How Long $2 Million Will Last in Retirement in Every State
While many financial experts recommend a minimum of $1 million saved for a comfortable retirement, others suggest that the number should be closer to $2 million — especially if your retirement days are many years away or you want to retire in an expensive city. While $2 million may sound like a lot of money, when you look at how far it stretches in all 50 states, you start to see how it’s actually not all that much over time.
In order to find how long $2 million will last in retirement across the country, GOBankingRates gathered national average annual expenditures data for people 65 and older from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey data, and annual expenditure estimates from the Missouri Economic Research and Information Center. GOBankingRates divided $2 million by each state’s average annual expenditures estimate. All 50 states were then ranked with No. 1 being the state where $2 million will last the longest, and No. 50 being the state where it will run out most quickly. Here’s how the states stack up in that order.
Mississippi
- Annual expenditures: $44,319.85
- How long $2 million will last: 45 years 1 months 15 days
Mississippi is the state where $2 million in retirement will last the longest, a hefty 45 years and some change. The biggest annual expenditure in Mississippi each year is housing $7,000.84, followed by healthcare at $6,868.31.
Oklahoma
- Annual expenditures: $44,736.98
- How long $2 million will last: 44 years 8 months 15 days
Oklahoma is not far behind Mississippi. You could have more than comfortable golden years here. The biggest annual expenditure here is also housing at $7,291.67, followed by healthcare at $6,411.36.
Kansas
- Annual expenditures: $45,623.38
- How long $2 million will last: 43 years 10 months 2 days
The biggest annual expenditure in Kansas is also housing, at $7,385.16. Groceries run around $4,213.69 per year and utilities are $3,842.58.
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Alabama
- Annual expenditures: $45,936.22
- How long $2 million will last: 43 years 6 months 15 days
In Alabama, you’re still going to have a juicy 43 years if you’ve got $2 million at retirement. Other than housing, the biggest expenses here are healthcare, $6,298.88, and groceries, $4,389.07.
Georgia
- Annual expenditures: $46,196.93
- How long $2 million will last: 43 years 3 months 15 days
In Georgia, though overall expenditures are low, utilities are still fairly high, at $3,540.66 annually. Groceries are $4,254.16.
Missouri
- Annual expenditures: $46,457.63
- How long $2 million will last: 43 years 0 months 18 days
In Missouri, healthcare is a hefty $6,488.69 per year, groceries are $4,290.14, and utilities are $3,717.11.
Iowa
- Annual expenditures: $46,509.77
- How long $2 million will last: 42 years 11 months 30 days
In Iowa, housing is still the biggest expense, though affordable overall. Healthcare is not so cheap, at $7,030.00 per year, groceries are $4,474.52, and transportation is $3,930.67.
Indiana
- Annual expenditures: $46,874.76
- How long $2 million will last: 42 years 8 months 1 days
In Indiana you’ll have a good long retirement with $2 million, because total expenses are affordable. However, healthcare is $6,713.65 per year and utilities are $4,077.84.
West Virginia
- Annual expenditures: $46,926.90
- How long $2 million will last: 42 years 7 months 13 days
You can ride $2 million for more than 42 years in West Virginia, with your biggest yearly expenditure being healthcare at $7,156.54. That’s a wee bit more than housing, which is $7,146.26.
Tennessee
- Annual expenditures: $47,031.18
- How long $2 million will last: 42 years 6 months 8 days
The South is a retirement-friendly place, particularly if you have $2 million on hand. You’ll pay an affordable amount for housing in Tennnessee, but groceries are steep at $4,245.17, as is healthcare at $6,319.97.
Arkansas
- Annual expenditures: $47,239.75
- How long $2 million will last: 42 years 4 months 3 days
Arkansas is a great place to retire, with your money stretching over 42 years if you have $2 million on hand. You’ll pay a hefty $5,764.60 for healthcare, however, and $4,168.72 in groceries.
Ohio
- Annual expenditures: $47,917.58
- How long $2 million will last: 41 years 8 months 26 days
Retirement in Ohio is an affordable experience, though healthcare will run you $6,861.28 yearly, and groceries are $4,452.03.
Nebraska
- Annual expenditures: $47,917.58
- How long $2 million will last: 41 years 8 months 26 days
Healthcare is also quite pricey in Nebraska, at $7,269.02 per year, just a bit behind housing, which is $8,621.21 per year. Of course, that’s affordable compared to much of the country.
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Michigan
- Annual expenditures: $48,074.00
- How long $2 million will last: 41 years 7 months 6 days
Healthcare and utilities are going to eat the largest chunks of expenditures after housing, at $6,854.25 and $3,877.87, respectively.
