How Long Your 401(k) Plus Social Security Benefits Will Last You in Virginia
Written by
Yaël Bizouati-Kennedy
Edited by
Levi Leidy
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The number of years your 401(k) and Social Security benefits will last you in retirement hinges on several factors. First, of course, it depends at what age you start claiming benefits. Generally, the longer you wait to claim the better. In addition, at what age you start contributing to your 401(k) — as well as how much you contribute — will also affect this outcome. What’s more, your lifestyle and health are key factors, as both medical and leisure costs can put a huge dent in savings. Finally, where you live is also an important component and can affect how much savings you will need.
For instance, in Virginia, while you will still need a sizable amount of money for your nest egg, your 401(k) and Social Security benefits will last you 15.38 years, placing the state at the No. 31 spot in terms of where these will last you the longest, according to a new GOBankingRates survey.
In contrast, in West Virginia (No. 1 spot), your 401(k) and Social Security benefits will last you the longest, with 21.36 years; while in Hawaii, they will last you the least, as you will deplete these in a meager 6.52 years, the survey found.
The findings underscore the importance of the place you live in on the amount of retirement savings and preparation you will need to retire comfortably. And this is mostly due to cost of living, which varies geographically.
In fact, in Virginia, the cost-of-living score ranks at 101.3 (slightly above average nationwide), while it stands at 83.8 in West Virginia and at a startling 186.2 in Hawaii. According to Rene Lacad, an entrepreneur and content creator, the results of the GOBankingRates survey shed light on the hurdles retirees in Virginia could encounter.
“Virginia ranks 31st, highlighting the importance of prudent financial planning especially given the annual cost of living amounting to $58,569.63,” said Lacad.
He added that while Virginia offers a better situation compared to states such as Hawaii, where retirees require over $2 million for sustenance, the significant variation in living costs among states underscores the necessity for careful retirement preparation.
“In Virginia it may be essential for individuals to supplement their 401(k) with income sources or investments to ensure a comfortable retirement,” added Lacad.
Here are other costs in Virginia, which also contribute to the number of years your 401(k) and Social Security benefits will last.
- Number of years average 401(k) and Social Security benefits will last you in Virginia: 15.38
- Annual cost of living: $58,569.63
- Cost of living after using Social Security income: $36,132.39
- Annual cost of groceries: $4.792.20
- Annual Cost of housing: $12,510.44
- Annual cost of utilities: $4,231.76
- Annual transportation costs: $4,661.25
- Annual healthcare costs: $7,690.80
- How much you will need to retire: $912.258.3
- Median home price: $395,685, according to Zillow
- Median rent: $2,100, according to Zillow
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