How Long $1 Million in Retirement Will Last in Every State

About 10,000 people turn 65 years old every day in the U.S. The average American retirement age is 63, and the life expectancy for retirees is about 79. That means Americans should plan to spend 16 years in retirement. However, many Americans lack the savings needed to survive their golden years.

Conventional wisdom suggests a retirement income nest egg of at least $1 million, but the buying power of $1 million varies wildly depending on where you live. In order to determine how long $1 million will last the average retiree in every state, GOBankingRates found the total annual expenditures for people 65 and older, then factored in the cost-of-living indices in each state. Dividing a theoretical $1 million by the average retiree budget reveals the number of years that $1 million will last in every state.

On average, a $1 million retirement nest egg will last 19 years, 7 months and 6 days across America. However, in some states, that time frame is significantly shorter.

50. Hawaii

• $1 million will last: 10 years, 3 months, 27 days
• Annual cost of housing: $53,279
• Annual cost of transportation: $11,103
• Annual cost of healthcare: $7,826
• Annual cost of groceries: $6,613
• Annual cost of utilities: $6,854

If you retire with $1 million in Hawaii, you’ll have less than a dozen years to ride out your savings. Thanks to the Aloha State’s high cost of living, your retirement nest egg will deplete the fastest here compared to the rest of America.

Related: Best Age to Retire

49. California

• $1 million will last: 13 years, 1 month, 15 days
• Annual cost of housing: $36,109
• Annual cost of transportation: $10,379
• Annual cost of healthcare: $7,672
• Annual cost of groceries: $4,742
• Annual cost of utilities: $4,672

Only two states other than Hawaii require annual expenditures of more than $75,000, and one of them is California. Retirees can expect to spend $76,120 a year to get by in the Golden State.

48. New York

• $1 million will last: 14 years, 3 months, 25 days
• Annual cost of housing: $32,471
  
• Annual cost of transportation: $8,712
• Annual cost of healthcare: $7,022
• Annual cost of groceries: $4,484
• Annual cost of utilities: $4,314

The biggest expense in the Empire State is housing. At $32,471 per year, housing in New York costs more than it does in all but two other states.

47. Oregon

• $1 million will last: 14 years, 10 months, 2 days
• Annual cost of housing: $28,881
  
• Annual cost of transportation: $10,214
• Annual cost of healthcare: $7,584
• Annual cost of groceries: $4,308
• Annual cost of utilities: $3,493

With housing coming in at $28,881 per year in Oregon, just three states have higher housing costs. Residents get a break, however, with utilities. The average annual cost of utilities in Oregon is just $2,842, which is the fifth-lowest in the country.

46. Massachusetts

• $1 million will last: 15 years, 1 month, 17 days
• Annual cost of housing: $27,054
  
• Annual cost of transportation: $8,668
• Annual cost of healthcare: $7,879
• Annual cost of groceries: $4,449
• Annual cost of utilities: $4,354

The big financial killer in pricey Massachusetts is healthcare, which costs residents nearly $8,000 per year. It’s the fourth-highest healthcare cost among all the states.

45. Alaska

• $1 million will last: 15 years, 3 months, 30 days
• Annual cost of housing: $21,271
  
• Annual cost of transportation: $9,773
• Annual cost of healthcare: $10,110
• Annual cost of groceries: $5,242
• Annual cost of utilities: $6,120

America’s other noncontiguous state joins Hawaii near the bottom of GOBankingRates’ list. It costs $65,181 to get through a year in Alaska, due in large part to a painfully high grocery bill of $5,242 per year.

44. Maryland

• $1 million will last: 15 years, 4 months, 9 days
• Annual cost of housing: $29,310
  
• Annual cost of transportation: $8,720
• Annual cost of healthcare: $5,976
• Annual cost of groceries: $4,238
• Annual cost of utilities: $4,259

Retirees can stretch $1 million for less than 16 years in the mid-Atlantic state of Maryland. At $29,310 a year, Maryland is home to the country’s fourth-highest housing costs.

