How Long $500K Will Last in Retirement in Every State

When pondering the question, “How much do I need to retire?” there is never a one-size-fits-all answer. What one person could happily live on, another might be dissatisfied with. Although conventional wisdom suggests having a retirement nest egg of at least $1 million, that’s a difficult number to achieve for many Americans.

To paint a more realistic picture of retirement finances, GOBankingRates determined how long $500,000 will last in every state. To do this, the study analyzed average spending data — including groceries, housing, utilities, transportation and healthcare — for people ages 65 and older, as well as the cost of living across America.

50. Hawaii

• $500,000 will last: 5 years, 2 months, 1 day

Hawaii has the overall highest cost of living of all the states for people ages 65 and older, with the most expensive groceries, housing, utilities and transportation. The total annual expenditures in Hawaii are an estimated $96,793.96 — over $20,000 more than the next most expensive state.

49. California

• $500,000 will last: 6 years, 6 months, 25 days

Settling down in this state isn’t for retirees on a tight budget. One of the major expenses in California is housing, which will set retirees back by $20,941.15 per year. After Hawaii, the Golden State has the second-highest annual cost of living: $76,120.03.

48. New York

• $500,000 will last: 7 years, 1 month, 25 days

The cost of living in New York is high. Retirees can expect to spend approximately $4,484.09 per year on groceries and $18,831.37 per year on housing in New York. With an average annual expenditure of $69,797.60 in the state, a retirement nest egg of $500,000 will barely last seven years.

47. Oregon

• $500,000 will last: 7 years, 5 months, 3 days

Oregon boasts the fifth-cheapest utilities in the U.S., but that’s the only low expense for residents in the state. The average annual expenditure for people ages 65 and older in Oregon is approximately $67,338.88.

46. Massachusetts

• $500,000 will last: 7 years, 6 months, 25 days

In Massachusetts, healthcare alone can cost $7,879.20 per year. In fact, it’s one of the worst states for senior care expenses. Massachusetts has the fourth-highest healthcare costs for those ages 65 and older in the U.S. Overall, it takes $66,034.25 per year for retirees to live in this Northeastern state.

45. Alaska

• $500,000 will last: 7 years, 7 months, 30 days

Out of all of the states, Alaska harbors the highest healthcare costs for those ages 65 and older, with an average cost of $10,110.30 per year. It’s also one of the states that spend the most on groceries — retirees should be prepared to budget $5,241.85 per year for food. Annual expenditures in Alaska total $65,181.22.

44. Maryland

• $500,000 will last: 7 years, 8 months, 3 days

Maryland is one of the most expensive states in the U.S. — retirees can expect to spend a total of $65,080.87 per year to live here. It’s the fourth-priciest state in terms of housing, with an average annual cost of $16,997.99. Yearly grocery and transportation costs are also on the steeper side: $4,238.01 and $4,544.30, respectively.

43. Connecticut

• $500,000 will last: 7 years, 9 months, 17 days

Healthcare isn’t cheap in Connecticut: The average annual cost in the state is $7,617.90, which is the ninth highest in the U.S. Utility costs are also on the expensive side at $4,757.63 per year — the third highest in the nation. Overall, costs for people ages 65 and older add up to $64,077.31 per year in Connecticut.

42. New Jersey

• $500,000 will last: 7 years, 11 months, 18 days

Housing costs an average of $15,026.40 per year in New Jersey — the state has the seventh-highest average housing cost of all states. Transportation is also one of the larger expenses here, with an average annual cost of $4,326.23. Annual living expenditures in New Jersey total $62,772.68 for seniors.

41. Rhode Island

• $500,000 will last: 8 years, 4 months, 4 days

Rhode Island might be the smallest U.S. state, but the cost to live here is huge: $59,912.53 per year for people ages 65 and older. Utilities alone cost $4,586.79 per year — the fourth-most expensive utility cost in the U.S. Rhode Island also has the sixth-highest transportation expenses, averaging $4,828.56 per year.

