Planning for retirement can feel overwhelming, especially when you’re trying to figure out how far your savings will stretch in different parts of the country. A recent study by GOBankingRates analyzed how long $750,000, combined with Social Security, could sustain retirement in each U.S. state. To simplify the results, the study broke down the findings into four regions: Northeast, South, Midwest, and West. Let’s look into how these regions stack up.
Northeast
The Northeast, known for its high cost of living, is the most expensive region for retirees. With states like Massachusetts and New York consuming retirement funds quickly, the average length of time $750,000 lasts here is just 17.21 years.
- Massachusetts: Funds last 12.29 years (shortest in the region).
- New York: Funds last 15.38 years.
- Pennsylvania: Funds last 22.82 years (the only state in the region where savings stretch beyond two decades).
If you’re considering retiring in the Northeast, you’ll need a robust financial plan to accommodate the higher expenses, particularly in housing and healthcare.
South
The South offers a much more affordable retirement, with an average of 23.43 years of sustainability for $750,000. It’s a region of extremes, with states varying significantly in costs.
- Maryland: Funds last 16.75 years (most expensive in the region).
- West Virginia: Funds last 28.8 years (longest in the U.S.).
West Virginia stands out as the most budget-friendly state not only in the South but nationwide. Florida, a popular retirement destination, also offers a favorable balance between lifestyle and affordability.
Midwest
The Midwest leads the pack in terms of affordability, with $750,000 lasting an average of 24.27 years — the longest across all regions.
- Missouri: Funds last 26.08 years (least expensive state in the region).
- Wisconsin: Funds last 22.28 years (most expensive in the region).
This region’s lower housing costs and reasonable healthcare expenses make it ideal for retirees looking to stretch their savings without compromising on quality of life.
West
The West, known for its scenic beauty and high cost of living, is one of the pricier regions for retirees. Here, $750,000 lasts an average of 18.76 years, with wide variations between states.
- Hawaii: Funds last 8.8 years (shortest in the country).
- California: Funds last 12.21 years.
- New Mexico: Funds last 23.66 years (most affordable in the region).
While states like Hawaii and California drain funds quickly, others, like New Mexico, offer a much more affordable lifestyle. However, retirees should consider the trade-offs between cost and access to amenities when choosing the West.
Planning where to retire is as much about your financial situation as it is about the lifestyle you want. If you’re aiming to stretch your savings, the Midwest and South offer the best options. But if scenic beauty or proximity to family is a priority, regions like the West or Northeast might be worth the higher price tag.
SOURCE – LINK
FAQs
Which region is cheapest for retirees?
The Midwest, where $750,000 lasts 24.27 years on average.
What state stretches retirement savings longest?
West Virginia, with $750,000 lasting 28.8 years.
Which state is most expensive for retirees?
Hawaii, where $750,000 lasts just 8.8 years.
Is the Northeast good for retirement?
It’s costly, with funds lasting only 17.21 years on average.
What’s the best region for affordable retirement?
The Midwest, due to its low cost of living.
