $50,186.
In total, the $1 million should last 19 years, 11 months and 5 days.
Kansas: 19 years, 9 months, 15 days
However, people who choose to spend their retirement in Kansas can expect their savings to last nearly 20 years.
At an annual cost of $4,629 for groceries and $7,974 for housing, the $1 million location would last just 19 years, 9 months and 15 days.
Other costs include $4,444 for utilities, another $4,429 for transportation, and $7,382 for health care, bringing the total annual expenditure to $50,533.
Alabama: 19 years, 7 months, 11 days
Alabama rounded out the top five best states to retire in.
If you save $1 million, you can expect your fund to last 19 years, 9 months, and 15 days.
The costs the site estimates include: an average annual grocery bill of $4,596, housing costs of about $8,243, and utilities totaling $4,312.
Other annual bills for transportation, which amounted to $4,404, and health care, which cost $6,469, mean total annual expenses are $50,995.
To reach these findings, the website relied on the national average annual expenditures for people aged 65 and older, using data from the U.S. Bureau of Labor Statistics.
The website estimated annual state-level spending by multiplying the national figure by each state’s total cost of living index score from the Missouri Economic Research and Information Center.
They then divided each state’s estimated average annual expenditures by 1 million to get the results.