Retirees with $1 million in savings could run out of money faster in these states, study finds
Retirees in some states, including California and New York, are looking at higher living costs that could use up their retirement savings faster, according to GoBankingRates.
Seniors could be roughing their golden years in some states, as a new study shows that even $1 million in retirement savings won't last very long in some states.
The study, published by personal finance site GoBankingRates earlier this year, found, for instance, that California seniors might face tough times financially after eating through that supply in approximately 12 years, eight months and five days, thanks to medical and regular living expenses.
The estimate came after tallying a series of common annual expenses – $5,387 for groceries, $22,530 for housing, $5,202 for utilities, $6,283 for transportation, and $8,226 for healthcare, totaling nearly $80,000 per year.
THIS ONE ASSUMPTION COULD MAKE YOU RUN OUT OF MONEY IN RETIREMENT
Other highly populated states did not fare so well either.
New Yorkers, for instance, are expected to go through that $1 million amount in 13 years, eight months and one day. The District of Columbia fared even worse, with the money expected to last only 11 years, ten months and 25 days, similar numbers to Massachusetts.
Retirees in Hawaii are facing the worst prospect, meanwhile, with the study indicating they could burn through $1 million in retirement savings in just nine years, seven months and 25 days.
AMERICANS ARE SAVING MORE FOR RETIREMENT, BUT THEY'RE NOWHERE NEAR THE ‘MAGIC NUMBER’
While there's bad news for seniors in some states, there's better news for others.
Texas, one of America's larger states, had more positive numbers at 18 years, seven months and seven days.
Southeastern states like Tennessee, Georgia, Alabama, Mississippi, the Carolinas and Florida each indicated that the amount would last at least 17 years, with some of these states nearing 20 years.
RETIREMENT CRISIS LOOMS AS WOMEN'S SAVINGS JUST ONE-THIRD OF MEN'S: REPORT
The same applies to the Midwest, with states like Iowa, Arkansas, Missouri, Kansas, Nebraska, Illinois and Indiana faring similarly.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
West Virginians walked away with the best ranking, with the Mountain State seniors' estimated time to run out of $1 million in savings coming in at 20 years, three months and 19 days.