How far will $1 Million go in retirement in your state?
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GON
$150 Site Donor 2025
I have slept in vehicles many times over the years. Being homeless my junior year of high school, my Dad and I slept in his 1971 Olds 98.
My recent sleeping in vehicles reminded me how brutally cold it can get in a vehicle overnight. As a younger man, the nighttime cold didn't impact me much while sleeping in a vehicle. In my late 50's, I found the cold at night sleeping in a very to be brutal.
I watched this video on a place crossing the pacific a year or so ago- you might find it enlightening and enduring:
Nomadland.
A woman in her sixties, after losing everything in the Great Recession, embarks on a journey through the American West, living as a van-dwelling modern-day nomad.
https://www.imdb.com/title/tt9770150/
So effectively it is just a cost of housing chart, and the map basically shows that.
Overall I think the whole premise is incorrect, as most people by retirement either have house paid off, or have much less than 30 years left with a lower payment than their house would have if bought at current prices. The other big factor is cost of living as a whole, and again the chart basically follows that as well.
GON
$150 Site Donor 2025
Direct cut and paste from the OP's link. Maybe you missed this (analysis includes groceries, healthcare, housing, utilities, transportation, and miscellaneous expenses.)?
"This graphic illustrates how long $1 million, combined with Social Security benefits, would last in each U.S. state, according to data from GOBankingRates. The analysis includes groceries, healthcare, housing, utilities, transportation, and miscellaneous expenses."
Interesting. Not sure what the typical retirement span is; if AI on google is to be trusted, it's 18 years of retirement. So if $1M could reach out to 25 years in one's state--that may well be enough. More money might be nicer, but may not be worth the tradeoff (giving up vacations while together as a family, or able to travel, or what have you).
[Yes I know, nobody knows how long they will live, and in each state, the amount to live varies by town. Only talking in the most general of terms.]
I would have guessed $1M would have lasted less time. But I keep hearing about how a number of people have decent retirement portfolios yet are managing to get by on just SS. I would never say one should not save for retirement--but at the same time, one has to have a balance.
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If they are including mortgage... then I think something is off. NH has a median home cost of about $500k with annual property tax of about $6k. That comes out to $40,500 per year. This mortgage calculator is off on property tax, but I'm just showing it for the numbers.
Their calculation says it costs $38k to live in NH. The nominal 4% withdrawal rate from one's retirement portfolio would just cover the mortgage+tax. Maybe SS would cover the rest of one's living needs, I could see that, SS can pay up to what, $4k to $5k per month, right? Regardless: I don't see how they came up with that $38k number for NH.
I'd rather retire without the mortgage, then 4% withdraw rate + SS would be comfortable. At least today, who knows what tomorrow and inflation would bring.
[Yes I know, nobody knows how long they will live, and in each state, the amount to live varies by town. Only talking in the most general of terms.]
I would have guessed $1M would have lasted less time. But I keep hearing about how a number of people have decent retirement portfolios yet are managing to get by on just SS. I would never say one should not save for retirement--but at the same time, one has to have a balance.
*
If they are including mortgage... then I think something is off. NH has a median home cost of about $500k with annual property tax of about $6k. That comes out to $40,500 per year. This mortgage calculator is off on property tax, but I'm just showing it for the numbers.
Their calculation says it costs $38k to live in NH. The nominal 4% withdrawal rate from one's retirement portfolio would just cover the mortgage+tax. Maybe SS would cover the rest of one's living needs, I could see that, SS can pay up to what, $4k to $5k per month, right? Regardless: I don't see how they came up with that $38k number for NH.
I'd rather retire without the mortgage, then 4% withdraw rate + SS would be comfortable. At least today, who knows what tomorrow and inflation would bring.
BS chart. Inflation totally matters. If the money keeps up with inflation and someone lives frugally maybe.
Very interesting graph. I'm in NC and have been blissfully unemployed for ~14 years or so. The data shows I have another 32 years before my nest egg is exhausted. So far its working for me but fortunately I'm not tethered to just SS for a safety net.
I wonder how many people over the age of say, 55, have a cool mil in savings? I take it that does not include their home, if they have one?
I think it is pretty low.
Of course the number has dropped recently due to market swings...
I work with the young people in my life in financial issues. I am scared for them because I've seen so many people in financial trouble as they age. It's far better to be able to give a little than to need a little; I've been on both sides.
I think it is pretty low.
Of course the number has dropped recently due to market swings...
I work with the young people in my life in financial issues. I am scared for them because I've seen so many people in financial trouble as they age. It's far better to be able to give a little than to need a little; I've been on both sides.
GON
$150 Site Donor 2025
I have not studied it, but a hasty search on one subject provides this information (not verified):
Pennsylvania
Retirement income is not taxable: Payments from retirement accounts like 401(k)s and IRAs are tax exempt. PA also does not tax income from pensions for residents aged 60 and over. Social Security income is not taxable: Just like with a pension, in Pennsylvania, Social Security is tax exempt.
Delaware:
Delaware is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are partially taxed. Wages are taxed at normal rates, and your marginal state tax rate is 4.80%.
GON
$150 Site Donor 2025
Years ago, prior to United's merger with Continental, I sat next to a Continental Captain who was deadheading.
I view the vast majority of mainline airline captains as well above average smart, disciplined, critical thinkers, and savvy on the ways of the world.
This Captain's assessment was a person required no less that $4 million USD in liquid assets for a worry free retirement with freedom to do modestly whatever the retired person would want to do. I didn't ask him to break down numbers to see if his figure of 4 million minimum included lifetime long term assisted care in a facility that provides a certain minimum quality of life.
His comments to me were eye opening, and a conversation I always remembered. Many of us BITOGers grew up that having one million in liquid assets in the bank was unquestionable financial security. One million today likely does not provide unquestionable financial security for retired Americans.
Unless you can afford it (there are some on here who can) going in to retirement without a paid off house is not a good plan.
There was a thread a few months ago about goegraphical arbitrage. This is a good subject. I believe the chart is quite accurate. What it or any chart can't readily do is break it down to the street level. Maybe its possible on the county level. This is important because there can be vast differences within a state. For example the Rio Grand Valley (Brownsville-Harlingen-McAllen) in TX is incredibly economical to live in, while the Cen-Tex (greater Austin) area is very expensive. Overall, State to State, I agree with it.
Appears that the first column $38K annual cost of living is after Social Security is factored in. So it's really $38K plus social security.
Being homeless and broke makes home ownership a very high priority. It's easy to find food, but not a place to live.
One of my highest objectives was to get a place in a good area, free and clear, fixed up including solar and tankless water heater, low cost maintenance.
And a backup place.
I figured if my money went south I could rent rooms. And I could help others in bad positions... So far so good...
Actually, I think the premise is interesting. Because it included all costs, not just housing.
Your supposition that most people have their house paid off by retirement is simply untrue for most people.