A recent Fidelity Investments report found that there are currently about 497,000 401(k) accounts with at least $1 million. That’s a 2.5% increase from earlier this year when the number of 401(k) millionaires was 485,000. It’s also a new record.
Accumulating $1 million in retirement savings is a key milestone, one that’s worth celebrating. Depending on where you live and what age you plan to retire, it might even be enough money to quit your day job and live out your retirement years in comfort.
If you’re like the average American, you’re probably going to spend about 20 years in retirement, as per the U.S. Department of Labor data. That means you’ll need to split your $1 million across 20 years (assuming there are no interest gains or taxes due). That’s about $50,000 a year.
Besides your 401(k) savings, you may also have Social Security to fall back on. As of January 2024, the average Social Security recipient gets $1,907 a month or $22,884 a year. With that benefit amount, you’d earn an additional $457,680 over 20 years if everything stays exactly the same. This would give you a grand total of about $1,457,680 or $72,884 a year (excluding taxes).
Assuming all of these factors hold true, and using data from a recent GOBankingRates study, these are the top U.S. states where that amount of money is enough to retire on in descending order. Can you figure out which five are too expensive to make the cut?
West Virginia
- Total yearly expenditure (average): $49,261
- How long $1 million will last in savings: 20 years, 3 months, 19 days
- How long $1 million with Social Security will last in savings: 29.6 years
Mississippi
- Total yearly expenditure (average): $50,128
- How long $1 million will last in savings: 19 years, 11 months, 12 days
- How long $1 million with Social Security will last in savings: 29 years
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Oklahoma
- Total yearly expenditure (average): $50,186
- How long $1 million will last in savings: 19 years, 11 months, 5 days
- How long $1 million with Social Security will last in savings: 29 years
Kansas
- Total yearly expenditure (average): $50,533
- How long $1 million will last in savings: 19 years, 9 months, 15 days
- How long $1 million with Social Security will last in savings: 28.8 years
Alabama
- Total yearly expenditure (average): $50,995
- How long $1 million will last in savings: 19 years, 7 months, 11 days
- How long $1 million with Social Security will last in savings: 28.6 years
Missouri
- Total yearly expenditure (average): $51,053
- How long $1 million will last in savings: 19 years, 7 months, 3 days
- How long $1 million with Social Security will last in savings: 28.5 years
Arkansas
- Total yearly expenditure (average): $51,169
- How long $1 million will last in savings: 19 years, 6 months, 15 days
- How long $1 million with Social Security will last in savings: 28.5 years
Iowa
- Total yearly expenditure (average): $51,978
- How long $1 million will last in savings: 19 years, 2 months, 26 days
- How long $1 million with Social Security will last in savings: 28 years
Tennessee
- Total yearly expenditure (average): $52,267
- How long $1 million will last in savings: 19 years, 1 month, 17 days
- How long $1 million with Social Security will last in savings: 27.8 years
Louisiana
- Total yearly expenditure (average): $52,441
- How long $1 million will last in savings: 19 years, 0 months, 26 days
- How long $1 million with Social Security will last in savings: 27.8 years
Georgia
- Total yearly expenditure (average): $52,557
- How long $1 million will last in savings: 19 years, 0 months, 11 days
- How long $1 million with Social Security will last in savings: 27.7 years
Nebraska
- Total yearly expenditure (average): $52,614
- How long $1 million will last in savings: 19 years, 0 months, 4 days
- How long $1 million with Social Security will last in savings: 27.7 years
Michigan
- Total yearly expenditure (average): $52,614
- How long $1 million will last in savings: 19 years, 0 months, 4 days
- How long $1 million with Social Security will last in savings: 27.7 years
Indiana
- Total yearly expenditure (average): $52,672
- How long $1 million will last in savings: 18 years, 11 months, 27 days
- How long $1 million with Social Security will last in savings: 27.7 years
Illinois
- Total yearly expenditure (average): $53,077
- How long $1 million will last in savings: 18 years, 10 months, 3 days
- How long $1 million with Social Security will last in savings: 27.5 years
South Dakota
- Total yearly expenditure (average): $53,077
- How long $1 million will last in savings: 18 years, 10 months, 3 days
- How long $1 million with Social Security will last in savings: 27.5 years
Ohio
- Total yearly expenditure (average): $53,308
- How long $1 million will last in savings: 18 years, 9 months, 4 days
- How long $1 million with Social Security will last in savings: 27.3 years
Texas
- Total yearly expenditure (average): $53,701
- How long $1 million will last in savings: 18 years, 7 months, 7 days
- How long $1 million with Social Security will last in savings: 27.1 years
Wyoming
- Total yearly expenditure (average): $53,886
- How long $1 million will last in savings: 18 years, 6 months, 23 days
- How long $1 million with Social Security will last in savings: 27 years
