According to United Nations projections, the average life expectancy 10 years from now is estimated at 81.11 years old. For FERS pre-retirees who have a relatively young minimum retirement age (MRA), you’d be wise to plan for a retirement that will last more than 20 years. One would think $1 million would cover two-plus decades of retirement, right? Well, according to GoBankingrates.com, in most states it won’t be enough.
In Hawaii, $1 Million Won’t Even Last For 10 Years
With average expenses in retirement estimated at over $100,000, $1 million in retirement savings will last 9 years, 7 months, and 25 days in Hawaii. Though the cost of living on some of the islands is a bit lower, housing throughout Hawaii comes in as much as three times higher than the average in the other 49 states.
$1 Million Will Last 11+ Years in Massachusetts & D.C.
With total annual expenditures coming in at $85,571 in Massachusetts, $1 million is estimated to last 11 years, 8 months, and 9 days. In the District of Columbia, with estimated annual expenses totaling $84,000, $1 million will only last a couple of months longer: 11 years, 10 months, and 25 days.
“Will your FERS pension, Social Security, and TSP nest egg provide enough to retire in the state of your choice?”
In New York, California & Alaska, $1-Million Will Cover 12 To 13+ Years
It should come as no surprise that the cost of living for retirees is high on the East Coast and West Coast. Estimated annual expenses in California come in at $78,864 which means $1 million in savings will last 12 years, 8 months and 5 days. In New York, $1 million in savings will last 13 years, 8 months, and 1 day with average annual expenses estimated at $73,140. Although retiring in Alaska is likely not a top choice for most retirees, if you’re thinking about it, estimated annual expenses are $73,082 and a $1 million retirement nest egg will last 13 years, 8 months, and 5 days.
What About The Rest Of The States?
In most of the other states, $1 million in retirement savings will last 14+ years to 18+ years. This includes popular places like Florida and Texas. Only 12 states in the Midwest and South come close to hitting the 20-year mark when determining how long $1 million will last. In fact, West Virginia is the only state with annual expenses low enough for a $1 million nest egg to last slightly more than two decades: 20 years, 3 months, and 19 days.
Will your FERS pension, Social Security, and TSP nest egg provide enough to retire in the state of your choice? Connect with an FRC® trained advisor who can help you find out.