40. Maine

• $500,000 will last: 8 years, 5 months, 21 days

In Maine, retirees can anticipate spending $4,311.95 a year on utilities — the eighth-highest cost of all the states. Maine also has the second-highest healthcare costs in the nation at $8,160.60 per year. The annual expenditures on necessities for people ages 65 and older in Maine total $58,959.15 on average.

39. Vermont

• $500,000 will last: 8 years, 8 months, 9 days

Vermont features the 10th-most expensive transportation among all the states, with an average annual cost of $4,668.91. The state also has the fifth-highest utility costs at $4,464.23 per year. Annual expenditures for retirees in Vermont total $57,453.81.

38. Washington

• $500,000 will last: 8 years, 11 months, 28 days

It costs an average of $55,547.05 per year for people ages 65 and older to live in Washington. This state in the Pacific Northwest has the seventh-least expensive utilities, with an average annual cost of $3,294.32. Transportation costs, however, are the eighth-most expensive at $4,739 per year.

37. New Hampshire

• $500,000 will last: 9 years, 0 months, 26 days

The annual cost of utilities in New Hampshire is $4,438.23 — the sixth-highest cost of all the states. It also has the sixth-most expensive healthcare for people ages 65 and older, with an average of $7,778.70 per year. Seniors will spend an average of $55,045.27 annually to live in New Hampshire.

36. Nevada

• $500,000 will last: 9 years, 2 months, 3 days

Retirees will spend an average of $4,809.09 per year on transportation in Nevada, making it the seventh-most expensive state to get around. Nevada features the eighth-lowest utility costs, totaling $3,305.46 per year. Annual expenditures in the state total $54,443.13 on average.

35. Delaware

• $500,000 will last: 9 years, 2 months, 18 days

It costs an average of $54,242.42 a year for retirees to cover basic necessities in Delaware, so a $500,000 retirement nest egg won’t quite stretch to a decade here. Overall, none of the First State’s living expenses rank as some of the cheapest or most expensive in the nation. Instead, they all fall closer to the middle.

Find Out: This Is What a Comfortable Retirement Costs in Every State

34. Montana

• $500,000 will last: 9 years, 3 months, 23 days

Montana has the second-cheapest utility cost of all the states at $3,116.05 per year. But it also has the fifth-highest annual transportation costs in the nation at $4,867.50. Overall expenditures for retirees add up to an average of $53,640.28 per year.

33. Colorado

• $500,000 will last: 9 years, 5 months, 6 days

Colorado has the sixth-cheapest utilities in the U.S., with an average annual cost of $3,283.18. However, other living expenses — including housing — are relatively high, bringing the average annual expenditure for people ages 65 and older up to $52.987.97.

32. Pennsylvania

• $500,000 will last: 9 years, 9 months, 16 days

Although Pennsylvania is an overall relatively expensive place to live — the average annual expenditure for retirees is $51,031.03 — it has the eighth-most affordable healthcare costs. On average, healthcare in the state costs $6,157.30 per year.

31. Minnesota

• $500,000 will last: 9 years, 9 months, 19 days

The overall cost of living in Minnesota is $50,980.95 per year on average for people ages 65 and older. But healthcare is expensive here — with an average annual expenditure of $7,276.20, this Midwestern state has healthcare costs that rank among the 20 highest in the nation.

30. Virginia

• $500,000 will last: 9 years, 10 months, 21 days

It costs an average of $50,529.25 per year for retirees to cover living expenses in Virginia. The state has the fourth-lowest annual transportation costs, with an average cost of $3,430.61. Virginia also ranks in the top 15 for most affordable grocery costs at $3,753.67 per year.

29. South Dakota

• $500,000 will last: 9 years, 11 months, 20 days

The average cost of transportation in South Dakota is the ninth lowest across America: $3,496.81 per year. However, the total annual cost for retirees to live in the state is $50,077.64, so a nest egg of $500,000 won’t quite last a decade.

28. North Dakota

• $500,000 will last: 10 years, 0 months, 29 days

The average annual cost for retirees to live in North Dakota is $49,575.86. The state has the 11th-highest healthcare costs at $7,483.90 a year. However, North Dakota’s annual utility costs rank among the 20 lowest in the nation.

