How to plan for retirement with a million dollars
Mapping out your retirement journey with a million-dollar nest egg relies on making savvy decisions to stretch your savings. Understanding the true cost of retirement is crucial, as it entails navigating through various factors.
Think about inflation, which can chip away at your purchasing power over time, making it essential to consider rising costs in your financial plans.
How much you withdraw each year is crucial, too—taking out too much too quickly can deplete your savings, while a more cautious approach can help your money last longer.
Your lifestyle choices, such as travel, hobbies, and healthcare needs, and where you choose to retire also play a big role.
The cost of living varies a lot across the United States, so a million dollars might go much further in some states than others.
By factoring in your location, you can make sure you can confidently cover the cost of retirement.
How long will $1 million last in retirement: state-by-state breakdown
With a million dollars, your financial future looks bright, but its longevity can vary significantly based on where you choose to live.
On average, in the United States, $1 million in retirement savings can last about 17 years and six months, factoring in various living expenses. However, this number fluctuates depending on state-specific costs, including housing, groceries, and healthcare costs in retirement.
To help you understand how far your money will go, we’ve broken down the typical retirement cost of living by state, showing how long $1 million will last.
This analysis considers essential living costs like groceries, housing, utilities, transportation, and healthcare to give a comprehensive view of your financial horizon in retirement.
Alabama
Annual groceries cost: $4,596.
Annual housing cost: $8,243.
Annual utilities cost: $4,312.
Annual transportation cost: $4,404.
Annual healthcare cost: $6,469.
Total annual expenditures: $50,995.
If you retire in Alabama, $1 million in savings will last 19 years, seven months, and 11 days.
Alaska
Annual groceries cost: $5,814.
Annual housing cost: $14,393.
Annual utilities cost: $6,528.
Annual transportation cost: $5,887.
Annual healthcare cost: $11,227.
Total annual expenditures: $73,082.
If you retire in Alaska, $1 million in savings will last 13 years, eight months, and five days.
Arizona
Annual groceries cost: $4,936.
Annual housing cost: $15,059.
Annual utilities cost: $4,024.
Annual transportation cost: $5,215.
Annual healthcare cost: $7,178.
Total annual expenditures: $63,600.
If you retire in Arizona, $1 million in savings will last 15 years, eight months, and 20 days.
Arkansas
Annual groceries cost: $4,548.
Annual housing cost: $8,582.
Annual utilities cost: $3,876.
Annual transportation cost: $4,444.
Annual healthcare cost: $6,469.
Total annual expenditures: $51,169.
If you retire in Arkansas, $1 million in savings will last 19 years, six months, and 15 days.
California
Annual groceries cost: $5,387.
Annual housing cost: $22,530.
Annual utilities cost: $5,202.
Annual transportation cost: $6,283.
Annual healthcare cost: $8,226.
Total annual expenditures: $78,864.
If you retire in California, $1 million in savings will last 12 years, eight months, five days.
Colorado
Annual groceries cost: $4,979.
Annual housing cost: $13,691.
Annual utilities cost: $3,944.
Annual transportation cost: $5,254.
Annual healthcare cost: $7,465.
Total annual expenditures: $61,807.
If you retire in Colorado, $1 million in savings will last 16 years, two months, and four days.
Connecticut
Annual groceries cost: $4,965.
Annual housing cost: $14,381.
Annual utilities cost: $5,871.
Annual transportation cost: $5,170.
Annual healthcare cost: $8,204.
Total annual expenditures: $65,855.
If you retire in Connecticut, $1 million in savings will last 15 years, two months, and four days.
Delaware
Annual groceries cost: $4,869.
Annual housing cost: $11,213.
Annual utilities cost: $4,219.
Annual transportation cost: $4,923.
Annual healthcare cost: $7,713.
Total annual expenditures: $58,281.
If you retire in Delaware, $1 million in savings will last 17 years, one month, and 13 days.
Florida
Annual groceries cost: $4,783.
Annual housing cost: $12,557.
Annual utilities cost: $4,189.
Annual transportation cost: $4,805.
Annual healthcare cost: $7,321.
Total annual expenditures: $58,396.
If you retire in Florida, $1 million in savings will last 17 years, one month, and 13 days.
Georgia
Annual groceries cost: $4,677.
Annual housing cost: $9,096.
Annual utilities cost: $3,740.
Annual transportation cost: $4,582.
Annual healthcare cost: $7,502.
Total annual expenditures: $52,557.
If you retire in Georgia, $1 million in savings will last 19 years and 11 days.
Hawaii
Annual groceries cost: $5,339.
Annual housing cost: $35,813.
Annual utilities cost: $6,913.
Annual transportation cost: $6,238.
Annual healthcare cost: $9,485.
