Americans have been talking about the “magic number” for a comfortable retirement for many years. Some experts have stated that $1 million is no longer adequate, and other experts have said that it is more important to plan carefully than it is to save a ton of money. A new analysis from USA Today explored how long $1.5 million in retirement savings would actually last across every U.S. state, and the results were striking. The funds might last for years longer in some areas than others, or last a surprising amount of years in others.
Retirement Costs Vary Widely by State
The study estimated the cumulative cost of living for each state over a year, including Social Security income. The findings revealed that where retirement savings are made can have a significant impact on its longevity.
Hawaii Was One of the Most Expensive States
With Hawaii’s very high cost of living, $1.5 million would only buy you about 17 years of living here. Retirement here is especially difficult because of housing, food, and other living costs.
California and Massachusetts Also Ranked High
Say goodbye to savings for California and Massachusetts retirees – it’s a painful loss. High health care, housing, and other living expenses can drastically shorten the duration of retirement funds.
Southern States Were Surprisingly Affordable
Alabama, Mississippi, and Oklahoma were among the cheapest states to retire. In these areas, $1.5 million can be expected to cover the operational life of the money for at least 50 years.
West Virginia Delivered the Best Value
According to the analysis, West Virginia was the most affordable retirement state overall. There, $1.5 million could reportedly support retirement expenses for more than five decades.
Florida Lasted Longer Than Many Expected
Even with its popularity among retirees, Florida was still a relatively inexpensive place for everyone to live in retirement. The study estimated that the savings will last for about 39 years.
Don’t Have Anywhere Near $1.5 Million Saved
Another big reality check came out of the report that most retirees don’t save to this extent. Many elderly people depend a lot on Social Security and have quite modest retirement savings.
It’s More Than One Magic Number
Financial planners say that there is no one retirement number to hit since people have different lives, different health requirements, different locations, and different spending habits. Where they retire may be as important as how much they save for many people.
