How long will a million dollars in retirement savings last in these cities?

How long will a million dollars in retirement savings last in these cities?

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The commonly cited 4% rule — albeit one that many retirement advisors say is outdated — states that if you have $1 million, you can withdraw 4% each year without running out of money.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.

READ ALSO :   What is a 401(k)?

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.

San Jose Calif Sjso Sh
24432 Park Avenue New York City St
Oakland, California
Los Angeles Cliff Sh
24 u
CH Boston Jay Yuan Tea Party Museum: Shutterstock
23 Long Beach Cliff Sh
17 San Diego Sh
1 Washington, D.C. Georgetown U
16 Portland Oregon Artifact: Shutterstock
10 Denver
28 Miami
austin texas u
8 Sacramento Calif Cynthia Liang: shutterstock
Las Vegas Nevada Sh
14 Atlanta Sean Pavone: Shutterstock
4 Chicago
Minneapolis, Minnesota
3 Virginia Beach
34 Colorado Springs SH
Mesa Ares Golf Sh
1 Phoenix Botanical Garden Kit K89: Shutterstock.
Fresno Calif Sh
4 NC Rally
28 Dallas Texas Trung Nguyen: Shutterstock
19 Nashville Teen Sh
30 Philadelphia CEW: Shutterstock
20 Arlington Texas Stadium CK Foto: Shutterstock
19 Fort Worth Texas
Charlotte, North Carolina
21 Houston Sh
GRR louisiana new orleans Ancha Chiangmai: Shutterstock
jacksonville fl
9 golf tucson arizona u
9 New Mexico Albuquerque Sean Pavone: Shutterstock
1 Omaha Nebraska Sh
19 San Antonio, Texas
29 Baltimore Maryland Sh
5 Louisville Kentucky 4K Clips: Shutterstock
1 Detroit EQRoy: shutterstock
Kansas City Mo
28 Columbus Ohio aceshot1: shutterstock
19 Oklahoma City dog ​​bike
22. Milwaukee Wisconsin sh
10 Indianapolis Sh
7 Tulsa 2 Svinyard: Shutterstock.com
90 Wichita KS Sh
18 El Paso Texas Sh
Memphis Teen f11photoSH

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