Wyoming
- Annual expenditures: $48,230.43
- How long $2 million will last: 41 years 5 months 19 days
Wyoming may give you over 41 years of retirement with $2 million on board, but you’ll still pay your biggest payments toward healthcare, $6,748.80 per year, and groceries, $4,640.90.
Texas
- Annual expenditures: $48,230.43
- How long $2 million will last: 41 years 5 months 19 days
In Texas, you’ll pay $8,797.79 per year in housing, a reasonable amount compared to much of the country, but $6,664.44 in healthcare.
Illinois
- Annual expenditures: $48,282.57
- How long $2 million will last: 41 years 5 months 1 days
Transportation is among the higher expenditures in Illinois behind housing, at $4,340.97 per year, and groceries aren’t all that cheap, either, at $4,429.55 per year.
Louisiana
- Annual expenditures: $48,803.98
- How long $2 million will last: 40 years 11 months 22 days
In Louisiana you get almost 41 years out of $2 million in retirement. Behind housing, the biggest expenditures are healthcare, $7,079.21, and groceries, $4,380.08.
New Mexico
- Annual expenditures: $49,012.54
- How long $2 million will last: 40 years 9 months 21 days
New Mexico also promises a long, comfortable retirement based on $2 million in retirement funds. Housing will run an average of $9,182.11 per year, healthcare is $7,093.27, and groceries are $4,434.04.
South Carolina
- Annual expenditures: $49,168.96
- How long $2 million will last: 40 years 8 months 4 days
You’ll be paying a fair amount for utilities here, $4,336.63, and groceries are $4,510.49.
South Dakota
- Annual expenditures: $49,273.25
- How long $2 million will last: 40 years 7 months 2 days
Transportation is over $2,000 more than the national average in South Dakota, though housing and utilities are under.
Kentucky
- Annual expenditures: $49,481.81
- How long $2 million will last: 40 years 5 months 1 days
In Kentucky, groceries and housing are below the national average, but transportation, at $4,320.46, is a few hundred dollars higher.
Wisconsin
- Annual expenditures: $49,794.66
- How long $2 million will last: 40 years 1 months 27 days
This Midwestern state is another solid place to spend your retirement. With annual expenditures under $50,000, groceries, housing and transportation are all less than the national average. However, healthcare is about $1,000 more, at $8,211.04.
North Carolina
- Annual expenditures: $49,898.94
- How long $2 million will last: 40 years 0 months 29 days
Both Carolinas offer a decent retirement on $2 million, with under $50,000 in annual expenditures. The biggest expense here is housing, which still falls under the national average, at $9,348.30 per year.
North Dakota
- Annual expenditures: $50,628.91
- How long $2 million will last: 39 years 6 months 1 days
North Dakota is the first state on this list where annual expenditures are over $50,000, though $2 million in retirement will still last nearly 40 years!
Minnesota
- Annual expenditures: $50,837.48
- How long $2 million will last: 39 years 4 months 3 days
In Minnesota, the biggest annual expenditure after housing is healthcare at $7,894.69, followed by groceries, at $4,528.48 — both of which are just above the national averages.
Pennsylvania
- Annual expenditures: $51,202.46
- How long $2 million will last: 39 years 0 months 21 days
In Pennsylvania, the biggest annual expenditure after housing is healthcare, $6,776.92, which is below the national average, followed by groceries, at $4,703.86, which is a few hundred dollars more.
Idaho
- Annual expenditures: $51,932.44
- How long $2 million will last: 38 years 6 months 4 days
Housing in Idaho is still relatively affordable, though it is higher than the national average at $10,885.58 per year. It’s the biggest expenditure residents will pay here.
Utah
- Annual expenditures: $53,600.95
- How long $2 million will last: 37 years 3 months 22 days
In Utah, though you’ll get a nice 37 years out of $2 million, you’ll still pay $6,460.57 for healthcare and $11,207.57 in housing costs each year.
Virginia
- Annual expenditures: $53,600.95
- How long $2 million will last: 37 years 3 months 22 days
Transportation costs in Virginia are sizable, but not higher than the national average at $3,934.78. However, utilities are higher than national average at $3,901.40.
Florida
- Annual expenditures: $53,600.95
- How long $2 million will last: 37 years 3 months 22 days
Florida’s annual expenditures are the same as Virginia, but they’re broken down differently. The biggest expenditure is housing at $11,269.90, followed by $6,840.19 for healthcare.
Nevada
- Annual expenditures: $53,809.51
- How long $2 million will last: 37 years 2 months 2 days
In Nevada, after housing, healthcare and groceries are the highest expenditures, at $6,748.80 and $4,285.64, respectively.
Colorado
- Annual expenditures: $54,643.77
- How long $2 million will last: 36 years 7 months 6 days
In Colorado, though the annual expenditures are less than $55,000 per year, several of the expenses are higher than the national average, including groceries and housing.
