How long can you live off $1 million?

Discussion in 'The Pub' started by Laelaps, Dec 4, 2017.


  1. Laelaps

    Laelaps Member

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    Home Money & Credit

    This is how long $1 million in retirement savings will last in your state

    When you close your eyes and think about the day when you no longer will have to clock in at work, or perhaps you’re there now, no doubt one of the primary concerns is how much money you’re going to have to live off of. You’d be surprised how tight things could get while paying the bills with just a pension.

    But what if you had $1 million? Surely you could make ends meet and then some in retirement — but for how long? The AARP figures that a $1 million nest egg is enough for most Americans, who are expected to live for around 22 years after retirement. But is $1 million really enough? Turns out, a lot has to do with what state you live in.

    Stretch your retirement savings by retiring to the right state

    Gobankingrates.com has put together a state-by-state analysis that shows how far $1 million in retirement will go — and if it will take you to that 22-year threshold.

    The website used a methodology that takes into account the average spending for senior citizens once they hit retirement age.

    “In order to determine how long $1 million will last the average retiree in each state, GOBankingRates found the average total expenditures for people 65 and older, which includes groceries, housing, utilities, transportation and healthcare,” the website says. “Then, we multiplied that by the cost of living index in each state to find the average expenditure cost for each state.”

    50. Hawaii - $1 million will last: 11 years, 11 months: “At $5,626 a year, the cost of groceries is by far the highest in the nation, and housing is no picnic, either,” the site says.

    49. California - $1 million will last: 16 years, 5 months

    48. Alaska - $1 million will last: 17 years, 0 months

    47. New York - $1 million will last: 17 years, 1 month

    46. Massachusetts - $1 million will last: 17 years, 4 months

    45. Connecticut - $1 million will last: 17 years, 4 months

    44. Maryland - $1 million will last: 17 years, 4 months

    43. Oregon - $1 million will last: 17 years, 7 months

    42. Rhode Island - $1 million will last: 18 years, 2 months

    41. New Jersey - $1 million will last: 18 years, 6 months

    40. Vermont - $1 million will last: 18 years, 7 months

    39. New Hampshire - $1 million will last: 19 years

    38. Maine - $1 million will last: 19 years, 6 months

    37. Washington - $1 million will last 21 years, 1 month

    36. Delaware - $1 million will last: 21 years, 10 months

    35. Pennsylvania - $1 million will last: 21 years, 11 months

    34. Virginia - $1 million will last: 22 years

    33. Colorado - $1 million will last: 22 years

    32. Nevada - $1 million will last: 22 years

    31. South Carolina - $1 million will last: 22 years, 3 months

    30. Florida - $1 million will last: 22 years, 4 months

    29. South Dakota - $1 million will last: 22 years, 4 months

    28. Minnesota - $1 million will last: 22 years, 6 months

    27. North Dakota - $22 million will last: 22 years, 7 months

    26. Montana - $1 million will last: 22 years, 10 months

    25. Illinois - $1 million will last: 23 years, 1 month

    24. Arizona - $1 million will last: 23 years, 2 months

    23. Wisconsin - $1 million will last: 23 years, 3 months

    22. New Mexico - $1 million will last: 23 years, 3 months

    21. West Virginia - $1 million will last: 23 years, 6 months

    20. Wyoming - $1 million will last: 23 years, 8 months

    19. Kentucky - $1 million will last: 23 years, 8 months

    18. North Carolina - $1 million will last: 23 years, 8 months

    17. Utah - $1 million will last: 23 years, 10 months

    16. Nebraska - $1 million will last: 23 years, 10 months

    15. Louisiana - $1 million will last: 23 years, 10 months

    14. Ohio - $1 million will last: 24 years, 2 months

    13. Iowa - $1 million will last: 24 years, 3 months

    12. Kansas - $1 million will last: 24 years, 7 months

    11. Idaho - $1 million will last: 24 years, 8 months

    10. Alabama - $1 million will last: 24 years, 9 months

    9. Indiana - $1 million will last: 24 years, 9 months

    8. Texas - $1 million will last: 24 years, 9 months

    7. Missouri - $1 million will last: 24 years, 10 months

    6. Georgia - $1 million will last: 24 years, 11 months

    5. Tennessee - $1 million will last: 25 years

    4. Michigan - $1 million will last: 25 years

    3. Oklahoma - $1 million will last: 25 years, 2 months

    2. Arkansas - $1 million will last: 25 years, 6 months

    1. Mississippi - $1 million will last: 26 years, 4 months
     
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  2. DYNA BILL

    DYNA BILL Member

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    I will be homeless in 3 months.....
     
