A recent AARP survey finds over half of adults over 50 are worried about having enough money for retirement
Seniors could be roughing their golden years in some states, as a new study shows that even $1 million in retirement savings won’t last very long in some states.
The study, published by personal finance site GoBankingRates earlier this year, found, for instance, that California seniors might face tough times financially after eating through that supply in approximately 12 years, eight months and five days, thanks to medical and regular living expenses.
The estimate came after tallying a series of common annual expenses – $5,387 for groceries, $22,530 for housing, $5,202 for utilities, $6,283 for transportation, and $8,226 for healthcare, totaling nearly $80,000 per year.
THIS ONE ASSUMPTION COULD MAKE YOU RUN OUT OF MONEY IN RETIREMENT
Retirees could run out of money faster in states like Hawaii, Massachusetts, New York and California, according to the study. (iStock / iStock)
Other highly populated states did not fare so well either.
New Yorkers, for instance, are expected to go through that $1 million amount in 13 years, eight months and one day. The District of Columbia fared even worse, with the money expected to last only 11 years, ten months and 25 days, similar numbers to Massachusetts.
Retirees in Hawaii are facing the worst prospect, meanwhile, with the study indicating they could burn through $1 million in retirement savings in just nine years, seven months and 25 days.
AMERICANS ARE SAVING MORE FOR RETIREMENT, BUT THEY’RE NOWHERE NEAR THE ‘MAGIC NUMBER’
401(k) plans help ensure Americans have enough money to live on after they retire and no longer receive an annual wage. However, some retirees could run out of money if things go wrong. (Getty Images / Getty Images)
While there’s bad news for seniors in some states, there’s better news for others.
Texas, one of America’s larger states, had more positive numbers at 18 years, seven months and seven days.
Southeastern states like Tennessee, Georgia, Alabama, Mississippi, the Carolinas and Florida each indicated that the amount would last at least 17 years, with some of these states nearing 20 years.
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Ramsey Solutions personality Jade Warshaw breaks down how to get the most out of your Social Security check and more on ‘The Bottom Line.’
The same applies to the Midwest, with states like Iowa, Arkansas, Missouri, Kansas, Nebraska, Illinois and Indiana faring similarly.
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West Virginians walked away with the best ranking, with the Mountain State seniors’ estimated time to run out of $1 million in savings coming in at 20 years, three months and 19 days.