27. Utah

• $500,000 will last: 10 years, 1 month, 13 days

Utah’s transportation expenses are among the 20 highest in the nation, with an annual cost of $4,228.88. The state’s utility expenses, however, are among the 20 lowest, with an average annual cost of $3,320.32. The overall cost for retirees to live in Utah is $49,375.15 per year.

26. Florida

• $500,000 will last: 10 years, 2 months, 3 days

Florida is a popular place to retire, but it falls right near the middle compared to the other states’ cost-of-living expenses, including housing, groceries, utilities, transportation and healthcare. The average annual expenditure for people ages 65 and older is $49,124.26 in Florida.

Check Out: 20 Best Suburbs for Retirees

25. Wisconsin

• $500,000 will last: 10 years, 2 months, 25 days

Bad news for retirees: Wisconsin has expensive healthcare, with an average annual cost of $7,718.40. That’s the seventh-highest bill among all the states. As for housing expenses, Wisconsin lands right in the middle of the study at No. 25, with annual costs of $8,420.68. The overall annual cost of living for seniors in the Badger State is $48,823.19.

24. Arizona

• $500,000 will last: 10 years, 3 months, 5 days

It costs $48,672.66 per year for people ages 65 or older to live in Arizona — and $8,448.32 typically goes toward housing costs. Annual grocery expenses in Arizona are, on average, among the 20 lowest in the nation. Transportation costs, however, are among the 20 highest.

23. South Carolina

• $500,000 will last: 10 years, 4 months, 19 days

This Southern state has expensive utilities. With an average cost of $3,996.26 per year, utilities in South Carolina rank as the 11th-most expensive in the nation. The cost of living for people ages 65 and older is $48,120.70 per year here.

22. North Carolina

• $500,000 will last: 10 years, 5 months, 28 days

When compared to costs in many other states, North Carolina has lower-than-average costs for housing at $7,656 per year, groceries at $3,773.20 per year and transportation at $3,637 per year. Retirees can expect to spend $47,618.92 annually to cover their living expenses.

21. Illinois

• $500,000 will last: 10 years, 6 months, 13 days

Retirees typically spend $47,418.21 per year to cover living expenses in Illinois. Grocery costs are the 11th-most affordable in the nation at $3,679.45 per year. All other expenses are below average when compared to the other states on GOBankingRates’ list, but not by much.

20. Louisiana

• $500,000 will last: 10 years, 7 months, 7 days

Overall expenses for retirees total an average of $47,117.14 per year in Louisiana. The state features the 11th-most affordable annual costs for utilities at $3,316.60. Although many Southern states are known for having affordable housing, Louisiana falls just outside of the 20 most affordable states in the nation, with annual housing costs of $7,978.46.

19. Idaho

• $500,000 will last: 10 years, 9 months, 16 days

Idaho-based retirees can expect to pay $46,314.29 per year to cover their living expenses. The state has the lowest utility costs in the nation at $3,078.91 per year. Cheap groceries also help keep overall costs low: Idaho has the seventh-most affordable average annual grocery expenses at $3,601.33 per year.

18. Texas

• $500,000 will last: 10 years, 10 months, 17 days

Texas has the cheapest groceries in the nation: Retirees typically spend $3,472.43 per year on groceries. With the overall cost of living at $45,912.87 per year, Texas retirees with a nest egg of $500,000 can stretch their savings to cover close to 11 years of living expenses.

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

17. West Virginia

• $500,000 will last: 10 years, 11 months, 6 days

West Virginia has affordable healthcare compared to all the other states. It has the third-lowest average healthcare costs for people ages 65 and older at $5,969.70 per year. Overall, the average annual cost of living for retirees in West Virginia is $45,712,16.

16. Kentucky

• $500,000 will last: 10 years, 11 months, 13 days

Cheap groceries help retirement nest eggs stretch further in Kentucky. The state has the third-least expensive groceries overall, with an average annual cost of $3,511.49. Additionally, healthcare is the fourth cheapest in the nation at $5,976.40 per year. The average annual cost of living for retirees in Kentucky is $45,611.80.

