A recently released study has provided insight into how long a combination of Social Security benefits and a $1.5 million retirement fund would sustain retirees across different states in the U.S. The study considered various factors, including living costs and access to retirement funds, finding that West Virginia offers retirees the most extended financial runway. The analysis revealed that retirees in West Virginia could make their $1.5 million nest egg last approximately 54 years, given the state’s annual living costs of about $27,800. This estimation places West Virginia at the top among all U.S. states for financial longevity in retirement.
Other top states for retirement funds’ longevity include Kansas, where retirees can stretch their savings for 52 years with a post-Social Security cost of living of $28,945 per year, and Mississippi, where retirees can make their funds last 51 years with an annual cost of living of $29,426 after Social Security benefits. On the other hand, states with shorter longevity of retirement funds include Alaska and New York, where $1.5 million plus Social Security would last only 29 years due to a higher post-Social Security cost of living of $50,997 per year.
West Virginia retirement financial longevity
In California, the same retirement savings would last just 24 years, with an annual cost of living of $63,795 after Social Security benefits. The study utilized data from multiple sources, including the Bureau of Labor Statistics, the SSA, and the Missouri Economic Research and Information Center to compile its rankings. It highlighted a broad range of costs associated with living expenses post-Social Security, varying from as low as $27,803 per year to as high as $87,770 per year in Hawaii, where retirement funds would last only 17 years.
Speaking on the study’s findings, MacroMavens President Stephanie Pomboy noted the significance of choosing a state with lower living costs to maximize the longevity of retirement funds. Retirement savings and Social Security benefits remain critical financial resources for retirees across the United States, highlighting the need for careful planning and considering living costs when deciding where to retire. The study underscores the importance of factoring in local costs when setting retirement goals and choosing a retirement location, as it significantly impacts how far savings can take retirees.
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