An alarming new study reveals just how little people in each U.S. state have in retirement savings of $1 million.
Personal Finance Site GOBanking Fees We analyzed data from each state to show how much you could live on a $1 million retirement income, given your annual expenses.
The site took into account food, housing, transportation and health care when compiling its findings.
States like Hawaii, New York and California make up the top five least liveable places where $1 million can cover you for less than 15 years.
Meanwhile, in the Midwest and Southern states, you’ll get a bit more bang for your buck, with a $1 million home lasting for 20 years.
Hawaii: 9 years, 7 months, 25 days
Island living can be expensive, and according to a report, Hawaii’s picturesque beaches are the quickest place a $1 million retirement savings would disappear.
Factoring in annual grocery costs of $5,339 and housing costs of $35,813, the site estimates that $1 million would last you less than 10 years, or just nine years, seven months and 25 days.
Other high living expenses include utilities ($6,913), transportation ($6,328) and medical costs ($9,485), bringing the total annual expenditure to $103,610.
Massachusetts: 11 years, 8 months, 9 days
That’s a lot of money. The second-most expensive state on the list is Massachusetts, where the site estimates that it would take just over 11 years and eight months to empty $1 million in savings.
In the Bay State, annual grocery costs hit $5,080 and annual housing costs rose to $26,553.
Additionally, people planning to move to Massachusetts can expect to pay $5,867 for utilities, $5,813 for transportation, and $8,694 for health care, bringing their total annual expenses to $85,571.
District of Columbia: 11 years, 10 months, 25 days
Massachusetts is followed by the state capital, Washington, D.C., where retirees will live there for just over two months longer than in the previous state.
With local grocery prices in the state at about $5,166 and home prices at about $27,000, GOBankingRates projects that $1 million would last you 11 years, 10 months and 25 days.
Other expenses such as utilities cost $4,664 a year, and transportation costs $5,348.
Overall, those looking to retire in the state should expect to pay $84,010 a year, with health care costs of $8,784.
California: 12 years, 8 months, 5 days
For those dreaming of retiring to the sun in California, you’ll have a slight advantage over those living in Washington, DC.
Someone with $1 million in savings should expect it to last for 12 years and 8 months.
The site estimates that expenses include an average annual grocery bill totaling $5,387, housing costs of about $22,530, and utilities totaling $5,202.
Other annual transportation costs were $5,304 and medical costs were $8,173, bringing the total annual expenditure to $73,140.
New York: 13 years, 8 months, 1 day
As expected, New York state makes it into the top five of the list, with the $1 million expected to last for 13 years and eight months.
According to the site, New York state residents spend $73,140 a year, with the highest expense being $20,695 for housing.
Other estimated costs included an average annual grocery bill totaling $4,994, transportation costs totaling approximately $5,304, and utilities totaling $4,363.
Meanwhile, the state’s health insurance costs retirees $8,173.
West Virginia: 20 years, 3 months, 19 days
For those looking to travel the country in retirement, West Virginia came in as the number one best state to retire in.
With annual expenses of just $49,261, a $1 million retirement fund would last for more than 20 years.
The breakdown is $4,701 for groceries, $7,284 for housing, and $4,067 for utilities.
Other charges included $7,163 in medical expenses and $44,528 in transportation expenses.
Mississippi: 19 years, 11 months, 12 days
The second best state on the list was Mississippi, where $1 million would last you just under 20 years, according to the site.
Their annual grocery bill is $4,644, plus housing costs $8,488 and utilities $3,685, totaling $50,128 in annual expenses.
Meanwhile, other charges, such as medical expenses and travel expenses, were $7,427 and $4,216, respectively.
Someone with $1 million saved can expect their money to last 19 years, 11 months and 12 days.
Oklahoma: 19 years, 11 months, 5 days
Coming in third on the list was Oklahoma, just one week behind Mississippi.
Annual grocery costs hit $4,519, while annual housing costs rose to $8,313.
Meanwhile, those planning to move to the Sooner State can expect to pay $4,003 for utilities, another $4,651 for transportation and $6,982 for health care, bringing their total annual expenses to $50,186.
In total, the $1 million should last for a total of 19 years, 11 months and 5 days.
Kansas: 19 years, 9 months, 15 days
There’s no place like home. People planning to retire in Kansas can expect their savings to last for nearly 20 years.
With annual grocery costs of $4,629 and housing costs of $7,974, the site estimates it would take just 19 years, nine months and 15 days to earn $1 million.
Other expenses include $4,444 in utilities, $4,429 in transportation and $7,382 in medical expenses, bringing the total annual expenditure to $50,533.
Alabama: 19 years, 7 months, 11 days
Rounding out the top five best states for retirement is Alabama.
Someone with $1 million in savings can expect their money to last 19 years, 9 months and 15 days.
The costs estimated by the site include an average annual grocery bill totaling $4,596, housing costs around $8,243 and utilities totaling $4,312.
Other annual transportation costs were $4,404 and medical costs were $6,469, bringing the total annual expenditure to $50,995.
To arrive at its findings, the site used data from the US Bureau of Labor Statistics to calculate the national average annual spending for people aged 65 and over.
The site created state-level annual spending estimates by multiplying the national figures by each state’s Composite Cost of Living Index score from the Missouri Center for Economic Research and Information.
We then divided each state’s average annual spending estimate by one million to arrive at the results.
