How Far $1.5 Million in Retirement Savings and Social Security Will Stretch in Each State

One of the most common concerns facing many Americans, particularly those nearing or already in retirement, is whether their retirement savings and Social Security benefits will be sufficient to support them through their later years.

With the political uncertainties surrounding Social Security and the ever-increasing cost of living across the country, the question of retirement affordability has become a growing concern.

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Recently, GOBankingRates conducted a study to understand how long a retiree could rely on Social Security benefits and $1.5 million in retirement savings. While $1.5 million may appear to be an impressive sum, its purchasing power varies significantly across the United States.

In some states, this amount can stretch for decades, while in others, it barely covers a few years. Let’s explore the findings of this study, showcasing how long $1.5 million plus Social Security will last in different states.

States Where $1.5 Million Goes the Furthest

Some states offer an affordable cost of living that allows retirees to stretch their savings considerably further. In states like West Virginia, your savings could last more than a century.

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Below is a breakdown of several states where your $1.5 million in savings could last a significant number of years.

States Where $1.5 Million Doesn’t Last As Long

Conversely, in states with high living costs such as Hawaii and California, the same $1.5 million in savings will quickly run out.

These states, along with others that have similarly high costs of living, offer a stark contrast to places like West Virginia or Mississippi.

Mid-Range States: A Balanced Approach

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There are also states where the combination of $1.5 million in retirement savings and Social Security benefits will last for several decades but not nearly as long as in some of the more affordable areas.

In these states, retirees can enjoy a comfortable lifestyle, though they may not have as much financial cushion as in the least expensive regions.

The Factors Impacting Longevity of Retirement Savings

The longevity of $1.5 million in savings in retirement depends on various factors, including:

• Cost of living: The most significant factor, determining how much daily expenses will drain from your savings.
• Social Security benefits: These can vary based on your lifetime earnings and age when you start claiming.
• Healthcare expenses: As healthcare can take up a large portion of a retiree’s budget, it plays a critical role in how long savings will last.
• State taxes: Some states tax retirement income more than others, which can impact your financial stability.

States With a Higher Percentage of Retirees

Several states are particularly attractive to retirees because they have a higher proportion of residents aged 65 and over. These states often have a strong focus on retirement-related services and amenities.

Planning Your Retirement Based on Location

As the study shows, $1.5 million in savings combined with Social Security benefits can go a long way in some states but not nearly as far in others. While a comfortable retirement is attainable for many, the state in which you choose to retire will significantly impact how long your savings last.

Retirees need to carefully consider the cost of living, tax rates, and the availability of social services when choosing where to retire. By doing so, they can ensure that their retirement savings will stretch far enough to support them throughout their golden years.

FAQs

Does $1.5 million cover all retirement expenses in every state?

No, the amount of time $1.5 million lasts in retirement varies greatly depending on the state. States with higher costs of living, such as Hawaii or California, see that sum exhausted far more quickly than states like West Virginia or Mississippi.

What factors influence the longevity of my retirement savings?

Key factors include the cost of living, Social Security benefits, healthcare expenses, and the tax environment in your state.

Which states have the longest retirement savings duration?

States like West Virginia, Mississippi, and Louisiana offer lower living costs and can make $1.5 million last for a very long time.