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Got $1 million to retire? Here's how long it will last in each state

MarketWatch logo MarketWatch 1/9/2018 Sally French

Video by Wochit

If your vision for retirement was basking in a tropical paradise, let’s hope your vision of tropical paradise resembles something more like Mississippi and less like Hawaii.

Either that, or let’s hope you were planning on a short retirement.

Data analysis site HowMuch analyzed how far $1 million goes in retirement in every U.S. state. And it turns out, you can stretch $1 million about twice as far in Mississippi as you can in Hawaii. HowMuch crunched the numbers based on the Cost of Living Index for Q2 of 2017 as well as average annual expenditure of persons with 65 years and above.

$1 million would allow the average retired person in Mississippi to live for 25 years and 6 months. $1 million only gets you 13 years and 1 month of retirement in Hawaii.

a close up of a piece of paper: Click to expand graphic. © Provided by Dow Jones & Company, Inc. Click to expand graphic.

These are the top 5 states for stretching your $1 million:

StateHow long $1 million lasts in retirement
Mississippi25 years, 6 months
Arkansas25 years
Tennessee24 years, 5 months
Kansas24 years, 5 months
Oklahoma24 years, 4 months

And these are the 5 worst states:

StateHow long $1 million lasts in retirement
Hawaii13 years, 1 month
District of Columbia14 years, 2 months
California15 years
Oregon16 years, 7 months
New York16 years, 7 months

Feeling blue about having a short retirement after seeing these numbers? It gets worse. Here’s proof that you shouldn’t count on Social Security either. But there is good news. Seniors who are currently collecting Social Security checks are getting a boost in their payments, and it’s the biggest increase in six years.

Related gallery: Here's how much you should have in your retirement fund at each age (provided by GoBankingRates)

a couple of people that are looking at the camera: If you're counting on Social Security to fund your retirement, you might want to think again. In a recent interview with Politico, Sen. Marco Rubio said the GOP is considering major structural changes to Social Security and Medicare to reduce the deficit. With less help from the government, it's important to start saving now to protect yourself and your loved ones during your golden years. There are numerous studies and theories about how much you should have saved for retirement, emergencies, necessities and other expenditures. For example, studies by Fidelity and T. Rowe Price show the retirement savings benchmarks for where you need to be, starting at age 30. Both studies stress the need to save early, maintain a significant level of contributions throughout life and maintain an age-appropriate allocation to equities throughout.Don't wait for retirement to sneak up on you. Here are some expert tips for getting your retirement fund in order before you leave the working world behind and how to progressively grow your emergency fund. How much you should have in your retirement fund at every age

Sally French covers drone technology and serves as a social media editor for MarketWatch in San Francisco. You can follow her on Twitter @SAFMedia.


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