$1 Million Retirement Savings Won't Last 25 Years Anywhere in the U.S. — But It Will Go the Furthest in These 6 States Retirees who want to make the most of their money might have to give up dreams of sunny California or Hawaii.

By Amanda Breen

Key Takeaways

  • In Hawaii, New York and California, a $1 million nest egg will vanish within 15 years.
  • That money goes a lot further in Midwestern and Southern states, which offer far lower housing costs.
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American workers, on average, believe they need $1.8 million saved for retirement, according to the 2023 401(k) Participant Study published by Charles Schwab.

The average 401(k) balance for Americans aged 65-70 is $185,858, per Empower, but even those who end up with a $1 million-plus retirement cushion have to consider how long the money will last them — and where they live plays a significant role.

Related: 401(k)s Might Be the Only Retirement Option for Many Americans — But They're Also a Major Risk, Experts Warn

GoBankingRates analyzed how long $1 million retirement savings would last in every state and determined it wouldn't be enough for 25 years of retirement expenses anywhere in the U.S.

Even large nest eggs deplete quickly in high-cost-of-living states, including Hawaii, New York and California, where $1 million disappears within 15 years, per the research. Retirees in those states can expect annual grocery costs of roughly $5,000 or more and yearly housing costs upwards of $20,000.

Related: Some Retirees Are More Likely to Face This 'Life-Destroying' Event — Here's How to Keep Your Savings Safe No Matter What

That $1 million will go the furthest in states like Kansas, Oklahoma and Mississippi, where it can support retirees for 21 years or more. In fact, Mississippi was recently named the No. 1 state to retire in, according to a CreditDonkey report, which examined nine factors including food and beverage expenditure and house prices.

Here are the six U.S. states where you can expect your retirement savings to last the longest, according to GoBankingRates:

6. Georgia

  • Annual groceries cost: $4,335.11

  • Annual housing cost: $8,070.70

  • Annual utilities cost: $3,528.90

  • Annual transportation cost: $3,668.08

  • Annual healthcare cost: $6,783.95

  • Total annual expenditures: $46,353.35

How long $1 million will last in savings: 21 years 6 months 26 days

5. Iowa

  • Annual groceries cost: $4,407.06

  • Annual housing cost: $7,333.22

  • Annual utilities cost: $3,744.56

  • Annual transportation cost: $3,914.26

  • Annual healthcare cost: $6,952.67

  • Total annual expenditures: $45,988.36

How long $1 million will last in savings: 21 years 8 months 26 days

4. Alabama

  • Annual groceries cost: $4,416.05

  • Annual housing cost: $7,083.93

  • Annual utilities cost: $3,928.84

  • Annual transportation cost: $3,614.74

  • Annual healthcare cost: $6,291.85

  • Total annual expenditures: $45,414.81

How long $1 million will last in savings: 22 years 0 months 6 days

3. Kansas

  • Annual groceries cost: $4,240.67

  • Annual housing cost: $7,478.64

  • Annual utilities cost: $3,870.03

  • Annual transportation cost: $3,951.19

  • Annual healthcare cost: $7,107.33

  • Total annual expenditures: $45,519.09

How long $1 million will last in savings: 21 years 11 months 19 days

2. Oklahoma

  • Annual groceries cost: $4,258.66

  • Annual housing cost: $7,520.19

  • Annual utilities cost: $3,724.95

  • Annual transportation cost: $3,750.14

  • Annual healthcare cost: $6,432.45

  • Total annual expenditures: $45,206.25

How long $1 million will last in savings: 22 years 1 months 12 days

1. Mississippi

  • Annual groceries cost: $4,132.74

  • Annual housing cost: $7,115.10

  • Annual utilities cost: $3,470.09

  • Annual transportation cost: $3,799.38

  • Annual healthcare cost: $6,994.85

  • Total annual expenditures: $44,059.15

How long $1 million will last in savings: 22 years 8 months 12 days

Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

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