Retirement savings aren’t created equal—at least not when it comes to how far they stretch depending on where you live. A GOBankingRates study reveals stark differences across the United States, showing how long $750,000 in combined savings and Social Security will last in retirement.
Although, factors like housing markets, healthcare costs, and overall cost of living play a decisive role in these figures. The regional breakdown challenges conventional assumptions about the “best” places to retire, exposing a range of financial realities.
Northeast: An Expensive Retirement Hub
States: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont
Average duration: 17.21 years
The Northeast, home to states with historically high living costs, offers retirees the shortest stretch for their savings.
- Massachusetts: Funds last just 12.29 years, the fastest depletion rate in the region.
- New York: Savings evaporate in 15.38 years, reflecting the region’s hefty expenses.
- Pennsylvania: A notable outlier, where $750,000 sustains a retiree for 22.82 years, the longest in the area.
Even for those drawn to the cultural and historical richness of the Northeast, the financial trade-off is steep.
South: Affordability Meets Diversity
States: Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Texas, Virginia, West Virginia
Average duration: 23.43 years
The South offers retirees one of the most diverse financial landscapes in the country, balancing high-cost urban hubs with affordable rural settings.
- West Virginia: The most affordable state nationwide, where savings stretch to 28.8 years.
- Maryland: At the other end of the spectrum, retirees burn through their savings in just 16.75 years.
- Florida and Texas: Popular destinations that hover near the regional average, providing a mix of affordability and amenities.
For retirees seeking both cost-effective living and vibrant communities, the South presents a compelling option.
Midwest: Maximum Value for Retirement
States: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin
Average duration: 24.27 years
The Midwest, often overlooked in retirement discussions, delivers exceptional value for retirees.
- Missouri: Leads the region, where $750,000 sustains a retiree for 26.08 years.
- Wisconsin: The priciest state in the Midwest still allows retirees to live comfortably for 22.28 years.
- Overall: The Midwest boasts the longest average duration for savings in the entire U.S.
For those prioritizing financial longevity, the Midwest defies stereotypes, offering both affordability and quality of life.
West: Beauty Comes at a Premium
States: Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming
Average duration: 18.76 years
The West, with its breathtaking scenery and lifestyle allure, comes with a steep price tag.
- Hawaii: The most expensive state nationwide, where $750,000 lasts a mere 8.8 years.
- California: Known for its high costs, retirees in the Golden State spend their savings in just 12.21 years.
- New Mexico: A regional exception, where savings extend to 23.66 years, nearly three times as long as in Hawaii.
Retirees lured by the West’s natural beauty must weigh these financial realities carefully.
A Regional Comparison at a Glance
| Region | Average Years Savings Last | Least Expensive State | Most Expensive State |
|---|---|---|---|
| Northeast | 17.21 years | Pennsylvania (22.82 years) | Massachusetts (12.29 years) |
| South | 23.43 years | West Virginia (28.8 years) | Maryland (16.75 years) |
| Midwest | 24.27 years | Missouri (26.08 years) | Wisconsin (22.28 years) |
| West | 18.76 years | New Mexico (23.66 years) | Hawaii (8.8 years) |
The Crucial Intersection of Location and Savings
The study highlights an important reality: where you retire matters as much as how much you’ve saved. While the Midwest offers unparalleled value, regions like the Northeast and West come with higher costs, making financial sustainability a greater challenge.
Retirees must challenge traditional notions of retirement destinations, weighing lifestyle preferences against stark economic disparities. Whether it’s the rolling plains of the Midwest, the cultural vibrancy of the Northeast, or the warm embrace of the South, informed decision-making will ultimately shape how far your savings will go.
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