A recent analysis by GOBankingRates reveals that the amount of time a household’s retirement savings lasts varies significantly from state to state. According to the study, which took into account average expenses for essentials such as groceries, housing, utilities, transportation, and healthcare, $1.5 million in savings would last an average of 43 years if it were the sole source of income.
Here are some states where $1.5 million is expected to last longer than others:
* West Virginia: nearly 54 years
* South Dakota: almost 46 years
* North Dakota: around 47 years
* Oklahoma: over 51 years
On the other hand, some states where $1.5 million would last significantly less time include:
* New York (around 29 years)
* New Jersey (about 33 years)
* Washington (nearly 33 years)
The study also highlights that these calculations are simplified and do not account for factors such as inflation, investment returns, or changes in healthcare costs over time. Therefore, it is essential to consider multiple sources of income and diversify investments to ensure a comfortable retirement.
Ultimately, the length of time $1.5 million lasts will depend on various personal circumstances and economic conditions. By understanding these variations across different states and taking proactive steps towards retirement planning, individuals can better prepare for their golden years.
Source: https://www.cnbc.com/2025/03/15/how-long-1point5-million-lasts-in-retirement-in-every-us-state.html