American staff, on common, consider they want $1.8 million saved for retirement, in accordance with the 2023 401(okay) Participant Examine revealed by Charles Schwab.
The common 401(okay) steadiness for Individuals aged 65-70 is $185,858, per Empower, however even those that find yourself with a $1 million-plus retirement cushion have to contemplate how lengthy the cash will final them — and the place they stay performs a major position.
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GoBankingRates analyzed how lengthy $1 million retirement financial savings would final in each state and decided it would not be sufficient for 25 years of retirement bills wherever within the U.S.
Even giant nest eggs deplete shortly in high-cost-of-living states, together with Hawaii, New York and California, the place $1 million disappears inside 15 years, per the analysis. Retirees in these states can anticipate annual grocery prices of roughly $5,000 or extra and yearly housing prices upwards of $20,000.
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That $1 million will go the furthest in states like Kansas, Oklahoma and Mississippi, the place it could assist retirees for 21 years or extra. In actual fact, Mississippi was not too long ago named the No. 1 state to retire in, in accordance with a CreditDonkey report, which examined 9 elements together with meals and beverage expenditure and home costs.
Listed here are the six U.S. states the place you may anticipate your retirement financial savings to final the longest, in accordance with GoBankingRates:
6. Georgia
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Annual groceries price: $4,335.11
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Annual housing price: $8,070.70
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Annual utilities price: $3,528.90
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Annual transportation price: $3,668.08
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Annual healthcare price: $6,783.95
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Whole annual expenditures: $46,353.35
How lengthy $1 million will final in financial savings: 21 years 6 months 26 days
5. Iowa
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Annual groceries price: $4,407.06
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Annual housing price: $7,333.22
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Annual utilities price: $3,744.56
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Annual transportation price: $3,914.26
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Annual healthcare price: $6,952.67
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Whole annual expenditures: $45,988.36
How lengthy $1 million will final in financial savings: 21 years 8 months 26 days
4. Alabama
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Annual groceries price: $4,416.05
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Annual housing price: $7,083.93
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Annual utilities price: $3,928.84
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Annual transportation price: $3,614.74
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Annual healthcare price: $6,291.85
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Whole annual expenditures: $45,414.81
How lengthy $1 million will final in financial savings: 22 years 0 months 6 days
3. Kansas
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Annual groceries price: $4,240.67
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Annual housing price: $7,478.64
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Annual utilities price: $3,870.03
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Annual transportation price: $3,951.19
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Annual healthcare price: $7,107.33
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Whole annual expenditures: $45,519.09
How lengthy $1 million will final in financial savings: 21 years 11 months 19 days
2. Oklahoma
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Annual groceries price: $4,258.66
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Annual housing price: $7,520.19
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Annual utilities price: $3,724.95
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Annual transportation price: $3,750.14
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Annual healthcare price: $6,432.45
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Whole annual expenditures: $45,206.25
How lengthy $1 million will final in financial savings: 22 years 1 months 12 days
1. Mississippi
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Annual groceries price: $4,132.74
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Annual housing price: $7,115.10
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Annual utilities price: $3,470.09
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Annual transportation price: $3,799.38
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Annual healthcare price: $6,994.85
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Whole annual expenditures: $44,059.15
How lengthy $1 million will final in financial savings: 22 years 8 months 12 days
