How Long $1.5M Will Last in Retirement in Every State
Retirement is often sold as a glorious time to revel in traveling, dining out, playing golf and enjoying leisure time. What isn’t often made clear is that doing all those wonderful things can cost a lot of money.
By the time most people retire, there’s no longer any income from work, only potentially from pensions, retirement accounts, and Social Security. Preparing to retire takes a lot of savvy financial planning to make sure you have enough money saved to continue to live the lifestyle you’re used to. Some financial experts recommend having $1 million or more saved — but $1.5 million is even better.
In order to find how long $1.5 million will last across the country, GOBankingRates first found the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey data. Then, we multiplied the national figure by each state’s overall cost-of-living index score for 2022 from the Missouri Economic Research and Information Center. The states were ranked after dividing $1.5 million by the expenditures.
Find out below how long $1.5 million will last in retirement in every state in descending order.
Mississippi
- Annual expenditures: $44,319.85
- Length of time $1.5 million will last: 33 years, 10 months, 2 days
The biggest expense in Mississippi after housing is healthcare, which runs an average of $6,868.31 per year.
Oklahoma
- Annual expenditures: $44,736.98
- Length of time $1.5 million will last: 33 years, 6 months, 11 days
In Oklahoma, overall expenditures are lower than the national average of $52,141 per year, but groceries are still nothing to joke about at $4,213.69 per year.
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Kansas
- Annual expenditures: $45,623.38
- Length of time $1.5 million will last: 32 years, 10 months, 16 days
While overall expenditures here in Kansas are below the national average, healthcare is a smidge over at $7,058.12 per year.
Alabama
- Annual expenditures: $45,936.22
- Length of time $1.5 million will last: 32 years, 7 months, 24 days
A lot of the Southern states offer a retirement that is more affordable than the rest of the U.S. Alabama is no exception. In addition to getting more than 32 years of comfortable retirement here, you’ll pay under the national average for all expenditures on our list.
Georgia
- Annual expenditures: $46,196.93
- Length of time $1.5 million will last: 32 years, 5 months, 19 days
In Georgia, you’ll get more than 32 years of retirement on $1.5 million. You can expect to spend around $3,540.66 per year on utilities and even a bit more on transportation, at $3,684.49.
Missouri
- Annual expenditures: $46,457.63
- Length of time $1.5 million will last: 32 years, 3 months, 14 days
Missouri’s the first state so far on this list where housing surpasses $8,000 annually, at an average of $8,299.21 per year.
Iowa
- Annual expenditures: $46,509.77
- Length of time $1.5 million will last: 32 years, 2 months, 31 days
While expenditures are low overall in Iowa, healthcare is a sizable $7,030.00, only about $400 less than the cost of housing, which is $7,426.71.
Indiana
- Annual expenditures: $46,874.76
- Length of time $1.5 million will last: 31 years, 11 months, 31 days
In Indiana, though you’ll get more than 31 years of retirement out of $1.5 million, the biggest chunks of that will go toward housing, at $8,039.54, and healthcare at $6,713.65 per year.
West Virginia
- Annual expenditures: $46,926.90
- Length of time $1.5 million will last: 31 years, 11 months, 16 days
In West Virginia, all expenditures fall under the national average except transportation, which at $4,562.54 annually is over $400 above national average, and healthcare, which at $7,156.54 annually is more than $100 above.
Tennessee
- Annual expenditures: $47,031.18
- Length of time $1.5 million will last: 31 years, 10 months, 20 days
In Tennessee you’ll pay almost as much for utilities, $3,677.90 per year, as you do for transportation, which is $3,713.22 per year.
Arkansas
- Annual expenditures: $47,239.75
- Length of time $1.5 million will last: 31 years, 8 months, 30 days
In Arkansas, one of the expenses that is not only lower than the national average but lower than other states is healthcare, at $5,764.60 per year.
Ohio
- Annual expenditures: $47,917.58
- Length of time $1.5 million will last: 31 years, 3 months, 19 days
With more than 31 years of retirement for $1.5 million, Ohio’s a great place to retire. Groceries here are $4,452.03 annually, which is close to the national average of $4,497, and utilities are $3,697.50, under the national average.
Nebraska
- Annual expenditures: $47,917.58
- Length of time $1.5 million will last: 31 years, 3 months, 19 days
$1.5 million will last more than 31 years in Nebraska, but some of the expenditures are on the higher side here. Healthcare is more than the national average at $7,269.02 per year, and transportation is close to the average, at $4,057.87 per year.
Michigan
- Annual expenditures: $48,074.00
- Length of time $1.5 million will last: 31 years, 2 months, 13 days
You’ll pay a good chunk of change for utilities in Michigan, at $3,877.87 per year, but healthcare is below average, at $6,854.25 per year.
