How Long Your 401(k) Plus Social Security Benefits Will Last You in North Carolina

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Planning on retiring in the near future? You are probably looking at all your expenses and trying to figure out how to make ends meet on a fixed income, particularly if you will be relying only on Social Security benefits and your 401(k) to get your basic cost of living needs met.

If you live in North Carolina, some of your expenses might be lower, and some might be higher than in the rest of America. To figure this out, GOBankingRates conducted a study for how long the average retirement income will last in every state.

The data from North Carolina showed the following numbers:

• No. of years 401(k) will last with Social Security: 16.99
• No. of days: 6,206
• No. of years, months and days: 16 years 11 months 26 days
• Annual expenditure: $55,100.55
• Annual expenditure after taxes: $32,703.27

This gives the broad strokes for how long you can expect your funds to last in North Carolina, but it does not closely examine the costs of groceries, housing, utilities, transportation and healthcare that can be afforded using only 401(k) payments with your Social Security benefits.

Here is how long your 401(k) plus Social Security benefits will last you in North Carolina, broken down expense by expense, based on our study.

Groceries

• Grocery cost of living index: 98.4
• Annual expenditure on groceries: $4,720.25

The good news is that grocery expenses are less in North Carolina than the national annual average of $4,797, but if you do the math, you’ll see it’s only saving you about $80 per year.

Housing

• Housing cost of living index: 92.9
• Annual expenditure on housing: $10,861.87

While the rest of the country is paying on average $11,692 annually for housing costs, those retired in North Carolina can save a couple hundred dollars each year by living in the Tar Heel State.

Utilities

• Utilities cost of living index: 98.8
• Annual expenditure on utilities: $4,185.17

Unlike its counterpart in South Carolina, those living in North Carolina will come in under the national average cost for utilities of $4,236, even if it is just $50 or so. When you are retired and on a limited fixed income, every dollar counts.

Transportation

• Transportation cost of living index: 96.2
• Annual expenditure on transportation: $4,755.17

Most retired Americans spend on average $4,943 in transportation costs. However, you can stretch your budget a little further just by living in North Carolina.

Healthcare

• Healthcare cost of living index: 105
• Annual expenditure on healthcare: $7,917

If there is one area where retirees can expect to pay more in North Carolina, it is for medical services and products. GOBankingRates found that U.S. retirees typically pay $7,540 while North Carolina retirees should expect to budget and pay several hundred dollars more for healthcare.

Overall, the study found that on average, retirees in the United States can live a little over 15 years on just a 401(k) payment and Social Security benefits. More specifically, retirees can live 5,730.5 days or 15 years, 8 months and 9 days to be exact.

This puts North Carolina nearly in the middle, with a ranking of 28 across the nation, just one slot under its sister state of South Carolina.

Methodology: In order to find how long the average 401(k) will last across the country with Social Security, GOBankingRates first found (1) the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey (CEX) data and (2) annual Social Security income as sourced from the Social Security Administration’s April 2024 data. Then, GOBankingRates created (2) state-level annual expenditure estimates by multiplying the national figure by each state’s overall cost of living index score for 2023 from the Missouri Economic Research and Information Center (MERIC). Finally, GOBankingRates found (3) how many years the average 401(k) will last in each state by dividing $555,621 by each state’s average annual expenditures estimate minus yearly Social Security income. All 50 states and the District of Columbia were then ranked with No. 1 being the state where $555,621 and Social Security will last the longest and No. 51 being the state where it will run out most quickly. GOBankingRates provided supplemental information on the average annual cost of groceries, housing, utilities, transportation and healthcare for people 65 and older in each state by again using MERIC’s cost of living indices for each category to factor out national estimates from the CEX. All data was collected and updated as of May 22, 2024. The average 401(k) balance was sourced by Empower for those in their 60s.

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