How Long $2 Million in Retirement Savings Lasts in Every US State

Published 07/06/2025, 08:28

For many Americans, accumulating $2 million in retirement savings is a significant milestone. However, the longevity of these savings can vary greatly depending on the state in which you choose to retire. Factors such as cost of living, taxes, healthcare expenses, and lifestyle choices all play a role in determining how far your retirement funds will stretch.

Understanding the Variables

Several key factors influence how long your $2 million will last in retirement:

  • Cost of Living: States with higher costs for housing, food, transportation, and healthcare will deplete your savings more quickly.
  • Taxes: State income taxes, property taxes, and sales taxes can significantly impact your annual expenses.
  • Healthcare Costs: As you age, healthcare becomes a more substantial part of your budget. States with higher medical costs can shorten the lifespan of your savings.
  • Lifestyle Choices: Your personal spending habits, including travel, hobbies, and entertainment, will affect how quickly you use your funds.

State-by-State Breakdown

While specific numbers can fluctuate over time, here’s a general overview of how long $2 million in retirement savings might last in various states:

States Where $2 Million Lasts the Longest

  1. Mississippi: With a low cost of living and affordable healthcare, your savings could last approximately 25 years.
  2. Arkansas: Similar to Mississippi, lower expenses mean your funds may stretch to around 24 years.
  3. Oklahoma: Affordable housing and living costs could allow your savings to last about 23 years.
  4. Missouri: With moderate expenses, expect your funds to cover roughly 22 years.
  5. Tennessee: No state income tax and reasonable living costs could extend your savings to about 22 years.

States Where $2 Million Lasts the Shortest

  1. Hawaii: High housing and food costs may reduce your savings’ lifespan to approximately 10 years.
  2. California: With elevated living expenses, expect your funds to last around 11 years.
  3. New York: High taxes and the cost of living could deplete your savings in about 12 years.
  4. Massachusetts: Healthcare and housing costs may limit your funds to roughly 12 years.
  5. Connecticut: Elevated expenses could mean your savings last around 13 years.

Planning for Longevity

To ensure your $2 million lasts throughout your retirement, consider the following strategies:

  • Relocate to a Lower-Cost State: Moving to a state with a lower cost of living can significantly extend your savings.
  • Adjust Your Lifestyle: Modifying your spending habits can help preserve your funds.
  • Invest Wisely: Work with a financial advisor to invest your savings in a way that balances growth and security.
  • Plan for Healthcare: Anticipate future medical expenses and consider long-term care insurance.
  • Tax Planning: Understand the tax implications in your chosen state and plan accordingly.

Turning Insight Into Action (WA:ACT)

While $2 million is a substantial amount for retirement, its longevity is heavily influenced by where and how you choose to live. By understanding the variables and planning accordingly, you can make informed decisions to ensure financial security throughout your retirement years.

FAQs

How can I make my retirement savings last longer?

Consider relocating to a state with a lower cost of living, adjusting your lifestyle to reduce expenses, and working with a financial advisor to invest wisely.

What states have no state income tax?

States like Florida, Texas, and Tennessee do not have a state income tax, which can help your retirement savings last longer.

How do healthcare costs impact retirement savings?

Healthcare expenses can be significant in retirement. Planning for these costs, including potential long-term care, is crucial to preserving your savings.

Should I consider downsizing my home in retirement?

Downsizing can reduce housing expenses and free up equity, contributing to the longevity of your retirement funds.

How does inflation affect my retirement savings?

Inflation decreases the purchasing power of your money over time. Investing in assets that outpace inflation can help maintain your savings’ value.

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