Residents of West Virginia have the advantage of stretching their retirement savings of $1 million further than those in other Southern states. As per the analysis conducted by GOBankingRates, retirees in West Virginia can expect that amount to last for 20 years, 3 months, and 19 days. Following closely is Mississippi, where $1 million suffices for 19 years, 11 months, and 12 days.
Oklahoma ranks third, with the same savings amount allowing for 19 years, 11 months, and 5 days of living expenses. Kentucky claims the fourth spot, where $1 million would support retirees for 19 years, 7 months, and 11 days. Finally, Arkansas completes the top five, enabling retirees to sustain their lifestyle for 19 years, 6 months, and 15 days on $1 million.
West Virginia Leads in Southern Retirement Savings Duration
To derive these statistics, GOBankingRates began by identifying the national average annual spending for Americans aged 65+ using the 2022 Consumer Expenditure Survey data provided by the Bureau of Labor Statistics. They then adjusted the national average to reflect state-specific annual spending, based on each state’s cost of living index from the third quarter of 2023, which was sourced from the Missouri Economic Research and Information Center.
The next step involved determining how long $1 million would last in each state by dividing that amount by the estimated annual expenditures. The rankings of all 50 states and Washington D.C. were established from the longest to shortest duration. Although $1 million is often viewed as an adequate retirement savings target, the combination of increasing living expenses and longer life spans might render this figure insufficient for numerous retirees.
In Hawaii, the state with the highest living costs, $1 million would be exhausted in less than ten years.
