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A Northwestern Mutual study showed that the magic number for retirement, or the number that U.S. adults think they will need to save to retire comfortably, leaped to $1.46 million in 2024, up from $951,000 in 2019.
Americans, on average, reported having saved $88,400 for retirement in 2024, per the same study, leaving a $1.37 million gap between goals and reality.
Now, a new analysis from GoBankingRates released earlier this month examined just how far a hypothetical $1 million in retirement savings will stretch in each state when combined with Social Security benefits.
GoBankingRates used data from the U.S. Census American Community Survey, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, and Missouri’s Economic and Research Information Center to find how long a $1 million retirement nest egg will last given each state’s cost of living.
The study calculated the cost of living by looking at the prices of necessities like housing, food, transportation, and utilities in each state. The researchers did not include federal and state income taxes in their estimates. The average monthly Social Security retirement check in January was $1,976, per the Social Security Administration.
The states where retirement funds run out the fastest usually have the highest cost of living and the greatest average monthly expenditures.
Hawaii tops the list; $1 million in retirement savings, plus Social Security benefits, would last less than 13 years in the state. One cause could be high housing costs due to restrictive land use regulations that only allow for 4% of the state’s land to be used for residential purposes. The resulting land scarcity means high home prices — the median price of a home in Hawaii is 2.7 times the national average with a median price of $850,000.
California and Massachusetts are also states where $1 million in retirement savings runs out in less than 20 years. GoBankingRates estimates that monthly expenses in those states are higher than $2,200, with Californians spending more on groceries per month than any other state’s residents. Housing in Massachusetts is priced 108% higher than the national average.
On the flip side, a $1 million retirement nest egg could last for over 70 years in five states where the cost of living is low: Oklahoma (71 years), Louisiana (76 years), Arkansas (76 years), Mississippi (87 years) and West Virginia (88 years). Factoring in Social Security, monthly expenses come out to less than $1,200 in these states, per GoBankingRates.
West Virginia has a cost of living 9% lower than the national average, with housing 21% lower than average, according to RentCafe. The World Population Review estimated in a 2024 ranking that Mississippi had the lowest cost of living in the U.S. with the lowest housing prices overall.
Here are the states where $1 million in retirement savings will last the longest, and where it will run out fast.
States Where $1 Million in Retirement Savings Will Run Out More Quickly
1. Hawaii
- Average monthly expenditure cost: $2,761
- Annual total cost of living for one person after Social Security benefits: $80,125
- How many years $1M and Social Security benefits will last: 12.48
2. California
- Average monthly expenditure cost: $2,269
- Annual total cost of living for one person after Social Security benefits: $61,406
- How many years $1M and Social Security benefits will last: 16.29
3. Massachusetts
- Average monthly expenditure cost: $2,340
- Annual total cost of living for one person after Social Security benefits: $51,686
- How many years $1M and Social Security benefits will last: 19.35
4. Washington
- Average monthly expenditure cost: $2,096
- Annual total cost of living for one person after Social Security benefits: $45,629
- How many years $1M and Social Security benefits will last: 21.92
5. New Jersey
- Average monthly expenditure cost: $2,001
- Annual total cost of living for one person after Social Security benefits: $41,315
- How many years $1M and Social Security benefits will last: 24.20
6. Colorado
- Average monthly expenditure cost: $1,899
- Annual total cost of living for one person after Social Security benefits: $39,759
- How many years $1M and Social Security benefits will last: 25.15
7. New Hampshire
- Average monthly expenditure cost: $2,081
- Annual total cost of living for one person after Social Security benefits: $38,052
- How many years $1M and Social Security benefits will last: 26.28
8. Utah
- Average monthly expenditure cost: $1,893
- Annual total cost of living for one person after Social Security benefits: $37,797
- How many years $1M and Social Security benefits will last: 26.46
9. Oregon
- Average monthly expenditure cost: $2,017
- Annual total cost of living for one person after Social Security benefits: $37,346
- How many years $1M and Social Security benefits will last: 26.78
10. Rhode Island
- Average monthly expenditure cost: $2,113
- Annual total cost of living for one person after Social Security benefits: $36,920
- How many years $1M and Social Security benefits will last: 27.09
States Where $1 Million in Retirement Savings Lasts the Longest
1. West Virginia
- Average monthly expenditure cost: $1,833
- Annual total cost of living for one person after Social Security benefits: $11,263
- How many years $1M and Social Security benefits will last: 88.79
2. Mississippi
- Average monthly expenditure cost: $1,784
- Annual total cost of living for one person after Social Security benefits: $11,473
- How many years $1M and Social Security benefits will last: 87.16
3. Arkansas
- Average monthly expenditure cost: $1,725
- Annual total cost of living for one person after Social Security benefits: $13,000
- How many years $1M and Social Security benefits will last: 76.93
4. Louisiana
- Average monthly expenditure cost: $1,785
- Annual total cost of living for one person after Social Security benefits: $13,065
- How many years $1M and Social Security benefits will last: 76.54
5. Oklahoma
- Average monthly expenditure cost: $1,832
- Annual total cost of living for one person after Social Security benefits: $14,048
- How many years $1M and Social Security benefits will last: 71.18
6. Kentucky
- Average monthly expenditure cost: $1,864
- Annual total cost of living for one person after Social Security benefits: $14,456
- How many years $1M and Social Security benefits will last: 69.17
7. Alabama
- Average monthly expenditure cost: $1,794
- Annual total cost of living for one person after Social Security benefits: $14,874
- How many years $1M and Social Security benefits will last: 67.23
8. Iowa
- Average monthly expenditure cost: $1,836
- Annual total cost of living for one person after Social Security benefits: $15,158
- How many years $1M and Social Security benefits will last: 65.97
9. Kansas
- Average monthly expenditure cost: $1,801
- Annual total cost of living for one person after Social Security benefits: $15,315
- How many years $1M and Social Security benefits will last: 65.29
10. Ohio
- Average monthly expenditure cost: $1,853
- Annual total cost of living for one person after Social Security benefits: $16,099
- How many years $1M and Social Security benefits will last: 62.12
Click here for the full report.
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