How Long Will $1 Million Last in Retirement Across U.S. States?
A new report from GOBankingRates reveals that $1 million in retirement savings will not stretch as far as many Americans hope. The analysis estimates how long a retiree’s $1 million nest egg might last in 2026, based on average annual expenses specific to retirees in each U.S. state.
The findings show that $1 million will last less than 20 years in every state. This duration falls short of the lifespans many retirees can expect. Research indicates that many Americans live at least 20 years after retiring, suggesting that $1 million is not always sufficient to cover retirement costs.
What Counts as Wealth Today?
Surveys indicate that the threshold to be considered wealthy keeps rising. A 2025 Charles Schwab Modern Wealth Survey found that consumers now place the "wealthy" bar at a net worth of approximately $2.3 million. Despite this, many retirees fall well below that number. The 2022 federal Survey of Consumer Finances shows that the average household aged 65 to 75 holds about $200,000 in retirement accounts.
Where $1 Million Lasts Longest
If retiring comfortably on $1 million is a priority, retirees should consider states in the Southeast or the Great Plains. Oklahoma and Mississippi rank as the most affordable retirement states. In these states, $1 million will last about 19 years. Alabama follows closely with an estimated 18.5 years. West Virginia and Kansas also offer below-average living costs for retirees.
According to the report, average yearly expenses in these affordable states range from around $51,800 in Oklahoma to $55,600 in Indiana. Housing costs, usually the largest budget item, tend to stay below $11,000 annually in these states.
Top 10 States Where $1 Million Lasts the Longest
- Oklahoma: 19.3 years ($51,849 annual expenses)
- Mississippi: 19 years ($52,524)
- Alabama: 18.5 years ($53,999)
- West Virginia: 18.5 years ($54,122)
- Kansas: 18.3 years ($54,613)
- Missouri: 18.3 years ($54,674)
- Arkansas: 18.2 years ($54,859)
- Iowa: 18 years ($55,473)
- Tennessee: 18 years ($55,473)
- Indiana: 18 years ($55,657)
States Where $1 Million Goes the Shortest Distance
At the other end of the spectrum, some states present high costs of living that erode retirement savings faster. Hawaii ranks as the most expensive, with $1 million lasting only about 9.1 years. Massachusetts and California follow, where $1 million will cover roughly 10.8 and 11.9 years respectively.
Annual expenses in these pricier states often exceed $70,000, with housing costs making up a large portion. For example, Hawaii’s housing costs average nearly $39,000 per year.
Top 10 Most Expensive States for Retirement
- Hawaii: 9.1 years ($110,393 annual expenses)
- Massachusetts: 10.8 years ($92,639)
- California: 11.9 years ($83,978)
- Alaska: 12.8 years ($78,449)
- New York: 12.9 years ($77,773)
- Maryland: 13.7 years ($73,043)
- New Jersey: 14.2 years ($70,401)
- Maine: 14.3 years ($70,155)
- Connecticut: 14.3 years ($70,094)
- Washington: 14.3 years ($69,971)
How Do Popular Retirement States Compare?
Americans often choose states like Massachusetts, Florida, Illinois, Kentucky, and North Carolina when retiring. According to the GOBankingRates report, the $1 million in these states would last:
- Massachusetts: 10.8 years
- Florida: 16.4 years
- Illinois: 17 years
- Kentucky: 17.7 years
- North Carolina: 16.7 years
Navigating Retirement Savings
Many retirees live comfortably on less than $1 million by combining Social Security benefits with careful budgeting. The GOBankingRates estimates assume retirees spend down their savings without investment income. Retirees who invest and see returns above inflation could extend the lifespan of their savings.
The choice of where to retire affects how far retirement savings will stretch. Lower-cost states in the Southeast and Great Plains offer better longevity for a fixed nest egg. However, lifestyle preferences and family connections also play key roles in retirement planning.
This report highlights the importance of considering state-specific costs when crafting retirement strategies. With many Americans living decades in retirement, planning for expenses beyond the lifespan of $1 million remains crucial.
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