Offbeat 11 states where $1 million lasts retirees at least 24 years

20:17  17 may  2018
20:17  17 may  2018 Source:   moneytalksnews.com

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A recent GOBankingRates analysis starkly illustrates how much location can impact retirement savings for better or worse. For its analysis, the site examined each state ’s cost of living and the average total expenditures of people age 65 and older. Mississippi is the only state in which $ 1 million .

Retirees in that state spend ,964 a year to get by, making it the cheapest state overall. It also has the cheapest housing cost in the nation at $ 11 ,134 a year . Mississippi is one of only 12 states where $ 1 million will last a retiree at least about a quarter-century

Many folks choose their retirement destination based primarily on nonfinancial factors, such as climate or proximity to family.

Lest you outlive your savings, however, you must also consider cost of living. A recent analysis by HowMuch.net shows that your retirement location can significantly impact how long retirement savings last.

The analysis is based on federal data showing how much folks age 65 and older spend in a year and the Council for Community and Economic Research’s data on costs of living.

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The AARP suggests a retirement income nest egg of at least $ 1 million , but the buying power of $ 1 million varies wildly depending on where you live. Dividing a theoretical $ 1 million by the costs per state reveals the number of years $ 1 million will last retirees in every state .

GoBankingRates compared how long $ 1 million in savings would last in each state . It's no surprise that dollars stretched the furthest in states like Mississippi, Arkansas and Tennessee, where retirees could live a life of leisure for at least a quarter of a century.

HowMuch.net found that a savings of $1 million would last you anywhere from 13 years to 25.5 years in retirement, depending on the state in which you spend your golden years.

The 11 states in which $1 million would last at least 24 years are:

  • Mississippi: 25 years, six months
  • Arkansas: 25 years
  • Tennessee: 24 years, five months
  • Kansas: 24 years, five months
  • Oklahoma: 24 years, four months
  • Missouri: 24 years, four months
  • Michigan: 24 years, two months
  • Texas: 24 years, one month
  • Georgia: 24 years, one month
  • Alabama: 24 years, one month
  • Indiana: 24 years, one month

At the other end of the spectrum is Hawaii, where $1 million would last just 13 years and one month. The Aloha State is followed by the District of Columbia and California, where the same sum would also last 15 years or less.

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In Mississippi, retirees can stretch a million dollars for more than 26 years – the longest of any US state , according to the study. Arkansas, Michigan, Tennessee, Georgia, Missouri, Texas, Indiana and Alaska are also states where a million dollars can last for longer than 24 years .

13 US states where a $ 1 million cash nest egg won't last you more than 20 years in retirement. Read on for the full list of 13 states where $ 1 million will last the average retiree fewer than 20 years : View As: One Page Slides.

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HowMuch.net is not the first to calculate how long $1 million will last retirees in each state. Other sites have come up with similar results.

For example, last year GOBankingRates found that $1 million would also last retirees the longest in Mississippi and be exhausted fastest in Hawaii. The states that GOBankingRates ranked highest were also similar to those in HowMuch.net’s top 11 listed above.

Of course, your cost of living in retirement depends on more than just the state where you live. Even among big cities, costs of living can vary dramatically, with $1 million lasting anywhere from fewer than 18 years to as long as 26 years, as we reported in April.

And then there are other countries to consider if you really want to make your retirement savings last as long as possible.

The changing face of retirement: Apartment living, active lifestyles, and rural homes .
How a “silver tsunami” of aging boomers will reshape the senior housing market“Between 2010 and 2040, we predict the nation’s 65-plus population will grow by roughly 90 percent,” says Hamilton Lombard, a demographics researcher for the University of Virginia. “In some areas of the country, most of the population growth will come from retirees.

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