According to GoBankingRates, the annual expenditure of people 65 and older, Social Security benefits, and the cost of living index should tell you how long your retirement savings will last. Using this information, they concluded that $1 million could last between 8-45 years, depending on the state you live in.
Memphis, Tennessee
In 2020, about 650,910 people resided in Memphis, Tennessee. The cost of living index is lower than average by more than 20%. The cost of living index is 76.0. Annual expenditure with and without Social Security benefits is $22,043.32 and $38,653.60, respectively. A retirement savings of $1 million will last for 45 years and 4 months.
El Paso, Texas
According to the US Census Bureau, El Paso had a population of 678,815 in 2020. Its cost of living index is among the lowest at 81.4. Annual expenditure after considering Social Security income is $24,789.76. Without Social Security benefits, the annual cost of living for people 65 and older is $41,400.04
Wichita, Kansas
In 2020, Wichita, Kansas had a cost of living index of 82.1. This is lower than the average by 17.9 and can be supported with a $41,756 annual budget. Social Security benefits beat it down to $25,145.78 per year. A person can live on $1 million retirement savings for 39 years, 8 months, and close to 4 weeks with this budget.
Tulsa, Oklahoma
Tulsa is a large city in Oklahoma with a population of 402,441 in 2020. The cost of living index in Tulsa is lower than that of Indianapolis by 0.3 (83.2). After factoring in Social Security income, the annual expenditure for people 65 and older is $25,705.24. Without Social Security benefits, it is $42,315.52. After dividing $1 million by annual expenditure after Social Security, $1 million will last for 38 years and 10 months. ..
Indianapolis
An estimated population of 896,962 live under a cost of living index of 83.5 in Indianapolis in 2022. Without Social Security benefits, annual expenditure will be $42,468.10. Social Security benefits will reduce annual expenditure to $25,857.82. With these figures, $1 million will last for about 38 years, 7 months.
What You Should Consider When Retiring
Some important factors to consider when making the decision to retire include: your age, health, financial stability, and lifestyle.
When you intend to retire, what lifestyle will you have after retirement? How will you spend your time after retirement? How much is enough for retirement, and are you financially ready? How long will your retirement savings last after considering the cost of living, inflation, rate of return, Social Security benefits, and more?
Which States Will One Million Dollars Retirement Savings Last The Shortest?
The cost of living index in these three cities is very high. In New York, $1 million in retirement savings will only last 12 years and 8 months. In San Jose, California, it’ll last 10 years and 9 months, and it’ll last for 8 years and 3 months in San Francisco.
How Can You Make One Million Dollars Last For A Lifetime In Retirement?
According to the Annual Expert, the only way to retire with a comfortable living is to buy an annuity with a lifetime income rider. Taking this action will ensure that regardless of how long you live, you will receive a set amount of money every month for the rest of your life.
Conclusion
A million dollars is a lot of money. But its usefulness towards your retirement life is dependent on many factors, such as where and how you intend to live. For a good retirement life, it is advisable to consult a professional when planning your retirement. It’ll save you a lot of trouble and reassure you.
How many people will retire with $1 million in their retirement savings if they have a retirement plan?
According to Zippia, 10% of Americans have $1 million or more in their retirement savings. This is a significant number, as it means that many people are able to retire with some extra money saved up.
The answer to this question depends on a variety of factors, including your age, income, and savings. If you’re 50 years old and have $1 million in savings, you could retire on that money. However, if you’re 50 years old and make only $50,000 a year, your retirement would be much more difficult.
Annuities are a type of retirement savings account that offer lifetime income riders. If you purchase an annuity with a lifetime income rider, you can get $49,375 annually for as long as you live.
You could receive a lifetime annuity of $1 million with a life insurance policy that pays you $100,000 per year.
The earlier you purchase an annuity, the higher the payout. If you buy it at age 65 and start receiving payments immediately, you can get $56,400 annually. If you buy it at 35, you can get $276,000 annually after retirement. ..
