How much do you need to retire? One rule is that by age 60, you should have 7-9 times your desired income, and by age 65, you should have 8-11 times that income. This means that if you want $100,000 a year, you’ll need $1 million.
In 2021, a workplace retirement plan manager Fidelity Investments reported an unprecedented rise in the number of 401(k)s and IRAs that had a $1 million balance, in about a third of accounts.
But in the most recent 2019 survey on consumer finance, median retirement home savings for ages 55 to $64 was just $134,000, and for ages 65 to 74 it was $164,000. And only about half of American families have retirement accounts, according to 2019 Federal Reserve data.
The commonly cited 4% rule — albeit one that many retirement advisors say is outdated — states that if you have $1 million, you can withdraw 4% each year without running out of money. That’s $40,000 a year, before taxes, plus hope you get Social Security. Is this enough? It depends on many factors, including where you live.
This list takes a look at how long a million will last in the 50 most populous US cities. To calculate it, GOBankingRates multiply the annual expenses of someone 65 and older by the total cost of living index for each city. This annual spending figure was then reduced by the average annual Social Security benefits the retiree would receive. Final annual spending minus total Social Security benefits was broken down into million to get the years, months, and days that $1 million would continue to be retired for each city. The data comes from the 2018 Consumer Spending Survey from the Bureau of Labor Statistics, the Social Security Administration, and Sperling’s Best Places.
Life expectancy in the United States was 78.8 years in 2019, according to the CDC. (It dropped to 77 in 2020.) But many retirement advisors recommend planning to live well into your 90s. After all, do you really want to turn 95 and suddenly run out of money?
Based on GoBankingRates data, here’s how long it would take $1 million in 50 US cities.
Most expensive cities:
San Francisco
How long will a million dollars last: 8.3 years
Cost of Living Index: 269.3
Annual expenses, after annual Social Security use: $120,355
Cost of living index scores correlate with a national average of 100. If the COL for a place is less than 100, it is cheaper than the national average. If it’s more than 100, it’s more expensive than the national average, according to Sperlings. So San Francisco costs about 169% more than the national average.
San Jose, California.
How long will a million dollars last: 10.8 years
Cost of Living Index: 214.5
Annual expenses, after annual Social Security use: $92,484
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New York City
How long will a million dollars last: 12.7 years
Cost of Living Index: 187.2
Annual expenses, after annual Social Security use: $78,599
Oakland, California.
How long will a million dollars last: 13.8 years
Cost of Living Index: 174.4
Annual expenses, after annual Social Security use: $72,089
Los Angeles
How long will a million dollars last: 13.9 years
Cost of Living Index: 173.3
Annual expenses, after annual Social Security use: $71,530
Seattle
How long will a million dollars last: 14.0 years
Cost of Living Index: 172.3
Annual expenses, after annual Social Security use: $71,021
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Boston
How long will a million dollars last: 15.1 years
Cost of Living Index: 162.4
Annual expenses, after annual Social Security use: $65,986
Long Beach, California.
How long will a million dollars last: 15.3 years
Cost of Living Index: 160.4
Annual expenses, after annual Social Security use: $64,969
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San Diego
How long will a million dollars last: 15.4 years
Cost of Living Index: 160.1
Annual expenses, after annual Social Security use: $64,816
Washington DC
How long will a million dollars last: 16.4 years
Cost of Living Index: 152.1
Annual expenses, after annual Social Security use: $60,747
Portland, ore.
How long will a million dollars last: 20.0 years
Cost of Living Index: 130.8
Annual expenses, after annual Social Security use: $49,914
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Denver
How long will a million dollars last: 20.4 years
Cost of Living Index: 128.7
Annual expenses, after annual Social Security use: $48,846
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Miami
How long will a million dollars last: 21.7 years
Cost of Living Index: 123.1
Annual expenses, after annual Social Security use: $45,998
Austin, Texas
How long will a million dollars last: 22.7 years
Cost of Living Index: 119.3
Annual expenses, after annual Social Security use: $44,065
Sacramento, California.
How long will a million dollars last: 22.9 years
Cost of Living Index: 118.2
Annual expenses, after annual Social Security use: $43,506
Las vigas
How long will a million dollars last: 24.8 years
Cost of Living Index: 111.6
Annual expenses, after annual Social Security use: $40,149
20 cities closest to the national average cost of living:
Photo: Sean Pavone/Shutterstock
Atlanta
How long will a million dollars last: 26.3 years
Cost of Living Index: 107.5
Annual expenses, after annual Social Security use: $38,064
Chicago
How long will a million dollars last: 26.4 years
Cost of Living Index: 106.9
Annual expenses, after annual Social Security use: $37,759
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Minneapolis
How long will a million dollars last: 26.6 years
Cost of Living Index: 106.5
Annual expenses, after annual Social Security use: $37,555
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Virginia Beach, Virginia.
