$1M in retirement savings is a stretch in these blue states, report says

calico 01/04/2024

‘Fox & Friends’ hosts discuss the best and worst states for retirement and which states were the most popular moving destinations in 2023.

If you’ve ever wondered which state would cost the least – and most – for your future retirement, an answer has finally arrived.

With just $1 million to spend, retirement funds will last the longest in Mississippi, Oklahoma, Kansas, Alabama, Iowa, Georgia, Indiana, Tennessee and Arkansas, for more than 21 years, according to a new analysis by GOBankingRates using data from the U.S. Bureau of Labor Statistics and Missouri Economic Research and Information Center.

The states where your money will last the shortest amount of time, about 10 to 15 years, include Hawaii, New York, California, Massachusetts and Alaska.

“The cost of living in Hawaii, New York, California and Massachusetts is among the highest in the nation. In fact, another recent GOBankingRates study looked into the living wage a single person needs in all 50 states, and found that Hawaii, Massachusetts, California and New York rank as the top four most expensive states to live in,” lead content data researcher Andrew Murray told Fox News Digital. “Our research found that a single person needs to earn more than $112,000 in Hawaii, the highest amount in the nation.”

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Murray added that housing, healthcare and grocery costs in Midwestern and Southern states are “all low” compared to other parts of America.

According to a new GOBankingRates study, Hawaii, Massachusetts and California rank as the top three states where $1 million in retirement funds will last the least amount of time. (Fox News)

“However, the biggest difference is in housing costs. Housing costs in New York and California (more than $20,000) are more than double the amount in states such as Mississippi and Oklahoma (less than $7,000),” the GOBankingRates researcher said.

“It’s important that retirees consider housing costs before deciding where to live, as they typically account for the majority of annual expenses,” Murray continued. “Retirees can save a significant amount if they choose to live in a state with lower housing costs. For example, our research uncovered that in Mississippi the annual housing cost is just about $7,000 compared to more than $31,000 in Hawaii and more than $20,000 in New York.”

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Charles Schwab has previously reported that surveyed Americans feel most comfortable retiring with at least $1.9 million. However, previous Fidelity guidance has indicated that the best retirement savings number for each individual isn’t based on a finite number.

By age 30, Fidelity recommends that you have saved at least 1x your annual salary. Then, it’s 3x your salary by 40, 6x by age 50, 8x by 60 and 10x by 67.

“It’s not based on dollars. So you will see a lot of different reports that say, ‘Oh, you need X amount of dollars when you retire.’ And then you’ll see a competing survey that says, ‘No, you need this amount,” Fidelity’s Michael Shamrell told Fox News Digital in September. “It doesn’t allow for people in different geographical areas of the country where there may be different cost of living.”

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Michael Shamrell, vice president of Fidelity’s workplace investing thought leadership, shares how to best save for retirement based on your age and salary.

Those Midwestern and Southern U.S. states have significantly “more cushion” time than many West and Northeastern states, Murray pointed out. Find the top and bottom 10 states’ rankings below to see how far $1 million in retirement savings will take you:

States where $1 million lasts the longest