How long would you be able to live off $1 million saved for retirement in Louisiana? It seems like a good amount of money, but just how comfortable would it leave you?
“According to a recent survey conducted by Schwab Retirement Plan Services, the average American needs about $1.9 million to retire comfortably,” said a recent press release from GoBankingRates.”This number is way out of reach for many Americans, considering the average amount Americans have saved between the ages of 55-65 is $197,322, a far cry from what you’ll need in retirement.”
The personal finance website decided to calculate just how far a $1 million retirement savings would get people living in all 50 states.
“To determine how far a $1 million nest egg will take retirees across the country for someone 65 or older, GOBankingRates analyzed data from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey and factored in the state’s overall cost-of-living index score for 2021 from the Missouri Economic Research and Information Center,” it said.
Expenses were broken down for each state into groceries, housing, transportation and healthcare.
Here’s what the breakdown looks like in Louisiana:
· Annual groceries cost: $4,443.04
· Annual housing cost: $8,849.72
· Annual utilities cost: $3,462.24
· Annual transportation cost: $3,938.88
· Annual healthcare cost: $7,058.12
How long $1 million will last in savings? 20 years 6 months and 4 days
While $1 million wouldn’t go as far in Louisiana as it would in some nearby states such as Texas (20 years 8 months and 15 days) and Mississippi (22 years 8 months and 12 days), it would last longer than in California or New York. Years longer.
In New York, $1 million would last just 14 years 1 month and 15 days. In California, it would burn off even faster – an estimated 13 years 9 months and 29 days.