Comparing average annual expenditures state by state can help save time and money when planning for your retirement.
How long will money last in your chosen retirement state? Your retirement income is limited by three sources: employment, government pensions and personal investments. The Bureau of Labor Statistics says consider the cost of living index in a particular state when deciding whether you or your clients should retire there.
The BLS based its ranking of best and worst states to retire on $1 million using $40,000 in annual income. It also considered average annual expenditure of adults age 65 and above. Expenditures for adults age 65-74 averaged about $50,000 dollars per year.
The BLS found these 10 states are where $1 million will last the longest:
10. Alabama
$1 million lasts 24 years, 1 month
9. Texas
$1 million lasts 24 years, 1 month
8. Georgia
$1 million lasts 24 years, 1 month
7. Michigan
$1 million last 24 years, 2 months
6. Missouri
$1 million lasts 24 years, 4 months
5. Oklahoma
$1 million lasts 24 years, 4 months
4. Kansas
$1 million lasts 24 years, 5 months
3. Tennessee
$1 million lasts 24 years, 5 months
2. Arkansas
$1 million lasts 25 years
1. Mississippi
$1 million lasts 25 years, 6 months
Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, August 2017