Total annual expenditures: $103,610.
If you retire in Hawaii, $1 million in savings will last nine years, seven months, and 25 days.
Idaho
Annual groceries cost: $4,821.
Annual housing cost: $11,072.
Annual utilities cost: $3,745.
Annual transportation cost: $5,279.
Annual healthcare cost: $7,578.
Total annual expenditures: $57,240.
If you retire in Idaho, $1 million in savings will last 17 years, five months, and 20 days.
Illinois
Annual groceries cost: $4,730.
Annual housing cost: $9,213.
Annual utilities cost: $3,740.
Annual transportation cost: $4,997.
Annual healthcare cost: $7,231.
Total annual expenditures: $53,077.
If you retire in Illinois, $1 million in savings will last 18 years, 10 months, and 3 days.
Indiana
Annual groceries cost: $4,768.
Annual housing cost: $9,190.
Annual utilities cost: $4,321.
Annual transportation cost: $4,646.
Annual healthcare cost: $7,238.
Total annual expenditures: $52,672.
If you retire in Indiana, $1 million in savings will last 18 years, 11 months, and 27 days.
Iowa
Annual groceries cost: $4,620.
Annual housing cost: $8,488.
Annual utilities cost: $4,054.
Annual transportation cost: $4,884.
Annual healthcare cost: $7,646.
Total annual expenditures: $51,978.
If you retire in Iowa, $1 million in savings will last 19 years, two months, and 26 days.
Kansas
Annual groceries cost: $4,629.
Annual housing cost: $7,974.
Annual utilities cost: $4,444.
Annual transportation cost: $4,429.
Annual healthcare cost: $7,382.
Total annual expenditures: $50,533.
If you retire in Kansas, $1 million in savings will last 19 years, nine months, and 15 days.
Kentucky
Annual groceries cost: $4,835.
Annual housing cost: $9,248.
Annual utilities cost: $4,181.
Annual transportation cost: $4,641.
Annual healthcare cost: $6,665.
Total annual expenditures: $53,886.
If you retire in Kentucky, $1 million in savings will last 18 years, six months, 23 days.
Louisiana
Annual groceries cost: $4,519.
Annual housing cost: $9,412.
Annual utilities cost: $3,516.
Annual transportation cost: $4,666.
Annual healthcare cost: $7,487.
Total annual expenditures: $52,441.
If you retire in Louisiana, $1 million in savings will last 19 years and 26 days.
Maine
Annual groceries cost: $4,936.
Annual housing cost: $14,089.
Annual utilities cost: $4,499.
Annual transportation cost: $5,422.
Annual healthcare cost: $8,348.
Total annual expenditures: $64,005.
If you retire in Maine, $1 million in savings will last 15 years, seven months, and 15 days.
Maryland
Annual groceries cost: $5,200.
Annual housing cost: $16,006.
Annual utilities cost: $4,757.
Annual transportation cost: $4,869.
Annual healthcare cost: $7,646.
Total annual expenditures: $66,375.
If you retire in Maryland, $1 million in savings will last 15 years and 26 days.
Massachusetts
Annual groceries cost: $5,080.
Annual housing cost: $26,553.
Annual utilities cost: $5,867.
Annual transportation cost: $5,813.
Annual healthcare cost: $8,694.
Total annual expenditures: $85,571.
If you retire in Massachusetts, $1 million in savings will last 11 years, eight months, and nine days.
Michigan
Annual groceries cost: $4,802.
Annual housing cost: $9,096.
Annual utilities cost: $4,236.
Annual transportation cost: $4,795.
Annual healthcare cost: $7,095.
Total annual expenditures: $52,614.
If you retire in Michigan, $1 million in savings will last 19 years and four days.
Minnesota
Annual groceries cost: $4,739.
Annual housing cost: $9,634.
Annual utilities cost: $4,033.
Annual transportation cost: $4,781.
Annual healthcare cost: $8,249.
Total annual expenditures: $54,580.
If you retire in Minnesota, $1 million in savings will last 18 years, three months, and 27 days.
Mississippi
Annual groceries cost: $4,644.
Annual housing cost: $8,488.
Annual utilities cost: $3,685.
Annual transportation cost: $4,216.
Annual healthcare cost: $7,427.
Total annual expenditures: $50,128.
If you retire in Mississippi, $1 million in savings will last 19 years, 11 months, and 12 days.
Missouri
Annual groceries cost: $4,567.
Annual housing cost: $8,933.
Annual utilities cost: $4,300.
Annual transportation cost: $4,389.
Annual healthcare cost: $6,794.
Total annual expenditures: $51,053.
If you retire in Missouri, $1 million in savings will last 19 years, seven months, and three days.
Montana
Annual groceries cost: $4,912.
Annual housing cost: $11,984.