15. Ohio

• $500,000 will last: 10 years, 11 months, 17 days

Ohio has the sixth-cheapest housing among all the states, with the average housing cost for people ages 65 and older at $6,780.77 per year. Plus, annual utility costs in the state are among the 20 most affordable in the nation. Retirees can expect to pay $45,561.62 per year to cover their living expenses.

14. Nebraska

• $500,000 will last: 10 years, 11 months, 17 days

On average, a $500,000 nest egg will last you the same amount of time in this state as it will in Ohio. The average annual cost of utilities in Nebraska is $3,372.31, which falls among the 15 lowest of all the states. Grocery costs also fall within the 15 lowest at $3,730.23 per year. Retirees pay an average of $45,561.62 annually in Nebraska to cover all living expenses.

13. Iowa

• $500,000 will last: 11 years, 0 months, 18 days

Iowa has cheaper grocery costs than the majority of the states. Grocery expenses in Iowa fall within the 15 lowest, at $3,745.85 per year. Housing costs here also fall within the 15 lowest in the nation at $7,333.55 annually. In total, the average annual expenditure for people ages 65 and older is $45,210.38 per year in the state.

12. Indiana

• $500,000 will last: 11 years, 0 months, 22 days

Average housing costs in Indiana are the 11th lowest of all the states, with an average cost of $7,121.65 per year. The state has the 12th-most affordable healthcare, with an average annual cost of $6,318.10. Indiana also has the ninth-most affordable groceries, with an average annual cost of $3,644.30. The annual cost of living for retirees who choose to live in Indiana is $45,160.20 on average.

11. Wyoming

• $500,000 will last: 11 years, 1 month, 24 days

A $500,000 retirement nest egg will last longer in Wyoming that in most other states, and lower housing costs are likely part of the reason why. On average, housing costs total $6,661 annually — the fifth lowest in the nation. The average annual cost of living for retirees in Wyoming is $44,808.95.

10. Alabama

• $500,000 will last: 11 years, 1 month, 24 days

Alabama has the sixth-most affordable healthcare for people ages 65 and older of all the states, with an average annual cost of $6,083.60. It also has the third-cheapest housing at $6,587.30 per year. Retirees who choose to live in Alabama will spend, on average, $44,808.95 annually.

9. Georgia

• $500,000 will last: 11 years, 1 month, 28 days

Georgia is one of the states where retirement nest eggs will stretch the furthest, thanks in large part to its affordable housing. The average annual housing cost is $6,799.19 — the seventh lowest of all the states. Healthcare costs, however, rank closer to the middle at $6,599.50 per year. The annual cost of living for retirees in this state is $44,758.78 on average.

8. Kansas

• $500,000 will last: 11 years, 2 months, 11 days

Living expenses are low in Kansas: The state has the fifth-cheapest groceries, seventh-cheapest housing and 12th-cheapest transportation across America. The overall cost of living in Kansas for people ages 65 and older is $44,658.42 per year, so $500,000 in savings will last a little longer than 11 years here.

7. Michigan

• $500,000 will last: 11 years, 2 months, 14 days

Michigan has the second-least expensive groceries, with the average grocery bill in the state totaling $3,488.06 per year for retirees. Annual utility costs are relatively high compared to other expenses in the state, but even so, they’re still below average for the nation. Overall, retirees can expect to spend $44,608.24 per year to live in Michigan.

6. Tennessee

• $500,000 will last: 11 years, 2 months, 21 days

The costs of essentials like groceries and healthcare are low in Tennessee compared to other states. Groceries cost an average of $3,644.30 annually, which is the ninth lowest among all the states, and healthcare will set the average retiree back by $5,929.50 annually — it’s the second-lowest cost of all states. When living in Tennessee, retirees can expect to pay, on average, $44,507.89 per year.

5. New Mexico

• $500,000 will last: 11 years, 4 months, 19 days

New Mexico has some of the cheapest utilities of all the states. Averaging $3,264.61 per year, utility costs are the fourth lowest in New Mexico compared to the rest of America. Housing costs are also relatively affordable. Overall, you’ll have to fork over $43,905.75 per year to live here as a retiree.