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  3. circle_o_5ths

    circle_o_5ths Member

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    Last edited: Dec 4, 2017
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  4. Dirty_Tones

    Dirty_Tones Supporting Member

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    There is quite honestly nothing more worrisome than seeing that seemingly big sum get steadily drawn down as you get older. So many unknowns like health and long term care costs, inflation, etc... From what I've observed from older friends, generate income from your principal (would certainly be more than a million to get a sustainable income stream) and ideally you SAVE money during retirement.
     
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  5. Tommy Biggs

    Tommy Biggs Member

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    A million bucks ain’t what it used to be. It seemed like the article simply divided the 1 million dollars by an indexed cost by state - with no inflation factored in!
     
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  6. circle_o_5ths

    circle_o_5ths Member

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    This goes back to the going to bonds for safety issue. My parents have been as aggressive @ 83 as they were at 30. As a result, they are worth more now than when they retired 15 years ago and earn more in retirement then they did when working. While I understand the risks of those decisions, it is a good counter argument to conventional wisdom.
     
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  7. Floyd Eye

    Floyd Eye Member

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    Barring catastrophic medical or other situation, I could live the rest of my days on 1 mil easy.
     
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  8. michael patrick

    michael patrick Supporting Member

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    How much do they allocate to hookers and blow in Vegas?
     
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  9. Dirty_Tones

    Dirty_Tones Supporting Member

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    Good to see that they have been able to blow some of the establishment axioms out of the water.
     
  10. tjontheroad

    tjontheroad Supporting Member

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    Somehow, this is appropriate for this thread :D

     
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  11. DYNA BILL

    DYNA BILL Member

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    I'm working on my second million. I gave up on the first a long time ago.
     
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  12. s2y

    s2y Member

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    I'm near the lower quarter when it comes to affordability in the somewhat boring Midwest. Not surprised.
     
  13. jzgtrguy

    jzgtrguy Member

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  14. great-case.com

    great-case.com a.k.a. "Mitch"

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    I believe the more important question is this: Can you live within your means? One who begins life with that goal is most likely to leave someone else a very large estate.

    With Eternal Wealth™, you can take it with you. PM with credentials* for details.

    Swiss Accounts Only, none of that new money from the Caymans.
     
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  15. music321

    music321 Member

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    It's all about what standard of living you want to have. I started a thread about a year ago wondering what the absolute minimum you'd need to live on would be. Some of this has to do with how able bodied you are. The poverty level in America is $ 12,000. So, let's say that $15,000 is the realistic minimum. The problem with luxury is that it seems normal after a while, and it seems a privation to do without it. Our ancestors lived in something like what is pictured below. This puts things in perspective:

    [​IMG]
     
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  16. michael patrick

    michael patrick Supporting Member

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    Someone had to do it, might as well be me...

    [​IMG]
     
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  17. AZChilicat

    AZChilicat Member

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    There is a plethora of information on the financial lives of seniors in the US. Read some of those, then read the stats on how much most Americans have saved for retirement, then ask yourself if you want to be the "average" retired person (that's what this article is based on.) To begin with, the average retired person has no where near a million, and I really don't want to have my retirement mirror the experience of the average retired person.

    TL;DNR = article is meaningless to me.
     
  18. sink

    sink Member

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    I'd only need $53,000.

    [​IMG]
     
  19. Flyin' Brian

    Flyin' Brian Member

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    I made it this far.....I'd say that I'd be pretty flush for the rest of my days.
    Of course I live in a place where medical care in not an issue.
     
  20. pjs ire

    pjs ire Member

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    I know people who live on 203.00 per month- yes, two hundred and three dollars per month. This is General Assistance. If you get Section Eight Housing, your rent would be 30% of this or about 60.00 per month.
     
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