Wyoming
- Annual expenditures: $48,230.43
- Length of time $1.5 million will last: 31 years, 1 month, 5 days
Groceries are on the higher side in the otherwise affordable Wyoming, at $4,640.90 per year.
Texas
- Annual expenditures: $48,230.43
- Length of time $1.5 million will last: 31 years, 1 month, 5 days
Utilities are on the high side in Texas, at $4,026.87 per year, and groceries are $4,060.79. But you’ll still get over 31 years out of $1.5 million.
Illinois
- Annual expenditures: $48,282.57
- Length of time $1.5 million will last: 31 years, 0 months, 25 days
In Illinois, the cost of transportation, $4,340.97 annually, is over $200 above the national average. All other expenditures are below the national average.
Louisiana
- Annual expenditures: $48,803.98
- Length of time $1.5 million will last: 30 years, 8 months, 26 days
In Louisiana, the cost of housing is creeping up, at $9,005.53 per year, and healthcare is slightly above national average at $7,079.21.
New Mexico
- Annual expenditures: $49,012.54
- Length of time $1.5 million will last: 30 years, 7 months, 6 days
In the Southwestern state of New Mexico, the two highest expenditures are housing, at $9,182.11, and healthcare, which is $7,093.27.
South Carolina
- Annual expenditures: $49,168.96
- Length of time $1.5 million will last: 30 years, 6 months, 4 days
In South Carolina, $1.5 million will allow for more than 30 years in retirement. Groceries, at $4,510.49 per year, and healthcare, at $6,734.74, are most expensive.
South Dakota
- Annual expenditures: $49,273.25
- Length of time $1.5 million will last: 30 years, 5 months, 9 days
Here in South Dakota, housing is above the national average, at $9,649.52 per year, and so is the cost of groceries, at $4,690.37.
Kentucky
- Annual expenditures: $49,481.81
- Length of time $1.5 million will last: 30 years, 3 months, 22 days
In Kentucky, the annual cost of housing is lower than many of the states earlier on the list, at $8,029.15 per year. So is healthcare, at $5,553.70 per year.
Wisconsin
- Annual expenditures: $49,898.94
- Length of time $1.5 million will last: 30 years, 0 months, 21 days
Housing and healthcare are the highest expenditures here, and healthcare, at $8,211.04, is higher than the national average.
North Carolina
- Annual expenditures: $49,898.94
- Length of time $1.5 million will last: 30 years, 0 months, 21 days
In North Carolina, healthcare is more than $600 over the national average at $7,669.73.
North Dakota
- Annual expenditures: $50,628.91
- Length of time $1.5 million will last: 29 years, 7 months, 17 days
You’ll pay more for groceries, transportation and healthcare here than the national average, at $4,604.93, $4,061.97 and $8,000.14 respectively.
Minnesota
- Annual expenditures: $50,837.48
- Length of time $1.5 million will last: 29 years, 6 months, 4 days
Minnesota is the first state on this list where $1.5 million will last less than 30 years in retirement. Utilities are reasonable here, at $3,815.13, as is housing, comparatively, at $8,797.79 per year.
Pennsylvania
- Annual expenditures: $51,202.46
- Length of time $1.5 million will last: 29 years, 3 months, 18 days
Residents of Pennsylvania will pay almost the same amount for utilities, $4,269.97, as they do for transportation, $4,295.84.
Idaho
- Annual expenditures: $51,932.44
- Length of time $1.5 million will last: 28 years, 10 months, 16 days
In Idaho, housing costs almost $500 over the national average, at $10,885.58, though other expenses are about average.
Utah
- Annual expenditures: $53,600.95
- Length of time $1.5 million will last: 27 years, 11 months, 23 days
Utah is the first state on this list where $1.5 million will last less than the national average, by about 9 months.
Virginia
- Annual expenditures: $53,600.95
- Length of time $1.5 million will last: 27 years, 11 months, 23 days
Housing costs begin to really creep up as we hit Virginia, at $11,446.47, which is more than $1,000 above the national average.
Florida
- Annual expenditures: $53,600.95
- Length of time $1.5 million will last: 27 years, 11 months, 23 days
Though you can get almost 28 years out of $1.5 million in retirement here in Florida, groceries are a pretty penny, at $4,739.84 per year. Healthcare is lower than the national average, though, at $6,840.19.
Nevada
- Annual expenditures: $53,809.51
- Length of time $1.5 million will last: 27 years, 10 months, 17 days
In Nevada, transportation costs outstrip utilities costs, at $4,726.66 and $3,709.27 respectively.
Colorado
- Annual expenditures: $54,539.49
- Length of time $1.5 million will last: 27 years, 6 months, 1 days
Here, groceries and utilities are reasonable, at $4,285.64 and $3,572.03 respectively.
