$1 million in retirement savings lasts longest in these 10 states—almost half are in the southeast (2024)

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$1 million in retirement savings lasts longest in these 10 states—almost half are in the southeast? ›

With just $1 million to spend, retirement funds will last the longest in Mississippi, Oklahoma, Kansas, Alabama, Iowa, Georgia, Indiana, Tennessee and Arkansas, for more than 21 years, according to a new analysis by GOBankingRates using data from the U.S. Bureau of Labor Statistics and Missouri Economic Research and ...

For instance, in California, an average retiree requires approximately $100,965 to lead a comfortable life, whereas in Kansas, that figure is just above $63,000. Retirees in certain states can enjoy between 15 and 16 years of life if they save one million dollars.

Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

First up on our list of best US cities to retire with $1 million in retirement savings is Tulsa in Oklahoma.

In a high-cost of living state such as California, you'll need to save more to make it through. Americans think they'll need $1.27 million to live a comfortable retirement, according to the 2023 Planning & Progress Study from life insurance company Northwestern Mutual. That's up from $1.25 million in 2022.

How Long Will $1 Million In Retirement Savings Last In Your State? A 65-year-old retiree living in California can expect $1 million in savings to last under 14 years, while that amount will last almost 21 years in Texas.

Retiring in comfort at 45 with $1.5 million is likely doable as long as your retirement living expenses are no more than average, your investments generate a typical return and you have good health. Challenges include waiting 17 years for Social Security and 20 years for Medicare.

Still, 3.5 million people lost millionaire status last year

The number of adults with assets of more than $1 million fell from 62.9 million at the end of 2021 to 59.4 million at the end of 2022, according to the UBS's annual wealth report—and it's the sharpest fall since the 2008 financial crash.

You can retire a little early on $400,000, but it won't be easy. If you have the option of working and saving for a few more years, it will give you a significantly more comfortable retirement.

Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.

How many people have $1,000,000 in retirement savings? ›

If you have more than $1 million saved in retirement accounts, you are in the top 3% of retirees. According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

Retiring at 65 with $1 million is entirely possible. Suppose you need your retirement savings to last for 15 years. Using this figure, your $1 million would provide you with just over $66,000 annually. Should you need it to last a bit longer, say 25 years, you will have $40,000 a year to play with.

What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

How long will $900k last in retirement? $900k can last you for over 25 years in retirement if your annual spending remains around $50,000, following the 4% rule.

The average retirement savings for a person about to retire are approximately, $225,000, equal to $450,000 combined for a couple that has saved equally. Following the conservative rule of thumb and withdrawing 4% a year will provide this couple with another $1,500 monthly or $18,000 a year.

A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.

For a 25-year retirement, you'd need just over $2 million in Hawaii — the most of all states by far. That's followed by Massachusetts, California and New York, along with 12 other states where you'd need at least $1 million saved up to retire.

Since higher earners will get a smaller portion of their income in retirement from Social Security, they generally need more assets in relation to their income. We estimated that most people looking to retire around age 65 should aim for assets totaling between 7½ and 13½ times their preretirement gross income.