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As we learned in April, a million dollars doesn’t go quite as far these days as it used to, especially when it comes to real estate. But what about when it comes to retirement? A million bucks in retirement savings is good, right?
Well, that all depends on which state you live in when you retire.
According to cost information website HowMuch.net, who used the Cost of Living Indexes, a million dollars in retirement savings will last nearly twice as long in states like Tennessee or Kansas than it will in somewhere like California or Hawaii. In fact, Hawaii is the most expensive state in America to live in retirement.
Here are the top five financially friendliest states for retirement…
1. Mississippi – $1 million lasts 25 years, 6 months
2. Arkansas – $1 million lasts 25 years
3. Tennessee – $1 million lasts 24 years, 5 months
4. Kansas – $1 million lasts 24 years, 5 months
5. Oklahoma – $1 million lasts 24 years, 4 months
And here are the five least-friendly states for retirement…
1. Hawaii – $1 million lasts 13 years, 1 month
2. District of Columbia – $1 million lasts 14 years, 2 months
3. California – $ 1million lasts 15 years
4. Oregon – $1 million lasts 16 years, 7 months
5. New York – $1 million lasts 16 years, 7 months
HowMuch.net also reminds us “that to meet your lifestyle expectation, structure your retirement in consideration of the Cost of Living Index of your state. This way, you’ll come up with competitive yields and monthly payouts that will guarantee a retirement where you live on your own terms.”
Check out the graphic below to see how long a million dollars will last in retirement in your state.
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