A disturbing new study shows how $1 million in retirement savings would barely be enough in every U.S. state.
Personal finance site GOBankingRates analyzed state-by-state data to show how far you can go on a $1 million retirement fund by looking at annual expenses.
The site considered groceries, housing utilities, transportation and health care when compiling its findings.
States like Hawaii, New York and California are among the five worst places to live, with $1 million covering less than 15 years.
Meanwhile, states in the Midwest and South offer a little more bang for your buck, with some seeing $1 million last up to two decades.
Island living can be expensive. Hawaii’s picturesque beaches are the fastest places to see your $1 million retirement savings disappear, according to the report.
With annual grocery spending of $5,339 and housing costs reaching $35,813, the site estimates that $1 million would last less than a decade — just 9 years, 7 months and 25 days.
Other costly daily living expenses include $6,913 for utilities, another $6,328 for transportation and $9,485 for health care, bringing the total annual spending to $103,610.
It’s extremely expensive. The second most expensive state on the list is Massachusetts, where your $1 million savings could be depleted in just over 11 years and 8 months, according to the site’s estimates.
Annual grocery spending hits $5,080 in the Bay State, and annual housing expenses for one year climbed to $26,553.
Additionally, those planning to move to Massachusetts could expect to pay $5,867 for utilities, an additional $5,813 for transportation and $8,694 for health care, bringing the total annual expense to $85,571.
Just behind Massachusetts is the capital Washington DC, which would grant retirees just over 2 months more than the previous state.
With local groceries costing about $5,166 and housing costing nearly $27,000, GOBankingRates estimates that $1 million would last 11 years, 10 months and 25 days.
Other costs, such as utilities, would cost $4,664 per year, while transportation would cost $5,348.
Overall, anyone looking to retire in the state should expect to earn $84,010 per year, with health care also costing $8,784.
Those dreaming of retiring in the sunny Golden State will be a little better off than those in Washington DC.
Anyone with $1 million in savings should expect their fund to last 12 years and 8 months.
Costs are estimated by the site at an average annual grocery bill totaling $5,387, housing costing about $22,530 and utilities totaling $5,202.
Other annual bills for transportation, which amount to $5,304, and health care, which costs $8,173, bring the total annual expense bill to $73,140.
Unsurprisingly, New York State rounds out the top five on the list, with $1 million expected to last 13 years and 8 months.
The site says Empire State residents spend $73,140 annually, with the highest spending being $20,695 on housing.
Other estimated costs include an average annual grocery bill totaling $4,994, transportation costing about $5,304 and utilities totaling $4,363.
While health care in the state would cost retirees $8,173.
For those looking to hit the country roads in retirement, the best state to spend their final years in was West Virginia.
With an annual outlay of just $49,261, a million-dollar retirement fund would last more than two decades.
This broke down as follows: $4,701 in groceries, an additional $7,284 in housing and $4,067 in utilities.
Other bills included $7,163 in health care and another $44,528 in transportation costs.
Mississippi is the second best state on the list. According to the site, it could last just under 20 years on $1 million.
With an annual grocery bill of $4,644, an additional $8,488 for housing and $3,685 for utilities, annual expenses came to $50,128.
While other bills like health care and transportation came to $7,427 and $4,216 respectively.
Those who have saved $1 million can expect it to last 19 years, 11 months and 12 days.
Oklahoma State comes in third on the list, just behind Mississippi, just one week ahead.
Annual grocery spending reached $4,519 and annual housing expenses for one year climbed to $8,313.
While those planning to move to the Sooner State could expect to pay $4,003 for utilities, an additional $4,651 for transportation and $6,982 for health care, bringing the total annual expense to $50,186.
In total, $1 million should last 19 years, 11 months and 5 days.
There’s no place like home? Those planning to retire in Kansas can expect their savings to last nearly 20 years.
With annual grocery spending of $4,629 and housing costs of $7,974, the site estimates that $1 million would last only 19 years, 9 months and 15 days.
Other costs include $4,444 for utilities, another $4,429 for transportation and $7,382 for health care, bringing the total annual expenditure to $50,533.
Alabama rounds out the top five best states to retire in.
Anyone with $1 million in savings should expect their fund to last 19 years, 9 months and 15 days.
Costs estimated by the site include an average annual grocery bill totaling $4,596, housing costing about $8,243 and utilities totaling $4,312.
Other annual bills for transportation, which amount to $4,404, and health care, which costs $6,469, bring the total annual expense bill to $50,995.
To reach these conclusions, the site identified the national average annual spending of people aged 65 and older using data from the U.S. Bureau of Labor Statistics.
The site created state-level annual spending estimates by multiplying the national figure by each state’s overall cost of living index from the Missouri Economic Research and Information Center.
They then divided each state’s average annual spending estimates by $1 million to get the results.
News Source : www.dailymail.co.uk
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