By Amanda Breen
American workers, on average, believe they need $1.8 million saved for retirement, according to the 2023 401(k) Participant Study published by Charles Schwab.The average 401(k) balance for Americans aged 65–70 is $185,858, per Empower, but even those who end up with a $1 million-plus retirement cushion have to consider how long the money will last them—and where they live plays a significant role.
GoBankingRates analyzed how long $1 million retirement savings would last in every state and determined it wouldn’t be enough for 25 years of retirement expenses anywhere in the United States.
Even large nest eggs deplete quickly in high-cost-of-living states, including Hawaii, New York, and California, where $1 million disappears within 15 years, per the research. Retirees in those states can expect annual grocery costs of roughly $5,000 or more and yearly housing costs upwards of $20,000.
That $1 million will go the furthest in states like Kansas, Oklahoma, and Mississippi, where it can support retirees for 21 years or more. In fact, Mississippi was recently named the No. 1 state to retire in, according to a CreditDonkey report, which examined nine factors including food and beverage expenditure and house prices.
6. Georgia
- annual groceries cost: $4,335.11
- annual housing cost: $8,070.70
- annual utilities cost: $3,528.90
- annual transportation cost: $3,668.08
- annual healthcare cost: $6,783.95
- total annual expenditures: $46,353.35
5. Iowa
- annual groceries cost: $4,407.06
- annual housing cost: $7,333.22
- annual utilities cost: $3,744.56
- annual transportation cost: $3,914.26
- annual healthcare cost: $6,952.67
- total annual expenditures: $45,988.36
4. Alabama
- annual groceries cost: $4,416.05
- annual housing cost: $7,083.93
- annual utilities cost: $3,928.84
- annual transportation cost: $3,614.74
- annual healthcare cost: $6,291.85
- total annual expenditures: $45,414.81
3. Kansas
- annual groceries cost: $4,240.67
- annual housing cost: $7,478.64
- annual utilities cost: $3,870.03
- annual transportation cost: $3,951.19
- annual healthcare cost: $7,107.33
- total annual expenditures: $45,519.09
2. Oklahoma
- annual groceries cost: $4,258.66
- annual housing cost: $7,520.19
- annual utilities cost: $3,724.95
- annual transportation cost: $3,750.14
- annual healthcare cost: $6,432.45
- total annual expenditures: $45,206.25
1. Mississippi
- annual groceries cost: $4,132.74
- annual housing cost: $7,115.10
- annual utilities cost: $3,470.09
- annual transportation cost: $3,799.38
- annual healthcare cost: $6,994.85
- total annual expenditures: $44,059.15
