How Long Your 401(k) Plus Social Security Benefits Will Last You in Colorado
Written by
Vance Cariaga
Edited by
Daria Uhlig
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For most Americans, retirements are funded by a combination of 401(k) plans and Social Security benefits. But there are wide differences in the amounts people 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 nearly nothing to millions of dollars. Because of these variations, the number of years your retirement income will last varies as well.
For retirees in Colorado, the combination of Social Security benefits and 401(k) income doesn’t last quite as long as it does elsewhere in the United States, according to a GOBankingRates study. The typical retiree in the Centennial State can expect their 401(k)/Social Security combination to last about 15 years and three months. That compares to the national average of roughly 15 years, eight months.
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 housing, groceries and other essentials. 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 ranked last 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.
Colorado occupies a sort of middle ground between the most and least affordable states.
How Long a 401(k) Will Last with Social Security
- Colorado Average: 15 years, 3 months, 4 days
- National Average: 15 years, 8 months, 8 days
Annual Expenditures
- Colorado Average: $58,858.72
- National Average: $57,818
Annual Expenditures After Social Security
- Colorado Average: $36,421.48
- National Average: $35,380.76
Annual Groceries Expenditures
- Colorado Average: $4,816.19
- National Average: $4,797
Annual Housing Expenditures
- Colorado Average: $12,650.74
- National Average: $11,692
Annual Utilities Expenditures
- Colorado Average: $3,825.11
- National Average: $4,236
Annual Transportation Expenditures
- Colorado Average: $4,626.65
- National Average: $4,943
Annual Healthcare Expenditures
- Colorado Average: $7,954.70
- National Average: $7,540
Because these are averages, 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 $1,871.09 per month as of July 2024, according to the Social Security Administration. However, 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 Colorado will also impact how long your retirement income lasts. Colorado ranks as one of the most expensive states to live in when you include high-dollar resort communities such as Aspen and Vail or some of the pricier communities around Denver and Boulder. In those places, your retirement funds won’t last long at all unless you’re wealthy. You’ll find much more affordable communities elsewhere in the Centennial State, such as Fountain or Fruita.
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