43. Connecticut

• $1 million will last: 15 years, 7 months, 5 days
• Annual cost of housing: $22,987
  
• Annual cost of transportation: $8,354
• Annual cost of healthcare: $7,618
• Annual cost of groceries: $4,461
• Annual cost of utilities: $5,084

You can expect $1 million to last a little longer in Connecticut than in Massachusetts. Like their neighbors to the north, people who retire in Connecticut will be required to dedicate a large chunk of their annual spending to healthcare.

42. New Jersey

• $1 million will last: 15 years, 11 months, 1 day
• Annual cost of housing: $25,910
  
• Annual cost of transportation: $8,301
• Annual cost of healthcare: $6,814
• Annual cost of groceries: $4,277
• Annual cost of utilities: $4,033

Living in the most densely packed state in America, New Jerseyans pay more than the national average across all categories. For example, housing costs are a whopping 63.1% higher than the U.S. average.

41. Rhode Island

• $1 million will last: 16 years, 8 months, 4 days
• Annual cost of housing: $20,556
  
• Annual cost of transportation: $9,265
• Annual cost of healthcare: $7,323
• Annual cost of groceries: $4,148
• Annual cost of utilities: $4,902

Healthcare and groceries cost more in the Ocean State than they do across most of the country, but not by much. The big bank-breakers are housing and utilities, both of which cost over 20% more in Rhode Island than in the nation as a whole.

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40. Maine

• $1 million will last: 16 years, 11 months, 11 days
• Annual cost of housing: $19,556
  
• Annual cost of transportation: $9,071
• Annual cost of healthcare: $8,161
• Annual cost of groceries: $4,179
• Annual cost of utilities: $4,608

At $4,179 a year, retirees in Maine pay grocery bills that are a little higher than average. However, every other cost-of-living category is more expensive. The worst of the bunch is housing, which comes in at $19,556 per year.

39. Vermont

• $1 million will last: 17 years, 4 months, 22 days
• Annual cost of housing: $20,128
  
• Annual cost of transportation: $8,959
• Annual cost of healthcare: $6,780
• Annual cost of groceries: $4,347
• Annual cost of utilities: $4,771

Planning to retire in Vermont? Housing will likely cost you more than $20,000 a year. In total, the cost of living in the Green Mountain State averages $57,454 annually.

38. Washington

• $1 million will last: 17 years, 11 months, 27 days
• Annual cost of housing: $18,714
  
• Annual cost of transportation: $9,093
• Annual cost of healthcare: $7,966
• Annual cost of groceries: $4,211
• Annual cost of utilities: $3,521

Residents of Washington state pay just over $3,500 for utilities, which is well below the national average. All other categories cost slightly more than the norm, which translates to a grand total of $55,547 per year.

37. New Hampshire

• $1 million will last: 18 years, 1 month, 24 days
• Annual cost of housing: $17,522
  
• Annual cost of transportation: $8,324
• Annual cost of healthcare: $7,779
• Annual cost of groceries: $3,922
• Annual cost of utilities: $4,743

It’s clear that New England isn’t kind to retiree pocketbooks: All six New England states, including New Hampshire, are among the bottom 15 states where your retirement savings will last the shortest amount of time.

36. Nevada

• $1 million will last: 18 years, 4 months, 9 days
• Annual cost of housing: $19,349
  
• Annual cost of transportation: $9,228
• Annual cost of healthcare: $7,082
• Annual cost of groceries: $4,230
• Annual cost of utilities: $3,532

With an annual bill of approximately $3,500, Nevadans get off relatively easy when it comes to utilities. Housing, however, costs more than the national average and comes in at $19,349 per year. Both transportation and healthcare costs are also higher than average by a fairly steep margin.

35. Delaware

• $1 million will last: 18 years, 5 months, 3 days
• Annual cost of housing: $15,600
  
• Annual cost of transportation: $7,995
• Annual cost of healthcare: $6,807
• Annual cost of groceries: $4,429
• Annual cost of utilities: $3,830

Residents of the First State pay roughly $15,000 per year for housing, on average, which is slightly below the norm. Overall, living in Delaware requires annual expenditures of $54,242.

