For those looking to retire, one of the lingering questions is how much they need to save to be comfortable. According to a recent report from CNBC, $1 million may sound like a good start, but that depends on your location.
The goal for many soon-to-be-retirees seems to be $1 million, but according to GOBankingRates (GBR), that amount may not last more than ten years in some areas of the U.S.
GBR’s feature’s editor, Mark Evitt, says $1 million is the “benchmark everyone has in mind,” but that having a more specific amount in mind is important.
At Bankrate.com, financial experts recommend saving as much as 15 percent of your salary for retirement. They say you should gradually increase the amount you save by one or two percentage points at a time. Evitt cautions people to further take into account their personal situation, as well as where they live, since there’s a marked range of diversity in the cost of living across the country.
Looking at people aged 65 and up, GBR compiled the average living expenses for every state, including taxes, health care, living expenses and banking rates. They used the data to determine how long $1 million would last.
According to GBR, the 5 states where your dollar will last the longest:
1. Mississippi $1 million will last: 26 years, 4 months
2. Arkansas $1 million will last: 25 years, 6 months
3. Oklahoma $1 million will last: 25 years, 2 months
4. Michigan $1 million will last: 25 years
5. Tennessee $1 million will last: 25 years
Compare that to the five states where the report says your saved dollars will stretch the least:
1. Hawaii $1 million will last: 11 years, 11 months
2. California $1 million will last: 16 years, 5 months
3. Alaska $1 million will last: 17 years, 0 months
4. New York $1 million will last: 17 years, 1 month
5. Massachusetts $1 million will last: 17 years, 4 months
In the Southeast, the cost of living is much lower than in places like New York and Hawaii, where residents pay more for most items, including taxes and real estate.
To see how long the money will last in your state, click on the image below. It will take you to the CNBC working map. Roll over your state for the answer.
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