Retirement Savings: These Are the Only States Where $1.8 Million Is Not Enough
According to a recent Charles Schwab survey, workers, on average, believe that you need around $1.8 million to retire comfortably. While that may seem like a healthy savings, it may not stretch as far as you would like it. On average, just under $2 million in retirement savings currently lasts a person around 34 years, five months and 30 days. Unfortunately, with the cost of living varying greatly between states, you might not get as many years as you would want out of your savings.
With more and more people considering early retirement, you’ll want to make sure that you will not outlast your nest egg. At GOBankingRates, we used information from the Bureau of Labor Statistics to determine just how long someone could survive on $1.8 million. There are nine states in the U.S. where $1.8 million won’t last you 30 years in case you retire early.
Oregon
- # Years, Months and Days $1.8 Million Will Last: 29 years, 11 months, 26 days
- Age $1.8 Million Would Run Out If Retired at 55: 85 years old
- Age $1.8 Million Would Run Out If Retired at 60: 90 years old
- Age $1.8 Million Would Run Out If Retired at 63: 93 years old
- Age $1.8 Million Would Run Out If Retired at 65: 95 years old
It should come as no surprise that many of the states with the highest cost of living are on the West Coast. A retirement savings of $1.8 million will last you just under 30 years in Oregon. This is mainly due to high annual housing expenditures of $8,351.15.
Washington
- # Years, Months and Days $1.8 Million Will Last: 29 years, 11 months, 26 days
- Age $1.8 Million Would Run Out If Retired at 55: 85 years old
- Age $1.8 Million Would Run Out If Retired at 60: 90 years old
- Age $1.8 Million Would Run Out If Retired at 63: 93 years old
- Age $1.8 Million Would Run Out If Retired at 65: 95 years old
Another state that may be tough to retire in, even if you have healthy savings, is Washington. You can expect annual expenditures of $46,822.62 in The Evergreen State.
Maryland
- # Years, Months and Days $1.8 Million Will Last: 28 years, 10 months, 20 days
- Age $1.8 Million Would Run Out If Retired at 55: 84 years old
- Age $1.8 Million Would Run Out If Retired at 60: 89 years old
- Age $1.8 Million Would Run Out If Retired at 63: 92 years old
- Age $1.8 Million Would Run Out If Retired at 65: 94 years old
While Maryland may seem like a dream for retirement, it is pricey. Buying groceries in the North Eastern state will cost you approximately $4,532.98 each year. That, along with the high cost of housing, makes it more challenging to stretch retirement dollars.
Alaska
- # Years, Months and Days $1.8 Million Will Last: 27 years, 8 months, 30 days
- Age $1.8 Million Would Run Out If Retired at 55: 83 years old
- Age $1.8 Million Would Run Out If Retired at 60: 88 years old
- Age $1.8 Million Would Run Out If Retired at 63: 91 years old
- Age $1.8 Million Would Run Out If Retired at 65: 93 years old
The Klondike is picturesque but pricey when it comes to retirement. A retirement savings of $1.8 million will last you just under 28 years, which makes early retirement difficult if you do not want to outlive your savings. Housing expenditures of $8,070.70 are one of the main reasons the 49th State is less affordable.
New York
- # Years, Months and Days $1.8 Million Will Last: 27 years, 7 months, 6 days
- Age $1.8 Million Would Run Out If Retired at 55: 83 years old
- Age $1.8 Million Would Run Out If Retired at 60: 88 years old
- Age $1.8 Million Would Run Out If Retired at 63: 91 years old
- Age $1.8 Million Would Run Out If Retired at 65: 93 years old
While New York is full of glitz and glamor, it may not be ideal for retirees. Annual expenditures of $45,988.36 mean that your $1.8 million will only last around 10,080 days.
California
- # Years, Months and Days $1.8 Million Will Last: 25 years, 7 months, 31 days
- Age $1.8 Million Would Run Out If Retired at 55: 81 years old
- Age $1.8 Million Would Run Out If Retired at 60: 86 years old
- Age $1.8 Million Would Run Out If Retired at 63: 89 years old
- Age $1.8 Million Would Run Out If Retired at 65: 91 years old
Given the state’s high cost of living, few people are surprised that retiring in California is expensive. If you quit working at 55 years old with a savings of $1.8 million, you will run out of money by the time you are 81 years old.
Massachusetts
- # Years, Months and Days $1.8 Million Will Last: 23 years, 3 months, 4 days
- Age $1.8 Million Would Run Out If Retired at 55: 78 years old
- Age $1.8 Million Would Run Out If Retired at 60: 83 years old
- Age $1.8 Million Would Run Out If Retired at 63: 86 years old
- Age $1.8 Million Would Run Out If Retired at 65: 88 years old
If you are itching to retire before 60, you might need to think twice about settling down in Massachusetts. You can expect to pay $3,928.84 in utilities expenditures and $6,291.85 in healthcare expenditures each year.
District of Columbia
- # Years, Months and Days $1.8 Million Will Last: 23 years, 2 months, 21 days
- Age $1.8 Million Would Run Out If Retired at 55: 78 years old
- Age $1.8 Million Would Run Out If Retired at 60: 83 years old
- Age $1.8 Million Would Run Out If Retired at 63: 86 years old
- Age $1.8 Million Would Run Out If Retired at 65: 88 years old
Washington, D.C. may be the perfect place for politicians, but it is less ideal for retirees on a budget. Annual expenditures in D.C. will cost around $45,206.25, and housing expenses run approximately $7,520.19 each year.
Hawaii
- # Years, Months and Days $1.8 Million Will Last: 19 years, 3 months, 15 days
- Age $1.8 Million Would Run Out If Retired at 55: 74 years old
- Age $1.8 Million Would Run Out If Retired at 60: 79 years old
- Age $1.8 Million Would Run Out If Retired at 63: 82 years old
- Age $1.8 Million Would Run Out If Retired at 65: 84 years old
Unfortunately, the state where your $1.8 million will last you the shortest amount of time is also one of the prettiest in the country. Hawaii may be paradise, but retirees may outlive their savings. Transportation and healthcare are extremely expensive on the islands, running $3,799.38 and $6,994.85, respectively, each year.
Methodology: In order to find how long $1,800,000 will last across the country, GOBankingRates first found (1) the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey 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 the 1Q 2023 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years $1,800,000 will last in each state by dividing $1,800,000 by each state’s average annual expenditures estimate. All 50 states and the District of Columbia were then ranked with No. 1 being the state where $1,800,000 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 CES. All data was collected on and up to date as of August 30, 2023.
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