West Virginia residents can make their $1 million in retirement savings last the longest compared to retirees in other Southern states. According to calculations by GOBankingRates, $1 million would cover living expenses for 20 years, 3 months and 19 days in West Virginia. The state with the second longest duration for $1 million in retirement savings is Mississippi, where that amount would last 19 years, 11 months and 12 days.
Oklahoma comes in third place, with $1 million stretching 19 years, 11 months and 5 days. Kentucky ranks fourth, where $1 million would cover retirement costs for 19 years, 7 months and 11 days. Rounding out the top five is Arkansas, where retirees could live off $1 million for 19 years, 6 months and 15 days.
West Virginia tops Southern savings duration
To determine these figures, GOBankingRates first found the national average annual expenditures for Americans aged 65 and older using 2022 Consumer Expenditure Survey data from the Bureau of Labor Statistics. They then estimated state-level annual expenditures by adjusting the national average based on each state’s cost of living index score for the third quarter of 2023, sourced from the Missouri Economic Research and Information Center.
Finally, they calculated how long $1 million would last in each state by dividing $1 million by the estimated annual expenditures. The 50 states and Washington D.C. were ranked from longest to shortest duration. While $1 million is often cited as a retirement savings goal, rising living costs and longer life expectancies mean this amount may not be sufficient for many retirees.
In the most expensive state, Hawaii, $1 million would be depleted in less than a decade.