4. Missouri

• $500,000 will last: 11 years, 5 months, 6 days

Housing is very affordable in Missouri. In fact, it’s cheaper in only one other state: Mississippi. The average housing cost of $6,504.38 per year keeps overall living expenses down for retirees. On average, annual expenditures for people ages 65 and older total $43,705.04 in Missouri.

3. Oklahoma

• $500,000 will last: 11 years, 5 months, 10 days

Of all the states, Oklahoma has the fourth-cheapest housing, seventh-cheapest transportation and 10th-cheapest healthcare. Annual expenditures for people ages 65 and older total $43,654.86, so a $500,000 retirement nest egg will last almost 12 years in Oklahoma.

2. Arkansas

• $500,000 will last: 11 years, 5 months, 17 days

It costs less to get around Arkansas than any other state: The average annual transportation cost is only $3,255.38. Plus, housing costs in Arkansas rank among the 10 lowest in the nation at $6,808.41 per year. The total annual cost of living for retirees in this state is $43,604.68 on average.

1. Mississippi

• $500,000 will last: 11 years, 6 months, 24 days

A $500,000 retirement nest egg will last longer in Mississippi than in any other state. Housing is the biggest living expense, and it’s the cheapest in Mississippi: $6,458.31 per year. Mississippi also has the fourth-most affordable groceries, 10th-most affordable utilities, sixth-most affordable transportation and seventh-most affordable healthcare. On average, retirees can expect to pay overall living expenses of $43,203.26 annually.

How Long Will a $500K Retirement Nest Egg Last?

When you’re trying to gauge how long $500,000 will last you, where you choose to live is crucial due to the difference in cost-of-living expenses across the nation.

For example, as far as location goes, Mississippi ranks as the top choice for making $500,000 last as long as possible. According to the data, however, $500,000 in Mississippi will last only about five weeks longer than it would in Arkansas, which is the second-best place to retire with $500,000.

If Hawaii, California or New York are your dream retirement destinations, $500,000 won’t last nearly as long. These states are considered some of the worst choices to retire in with that size of a nest egg as savings. For example, if you were to move to Hawaii instead of Mississippi, you would get six years, four months and 23 days less, on average, out of your retirement savings.

But location isn’t the only thing for you to consider. You also need to decide how you’ll spend your money, and weigh that against the average cost-of-living expenses in your chosen state. Perhaps you plan on sharing a home with someone else who can afford to pay half of the expenses. Or maybe transportation costs aren’t an issue for you because you plan to use a free transit system.

Whatever the case, to make your $500,000 nest egg go the distance, it’s important to choose a retirement destination that will best serve your specific needs at the most affordable cost.

Click through to see how long $100,000 in retirement will last in every state.

More on Retirement Planning

• The Future Cost of Retirement: How Much Younger Generations Will Need To Save
• How Much It Costs To Live Comfortably in America’s 50 Biggest Cities
• 16 Unusual Money Moves That Could Set You Up for Life 

Methodology: To find out how long $500,000 will last across the country, GOBankingRates found the (1) national average for annual expenditures for people ages 65 and older, sourced from the Bureau of Labor Statistics Consumer Expenditure Survey from the third quarter of 2017 through the second quarter of 2018. This factor was then extrapolated out for (2) each state by using the cost-of-living index for each state, sourced from the Missouri Economic Research and Information Center. GOBankingRates then divided $500,000 by each state’s annual average expenditure to see how long $500,000 would last in every state. GOBankingRates also found supplemental information on national annual expenditures for groceries, housing, utilities, transportation and healthcare from the Bureau of Labor Statistics Consumer Expenditure Survey. These national figures were then extrapolated to each state using the applicable cost-of-living indices for each state, sourced from Missouri Economic Research and Information Center.

About the Author

Cynthia Measom

Cynthia Measom is a Texas-based writer specializing in finance, business, parenting and education. With almost a decade of online writing experience, her work has appeared on websites such as Chron.com, The Bump and The Motley Fool. Measom received a Bachelor of Arts in English from the University of Texas at Austin.

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