Find Out: Here’s Exactly How Much You Need Saved For Retirement in Your State

34. Montana

• $1 million will last: 18 years, 7 months, 17 days
• Annual cost of housing: $17,729
  
• Annual cost of transportation: $9,340
• Annual cost of healthcare: $6,593
• Annual cost of groceries: $4,105
• Annual cost of utilities: $3,330

You’ll spend an average of $53,640 to cover annual expenses in Montana, which is almost the same as what you need in the Rocky Mountain State to the immediate south. Groceries and healthcare costs are just about average, but utility costs in Montana are some of the cheapest in the nation.

33. Colorado

• $1 million will last: 18 years, 10 months, 9 days
• Annual cost of housing: $18,904
  
• Annual cost of transportation: $7,562
• Annual cost of healthcare: $6,894
• Annual cost of groceries: $4,004
• Annual cost of utilities: $3,509

At $18,094 per year, housing expenses in Colorado are higher than the national average. However, utilities cost significantly less in this state.

32. Pennsylvania

• $1 million will last: 19 years, 7 months
• Annual cost of housing: $16,013
  
• Annual cost of transportation: $8,182
• Annual cost of healthcare: $6,157
• Annual cost of groceries: $4,176
• Annual cost of utilities: $4,207

A yearly sum of $51,031 will get you through retirement in Pennsylvania. At $6,157 per year, healthcare costs in the state are relatively low, but that isn’t true of the other cost-of-living categories.

31. Minnesota

• $1 million will last: 19 years, 7 months, 7 days
• Annual cost of housing: $14,027
  
• Annual cost of transportation: $7,748
• Annual cost of healthcare: $7,276
• Annual cost of groceries: $4,168
• Annual cost of utilities: $3,842

In Minnesota, groceries, transportation and healthcare cost more than in most states. The silver lining is utilities, which are a little cheaper compared to the national average.

30. Virginia

• $1 million will last: 19 years, 9 months, 10 days
• Annual cost of housing: $17,157
  
• Annual cost of transportation: $6,583
• Annual cost of healthcare: $6,512
• Annual cost of groceries: $3,754
• Annual cost of utilities: $3,937

Compared to the other states, Virginia ranks No. 4 for low transportation costs. The state is also cheaper than average for healthcare and utilities. However, housing in Virginia is pricier than the norm, costing $17,157 per year.

29. South Dakota

• $1 million will last: 19 years, 11 months, 14 days
• Annual cost of housing: $17,443
  
• Annual cost of transportation: $6,710
• Annual cost of healthcare: $6,901
• Annual cost of groceries: $4,179
• Annual cost of utilities: $3,644

South Dakota’s cost of living is the closest to the national average, with a difference of just 0.2%.

28. North Dakota

• $1 million will last: 20 years, 1 month, 26 days
• Annual cost of housing: $14,345
  
• Annual cost of transportation: $7,793
• Annual cost of healthcare: $7,484
• Annual cost of groceries: $4,222
• Annual cost of utilities: $3,715

Utilities and housing are cheap in North Dakota, whereas groceries are slightly more expensive than average. Healthcare costs in North Dakota are particularly high, with an annual bill of $7,484.

27. Utah

• $1 million will last: 20 years, 2 months, 27 days
• Annual cost of housing: $14,869
  
• Annual cost of transportation: $8,115
• Annual cost of healthcare: $6,432
• Annual cost of groceries: $3,847
• Annual cost of utilities: $3,548

The only cost-of-living category in Utah that’s pricier than the national average is transportation, with residents spending 8.6% more than the rest of the country.

26. Florida

• $1 million will last: 20 years, 4 months, 4 days
• Annual cost of housing: $15,155
  
• Annual cost of transportation: $7,225
• Annual cost of healthcare: $6,492
• Annual cost of groceries: $4,062
• Annual cost of utilities: $4,056

Grocery costs are relatively high in Florida, with the average annual bill coming in at over $4,000. Yearly housing expenses are below average, however, as are transportation and healthcare costs.

