According to a study by Schwaab, Virginia is the 20th most expensive state to retire in.
The average American needs approximately $1.9 million to retire comfortably, but this amount is out of reach for most, given that the average amount Americans have saved between the ages of 55 and 65 is only $197,322.
Those living in the most expensive states, like Hawaii or New York, will need to work as long as they can and save as much as possible because $1 million won’t even cover living expenses for 15 years. Midwestern and Southern states offer a bit more of a cushion.
Here's how the most expensive state, Virginia, and the least expensive state compare.
Hawaii
Annual groceries cost: $5,339
Annual housing cost: $35,813
Annual utilities cost: $6,913
Annual transportation cost: $6,238
Annual healthcare cost: $9,485
Total annual expenditures: $103,610
$1 million in savings will last: 9 years, 7 months, 25 days
Virginia
Annual groceries cost: $4,826
Annual housing cost: $12,347
Annual utilities cost: $4,359
Annual transportation cost: $4,577
Annual healthcare cost: $7,676
Total annual expenditures: $58,627
$1 million in savings will last: 17 years, 0 months, 22 days
West Virginia
Annual groceries cost: $4,701
Annual housing cost: $7,284
Annual utilities cost: $4,067
Annual transportation cost: $4,528
Annual healthcare cost: $7,163
Total annual expenditures: $49,261
$1 million in savings will last: 20 years, 3 months, 19 days
Methodology
To determine how long $1,000,000 will last across the country, the national average annual expenditures for people 65 and older, based on the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey data, were calculated.
Next, state-level annual expenditure estimates were calculated by multiplying the national figure by each state’s overall cost of living index score for the 3Q 2023 taken from the Missouri Economic Research and Information Center.
Lastly, how many years $1,000,000 will last in each state was determined by dividing $1,000,000 by each state’s average annual expenditures estimate. All 50 states and the District of Columbia were then ranked with No. 1 being the state where $1,000,000 will last the longest and No. 51 being the state where it will run out most quickly.
Supplemental information on the average annual cost of groceries, housing, utilities, transportation, and healthcare for people 65 and older in each state from MERIC’s cost of living indices for each category were used to calculate national estimates from the CES. All data was collected on and up to date as of July 2024.
Sources: GoBankingRates.com,
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