LOS ANGELES, Aug. 21, 2017 /PRNewswire/ -- Mississippi is the state where your dollar will last the longest amount of time in retirement, while Hawaii is the state where your dollar will last the shortest, a new study found.
It's a common refrain that retirees should save at least $1 million for retirement, but how much does where they live affect their saving needs? Personal finance website GOBankingRates found the average total annual expenses for people 65 and older (adding up groceries, housing, utilities, transportation and healthcare costs), then determined the state-specific yearly cost by multiplying total expenses by each state's cost of living index.
Top 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
Top 5 States Where Your Dollar Will Last the Shortest
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
Additional Study Insights
Hawaii's expenses top out at $83,834 annually, while Mississippi's are a low of $37,964.
Alaska's healthcare costs the most annually, at $8,479.
The largest expenditure discrepancy is in housing: Hawaii's costs a whopping $15,964 more annually than the runner-up, California.
GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money, to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.