25. Wisconsin

• $1 million will last: 20 years, 5 months, 18 days
• Annual cost of housing: $14,520
  
• Annual cost of transportation: $7,330
• Annual cost of healthcare: $7,718
• Annual cost of groceries: $3,933
• Annual cost of utilities: $3,925

In Wisconsin, living expenses will cost retirees $48,823 per year. At $7,718, annual healthcare expenses in the state are among the highest in the country. However, utility costs are just below average.

24. Arizona

• $1 million will last: 20 years, 6 months, 12 days
• Annual cost of housing: $14,567
  
• Annual cost of transportation: $8,189
• Annual cost of healthcare: $6,345
• Annual cost of groceries: $3,785
• Annual cost of utilities: $4,263

Only two cost-of-living categories in Arizona aren’t cheaper compared to the rest of America: utilities and transportation. Getting around costs about 10% more in the Grand Canyon State, on average.

23. South Carolina

• $1 million will last: 20 years, 9 months, 6 days
• Annual cost of housing: $13,519
  
• Annual cost of transportation: $6,575
• Annual cost of healthcare: $6,311
• Annual cost of groceries: $3,980
• Annual cost of utilities: $4,271

Retiring in South Carolina requires about $48,121 in total annual expenses. Groceries are more expensive than the national average, but housing prices come at a steep discount compared to the rest of the country.

22. North Carolina

• $1 million will last: 20 years, 11 months, 25 days
• Annual cost of housing: $13,201
  
• Annual cost of transportation: $6,979
• Annual cost of healthcare: $7,410
• Annual cost of groceries: $3,773
• Annual cost of utilities: $3,886

In North Carolina, the cost of living is generally cheaper than the national average. The exception is healthcare, which costs about 10% more in the Tar Heel State compared to the rest of the country.

21. Illinois

• $1 million will last: 21 years, 26 days
• Annual cost of housing: $13,853
  
• Annual cost of transportation: $7,539
• Annual cost of healthcare: $6,633
• Annual cost of groceries: $3,679
• Annual cost of utilities: $4,005

Illinois requires retirees to spend $47,418 per year to cover the cost of living. Transportation and utilities are slightly more expensive than the national average, but housing, healthcare and grocery costs are all below average.

20. Louisiana

• $1 million will last: 21 years, 2 months, 16 days
• Annual cost of housing: $13,757
  
• Annual cost of transportation: $7,360
• Annual cost of healthcare: $6,620
• Annual cost of groceries: $3,902
• Annual cost of utilities: $3,544

Retirees in Louisiana typically spend less than residents in the majority of other states. Housing and utilities are both much cheaper in Louisiana compared to the rest of the nation.

19. Idaho

• $1 million will last: 21 years, 6 months, 28 days
• Annual cost of housing: $13,837
  
• Annual cost of transportation: $7,793
• Annual cost of healthcare: $6,519
• Annual cost of groceries: $3,601
• Annual cost of utilities: $3,290

At $7,793, the annual cost of transportation in Idaho isn’t, ahem, small potatoes. But housing is relatively affordable at just $13,837 per year.

18. Texas

• $1 million will last: 21 years, 9 months, 5 days
• Annual cost of housing: $13,551
  
• Annual cost of transportation: $6,829
• Annual cost of healthcare: $6,445
• Annual cost of groceries: $3,472
• Annual cost of utilities: $4,060

Both groceries and housing are relatively cheap in the Lone Star State, coming in at $3,472 per year and $13,551 per year, respectively. In fact, Texas is cheaper than average in every category except for utilities.

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17. West Virginia

• $1 million will last: 21 years, 10 months, 9 days
• Annual cost of housing: $12,645
  
• Annual cost of transportation: $6,986
• Annual cost of healthcare: $5,970
• Annual cost of groceries: $3,629
• Annual cost of utilities: $3,532

If you plan to retire in West Virginia, you can expect to spend a little less than in most states. Housing, transportation, healthcare, groceries and utilities are all cheaper than the national average.