Montana
- Annual expenditures: $54,643.77
- How long $2 million will last: 36 years 7 months 6 days
In Montana, though groceries and housing are above the national average, utilities are significantly lower than the national average, at $3,305.40 per year.
Delaware
- Annual expenditures: $55,060.90
- How long $2 million will last: 36 years 3 months 25 days
Housing is closer to the national average in Delaware, at $10,937.51 per year, but healthcare is over, at $7,381.50.
Arizona
- Annual expenditures: $55,165.18
- How long $2 million will last: 36 years 2 months 31 days
Arizona, like many of the states so far, may offer a comfy number of years in retirement with $2 million, but you’ll pay the most for healthcare and housing, $6,692.56 and $12,526.72 respectively.
New Jersey
- Annual expenditures: $58,606.48
- How long $2 million will last: 34 years 1 months 15 days
In New Jersey, though you get a good 34 years of retirement out of $2 million, each annual expenditure category is higher than the national average, though total expenditures are still below $60,000.
Rhode Island
- Annual expenditures: $58,867.19
- How long $2 million will last: 33 years 11 months 19 days
Housing costs are starting to creep up here in Rhode Island, at over $2,000 above the national average, or $12,246.27.
Washington
- Annual expenditures: $59,545.02
- How long $2 million will last: 33 years 7 months 2 days
In Washington state, healthcare is a bit more pricey than other states on the list — almost $1,400 over the national average at $8,478.18.
Maine
- Annual expenditures: $60,118.57
- How long $2 million will last: 33 years 3 months 7 days
Maine is the first state on this list where annual expenditures surpass $60,000. However, $2 million will still last well over 33 years.
Vermont
- Annual expenditures: $60,431.42
- How long $2 million will last: 33 years 1 months 4 days
This New England state still offers a decent number of years in retirement for $2 million, even though every expenditure category is above the national average.
New Hampshire
- Annual expenditures: $60,535.70
- How long $2 million will last: 33 years 0 months 13 days
New Hampshire offers a cost of living not too far off from its New England sister state, with just about a month less difference in how far $2 million will last.
Connecticut
- Annual expenditures: $60,900.69
- How long $2 million will last: 32 years 10 months 1 days
In Connecticut, after housing, healthcare and utilities are the biggest expenditures at $7,367.44 and $5,109.06 respectively.
Oregon
- Annual expenditures: $63,194.89
- How long $2 million will last: 31 years 7 months 25 days
Housing in Oregon is starting to take an even bigger chunk of change than many states on this list, at $15,320.83 per year. Transportation is also quite high, at $5,432.37, a good $1,300 above the national average.
Maryland
- Annual expenditures: $64,654.84
- How long $2 million will last: 30 years 11 months 5 days
Housing is even more pricey in Maryland, at $17,034.68 per year. But healthcare is below national average, at $6,165.31.
Alaska
- Annual expenditures: $66,010.51
- How long $2 million will last: 30 years 3 months 19 days
In Alaska, groceries and utilities are both sizable, at $6,030.48 and $5,732.50 respectively, but healthcare is the highest on the list, at $10,854.32 per year.
New York
- Annual expenditures: $70,129.65
- How long $2 million will last: 28 years 6 months 7 days
With New York, the expenditures hit a new high, at over $70,000, and a new low, less than 30 years for $2 million to last in retirement.
California
- Annual expenditures: $71,746.02
- How long $2 million will last: 27 years 10 months 17 days
The Golden State might cost you some gold to retire here. You’ll be lucky to get 28 years in retirement here with $2 million saved up, paying more than $71,000 in annual expenditures. Housing is over $20,000, utilities are $5,296.97, and healthcare is $7,768.15.
Massachusetts
- Annual expenditures: $78,055.08
- How long $2 million will last: 25 years 7 months 13 days
The second-most expensive state on this list, where your $2 million will only last a bit more than 25 years, is Massachusetts. The annual expenditures are closing in on $80,000. Housing is $23,246.11 per year, and utilities are $5,255.94.
Hawaii
- Annual expenditures: $95,939.44
- How long $2 million will last: 20 years 10 months 5 days
Hawaii may be paradise in theory, but only if you have enough money to make it work. It’s the most expensive state on this list, where $2 million in retirement funds will last not quite 21 years. The annual expenditures are closing in on $100,000, with housing being a hefty $32,563.25, healthcare $8,302.43, and groceries $6,750.00.
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Methodology: In order to find how long $2,000,000 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 2022 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years $2,000,000 will last in each state by dividing $2,000,000 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 $2,000,000 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 CEX. All data was collected on and up to date as of March 27, 2023.
