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How Long $500K Will Last in Retirement in Each State

·7 min read
Vesnaandjic / Getty Images
Vesnaandjic / Getty Images

When pondering the question, "How much do I need to retire?" there is never a one-size-fits-all answer. What one person could happily live on, another might be dissatisfied with. Although conventional wisdom suggests having a retirement nest egg of at least $1 million, that's a difficult number to achieve for many Americans.

Be Aware: 27 Ugly Truths About Retirement
Find Out: 25 Things To Sell When You're Ready To Retire

To paint a more realistic picture of retirement finances, GOBankingRates determined how long $500,000 will last in every state. To do this, the study analyzed average spending data -- including groceries, housing, utilities, transportation and health care -- for people ages 65 and older.

Get a clear idea of the cost of living across America.

Shutterstock.com
Shutterstock.com

Hawaii

$500,000 will last:

  •  Years, Months, and Days: 5 years, 2 months and 24 days

  • Annual expenditure: $95,538.52

Shutterstock.com
Shutterstock.com

New York

$500,000 will last:

  •  Years, Months, and Days: 7 years, 1 month and 1 day

  • Annual Expenditure: $70,523.40

POLL: Have Gas Prices Affected Your Driving Habits?

stellalevi / iStock.com
stellalevi / iStock.com

California

$500,000 will last:

  •  Years, Months, and Days: 7 years, 3 months and 19 days

  • Annual Expenditure: $68,502.94

zhu difeng / Shutterstock.com
zhu difeng / Shutterstock.com

Oregon

$500,000 will last:

  •  Years, Months, and Days: 7 years, 9 months and 7 days

  • Annual Expenditure: $64,317.72

Galiptynutz / Shutterstock.com
Galiptynutz / Shutterstock.com

Massachusetts

$500,000 will last:

  • Years, Months, and Days: 7 years, 11 months and 31 days

  • Annual Expenditure: $62,489.69

filo / Getty Images
filo / Getty Images

Alaska

$500,000 will last:

  •  Years, Months, and Days: 8 years, 1 month and 27 days

  • Annual Expenditure: $61,238.94

Davel5957 / iStock.com
Davel5957 / iStock.com

Maryland

$500,000 will last:

  •  Years, Months, and Days: 8 years, 2 months and 2 days

  • Annual Expenditure: $61,190.83

Shutterstock.com
Shutterstock.com

Connecticut

$500,000 will last:

  •  Years, Months, and Days: 8 years, 5 months and 12 days

  • Annual Expenditure: $61,190.83

SeanPavonePhoto / iStock.com
SeanPavonePhoto / iStock.com

Rhode Island

$500,000 will last:

  •  Years, Months, and Days: 8 years, 8 months and 8 days

  • Annual Expenditure: $57,534.78

Shutterstock.com
Shutterstock.com

New Jersey

$500,000 will last:

  •  Years, Months, and Days: 8 years, 10 months and 23 days

  • Annual Expenditure: $56,187.81

DenisTangneyJr / iStock.com
DenisTangneyJr / iStock.com

Vermont

$500,000 will last:

  •  Years, Months, and Days: 8 years, 11 months and 4 days

  • Annual Expenditure: $55,995.38

Related: 50 Things Every 50-Something Should Know About Retirement 

Sean Pavone / Shutterstock.com
Sean Pavone / Shutterstock.com

Maine

$500,000 will last:

  •  Years, Months, and Days: 8 years, 11 months and 11 days

  • Annual Expenditure: $55,851.07

Sergey Novikov / Shutterstock.com
Sergey Novikov / Shutterstock.com

Washington

$500,000 will last:

  •  Years, Months, and Days: 9 years, 2 months and 13 days

  • Annual Expenditure: $54,359.78

Checubus  / Shutterstock.com
Checubus / Shutterstock.com

Nevada

$500,000 will last:

  •  Years, Months, and Days: 9 years, 6 months and 19 days

  • Annual Expenditure: $52,339.33

DenisTangneyJr / Getty Images/iStockphoto
DenisTangneyJr / Getty Images/iStockphoto

New Hampshire

$500,000 will last:

  •  Years, Months, and Days: 9 years, 7 months and 2 days

  • Annual Expenditure: $52,146.90

Jon Bilous / Shutterstock.com
Jon Bilous / Shutterstock.com

Delaware

$500,000 will last:

  •  Years, Months, and Days: 9 years, 7 months and 24 days

  • Annual Expenditure: $51,810.16

 

annasiracusa / Pixabay
annasiracusa / Pixabay

Colorado

$500,000 will last:

  •  Years, Months, and Days: 9 years, 11 months and 19 days

  • Annual Expenditure: $50,126.45

Artem / iStock.com
Artem / iStock.com

Pennsylvania

$500,000 will last:

  •  Years, Months, and Days: 9 years, 11 months and 26 days

  • Annual Expenditure: $50,030.24

SeanPavonePhoto / iStock.com
SeanPavonePhoto / iStock.com

Virginia

$500,000 will last:

  •  Years, Months, and Days: 10 years, 2 months and 28 days

  • Annual Expenditure: $48,827.59

Davel5957 / iStock.com
Davel5957 / iStock.com

Arizona

$500,000 will last:

  •  Years, Months, and Days: 10 years, 3 months and 4 days

  • Annual Expenditure: $48,731.38

AndreyKrav / iStock.com
AndreyKrav / iStock.com

Minnesota

$500,000 will last:

  •  Years, Months, and Days: 10 years, 3 months and 26 days

  • Annual Expenditure: $48,442.74

Nagel Photography / Shutterstock.com
Nagel Photography / Shutterstock.com

South Dakota

$500,000 will last:

  •  Years, Months, and Days: 10 years, 4 months and 29 days

  • Annual Expenditure: $48,009.79

Alexander Demyanenko / Shutterstock.com
Alexander Demyanenko / Shutterstock.com

Florida

$500,000 will last:

  •  Years, Months, and Days: 10 years, 4 months and 29 days

  • Annual Expenditure: $48,009.79

ChrisBoswell / iStock.com
ChrisBoswell / iStock.com

Montana

$500,000 will last:

  •  Years, Months, and Days: 10 years, 5 months and 16 days

  • Annual Expenditure: $47,817.36

strickke / iStock.com
strickke / iStock.com

Utah

$500,000 will last:

  •  Years, Months, and Days: 10 years, 7 months and 13 days

  • Annual Expenditure: $47,095.77

David Harmantas / Shutterstock.com
David Harmantas / Shutterstock.com

North Dakota

$500,000 will last:

  •  Years, Months, and Days: 10 years, 9 months and 7 days

  • Annual Expenditure: $46,422.29

f11photo / Shutterstock.com
f11photo / Shutterstock.com

Wisconsin

$500,000 will last:

  •  Years, Months, and Days: 10 years, 9 months and 26 days

  • Annual Expenditure: $46,229.87

SeanPavonePhoto / iStock.com
SeanPavonePhoto / iStock.com

North Carolina

$500,000 will last:

  •  Years, Months, and Days: 10 years, 9 months and 26 days

  • Annual Expenditure: $46,229.87

f11photo / Shutterstock.com
f11photo / Shutterstock.com

South Carolina

$500,000 will last:

  •  Years, Months, and Days: 10 years, 10 months and 2 days

  • Annual Expenditure: $46,133.65

RomanSlavik.com / Shutterstock.com
RomanSlavik.com / Shutterstock.com

Illinois

$500,000 will last:

  •  Years, Months, and Days: 1o years, 11 months and 8 days

  • Annual Expenditure: $45,700.70

Davel5957 / Getty Images
Davel5957 / Getty Images

Wyoming

$500,000 will last:

  •  Years, Months, and Days: 11 years, 0 months and 7 days

  • Annual Expenditure: $45,363.96

christiannafzger / iStock.com
christiannafzger / iStock.com

Idaho

$500,000 will last:

  •  Years, Months, and Days:11 years, 0 months and 25 days

  • Annual Expenditure: $45,171.53

Davel5957 / iStock.com
Davel5957 / iStock.com

Kentucky

$500,000 will last:

  •  Years, Months, and Days:11 years, 1 month and 5 days

  • Annual Expenditure: $45,027.22

laddio1234 / iStock.com
laddio1234 / iStock.com

Louisiana

$500,000 will last:

  •  Years, Months, and Days:11 years, 1 month and 23 days

  • Annual Expenditure: $44,834.79

Shutterstock.com
Shutterstock.com

Nebraska

$500,000 will last:

  •  Years, Months, and Days: 11 years, 2 months and 6 days

  • Annual Expenditure: $44,738.58

StanRohrer / iStock.com
StanRohrer / iStock.com

West Virginia

$500,000 will last:

  •  Years, Months, and Days: 11 years, 2 months and 17 days

  • Annual Expenditure: $44,594.26

f11photo  / Shutterstock.com
f11photo / Shutterstock.com

Ohio

$500,000 will last:

  •  Years, Months, and Days: 11 years, 3 months and 8 days

  • Annual Expenditure: $44,353.73

Shutterstock.com
Shutterstock.com

Texas

$500,000 will last:

  •  Years, Months, and Days: 11 years, 3 months and 19 days

  • Annual Expenditure: $44,257.52

Mindy Bockewitz / Shutterstock.com
Mindy Bockewitz / Shutterstock.com

Iowa

$500,000 will last:

  •  Years, Months, and Days: 11 years, 4months and 18 days

  • Annual Expenditure: $43,920.78

Davel5957 / iStock.com
Davel5957 / iStock.com

Michigan

$500,000 will last:

  •  Years, Months, and Days: 11 years, 5 months and 20 days

  • Annual Expenditure: $43,584.04

Coy St. Clair / Shutterstock.com
Coy St. Clair / Shutterstock.com

Indiana

$500,000 will last:

  •  Years, Months, and Days: 11 years, 6 months and 26 days

  • Annual Expenditure: $43,199.19

ESB Professional / Shutterstock.com
ESB Professional / Shutterstock.com

Georgia

$500,000 will last:

  •  Years, Months, and Days: 11 years, 7 months and 3 days

  • Annual Expenditure: $43,151.08

ESB / Shutterstock.com
ESB / Shutterstock.com

Tennessee

$500,000 will last:

  •  Years, Months, and Days: 11 years, 7 months and 3 days

  • Annual Expenditure: $43,151.08

DenisTangneyJr / iStock.com
DenisTangneyJr / iStock.com

New Mexico

$500,000 will last:

  •  Years, Months, and Days: 11 years, 7 months and 21 days

  • Annual Expenditure: $42,958.66

SeanPavonePhoto / Getty Images
SeanPavonePhoto / Getty Images

Alabama

$500,000 will last:

  •  Years, Months, and Days: 11 years, 7 months and 25 days

  • Annual Expenditure: $42,910.55

Charles Knowles / Shutterstock.com
Charles Knowles / Shutterstock.com

Missouri

$500,000 will last:

  •  Years, Months, and Days: 11 years, 8 months and 1 day

  • Annual Expenditure: $42,862.45

Davel5957 / iStock.com
Davel5957 / iStock.com

Arkansas

$500,000 will last:

  •  Years, Months, and Days: 11 years, 9months and 18 days

  • Annual Expenditure: $42,381.39

Davel5957 / Getty Images
Davel5957 / Getty Images

Oklahoma

$500,000 will last:

  •  Years, Months, and Days: 11 years, 11 months and 1 day

  • Annual Expenditure: $41,948.43

Nagel Photography / Shutterstock.com
Nagel Photography / Shutterstock.com

Kansas

$500,000 will last:

  •  Years, Months, and Days: 11 years, 11 months and 20 days

  • Annual Expenditure: $41,756.01

SeanPavonePhoto / Getty Images/iStockphoto
SeanPavonePhoto / Getty Images/iStockphoto

Mississippi

$500,000 will last:

  •  Years, Months, and Days: 12 years, 3 months and 18 days

  • Annual Expenditure: $40,649.57

Image Source / Getty Images
Image Source / Getty Images

How Long Will a $500K Retirement Nest Egg Last?

When you're trying to gauge how long $500,000 will last you, where you choose to live is crucial due to the difference in cost-of-living expenses across the nation.

For example, as far as location goes, Mississippi ranks as the top choice for making $500,000 last as long as possible. According to the data, however, $500,000 in Mississippi will last only about four months longer than it would in Kansas, which is the second-best place to retire with $500,000.

If Hawaii, California or New York are your dream retirement destinations, $500,000 won't last nearly as long. These states are considered some of the worst choices to retire in with that size of a nest egg as savings. For example, if you were to move to Hawaii instead of Mississippi, you would get nearly seven fewer years, on average, out of your retirement savings.

But location isn't the only thing to consider. You also need to decide how you'll spend your money, and weigh that against the average cost-of-living expenses in your chosen state. Perhaps you plan on sharing a home with someone else who can afford to pay half of the expenses. Or maybe transportation costs aren't an issue for you because you plan to use a free or low-cost transit system.

Whatever the case, to make your $500,000 nest egg go the distance, it's important to choose a retirement destination that will best serve your specific needs at the most affordable cost.

More From GOBankingRates

Jami Farkas contributed to the reporting for this article.

Methodology: In order to find how long $500,000 will last across the country, GOBankingRates first found (1) the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics' 2019/2020 Midyear Consumer Expenditure Survey data. Then, GOBankingRates created (2) state-level annual expenditure estimates by multiplying the national figure by each state's overall cost of living index score for 2020 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years $500,000 will last in each state by dividing $500,000 by each state's average annual expenditures estimate. All 50 states and the District of Columbia were then ranked with No. 1 being the state where $500,000 will last the longest and No. 51 being the state where it will run out most quickly. GOBankingRates provided supplemental information on the average annual cost of groceries, housing, utilities, transportation, and healthcare for people 65 and older in each state by again using MERIC's cost of living indices for each category to factor out national estimates from the CES. All data was collected on and up to date as of May 20, 2021.

This article originally appeared on GOBankingRates.com: How Long $500K Will Last in Retirement in Each State