How long will a million dollars last: 26.9 years
Cost of Living Index: 105.6
Annual expenses, after annual Social Security use: $37,097
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Colorado Springs, Colorado.
How long will a million dollars last: 27.3 years
Cost of Living Index: 104.5
Annual expenses, after annual Social Security use: $36,538
Mesa, Ares.
How long will a million dollars last: 27.4 years
Cost of Living Index: 104.2
Annual expenses, after annual Social Security use: $36,385
Phoenix
How long will a million dollars last: 27.6 years
Cost of Living Index: 103.7
Annual expenses, after annual Social Security use: $3,613,3
Fresno, California.
How long will a million dollars last: 28.1 years
Cost of Living Index: 102.6
Annual expenses, after annual Social Security use: $35,572
Raleigh, North Carolina
How long will a million dollars last: 28.2 years
Cost of Living Index: 102.3
Annual expenses, after annual Social Security use: $35,419
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Dallas
How long will a million dollars last: 28.4 years
Cost of Living Index: 101.6
Annual expenses, after annual Social Security use: $35,063
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Nashville, Tenn.
How long will a million dollars last: 28.5 years
Cost of Living Index: 101.4
Annual expenses, after annual Social Security use: $34,961
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Philadelphia
How long will a million dollars last: 28.6 years
Cost of Living Index: 101.2
Annual expenses, after annual Social Security use: $34,860
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Arlington, Texas
How long will a million dollars last: 28.8 years
100.6 (closest to the national average of 100)
Annual expenses, after annual Social Security use: $34,554
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Fort Worth, Texas
How long will a million dollars last: 29.3 years
Cost of Living Index: 99.8 (closest to the national average of 100)
Annual expenses, after annual Social Security use: $34,148
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Charlotte, Nick
How long will a million dollars last: 29.6 years
Cost of Living Index: 98.9
Annual expenses, after annual Social Security use: $33,690
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Houston
How long will a million dollars last: 30.8 years
Cost of Living Index: 96.5
Annual expenses, after annual Social Security use: $32,469
Ansha Chiangmai / Shutterstock
New Orleans
How long will a million dollars last: 30.8 years
Cost of Living Index: 96.3
Annual expenses, after annual Social Security use: $32,367
Jacksonville, Florida.
How long will the million dollars last: 32.3 years
Cost of Living Index: 93.5
Annual expenses, after annual Social Security use: $30,943
Tucson, Arizona.
How long will a million dollars last: 33.3 years
Cost of Living Index: 91.6
Annual expenses, after annual Social Security use: $29,977
Sean Pavone/Shutterstock
Albuquerque
How long will a million dollars last: 33.6 years
Cost of Living Index: 91.1
Annual expenses, after annual Social Security use: $29,723
13 cities 10% or more below the national average cost of living:
Omaha, Neb.
How long will a million dollars last: 34.3 years
Cost of Living Index: 89.8
Annual expenses, after annual Social Security use: $29,062
San Antonio, Texas
How long will a million dollars last: 34.4 years
Cost of Living Index: 89.7
Annual expenses, after annual Social Security use: $29,011
Baltimore
How long will a million dollars last: 35.3 years
Cost of Living Index: 88.2
Annual expenses, after annual Social Security use: $28,248
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Louisville, Kentucky.
How long will a million dollars last: 35.3 years
Cost of Living Index: 88.4
Annual expenses, after annual Social Security use: $28,349
Detroit
How long will a million dollars last: 35.8 years
Cost of Living Index: 87.6
Annual expenses, after annual Social Security use: $27,943
Kansas City, Missouri.
How long will a million dollars last: 36.7 years
Cost of Living Index: 86.2
Annual expenses, after annual Social Security use: $27,231
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Columbus, Ohio
How long will a million dollars last: 37.2 years
Cost of Living Index: 85.5
Annual expenses, after annual Social Security use: $26,875
Oklahoma City
How long will a million dollars last: 37.3 years
Cost of Living Index: 85.4
Annual expenses, after annual Social Security use: $26,824
Milwaukee
How long will a million dollars last: 37.6 years
Cost of Living Index: 84.9
Annual expenses, after annual Social Security use: $26,569
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Indianapolis
How long will a million dollars last: 38.6 years
Cost of Living Index: 83.5
Annual expenses, after annual Social Security use: $25,857
Tulsa, Okla.
How long will a million dollars last: 38.8 years
Cost of Living Index: 83.2
Annual expenses, after annual Social Security use: $25.705
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Wichita, Kan.
How long will a million dollars last: 39.7 years
Cost of Living Index: 82.1
Annual expenses, after annual Social Security use: $25,145
El Paso, Texas
How long will a million dollars last: 40.3 years
Cost of Living Index: 81.4
Annual expenses, after annual Social Security use: $24,789
f11 photo / Shutterstock
Memphis, Tenn.
How long will a million dollars last: 45.3 years
Cost of Living Index: 76
Annual expenses, after annual Social Security use: $22,043
See the detailed methodology of this study at GoBankingRates.com.