16. Kentucky

• $1 million will last: 21 years, 10 months, 27 days
• Annual cost of housing: $12,296
  
• Annual cost of transportation: $6,934
• Annual cost of healthcare: $5,976
• Annual cost of groceries: $3,511
• Annual cost of utilities: $3,874

Kentucky is the heart of Appalachia — and it’s a state where $1 million goes a fairly long way. Housing costs are relatively cheap, at $12,296 a year.

15. Ohio

• $1 million will last: 21 years, 11 months, 6 days
• Annual cost of housing: $11,692
  
• Annual cost of transportation: $7,225
• Annual cost of healthcare: $6,539
• Annual cost of groceries: $3,855
• Annual cost of utilities: $3,644

At under $12,000 per year, Ohio boasts the sixth-lowest housing costs across the country. The other cost-of-living categories hover just below the national average, save for utilities, which are significantly cheaper.

14. Nebraska

• $1 million will last: 21 years, 11 months, 6 days
• Annual cost of housing: $12,852
  
• Annual cost of transportation: $7,046
• Annual cost of healthcare: $6,693
• Annual cost of groceries: $3,730
• Annual cost of utilities: $3,604

Housing is where Nebraskans really clean up. Residents of the Cornhusker State spend about 20% less on housing costs compared to the national average.

13. Iowa

• $1 million will last: 22 years, 1 month, 6 days
• Annual cost of housing: $12,645
  
• Annual cost of transportation: $7,136
• Annual cost of healthcare: $6,553
• Annual cost of groceries: $3,746
• Annual cost of utilities: $3,782

It takes $45,210 per year to retire in Iowa, which is relatively cheap. Costs are lower across the board, but the biggest savings come from housing.

12. Indiana

• $1 million will last: 22 years, 1 month, 15 days
• Annual cost of housing: $12,280
  
• Annual cost of transportation: $6,956
• Annual cost of healthcare: $6,318
• Annual cost of groceries: $3,644
• Annual cost of utilities: $3,850

If you retire in Indiana, you can enjoy lower costs in general — especially from housing, which comes out to just $12,280 a year.

11. Alabama

• $1 million will last: 22 years, 3 months, 19 days
• Annual cost of housing: $11,358
  
• Annual cost of transportation: $6,620
• Annual cost of healthcare: $6,084
• Annual cost of groceries: $3,804
• Annual cost of utilities: $4,100

In Alabama, utility costs are higher than average. However, the state makes up for that and more with the third-lowest housing costs in the country.

10. Wyoming

• $1 million will last: 22 years, 3 months, 19 days
• Annual cost of housing: $11,486
  
• Annual cost of transportation: $7,420
• Annual cost of healthcare: $6,358
• Annual cost of groceries: $3,855
• Annual cost of utilities: $3,465

While Wyoming isn’t much cheaper than the national average in most cost-of-living categories, housing in the state is significantly less expensive, which helps catapult it into the top 10 on GOBankingRates’ list.

9. Georgia

• $1 million will last: 22 years, 3 months, 28 days
• Annual cost of housing: $11,724
  
• Annual cost of transportation: $7,293
• Annual cost of healthcare: $6,600
• Annual cost of groceries: $3,785
• Annual cost of utilities: $3,667

There are just 10 states in this study that can boast sub-$12,000 housing costs, and Georgia is a member of that group.

8. Kansas

• $1 million will last: 22 years, 4 months, 17 days
• Annual cost of housing: $11,724
  
• Annual cost of transportation: $6,897
• Annual cost of healthcare: $6,626
• Annual cost of groceries: $3,590
• Annual cost of utilities: $4,088

Retirees can get by in Kansas on about $45,000 a year, and all cost-of-living categories except utilities are cheaper than the norm. On average, Kansans pay the same low amount for housing as residents of Georgia.

7. Michigan

• $1 million will last: 22 years, 4 months, 26 days
• Annual cost of housing: $11,946
  
• Annual cost of transportation: $7,278
• Annual cost of healthcare: $6,231
• Annual cost of groceries: $3,488
• Annual cost of utilities: $3,862

Michigan is cheaper than most of the country in every cost-of-living category, including a whopping 24.8% discount on annual housing costs compared to the national average.