Annual utilities cost: $3,995.
Annual transportation cost: $5,684.
Annual healthcare cost: $7,367.
Total annual expenditures: $59,610.
If you retire in Montana, $1 million in savings will last 16 years, nine months, and 10 days.
Nebraska
Annual groceries cost: $4,586.
Annual housing cost: $9,131.
Annual utilities cost: $3,719.
Annual transportation cost: $4,889.
Annual healthcare cost: $7,517.
Total annual expenditures: $52,614.
If you retire in Nebraska, $1 million in savings will last 19 years and four days.
Nevada
Annual groceries cost: $4,989.
Annual housing cost: $12,452.
Annual utilities cost: $4,257.
Annual transportation cost: $5,867.
Annual healthcare cost: $6,726.
Total annual expenditures: $58,454.
If you retire in Nevada, $1 million in savings will last 17 years, one month, and nine days.
New Hampshire
Annual groceries cost: $4,898.
Annual housing cost: $13,259.
Annual utilities cost: $5,418.
Annual transportation cost: $5,556.
Annual healthcare cost: $8,106.
Total annual expenditures: $66,838.
If you retire in New Hampshire, $1 million in savings will last 14 years, 11 months, and 16 days.
New Jersey
Annual groceries cost: $4,855.
Annual housing cost: $14,779.
Annual utilities cost: $4,651.
Annual transportation cost: $5,091.
Annual healthcare cost: $7,570.
Total annual expenditures: $63,773.
If you retire in New Jersey, $1 million in savings will last 15 years, eight months, and six days.
New Mexico
Annual groceries cost: $4,610.
Annual housing cost: $10,172.
Annual utilities cost: $3,931.
Annual transportation cost: $4,755.
Annual healthcare cost: $7,419.
Total annual expenditures: $54,291.
If you retire in New Mexico, $1 million in savings will last 18 years, five months, and two days.
New York
Annual groceries cost: $4,994.
Annual housing cost: $20,695.
Annual utilities cost: $4,363.
Annual transportation cost: $5,304.
Annual healthcare cost: $8,173.
Total annual expenditures: $73,140.
If you retire in New York, $1 million in savings will last 13 years, 8 months, and one day.
North Carolina
Annual groceries cost: $4,711.
Annual housing cost: $10,792.
Annual utilities cost: $3,914.
Annual transportation cost: $4,548.
Annual healthcare cost: $8,060.
Total annual expenditures: $55,621.
If you retire in North Carolina, $1 million in savings will last 17 years, 11 months, and 23 days.
North Dakota
Annual groceries cost: $4,495.
Annual housing cost: $9,728.
Annual utilities cost: $4,079.
Annual transportation cost: $5,007.
Annual healthcare cost: $8,452.
Total annual expenditures: $54,522.
If you retire in North Dakota, $1 million in savings will last 18 years, four months, and three days.
Ohio
Annual groceries cost: $4,816.
Annual housing cost: $9,167.
Annual utilities cost: $4,151.
Annual transportation cost: $4,745.
Annual healthcare cost: $7,630.
Total annual expenditures: $53,308.
If you retire in Ohio, $1 million in savings will last 18 years, nine months, and four days.
Oklahoma
Annual groceries cost: $4,519.
Annual housing cost: $8,313.
Annual utilities cost: $4,003.
Annual transportation cost: $4,651.
Annual healthcare cost: $6,982.
Total annual expenditures: $50,186.
If you retire in Oklahoma, $1 million in savings will last 19 years, 11 months, and five days.
Oregon
Annual groceries cost: $5,258.
Annual housing cost: $15,714.
Annual utilities cost: $4,151.
Annual transportation cost: $6,223.
Annual healthcare cost: $8,332.
Total annual expenditures: $66,317.
If you retire in Oregon, $1 million in savings will last 15 years, and 29 days.
Pennsylvania
Annual groceries cost: $4,715.
Annual housing cost: $9,599.
Annual utilities cost: $4,516.
Annual transportation cost: $5,146.
Annual healthcare cost: $6,959.
Total annual expenditures: $54,811.
If you retire in Pennsylvania, $1 million in savings will last 18 years, two months, and 26 days.
Rhode Island
Annual groceries cost: $4,960.
Annual housing cost: $14,112.
Annual utilities cost: $4,677.
Annual transportation cost: $4,439.
Annual healthcare cost: $8,068.
Total annual expenditures: $64,756.
If you retire in Rhode Island, $1 million in savings will last 15 years, five months, and 10 days.
South Carolina
Annual groceries cost: $4,701.
Annual housing cost: $9,435.
Annual utilities cost: $4,744.
Annual transportation cost: $4,512.
Annual healthcare cost: $6,921.
Total annual expenditures: $54,522.
