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How long $1 million will last in retirement

  • When it comes to retirement, where you live can make or break your lazy-day dreams.
  • GoBankingRates compared how long $1 million in savings would last in each state.
  • That amount would stretch over 26 years Mississippi but less than 12 years in Hawaii.

For many soon-to-be retirees, a cool $1 million sounds like substantial savings goal, yet that largely depends on where you live.

In some parts of the country, it will barely last a decade.

"It's the benchmark everyone has in mind but it's important to be more specific, there's so much range across different states. Your personal situation plays a big role," said Mark Evitt, features editor at GOBankingRates.

The personal finance site compared average expenses for people age 65 and older, including groceries, housing, utilities, transportation and health care in every state to come up with how long a nest egg of $1 million would really last.

Top 5 states where your dollar will last the longest:
1. Mississippi
$1 million will last: 26 years, 4 months
2. Arkansas
$1 million will last: 25 years, 6 months
3. Oklahoma
$1 million will last: 25 years, 2 months
4. Michigan
$1 million will last: 25 years
5. Tennessee
$1 million will last: 25 years

It's no surprise that dollars stretched the furthest in states like Mississippi, Arkansas and Tennessee, where retirees could live a life of leisure for at least a quarter of a century.

"One of the benefits of living in the Southeast is that the cost of living is significantly lower," Evitt said.

However, in Hawaii, where residents pay roughly 30 percent more for household items across the board, that same amount will only get you just shy of a dozen years largely because of the cost of living and pricey real estate.

Top 5 states where your dollar will last the shortest:
1. Hawaii
$1 million will last: 11 years, 11 months
2. California
$1 million will last: 16 years, 5 months
3. Alaska
$1 million will last: 17 years, 0 months
4. New York
$1 million will last: 17 years, 1 month
5. Massachusetts
$1 million will last: 17 years, 4 months

(If you are thinking more outside the box, here are the world's top 10 retirement destinations.)

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