6. Tennessee

• $1 million will last: 22 years, 5 months, 13 days
• Annual cost of housing: $12,741
  
• Annual cost of transportation: $6,702
• Annual cost of healthcare: $5,930
• Annual cost of groceries: $3,644
• Annual cost of utilities: $3,707

Tennessee residents can thank their state’s low housing costs for allowing them to land among the top 10 on GOBankingRates’ list. Housing is nearly 20% cheaper in Tennessee compared to the rest of the country.

5. New Mexico

• $1 million will last: 22 years, 9 months, 4 days
• Annual cost of housing: $12,343
  
• Annual cost of transportation: $6,844
• Annual cost of healthcare: $6,707
• Annual cost of groceries: $3,941
• Annual cost of utilities: $3,489

At just under $3,500 a year, the utility bill in New Mexico is particularly cheap — it’s among the five least expensive in the country, actually.

4. Missouri

• $1 million will last: 22 years, 10 months, 11 days
• Annual cost of housing: $11,216
  
• Annual cost of transportation: $6,523
• Annual cost of healthcare: $6,412
• Annual cost of groceries: $3,773
• Annual cost of utilities: $3,953

Everything is cheaper in Missouri compared to the national average. However, average housing costs in the state are the second-lowest in the country, which cements Missouri’s place among the top five.

3. Oklahoma

• $1 million will last: 22 years, 10 months, 21 days
• Annual cost of housing: $11,422
  
• Annual cost of transportation: $6,687
• Annual cost of healthcare: $6,244
• Annual cost of groceries: $3,726
• Annual cost of utilities: $3,735

Oklahoma has a lot to offer retirees, with below-average costs across the board. However, the real steal is the cost of housing, which is the fourth-cheapest in the nation.

2. Arkansas

• $1 million will last: 22 years, 10 months, 30 days
• Annual cost of housing: $11,740
  
• Annual cost of transportation: $6,247
• Annual cost of healthcare: $5,735
• Annual cost of groceries: $3,594
• Annual cost of utilities: $3,644

At $43,605 per year, the cost of living in Arkansas is cheaper than it is in all but one state. Housing costs in Arkansas are among the country’s lowest, and healthcare and transportation are about 15% below the national average.

1. Mississippi

• $1 million will last: 23 years, 1 month, 16 days
• Annual cost of housing: $11,136
  
• Annual cost of transportation: $6,665
• Annual cost of healthcare: $6,124
• Annual cost of groceries: $3,578
• Annual cost of utilities: $3,536

Housing is the largest annual expense for almost every American, so it should be no surprise that the state with the cheapest housing is also the one where your retirement nest egg will last the longest. Mississippi residents can expect to spend about 30% less than the national average for housing.

Where $1 Million Will Last the Longest and Shortest

It should be clear from this study that there’s no magic number when it comes to retirement. After all, there’s a difference of 12 years, 10 months and 11 days between how long $1 million will last in the priciest state and the cheapest. If you’re flexible on where you spend your golden years and willing to settle down in Mississippi, you might be able to stretch your retirement savings by more than an additional decade. But, if you’re dead set on spending your retirement in a beach bungalow in Hawaii, even $1 million probably isn’t going to cut it.

Click through to see how much people have saved for retirement in each state.

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Methodology: GOBankingRates determined the number of years and months that $1,000,000 will last during retirement by multiplying the annual expenditures for someone 65 and older, sourced from the Bureau of Labor Statistics’ Consumer Expenditure Survey for Q3 2017 through Q2 2018, by each state’s overall cost-of-living index as well as the Q1 2019 cost-of-living indices for groceries, housing, utilities, transportation and healthcare, sourced from the Missouri Economic Research and Information Center.

About the Author

Joel Anderson

Joel Anderson is a business and finance writer with over a decade of experience writing about the wide world of finance. Based in Los Angeles, he specializes in writing about the financial markets, stocks, macroeconomic concepts and focuses on helping make complex financial concepts digestible for the retail investor.

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