Saving enough money for retirement can be a challenging task, especially when considering the varying costs of living across different states, and even within them. 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.
These figures come from Go Banking Rates, which calculated the annual income retirees would need to live a comfortable life. Using these numbers, we can calculate how many years a retirement savings of $1 million would last. By keeping funds in a private retirement account, the account’s value will continue to increase as long as the stocks in the portfolio see an increase. The states with the lowest cost of living where the $1 million savings would last the longest are:
Retirees in certain states can enjoy between 15 and 16 years of life if they save one million dollars. However, those who have not yet reached this goal should know there are still ways to save money after retiring. One million dollars will also last retirees around fifteen years in Tennessee, Nebraska, Ohio, Indiana, Illinois, Michigan, Wyoming, Louisiana, Texas, South Dakota, New Mexico, Kentucky, and Wisconsin.
The five states where one million dollars would last the shortest amount of time are:
State
Income
Years
Hawaii
$131,175
8
Washington DC
$108,192
9
Massachusetts
$103,422
10
California
$100,965
10
New York
$91,497
11
Where will one million dollars last fourteen years?
Retirees in Minnesota, North Carolina, North Dakota, South Carolina, Pennsylvania, Idaho, Nevada, and Florida can stretch one million around fourteen years.
Where will one million dollars last thirteen years?
Those in Virginia, Utah, Montana, Delaware, Colorado, and Arizona can expect to live comfortably for thirteen years.
Where will one million dollars last twelve or eleven years?
Retirees in New Jersey, Rhode Island, Maine, Connecticut, New Hampshire, Washington, Vermont, and Oregon can expect their one million dollars in savings to allow them to live comfortably for twelve years. Savings could be stretched over eleven years in Maryland and Alaska.
Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.
As of June, there were roughly 497,000 so-called retirement-created millionaires in the U.S., according to the wealth management firm, which analyzed balances across 26,000 of its customers' accounts. Nearly 399,000 Americans also have a least $1 million in an individual retirement account.
In Florida, $1 million will only last a little over 17 years. Depending on what age you plan to retire at and how long you expect to live, this might not be enough. Here's why $1 million might not be enough to retire in The Sunshine State. Wealthy people know the best money secrets.
According to estimates based on the Federal Reserve Survey of Consumer Finances, a mere 3.2% of retirees have over $1 million in their retirement accounts. The number of those with $2 million or more is even smaller, falling somewhere between this 3.2% and the 0.1% who have $5 million or more saved.
Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal.
What are the average and median retirement savings? The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000.
People in their 20s and 30s should target net worth of $100,000 to $300,000. A net worth of $1 million or more should be the goal in your 40s and beyond. A seven-figure net worth is usually necessary to ensure a comfortable retirement.
Retiring at 65 with $1 million is entirely possible. Suppose you need your retirement savings to last for 15 years. Using this figure, your $1 million would provide you with just over $66,000 annually. Should you need it to last a bit longer, say 25 years, you will have $40,000 a year to play with.
Yes, it is possible to retire with $1 million. Retiring at the age of 65 with $1 million can seem like a lot of money to a lot of retirees. But the truth is, that amount depends entirely on your household, your finances and your needs.
The model predicts about 45% of American households will run short of money in retirement. The outlook for single women was even more bleak, with about 55% of them seen as at risk in retirement, compared with 41% of couples and 40% of single males, Morningstar found.
If you retire in California, $1 million in savings will last 12 years, eight months, five days. Annual groceries cost: $4,979. Annual housing cost: $13,691. Annual utilities cost: $3,944.
For example, if you have retirement savings of $1 million, the 4% rule says that you can safely withdraw $40,000 per year during the first year — increasing this number for inflation each subsequent year — without running out of money within the next 30 years.
Only approximately 10% of American retirees have successfully saved $1 million or more, as indicated by the most recent Survey of Consumer Finances conducted by the Federal Reserve. What is the recommended age to have $1 million saved for retirement? It is feasible to retire at the age of 65 with $1 million.
In fact, with careful planning and a solid investment strategy, you could possibly live off the returns from a $1 million nest egg. When figuring out how much you'll need for retirement, be sure to factor in cost of living and inflation, withdrawal taxes, health care expenses, and lifestyle preferences.
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