Here’s How Long $1 Million in Retirement Lasts in MN
I think it's safe to say we'd all like to retire comfortably.
Of course, retirement looks different for everyone, and even the age at which we plan to retire may differ from person to person. According to a late 2020 article by Investopedia, full retirement age in the US is considered between 65-67. Of course, retiring in and of itself assumes a number of things, such as that one has enough finances by retirement age to survive on for the rest of one's life.
So how much money does one need to retire comfortably? Well, there's no single number to answer to that, but for today's purposes let's work with the number $1 million. According to a 2018 article by CNBC, here's how long it would take to save up $1 million by the age of 67:
$415 a month starting in your 20's
$651 a month starting in your 30's
$1,300 a month starting in your 40's
Those numbers assume getting a 6% return on investment.
Now, let's fast forward. You're 67 years old, you've earned your $1 million and can retire. How long will $1 million last you in retirement? That, answer, too, depends on a number of variables. But let's just say that you'll burn through your savings faster in some states more than others. According to Go Banking Rates, the top states where your million bucks will go the farthest are: Mississippi, Oklahoma, Arkansas, New Mexico, Kansas, Missouri, Tennessee, Alabama, Georgia, and Michigan. One million dollars in retirement will last you anywhere between 21 and 23 years in those states. The states where you'll burn through your $1 million retirement are: Hawaii (10 years and three months), California (just over 14 years), New York (14 years and three months), Oregon (14 years and seven months) and Massachusetts (just over 15 years). So where does Minnesota fit in?
Minnesota basically falls right in the middle. According to Go Banking Rates, retiring on $1 million in the Land of 10,000 Lakes will last you 19 years, 4 months, 10 days assuming these costs:
- Annual groceries cost: $4,261.57
- Annual housing cost: $8,234.16
- Annual utilities cost: $3,760.33
- Annual transportation cost: $4,658.24
- Annual healthcare cost: $7,584.23
- Total annual expenditures: $51,622.90
Taking all these numbers at face value, someone retiring at the age of 67 in Minnesota will be 86 years old before his or her $1 retirement fund runs out.
So, how do you feel by that -- encouraged or depressed?
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