If you retire in South Carolina, $1 million in savings will last 18 years, four months, and three days.
South Dakota
Annual groceries cost: $4,586.
Annual housing cost: $10,032.
Annual utilities cost: $3,651.
Annual transportation cost: $4,760.
Annual healthcare cost: $7,510.
Total annual expenditures: $53,077.
If you retire in South Dakota, $1 million in savings will last 18 years, 10 months, and three days.
Tennessee
Annual groceries cost: $4,644.
Annual housing cost: $9,611.
Annual utilities cost: $3,939.
Annual transportation cost: $4,305.
Annual healthcare cost: $6,628.
Total annual expenditures: $52,267.
If you retire in Tennessee, $1 million in savings will last 19 years, one month, and 17 days.
Texas
Annual groceries cost: $4,605.
Annual housing cost: $9,833.
Annual utilities cost: $4,300.
Annual transportation cost: $4,513.
Annual healthcare cost: $7,042.
Total annual expenditures: $53,701.
If you retire in Texas, $1 million in savings will last 18 years, seven months, and seven days.
Utah
Annual groceries cost: $4,783.
Annual housing cost: $13,282.
Annual utilities cost: $4,139.
Annual transportation cost: $5,403.
Annual healthcare cost: $6,899.
Total annual expenditures: $60,420.
If you retire in Utah, $1 million in savings will last 16 years, sic months, and 18 days.
Vermont
Annual groceries cost: $5,066.
Annual housing cost: $15,796.
Annual utilities cost: $5,007.
Annual transportation cost: $4,992.
Annual healthcare cost: $8,090.
Total annual expenditures: $66,433.
If you retire in Vermont, $1 million in savings will last 15 years, and 19 days.
Virginia
Annual groceries cost: $4,826.
Annual housing cost: $12,347.
Annual utilities cost: $4,359.
Annual transportation cost: $4,577.
Annual healthcare cost: $7,676.
Total annual expenditures: $58,627.
If you retire in Virginia, $1 million in savings will last 17 years, and 22 days.
Washington
Annual groceries cost: $5,286.
Annual housing cost: $14,966.
Annual utilities cost: $3,961.
Annual transportation cost: $6,490.
Annual healthcare cost: $9,025.
Total annual expenditures: $66,895.
If you retire in Washington, $1 million in savings will last 14 years, 11 months, and 12 days.
West Virginia
Annual groceries cost: $4,701.
Annual housing cost: $7,284.
Annual utilities cost: $4,067.
Annual transportation cost: $4,528.
Annual healthcare cost: $7,163.
Total annual expenditures: $49,261.
If you retire in West Virginia, $1 million in savings will last 20 years, three months, and 19 days.
Wisconsin
Annual groceries cost: $4,792.
Annual housing cost: $9,868.
Annual utilities cost: $4,215.
Annual transportation cost: $4,913.
Annual healthcare cost: $8,226.
Total annual expenditures: $55,158.
If you retire in Wisconsin, $1 million in savings will last 18 years, one month, and 16 days.
Wyoming
Annual groceries cost: $4,917.
Annual housing cost: $9,435.
Annual utilities cost: $3,893.
Annual transportation cost: $4,740.
Annual healthcare cost: $7,578.
Total annual expenditures: $53,886.
If you retire in Wyoming, $1 million in savings will last 18 years, six months, and 23 days.
How do you make your retirement savings last longer?
How long a million dollars will last in retirement involves a mix of smart strategies and careful planning.
One effective approach is to implement a thoughtful withdrawal strategy. Instead of taking out large sums annually, consider using the 4% rule, which suggests withdrawing 4% of your retirement savings each year. This method helps balance your needs with the longevity of your funds.
Another strategy is relocating to a more affordable area. Moving to a state or city with a lower cost of living can significantly stretch your savings, giving you more financial freedom.
Investing in annuities or other income-generating assets can also provide a steady stream of income, reducing the need to dip into your principal savings.
Working with a financial advisor can greatly enhance your retirement planning. An advisor can help you develop a personalized strategy that aligns with your financial status and retirement goals. They can provide insights into tax-efficient withdrawal plans, the best investment options, and ways to manage unexpected expenses.
By tailoring a retirement plan to your unique situation, a financial advisor can help ensure you can cope with the cost of retirement, providing peace of mind and financial stability throughout your retirement years.
Get expert financial advice
In retirement planning, every dollar of your $1 million nest egg counts. By factoring in inflation, withdrawal rates, lifestyle choices, and the diverse cost of living across states, you can create a plan that covers the cost of retirement and ensures the longevity of your $1 million.
Unbiased will connect you with a financial advisor for expert financial advice on how to strategically manage your $1 million retirement savings, tailored to your unique financial situation and retirement goals.
