West Virginia residents could make their $1 million in retirement financial savings final the longest in comparison with retirees in different Southern states. Based on calculations by GOBankingRates, $1 million would cowl dwelling bills for 20 years, 3 months and 19 days in West Virginia. The state with the second longest length for $1 million in retirement financial savings is Mississippi, the place that quantity would final 19 years, 11 months and 12 days.
Oklahoma is available in third place, with $1 million stretching 19 years, 11 months and 5 days. Kentucky ranks fourth, the place $1 million would cowl retirement prices for 19 years, 7 months and 11 days. Rounding out the highest 5 is Arkansas, the place retirees might reside off $1 million for 19 years, 6 months and 15 days.
West Virginia tops Southern financial savings length
To find out these figures, GOBankingRates first discovered the nationwide common annual expenditures for Individuals aged 65 and older utilizing 2022 Client Expenditure Survey information from the Bureau of Labor Statistics. They then estimated state-level annual expenditures by adjusting the nationwide common based mostly on every state’s price of dwelling index rating for the third quarter of 2023, sourced from the Missouri Financial Analysis and Data Middle.
Lastly, they calculated how lengthy $1 million would final in every state by dividing $1 million by the estimated annual expenditures. The 50 states and Washington D.C. had been ranked from longest to shortest length. Whereas $1 million is commonly cited as a retirement financial savings purpose, rising dwelling prices and longer life expectations imply this quantity will not be enough for a lot of retirees.
In the costliest state, Hawaii, $1 million can be depleted in lower than a decade.
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