How long will $500,000 in retirement savings last in your state?

How long will 0,000 in retirement savings last in your state?

Saving for retirement isn’t easy, and it’s hard to know how much you’ll need. The average net worth of an American citizen is $79,952, according to a 2021 report by Credit Suisse.

Advisers often recommend that by age 65, you should have between eight and 11 times the desired income in retirement savings. So, if you were making $50,000 a year, you would need about $500,000. If this seems like a daunting task, you’re not alone. About 75% of Americans fear they can’t save enough money for retirement.

What about Social Security? is it enough? Can you count on it even when you retire? To add to the challenge, the money you withdraw from your retirement accounts is taxable, depending on the type of account. Inflation can also affect your retirement plans.

Is $500,000 enough? It depends on how much you spend, and it depends a lot on where you live. This list looks at how long it will last to save half a million in each state.

To determine how long $500,000 would take in each state, personal finance website GOBankingRates used data from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey to find the national average annual spending for people 65 and older, then factored in a cost-of-living index score per state for 2021 from the Missouri Center for Economic Research and Information. They then divided $500,000 by estimating each state’s average annual expenses. They also factored in the average annual cost of groceries, housing, utilities, transportation, and health care for people 65 and older in each state using MERIC cost-of-living indices.

READ ALSO :   Social Security makes no promises after 2035

The numbers can seem depressing: $500,000 is a lot of money to most Americans and six or seven years isn’t too long to make it last. Financial planners often advise that you plan to live into your 90s – that easily means 30 if you retire at 65. That’s why they often recommend investing money, which will make it last longer. If you have a 4% annual ROI, you can withdraw $20,000 annually without affecting your balance much.

Here’s how long $500,000 will take in each state.

upstate New York
3 San Diego Sh
Massachusetts, Cape Ann, Gloucester, USA
27 Brookings Oregon Sh
Homer, Alaska
7 City of Maryland Chesapeake St
Connecticut mystic sh
Rhode Island
Vermont Sh
New Jersey Princeton Jay Yuan: Shutterstock
34 min
21 Sequin wash by huyenhoang Sh
Hampshire Portsmouth
4 Rehoboth Beach, Delaware
16 Mesquite Nevada Sh
25 Denver Colorado Sh
9 golf tucson arizona u
3 agricultural land in Pennsylvania
7 Idaho Sh
1 Alexandria, Virginia St
9 s Dakota Sioux Falls Sh
20 Missoula Montana Sh
6 Florida Key West Phillip Lang: Shutterstock
3 Minneapolis Sh
5 Utah Salt Lake City
6 North Dakota Fargo ND David Harmentas: Shutterstock
19 Wisconsin-Madison St
20 North Carolina Rally
Chicago Illinois Sh
19 Laramie, Wyoming sh
16 Lincoln Nebraska Rathoma: Shutterstock
Scarolina, South Carolina
24 Louisville Key-Joe Hendrickson: Shutterstock
louisiana sh
houston texas u
492 Ohio Dayton St
10 Lake Michigan superior u
15 Eureka Springs Arkansas So Stokes: Shutterstock
17 Charleston WV Sh
15 Iowa City Iowa - Iowa State University sh
17 Missouri St. Louis Sh
29 Knoxville Ten Sh
13 Savannah Georgia Sh
23 Alabama Montgomery JNix: Shutterstock
25 Oklahoma City
22 Wichita KS Sean Pavone: Shutterstock
2 Mississippi Gulf Sh


Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The Latest

To Top