HONOLULU (KHON2) — It’s hard to predict the exact amount you need to save in order to retire comfortably. In a recent survey by Northwestern Mutual, a financial services organization, people believed they will need slightly more than $1 million to do so.
Can you guess how long $1 million in savings will last you? The answer depends on where you live, according to a new study by finance publication GOBankingRates.
Unfortunately, $1 million wouldn’t last as long as some might think, especially if you live in one of the more expensive states. Hawaii was just ranked as the most expensive state to live in the U.S., so it makes sense it’s also the state where $1 million would disappear the fastest.
- Annual groceries cost: $6,427.92
- Annual housing cost: $31,232.25
- Annual utilities cost: $6,211.69
- Annual transportation cost: $4,802.50
- Annual healthcare cost: $7,688.20
- Total annual expenditures: $91,970.21
How long $1 million will last in savings: 10 years, 10 months, 11 days
To see how fast $1 million goes in each state, click here.
To determine how long $1 million in savings will last for someone 65 and older, GOBankingRates sourced data from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey.
This study also factored in the state’s overall cost of living index score from the Missouri Economic Research and Information Center’s annual 2021 cost of living indices.
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GOBankingRates said all data was compiled and is up to date as of Feb. 21, 2022.