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Got a $1 million retirement nest egg? It may only last 20 years depending on where you live, says an analysis. The cost of living in different states has a significant impact on how long your savings will last. For instance, if you reside in Hawaii, where the cost of living is sky-high, your $1 million may only last 12 years. But, if you live in Mississippi, where the cost of living is low, your $1 million may last 26 years. So, before you retire, consider where you want to live to make your savings last longer.
A Million Dollars for 20 Years of Retirement: Is it Enough?
Retirement planning can be a daunting task, especially when it comes to estimating how much money you’ll need to live comfortably for the rest of your life. A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.
Factors That Affect Retirement Savings
There are many factors that can affect how long your retirement savings will last, including:
- Your current age
- Your expected retirement age
- Your current income and expenses
- Your expected income and expenses in retirement
- Your investment strategy and returns
- Your health and life expectancy
- The cost of living in your area
All of these factors can make it difficult to estimate how much money you’ll need for retirement, but it’s important to start planning early and make adjustments as necessary.
The Cost of Living in Different States
One of the biggest factors that can affect how long your retirement savings will last is the cost of living in your area. According to the analysis mentioned earlier, the cost of living in different states can have a significant impact on how long a $1 million retirement nest egg will last.
For example, if you live in Hawaii, where the cost of living is very high, a $1 million retirement nest egg may only last about 12 years. On the other hand, if you live in Mississippi, where the cost of living is relatively low, a $1 million retirement nest egg may last about 26 years.
Other states where a $1 million retirement nest egg may last less than 20 years include California, Oregon, New York, Massachusetts, and Maryland. States where a $1 million retirement nest egg may last more than 20 years include Arkansas, Oklahoma, Kansas, and Kentucky.
Planning for Retirement
While it’s important to consider the cost of living in your area when planning for retirement, it’s also important to consider your own individual circumstances. Everyone’s retirement needs are different, and there’s no one-size-fits-all solution.
To ensure that you have enough money to live comfortably in retirement, it’s important to start planning early and make adjustments as necessary. This may include saving more money, investing in different types of assets, or adjusting your retirement goals and expectations.
In Conclusion
Retirement planning can be a complex and challenging process, but it’s important to start early and make adjustments as necessary. While a $1 million retirement nest egg may only last about 20 years depending on where you live, there are many factors that can affect how long your retirement savings will last. By considering your individual circumstances and making adjustments as necessary, you can ensure that you have enough money to live comfortably in retirement.
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