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america today
$1 million is an ambitious goal for retirement savings, celebrated in articles about 401(k) millionaires and threads on Reddit.
But $1 million is not what it used to be. According to a 2025 study by Northwestern Mutual, only 36% of American billionaires currently consider themselves wealthy.
“$1 million sounds like a nice number,” says Rudri Bhatt Patel, a certified financial health counselor and retirement expert at GOBanking Rates. But, she said, “We’re not living in the 1950s.”
A new report from personal finance site GOBankingRates tallies how long $1 million in retirement savings will last in each U.S. state in 2026.
Simply put, it’s not long enough.
The analysis found that the average retiree in each state will spend $1 million within 20 years, based on average annual spending for retirees in each region.
And longevity studies show that many Americans will live at least 20 years after retirement.
How much money do you need to save for retirement to be “wealthy”?
Whatever “wealthy” means today, research shows that it means having assets of $1 million or more. In the latest Charles Schwab Modern Wealth Survey, starting in 2025, consumers set their wealth threshold at a net worth of $2.3 million.
Most retirees don’t have that much savings. The average household between the ages of 65 and 75 has about $200,000 in retirement accounts, according to the 2022 Federal Consumer Finance Survey.
GOBankingRates suggests that if you want your money to last, it’s wise to retire in the Southeast or Great Plains. The most affordable retirement states are Oklahoma and Mississippi, where $1 million lasts about 19 years, followed by Alabama, where it lasts 18.5 years.
“People generally don’t think of Oklahoma or West Virginia or Kansas as places of interest for retirees,” Patel said. However, all three states rank among the five least expensive states for retirement benefits, the study found.
The report uses average annual spending for people 65 and older based on federal survey data and adjusted for each state based on local cost of living. To find out how much $1 million is, the researchers divided that total by each state’s average annual spending.
From an investor’s perspective, this estimate is conservative. That doesn’t take into account the $1 million you could earn in your IRA by investing in stocks and bonds. If your investment return exceeds the rate of inflation, your $1 million will last longer than this report estimates.
It’s also worth noting that many retirees can get by with less than $1 million in the bank. Many households make ends meet solely on Social Security.
Where will Americans retire? According to AARP’s 2025 report, the top five destinations for Americans moving to retire in 2024 are Massachusetts, followed by Florida, Illinois, Kentucky and North Carolina.
Here’s how long $1 million lasts in the top retirement states
If you’re planning on retiring in one of these states, here’s how long $1 million could last you in each state.
- Massachusetts: 10.8 years. The annual cost of living in Massachusetts is $92,639, making it the second most expensive state for retirees.
- Florida: 16.4 years. Retirees in Florida face annual costs of $61,125, ranking 31st among the most affordable states.
- Illinois: 17 years. Illinois ranks 24th in affordability, with an annual cost of living of $58,913.
- Kentucky: 17.7 years. Kentucky’s annual cost of $56,456 ranks it 16th among states with affordable retirement living costs.
- North Carolina: 16.7 years. North Carolina ranks 26th in affordability, with annual costs of $59,835.
Here are the 10 states where $1 million in retirement lasts the longest
According to GOBankingRates, here are the 10 states where $1 million lasts the longest in retirement, along with each state’s average cost of overall annual expenses and typically the largest category: housing.
- Oklahoma: $1 million lasts 19.3 years. Annual expenses average $51,849. Annual housing costs average $8,824.
- Mississippi: $1 million lasts 19 years. Annual expenses average $52,524. Annual housing costs average $9,122.
- Alabama: $1 million lasts 18.5 years. Annual expenses average $53,999. Annual housing costs average $9,239.
- West Virginia: $1 million lasts 18.5 years. Annual expenses average $54,122. Annual housing costs average $9,200.
- Kansas: $1 million lasts 18.3 years. Annual expenses average $54,613. Annual housing costs average $10,071.
- Missouri: $1 million lasts 18.3 years. Annual expenses average $54,674. Annual housing costs average $10,110.
- Arkansas: $1 million lasts 18.2 years. Annual expenses average $54,859. Annual housing costs average $10,123.
- Iowa: $1 million lasts 18 years. Annual expenses average $55,473. Annual housing costs average $10,032.
- Tennessee: $1 million lasts 18 years. Annual expenses average $55,473. Annual housing costs average $10,786.
- Indiana: $1 million lasts 18 years. Annual expenses average $55,657. Annual housing costs average $9,902.
Here are the 10 states with the highest cost of living for retirees
Here are 10 states with $1 million in retirement benefits for the shortest distance.
- Hawaii: $1 million lasts for 9.1 years. Annual expenses average $110,393. Annual housing costs average $38,803.
- Massachusetts: $1 million lasts 10.8 years. Annual expenses average $92,639. Annual housing costs average $30,265.
- California: $1 million lasts 11.9 years. Annual expenses average $83,978. Annual housing costs average $23,625.
- Alaska: $1 million lasts 12.8 years. Annual expenses average $78,449. Annual housing costs average $16,387.
- New York: $1 million lasts 12.9 years. Annual expenses average $77,773. Annual housing costs average $23,209.
- Maryland: $1 million lasts 13.7 years. Annual expenses average $73,043. Annual housing costs average $19,168.
- New Jersey: $1 million lasts 14.2 years. Annual expenses average $70,401. Annual housing costs average $18,141.
- Main: $1 million will last 14.3 years. Annual expenses average $70,155. Annual housing costs average $18,141.
- Connecticut: $1 million lasts 14.3 years. Annual expenses average $70,094. Annual housing costs average $16,127.
- Washington: $1 million lasts 14.3 years. Annual expenses average $69,971. Annual housing costs average $15,607.
Here’s how long $1 million lasts in every other state
And here’s how far a million dollars would reach in the remaining 30 states, from longest to shortest.
Texas: 18 years
North Dakota: 18 years
Nebraska: 17.8 years
Georgia, South Dakota, Kentucky: 17.7 years
New Mexico, South Carolina, Louisiana: 17.6 years
Ohio: 17.5 years
Minnesota: 17.3 years
Michigan: 17.2 years
Wyoming: 17.1 years
Illinois: 17 years
Pennsylvania: 16.8 years
North Carolina and Wisconsin: 16.7 years
Nevada: 16.5 years
Idaho, Utah, Florida: 16.4 years
Virginia: 16.3 years
Colorado: 15.9 years
Delaware: 15.8 years
Arizona: 15 years
New Hampshire: 14.9 years
Montana: 14.8 years
Oregon: 14.6 years
Rhode Island: 14.4 years
Vermont: 14.3 years
