Saving $1 million for retirement is still an important goal, but where you decide to live can determine how quickly that money disappears. In some states, that amount could cover nearly two decades' worth of expenses; In others, it would barely last a few years. A new analysis found how long those savings would last in each US state through 2026.
According to the study carried out by the GOBankingRates portal, Oklahoma tops the list with 19.3 years, while in Hawaii the same million dollars would last only 9.1 years. In no state, however, would it be enough to cover 20 full years of average expenses.
The perception of what it means to be rich has also changed. A 2025 Northwestern Mutual survey found that only 36% of American millionaires consider themselves wealthy today.
“$1 million sounds like an impressive number,” said Rudri Bhatt Patel, certified financial advisor and retirement expert at GOBankingRates. “But we don’t live in the 1950s.”
Americans also have higher expectations about the wealth needed to consider themselves wealthy. The 2025 Charles Schwab Modern Wealth Survey put that figure at $2.3 million in net worth.
At the same time, most retirees are far from that level of savings. According to the US Federal Reserve's (Fed) 2022 Survey of Consumer Finances, the average household aged 65 to 75 had about $200,000 in retirement accounts.
Where $1 million dollars pays the most
States with lower costs of living offer a considerable advantage for those who enter retirement with large savings. In Oklahoma, $1 million would last approximately 19.3 years, with average annual expenses of $51,849. Mississippi comes in second, with 19 years and annual expenses of $52,524.
Alabama and West Virginia appear next, both about 18.5 years old. Kansas and Missouri reach 18.3 years, while Arkansas reaches 18.2 years.
Which states are at the opposite end?
The situation changes drastically in the most expensive states. In Hawaii, the average annual spending of a retiree reaches $110,393. Therefore, $1 million would only last 9.1 years.
Massachusetts ranks second among the most expensive states, with annual expenses of $92,639 and an estimated lifespan of 10.8 years.
California comes next, with $83,978 in annual expenses and a duration of 11.9 years. Alaska, New York and Maryland are also among the states where savings are consumed the fastest.
This is how $1 million dollars lasts in all 50 states
These are the GOBankingRates estimates, ordered from longest to shortest duration:
Calculation does not include investment gains
The analysis calculates how long $1 million would last by dividing that amount by the average annual spending of retirees in each state, adjusted for the local cost of living.
The calculation does not consider the profits that the invested money could generate. A portfolio of stocks and bonds within a retirement account could extend the life of savings if its returns outpace inflation and withdrawals.
On the other hand, unexpected medical expenses, taxes, housing or a higher than average level of consumption could reduce that period.
The place of residence is, therefore, an important piece of the plan, but not the only one. Before assuming that $1 million will be enough, it is worth also considering US Social Security.
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