GoBankingRates compared average expenses for people age 65 and older, including groceries, housing, utilities, transportation and health care, in every state to come up with how long a nest egg of $1 million would really last during retirement. The report did not take into account investment income over that period.
The results found that almost every state saw a decrease in the amount of time $1 million will last from the previous year, mostly due to higher costs of living nationwide.
Top 5 states where your dollar will last the longest:
1. Mississippi: 25 years, 11 months, 30 days
2. Oklahoma: 24 years, 8 months, 24 days
3. Michigan: 24 years, 7 months, 14 days
4. Arkansas: 24 years, 7 months, 4 days
5. Alabama: 24 years, 7 months, 4 days
It’s no surprise that dollars stretched the furthest in states like Mississippi, Oklahoma and Arkansas and where retirees could live a life of leisure for a quarter of a century.
Top 5 states where your dollar will last the shortest:
1. Hawaii: 11 years, 8 months, 20 days
2. California: 15 years, 5 months, 27 days
3. New York: 16 years, 3 months, 22 days
4. Alaska: 16 years, 8 months, 6 days
5. Maryland: 16 years, 8 months, 29 days
However, in Hawaii, where residents pay roughly 30 percent more for household items across the board, that amount will only get you just shy of a dozen years largely because of the cost of living and pricey real estate.