Worst States To Retire On $1 Million

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 worst and best 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 shortest:

10. Rhode Island

$1 million will last 17 years, 11 months.

9. New Jersey

$1 milion will last 17 years, 10 months.

8.  Maryland

$ 1 million will last 17 years, 2 months.

7. Alaska

$1 million lasts 16 years, 10 months.

6. Massachusetts

$1 million lasts 16 years, 8 months.

5. New York

$1 million lasts 16 years, 7 months.

4. Oregon

$1 million lasts 16 years, 7 months.

3. California

$ 1 million lasts 15 years.

2. District of Columbia

$1 million lasts 14 years, 2 months.

1. Hawaii

$1 million lasts 13 years, 1 month.

Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, August, 2017