Saved $1 million for retirement? Here's where your money will last the longest around the U.S. (2024)

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Saved $1 million for retirement? Here's where your money will last the longest around the U.S.? ›

The key finding: Retirees can get the biggest bang for their buck in Mississippi, where the combined cost of food, utilities, housing, health care and other essentials is $44,000 per year. Saving of $1 million in the state would last you nearly 23 years, the personal finance site said.

For instance, in California, an average retiree requires approximately $100,965 to lead a comfortable life, whereas in Kansas, that figure is just above $63,000. Retirees in certain states can enjoy between 15 and 16 years of life if they save one million dollars.

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

Southern and Midwestern states are best for retirees looking to make their money last, according to a Jan. 5 analysis from GoBankingRates.

Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose. But let's be even more conservative.

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

$300,000 can last for roughly 26 years if your average monthly spend is around $1,600. Social Security benefits help bolster your retirement income and make retiring on $300k even more accessible. It's often recommended to have 10-12 times your current income in savings by the time you retire.

Let's break it down with a cold splash of truth. There are about 22 million people in the US sitting on a net worth of over $1 million. That might seem like a hefty squad of millionaires to you, but let's put things into perspective. That's less than 7% of the U.S. adult population, my friend.

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings) $127,000 in certificate of deposit (CD) accounts.

How long will 1 million last in retirement with Social Security? ›

$1 million lasted the least amount of time in Hawaii at just 10.3 years, followed by Massachusetts at 12.8 years. California took third at 13.8 years. Funds lasted the longest in Mississippi at 22.7 years, with Oklahoma close behind at 22.1 years.

What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

How long will $1 million in retirement savings last? In more than 20 U.S. states, a million-dollar nest egg can cover retirees' living expenses for at least 20 years, a new analysis shows. It's worth noting that most Americans are nowhere near having that much money socked away.

Working with this benchmark, it is feasible to live off 1.5 million. For a 65-year-old with an average life expectancy of 17 years, that's roughly $85,000 yearly for expenses. Of course, certain factors come into play here.

It's possible, but it isn't realistic for everyone. Living off of interest relies on having a large enough balance invested that your regular interest earnings meet your salary needs.

Vanguard, the investment management company, defines $1 million in investments as high net worth. The average American family now reports a net worth of nearly $1.1 million, according to the new Fed survey. That sounds like a lot of money. But the super-rich skew the average.

This rule is based on research finding that if you invested at least 50% of your money in stocks and the rest in bonds, you'd have a strong likelihood of being able to withdraw an inflation-adjusted 4% of your nest egg every year for 30 years (and possibly longer, depending on your investment return over that time).

The U.S. average for retirement expenses is $835,453 for 25 years and $1,003,548 for 30 years. But keep in mind that while these projections can be a useful tool in understanding how much you may need to retire, your specific retirement requirements will vary based on your needs and priorities.

Out of all 50 states, the Sunshine State topped WalletHub's list of best states to retire, but with Florida's considerably high cost of living -- some might wonder why it's still the favorite among retirees. Get South Florida local news, weather forecasts and entertainment stories to your inbox.