How Long Your 401(k) Plus Social Security Benefits Will Last You in California
Written by
Vance Cariaga
Edited by
Nicholas Morine
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The most important aspect of retirement savings and Social Security benefits isn’t necessarily the amount of money you have at your disposal, but how long it will last in retirement. That can vary widely depending on where you live. If you retire in California, your retirement income won’t last nearly as long as it would in the rest of the country.
For retirees in the Golden State, the combination of Social Security benefits and 401(k) income will only last an average of about nine years, according to a GOBankingRates study. That compares to the national average of roughly 15.5 years.
For its study, GBR analyzed data from the U.S. Bureau of Labor Statistics, Social Security Administration and Missouri Economic Research and Information Center. Research focused on average 401(k) withdrawals and Social Security checks, along with average monthly spending on essentials such as housing and groceries. GBR then compared all 50 states and the District of Columbia to find out how long the 401(k)/Social Security combo would last.
West Virginia ranked first at an average of 21.36 years, while Hawaii brought up the rear at an average of 6.52 years. Rankings tended to correspond with average costs of living, with the most affordable states ranking higher and the least affordable ranking lower.
Most Americans depend on a combination of 401(k) plans and Social Security benefits to fund their retirements, although there are vast differences in the amounts they have available. Social Security checks alone can range from less than $1,000 a month to more than $4,800, while 401(k) balances can range from almost nothing to millions of dollars. Because of these variations, the number of years your retirement income will last varies as well.
California, an expensive state, ranked No. 50 on the GBR list, just ahead of Hawaii. Here’s how California stacked up against the nation as a whole in various categories:
How Long a 401(k) Will Last with Social Security
- California Average: 9 years. 0 months, 17 days
- National Average: 15 years, 8 months, 8 days
Annual Expenditures
- California Average: $83,836
- National Average: $57,818
Annual Expenditures After Social Security
- California Average: $61,398
- National Average: $35,421
Annual Groceries Expenditures
- California Average: $5,387
- National Average: $4,797
Annual Housing Expenditures
- California Average: $24,518
- National Average: $11,692
Annual Utilities Expenditures
- California Average: $5,752
- National Average: $4,236
Annual Transportation Expenditures
- California Average: $6,894
- National Average: $4,943
Annual Healthcare Expenditures
- California Average: $7,969
- National Average: $7,540
Keep in mind that these are only averages, so they don’t apply to everyone. As noted earlier, a lot depends on the size of your 401(k) balance and Social Security payment.
The average 401(k) balance is $272,588 for Americans 65 and older, according to Vanguard data cited by CNN. But the median balance is only $88,488 — which means averages skew much higher because of high balances involving wealthy people.
The average Social Security retirement check was $1,869.77 per month as of June 2024, according to the Social Security Administration. But that figure can go much higher or lower depending how much you paid into the system and when you claim benefits.
Where you decide to retire in California can also impact how long your retirement income lasts. If you have the typical income, it will last a lot longer in more affordable places like Redding and Chico than pricey ones like Walnut Creek and Palm Springs.
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