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

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For many people about to retire or currently in retirement, the dream of living in Hawaii looms large. Unfortunately, taking up residence in Hawaii takes a lot of money — even if that retirement fantasy is not living large — because cost of living expenses are the highest in the country.

If you are only planning to have Social Security benefits and payments from a 401(k) support you, it might be wise to do some math to make sure you can afford living in Hawaii on your fixed income.

GOBankingRates conducted a study to find out how long the average retirement income will last in every state. The data from Hawaii showed the following numbers:

• Number of Years Your 401(k) Will Last With Social Security: 6.52
• Number of Days Your 401(k) Will Last With Social Security: 2,381
• Years, Months and Days: 6 years, 6 months, 8 days
• Annual Expenditures: $107,657
• Annual Expenditure After Social Security: $85,220

That’s a lot of money — and not a lot of time it takes to spend it. If you want to live your retirement in Hawaii, it’s vital to understand the annual cost of living in the Aloha State when it comes to groceries, housing, utilities, transportation and healthcare.

Groceries

• Annual Expenditures on Groceries: $5,953

Buying food at the local supermarket in Hawaii tends to cost more due to shipping and import costs, which is why retirees spend over a thousand dollars more than the rest of the country, who tend to spend around $4,797 on average per year.

Housing

• Annual Expenditures on Housing: $36,619

The biggest expense to take a bite out of your retirement budget is housing in Hawaii. That’s because the demand is high and the supply is low. The rest of the country tends to spend about $11,692 annually on housing costs, about a third of what retirees in Hawaii pay for it.

Utilities

• Annual Expenditures on Utilities: $7,472

Getting the basics turned on at home — lights, gas and water — costs Hawaii retirees over $3,000 more than the rest of the country, who spend about $4,236 on average each year on their utility bills.

Transportation

• Annual Expenditures on Transportation: $6,861

Getting around the islands can be costly compared to the rest of the U.S. — $4,943 is what retirees across America pay on average each year for transportation expenses. Be prepared to stretch your fixed income in this category if you settle in Hawaii.

Healthcare

• Annual Expenditures on Healthcare: $9,199

Compared to the rest of the country, which tends to pay $7,540 on average annually for health-related expenses, Hawaii is not that much more costly. However, if you only have your 401(k) and Social Security benefits to rely on, this can add a strain to your already stretched budget.

The study found that retirees in the U.S. as a whole could survive 15.7 years off a 401(k) plus Social Security benefits on average, adding up to 5,730.5 days — or 15 years, 8 months and 9 days, to be exact. This puts Hawaii dead last, as the state where you will spend your retirement money the fastest.

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 data and (2) annual Social Security income as sourced from the Social Security Administration’s June 2024 data. Then, GOBankingRates created (3) state-level annual expenditure estimates by multiplying the national figure by each state’s overall cost of living index score for 2024 Q1 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (4) 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 Washington, D.C. 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 on and up to date as of July 15, 2024. The average 401(k) balance was sourced from Empower for those in their 60s.

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