Montana
- Annual expenditures: $54,643.77
- Length of time $1.5 million will last: 27 years, 5 months, 13 days
While you can get a healthy 27 years and some change out of $1.5 million in retirement, you’ll pay a bigger chunk of that toward housing in Montana, at $12,215.11 per year.
Delaware
- Annual expenditures: $55,060.90
- Length of time $1.5 million will last: 27 years, 2 months, 28 days
Housing is more reasonable in Delaware, at $10,937.51, which is almost $600 over the national average, but significantly less than many other states.
Arizona
- Annual expenditures: $55,165.18
- Length of time $1.5 million will last: 27 years, 2 months, 10 days
In your 27 plus years of retirement that you can get out of $1.5 million in Arizona, you’ll pay less for healthcare, which is lower than the national average, at $6,692.56 but housing is pricier, at $12,526.72.
New Jersey
- Annual expenditures: $58,606.48
- Length of time $1.5 million will last: 25 years, 7 months, 2 days
Retirement length drops to less than 26 years in New Jersey on $1.5 million. You’ll pay $4,775.81 in groceries, $4,238.60 in utilities, and $6,685.53 in healthcare.
Rhode Island
- Annual expenditures: $58,867.19
- Length of time $1.5 million will last: 25 years, 5 months, 23 days
Rhode Island’s annual expenditures are all above the national average, except for groceries, which are $4,425.05.
Washington
- Annual expenditures: $59,545.02
- Length of time $1.5 million will last: 25 years, 2 months, 9 days
$1.5 million doesn’t last quite as long in Washington state, where all the expenses are above the national average except for healthcare, which is just below $7,072.18.
Maine
- Annual expenditures: $60,118.57
- Length of time $1.5 million will last: 24 years, 11 months, 11 days
The New England states are among the pricier on this list. All expenditures are higher than the national average.
Vermont
- Annual expenditures: $60,431.42
- Length of time $1.5 million will last: 24 years, 9 months, 25 days
In Vermont, not only is housing much pricier here, at $13,742.00, transportation is steep, at $4,853.85 per year and utilities are $4,795.38.
New Hampshire
- Annual expenditures: $60,535.70
- Length of time $1.5 million will last: 24 years, 9 months, 10 days
New Hampshire is slightly less expensive than it’s sister state, Vermont, except for healthcare, which is more than $2000 above the national average, at $9,181.18.
Connecticut
- Annual expenditures: $60,900.69
- Length of time $1.5 million will last: 24 years, 7 months, 17 days
All the expenses are above the national average here, but utilities are especially steep in Connecticut, at $5,109.06 per year.
Oregon
- Annual expenditures: $63,194.89
- Length of time $1.5 million will last: 23 years, 8 months, 27 days
The amount of time $1.5 million will last in Oregon drops below 24 years. Housing is a sizable $15,320.83 per year, and transportation is remarkably steep, at $5,432.37 per year.
Maryland
- Annual expenditures: $64,654.84
- Length of time $1.5 million will last: 23 years, 2 months, 13 days
Maryland’s expenses are all above the national average except for healthcare, which, at $6,165.31 per year, is $800 below average.
Alaska
- Annual expenditures: $66,010.51
- Length of time $1.5 million will last: 22 years, 8 months, 19 days
While all the expenses in Alaska are above the national average, some are more so. Groceries are $6,030.48, more than $1,500 above national average, and utilities are more than $1,700 above average, at $5,732.50.
New York
- Annual expenditures: $70,129.65
- Length of time $1.5 million will last: 21 years, 4 months, 21 days
New York is one of the most expensive states, where $1.5 million will last less than 22 years. Housing makes a huge price jump here, to $20,140.39 per year, though utilities actually are just slightly below average, at $3,901.40.
California
- Annual expenditures: $78,055.08
- Length of time $1.5 million will last: 19 years, 2 months, 21 days
$1.5 million in retirement will not even last 20 years in the Golden State, which is in the top three most expensive states on this list. You’ll pay $20,130.01 in annual housing costs, $7,768.15 in healthcare and $5,180.54 in groceries.
Massachusetts
- Annual expenditures: $78,055.08
- Length of time $1.5 million will last: 19 years, 2 months, 21 days
Costs are even steeper in Massachusetts, another state where you can’t quite get 20 years out of $1.5 million in retirement funds. Housing here is $23,246.11, healthcare is a steep $8,421.94, and transportation is quite high at $5,255.94.
Hawaii
- Annual expenditures: $95,939.44
- Length of time $1.5 million will last: 15 years, 7 months, 17 days
Retirement savings of $1.5 million lasts half as much in Hawaii, the most expensive state on this list, as it does in the cheapest state, Mississippi. Housing is incredibly steep at $32,563.25, and groceries are a pricey $6,750.00, with all the other expenses also higher than the national average.
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Methodology: In order to find how long $1,500,000 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 $1,500,000 will last in each state by dividing $1,500,000 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 $1,500,000 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.
