$1 million dollars will no longer last enough for retirement of 20 years in over half of the states, per CNBC.
GoBankingRates conducted an assessment to gauge the longevity of $1 million in covering retirement expenses across all states and determined that it would fall short of sustaining 25 years of retirement expenses anywhere in the U.S.
The analysis operated on the premise of a retirement age of 65 or older and scrutinized the annual living costs in all 50 states, encompassing housing, utilities, groceries, health care, and transportation. Utilizing data from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey and the Missouri Economic Research and Information Center, GoBankingRates provided insights into the financial dynamics.
As per the December study by GoBankingRates, $1 million would sustain approximately 18 years of retirement in Florida. In contrast, in Hawaii, this amount would be depleted after around 10 years, marking the shortest duration among all states.
Conversely, the study revealed that $1 million would stretch the furthest in Mississippi, covering around 22 years. Despite ranking as the fifth-best state for retirement in Bankrate’s assessment due to affordability and favorable weather, Mississippi received lower scores in health care and overall well-being categories.
In the realm of retirement, it becomes evident that the purchasing power of $1 million has diminished over time, influenced by factors like inflation. For instance, according to GoBankingRates’ 2022 analysis, $1 million would have sustained approximately 20 years in Florida. Meanwhile, last year's study indicated that it would have stretched slightly over 25 years in Mississippi.