Kentucky
- Total yearly expenditure (average): $53,886
- How long $1 million will last in savings: 18 years, 6 months, 23 days
- How long $1 million with Social Security will last in savings: 27 years
New Mexico
- Total yearly expenditure (average): $54,291
- How long $1 million will last in savings: 18 years, 5 months, 2 days
- How long $1 million with Social Security will last in savings: 26.8 years
North Dakota
- Total yearly expenditure (average): $54,522
- How long $1 million will last in savings: 18 years, 4 months, 3 days
- How long $1 million with Social Security will last in savings: 26.7 years
South Carolina
- Total yearly expenditure (average): $54,522
- How long $1 million will last in savings: 18 years, 4 months, 3 days
- How long $1 million with Social Security will last in savings: 26.7 years
Minnesota
- Total yearly expenditure (average): $54,580
- How long $1 million will last in savings: 18 years, 3 months, 27 days
- How long $1 million with Social Security will last in savings: 26.7 years
Pennsylvania
- Total yearly expenditure (average): $54,811
- How long $1 million will last in savings: 18 years, 2 months, 26 days
- How long $1 million with Social Security will last in savings: 26.5 years
Wisconsin
- Total yearly expenditure (average): $55,158
- How long $1 million will last in savings: 18 years, 1 month, 16 days
- How long $1 million with Social Security will last in savings: 26.4 years
North Carolina
- Total yearly expenditure (average): $55,621
- How long $1 million will last in savings: 17 years, 11 months, 23 days
- How long $1 million with Social Security will last in savings: 26 years
Idaho
- Total yearly expenditure (average): $57,240
- How long $1 million will last in savings: 17 years, 5 months, 20 days
- How long $1 million with Social Security will last in savings: 25.4 years
Delaware
- Total yearly expenditure (average): $58,281
- How long $1 million will last in savings: 17 years, 1 month, 13 days
- How long $1 million with Social Security will last in savings: 25 years
Florida
- Total yearly expenditure (average): $58,396
- How long $1 million will last in savings: 17 years, 1 month, 13 days
- How long $1 million with Social Security will last in savings: 24.9 years
Nevada
- Total yearly expenditure (average): $58,454
- How long $1 million will last in savings: 17 years, 1 month, 9 days
- How long $1 million with Social Security will last in savings: 24.9 years
Virginia
- Total yearly expenditure (average): $58,627
- How long $1 million will last in savings: 17 years, 0 months, 22 days
- How long $1 million with Social Security will last in savings: 24.8 years
Montana
- Total yearly expenditure (average): $59,610
- How long $1 million will last in savings: 16 years, 9 months, 10 days
- How long $1 million with Social Security will last in savings: 24.4 years
Utah
- Total yearly expenditure (average): $60,420
- How long $1 million will last in savings: 16 years, 6 months, 18 days
- How long $1 million with Social Security will last in savings: 24.1 years
Colorado
- Total yearly expenditure (average): $61,807
- How long $1 million will last in savings: 16 years, 2 months, 4 days
- How long $1 million with Social Security will last in savings: 23.5 years
Arizona
- Total yearly expenditure (average): $63,600
- How long $1 million will last in savings: 15 years, 8 months, 20 days
- How long $1 million with Social Security will last in savings: 22.9 years
New Jersey
- Total yearly expenditure (average): $63,773
- How long $1 million will last in savings: 15 years, 8 months, 6 days
- How long $1 million with Social Security will last in savings: 22.8 years
Maine
- Total yearly expenditure (average): $64,005
- How long $1 million will last in savings: 15 years, 7 months, 15 days
- How long $1 million with Social Security will last in savings: 22.7 years
Rhode Island
- Total yearly expenditure (average): $64,756
- How long $1 million will last in savings: 15 years, 5 months, 10 days
- How long $1 million with Social Security will last in savings: 22.5 years
Connecticut
- Total yearly expenditure (average): $65,855
- How long $1 million will last in savings: 15 years, 2 months, 4 days
- How long $1 million with Social Security will last in savings: 22 years
Oregon
- Total yearly expenditure (average): $66,317
- How long $1 million will last in savings: 15 years, 0 months, 29 days
- How long $1 million with Social Security will last in savings: 21.9 years
Maryland
- Total yearly expenditure (average): $66,375
- How long $1 million will last in savings: 15 years, 0 months, 26 days
- How long $1 million with Social Security will last in savings: 21.9 years
Vermont
- Total yearly expenditure (average): $66,433
- How long $1 million will last in savings: 15 years, 0 months, 19 days
- How long $1 million with Social Security will last in savings: 21.9 years
New Hampshire
- Total yearly expenditure (average): $66,838
- How long $1 million will last in savings: 14 years, 11 months, 16 days
- How long $1 million with Social Security will last in savings: 21.8 years
Washington
- Total yearly expenditure (average): $66,895
- How long $1 million will last in savings: 14 years, 11 months, 12 days
- How long $1 million with Social Security will last in savings: 21.7 years