A recent study conducted by GOBankingRates analyzed the longevity of $750,000 in combined savings and Social Security for retirement across different states in the U.S. The study considered various factors such as housing markets, healthcare costs, and cost of living expenses. While the list may seem overwhelming, especially for those at the beginning stages of retirement planning, GOBankingRates has condensed the findings into four regions of the United States to provide a clearer picture.
Northeast:
States in the Northeast include Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. On average, $750,000 would last 17.21 years with Social Security in this region. The Northeast is known for being the most expensive corner of the country to retire, with states like Massachusetts and New York depleting the funds relatively quickly. Only Pennsylvania stands out as a state where $750,000 could last beyond two decades at 22.82 years.
South:
The South comprises states such as Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Texas, Virginia, and West Virginia. On average, $750,000 would last 23.43 years with Social Security in this region. The South offers a wide range of cost-of-living variances, from Maryland quickly consuming the funds in 16.75 years to West Virginia being the most affordable state where $750,000 could last up to 28.8 years.
Midwest:
States in the Midwest region include Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin. The Midwest tops the list with $750,000 lasting an average of 24.27 years with Social Security. Even the priciest state, Wisconsin, can stretch the retirement fund for 22.28 years, while the least expensive state, Missouri, offers a longer duration of 26.08 years.
West:
The Western states consist of Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. On average, $750,000 would last 18.76 years with Social Security in this region. The West is known for its varying cost of living, with different states offering different durations for the retirement fund.
By breaking down the study into these four regions, individuals can gain a better understanding of how far their retirement savings could stretch across the country.
An amount of $750,000 cannot sustain retirees for more than two decades in certain states, with Hawaii depleting that sum in just 8.8 years. Other expensive states like California (12.21 years) and Washington (16.99 years) also pose financial challenges for retirees. On the flip side, New Mexico emerges as the least expensive state in the region, allowing retirees to stretch their funds for an average of 23.66 years, nearly three times longer than in Hawaii.
To conduct this study, GOBankingRates examined the 100 most populous cities based on data from the U.S. Census American Community Survey. Various factors were considered, including population demographics, income levels, retirement benefits, cost of living, housing values, and more. The analysis utilized data from sources such as the American Community Survey, Sperling’s BestPlaces, AreaVibes, Zillow Home Value Index, and the Bureau of Labor Statistics Consumer Expenditure Survey, among others. The goal was to assess how far the average Social Security income can stretch in major cities across the country.
All information was gathered and is current as of September 20, 2024. For more financial insights, check out additional articles on GOBankingRates such as those highlighting luxury cars with upcoming price drops, tips for early retirement, wealth-building strategies, and actions to take when your savings reach $50,000.
