How Long Will $1 Million Last in Retirement?

Considering the country’s growing debt, this has become a very popular question and the answer most assuredly depends on where you plan to live while spending it. GoBankingRates just compared and reported on the best and worst states to spend your golden years. The study looked at all 50 states and considered average expenses for people age 65 and older. The expenses included housing, utilities, groceries, transportation and health care. The report did not take any type of investment income into account. Assuming the subject had a nest egg of $1 million, the study considered; the state’s cost of living, real estate and inflation.

The report concluded that the 5 most economical states to retire in are:

1). Mississippi: 25 years, 11 months and 30 days

2). Oklahoma: 24 years, 8 months and 24 days

3). Michigan: 24 years, 7 months and 14 days

4). Arkansas: 24 years, 7 months and 4 days

5). Alabama: 24 years, 7 months and 4 days

The study reported that almost every state saw a decrease in the amount of time $1 million would last compared to the previous year, due mainly to the generally higher costs of living nationwide.

The report concluded that the 5 least economical states to retire in are:

1). Hawaii: 11 years, 8 months and 20 days

2). California: 15 years, 5 months and 27 days

3). New York: 16 years, 3 months and 22 days

4). Alaska: 16 years, 8 months and 6 days

5). Maryland: 16 years, 8 months and 29 days

Pricey real estate and a higher cost of living were the main ingredients contributing to the greatest discrepancies. However, it is interesting to note that the average life expectancy of a woman in Hawaii is 84.72, whereas the average life expectancy of a woman in Mississippi is 77.9. Similarly, the average life expectancy of a man in Hawaii is 78 and in Mississippi it is 71.86.

The moral of this story is to have enough money to retire where you want. And during these tumultuous financial times it’s a more brilliant decision than ever to have a good supply of precious metals within the portfolio, in order to protect against a falling market, slowing economy, and increasing inflation. Current prices, substantially below previous highs, are just another good reason to add to the defensive war chest, while long term profitability is just another benefit. Call the experts at American Bullion for professional assistance today, at (800) 653-GOLD (4653).

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.