If you can take the heat, Mississippi is the state where your dollar will last the longest amount of time in retirement, while Hawaii is the state where your dollar will last the shortest, according to a new study from GoBankingRates out Monday.
It’s a common refrain, perhaps misguided, that retirees should save at least $1 million for retirement, but that figure is promulgated by financial advisors who take a commission and politcos who are ever eyeing new ways to relieve taxpayers of their money.
GOBankingRates found the average total annual expenses for people 65 and older (adding up groceries, housing, utilities, transportation and healthcare costs), then determined the state-specific yearly cost by multiplying total expenses by each state’s cost of living index.
For full study results and more details on methodology, visit: How Long $1 Million Will Last in Retirement in Every State
Top 5 States Where Your Dollar Will Last the Longest
1. Mississippi
$1 million will last: 26 years, 4 months
2. Arkansas
$1 million will last: 25 years, 6 months
3. Oklahoma
$1 million will last: 25 years, 2 months
4. Michigan
$1 million will last: 25 years
5. Tennessee
$1 million will last: 25 years
Top 5 States Where Your Dollar Will Last the Shortest
1. Hawaii
$1 million will last: 11 years, 11 months
2. California
$1 million will last: 16 years, 5 months
3. Alaska
$1 million will last: 17 years, 0 months
4. New York
$1 million will last: 17 years, 1 month
5. Massachusetts
$1 million will last: 17 years, 4 months
Additional Study Insights
- Hawaii’s expenses top out at $83,834 annually, while Mississippi’s are a low of $37,964.
- Alaska’s healthcare costs the most annually, at $8,479.
- The largest expenditure discrepancy is in housing: Hawaii’s costs a whopping $15,964 more annually than the runner-up, California.
