A million dollars used to be the ultimate target for retirement portfolios. Retiring as a millionaire brought confidence that you could live comfortably during your golden years. If you retired with $1 million in 1970, you probably didn’t have to worry about your nest egg running out, even with a lavish lifestyle. It would be like retiring with $6.9 million today.1 Retire with $1 million in the ’80s, and it would have been like retiring with $3.35 million in 2021.1 And in 1990, $1 million would have gone twice as far as it does these days.1 Clearly, money doesn’t go as far as it used to. Just how far could it go these days? The answer depends on how and where you live. In retirement, as in real estate, location is a very significant factor. The map below shows how long $1 million could last in each state. This state-by-state breakdown features a few different hypothetical growth scenarios and the resulting calculations. See how long a $1 million nest egg could last wherever you call home.
*Annual withdrawal amount is calculated by multiplying the 2019 BLS annual expenditures for age 65 years and older by the 2020 Q3 Council for Community & Economic Research Cost of Living index for each state. Calculations assume that interest is compounded once annually immediately after annual withdrawal. Calculations assume annual inflation rate of 3% and annual portfolio growth rates of 3%, 5%, and 7%, respectively. Taxes and fees are excluded. This hypothetical example is for informational purposes only and does not illustrate any specific product or investment. Past performance is no guarantee of future results.
The estimates in the map above cover the basics and paint a potentially realistic picture. They don’t fill in every piece of the puzzle, though. In fact, some key aspects of life in retirement aren’t included in the hypothetical scenarios shown in our $1 million retirement map. Here are a few of them.
“Your retirement journey is unique – the averages and “old standards” leave out a lot of detail.” The Million Dollar Question: How Do You Want to Live in Retirement? One million dollars just doesn’t go as far as it used to. And while $1 million may be a “standard” benchmark for retirement, it may not be the right target for you. While the map above doesn’t take other sources of income into consideration (like pensions or social security), it certainly illustrates what a difference cost of living can make to your finances. And depending on your lifestyle, your nest egg can be spent more quickly or stretched longer. In other words, these averages leave out a lot of important detail. While comparing your potential expenses to regional averages is a good starting point, refining them for your personal situation is critical. Creating and sticking to a budget can bring a great deal of peace of mind and illuminate what size nest egg you need to maintain your standard of living. It’s worth keeping in mind too that your expenses will change as you journey through your retirement as many of our clients have typically spent more on lifestyle, family, and fun at the beginning of their retirement and have seen their medical and long-term care expenses increase as they age. Bottom line — we know that your nest egg and retirement needs are unique. We can guide you through your budget before and during retirement and advise you on the challenges (and benefits!) unique to retirement. We’re here to help you navigate your financial goals so your portfolio has as much longevity as you do. So reach out if there are big changes in your life and you want us to take a closer look at your financial future.
Where A $1 Million Nest Egg Could Last the Longest…
LONGER
What’s missing from this picture?
What Will Cost You the Most in Retirement?
Financial Lesson:
How Far Could $1 Million Go in Retirement?

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