When planning for retirement, having a sizable amount saved can help ensure a comfortable future. If you have $1 million saved for retirement, it might feel like you’re set. However, how far this amount goes can vary greatly depending on the state where you choose to retire. In particular, Social Security benefits can make a big difference in how long your savings will last. In some states, $1 million along with Social Security can stretch for decades, while in others, it may not last as long as you’d hope.
In this article, we will look at how far $1 million, combined with Social Security benefits, can take you in different Southern states. These states are known for their relatively lower cost of living compared to places like California and Hawaii, where retirement savings tend to be used up quickly. Let’s explore where your retirement money will last the longest in the South.
Factors that Affect Retirement Savings in the South
When it comes to how long your $1 million will last, several factors play a role:
- Cost of Living: This includes expenses such as housing, groceries, healthcare, and other daily needs. States with lower cost of living allow your savings to stretch farther.
- Social Security Benefits: The monthly check from Social Security helps reduce the amount of money you need to spend from your savings each month. The amount you receive depends on your work history and the age at which you start receiving benefits.
- State Taxes: Some states have higher taxes than others, which can eat into your retirement income. States with lower taxes or no state income tax can help you keep more of your savings.
Southern States Where $1 Million Lasts the Longest
Here’s a look at some Southern states where your $1 million in savings, plus Social Security, will last the longest.
Alabama
- Average Monthly Expenditure: $1,794
- Annual Total Cost of Living (After SS Benefits): $14,874
- Years $1M + SS Benefits Will Last: 67.23 years
Alabama is one of the best states in the South to stretch your retirement savings. The low cost of living means that your $1 million, along with Social Security, can last for over 67 years.
Arkansas
- Average Monthly Expenditure: $1,725
- Annual Total Cost of Living (After SS Benefits): $13,000
- Years $1M + SS Benefits Will Last: 76.93 years
In Arkansas, retirement savings go a long way. The cost of living is low, which allows your money to last even longer, nearly 77 years with Social Security benefits.
Delaware
- Average Monthly Expenditure: $1,930
- Annual Total Cost of Living (After SS Benefits): $27,919
- Years $1M + SS Benefits Will Last: 35.82 years
Although Delaware’s living costs are higher than states like Alabama and Arkansas, $1 million plus Social Security will still last a solid 35 years.
Florida
- Average Monthly Expenditure: $1,893
- Annual Total Cost of Living (After SS Benefits): $29,362
- Years $1M + SS Benefits Will Last: 34.06 years
Florida, known for its warm weather and retirement-friendly communities, offers a good balance. Your savings, combined with Social Security, should last you just over 34 years.
Georgia
- Average Monthly Expenditure: $1,863
- Annual Total Cost of Living (After SS Benefits): $23,206
- Years $1M + SS Benefits Will Last: 43.09 years
Georgia offers a solid retirement option, with $1 million lasting for over 43 years, thanks to a relatively low cost of living.
Kentucky
- Average Monthly Expenditure: $1,864
- Annual Total Cost of Living (After SS Benefits): $14,456
- Years $1M + SS Benefits Will Last: 69.17 years
Kentucky offers great value for retirees. With low costs, your $1 million will last more than 69 years when paired with Social Security.
Louisiana
- Average Monthly Expenditure: $1,785
- Annual Total Cost of Living (After SS Benefits): $13,065
- Years $1M + SS Benefits Will Last: 76.54 years
Louisiana is another Southern state where your money can last a very long time. Thanks to the low cost of living, your $1 million will last nearly 77 years with Social Security.
Maryland
- Average Monthly Expenditure: $1,931
- Annual Total Cost of Living (After SS Benefits): $31,301
- Years $1M + SS Benefits Will Last: 31.95 years
Although Maryland has a higher cost of living, $1 million plus Social Security will still last you nearly 32 years.
Mississippi
- Average Monthly Expenditure: $1,784
- Annual Total Cost of Living (After SS Benefits): $11,473
- Years $1M + SS Benefits Will Last: 87.16 years
Mississippi is one of the best states for retirees looking to stretch their savings. Your $1 million plus Social Security could last you a remarkable 87 years.
Oklahoma
- Average Monthly Expenditure: $1,832
- Annual Total Cost of Living (After SS Benefits): $14,048
- Years $1M + SS Benefits Will Last: 71.18 years
Oklahoma is another state where your savings can last a long time. With a low cost of living, you can expect your retirement funds to last over 71 years.
In conclusion, Southern states offer great opportunities for retirees looking to make their savings last longer. Whether you’re considering Alabama, Arkansas, or Mississippi, many of these states have a lower cost of living, which means your $1 million, along with Social Security benefits, can last for several decades. If you’re planning for a long and comfortable retirement, the South might just be the best place to stretch your retirement dollars.
For those planning their future, it’s important to consider the cost of living in different states, as well as how Social Security benefits can help extend the life of your retirement savings. The South is a great option for those who want to live comfortably on a fixed income.
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