Southern and Midwestern states are best for retirees looking to make their money last, according to a Jan. 5 analysis from GoBankingRates.
The financial planning website determined how far $1 million would stretch in different areas of the country for a retiree 65 years or older. To do so, it used the Bureau of Labor Statistics' 2020 Consumer Expenditure Survey and each state's overall cost of living score from the Missouri Economic Research and Information Center's 2021 data, accounting for groceries, utilities, transportation and healthcare. Read more about the methodology here.
These are the 10 states where a $1 million nest egg will stretch the furthest, listed alongside the length of time the savings will last:
1. Mississippi — 22 years, 8 months, 12 days
2. Oklahoma — 22 years, 1 month, 12 days
3. Kansas — 21 years, 11 months, 19 days
4. Alabama — 22 years, 6 days
5. Iowa — 21 years, 8 months, 26 days
6. Georgia — 21 years, 6 months, 26 days
7. Indiana — 21 years, 3 months, 4 days
8. Tennessee — 21 years, 2 months, 27 days
9. Arkansas — 21 years, 1 month, 23 days
10. Michigan — 20 years, 10 months, 27 days
And these are the 10 states where a $1 million nest egg will run out the quickest:
1. Hawaii — 10 years, 2 months, 22 days
2. New York — 14 years, 1 month, 15 days
3. California — 13 years, 9 months, 29 days
4. Massachusetts — 12 years, 9 months, 14 days
5. Alaska — 15 years, 3 months, 12 days
6. Maryland — 15 years, 5 months, 13 days
7. Oregon — 15 years, 8 months, 8 days
8. Connecticut — 16 years, 7 months, 13 days
9. New Hampshire — 16 years, 8 months, 18 days
10. Vermont — 16 years, 5 months, 23 days
View the ranking for all 50 states and their full cost breakdowns here.