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How far will $1.2 million stretch in retirement? Location makes a big difference

A seven-figure savings balance needs a personal spending plan

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

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key insights:

  • A MoneyLion analysis estimates $1.2 million would last nearly 45 years in Oklahoma with Social Security, compared with about 13.5 years in Hawaii.
  • Nationally, the estimated duration is 32.4 years with Social Security and 19.5 years without it.
  • The figures compare current costs and income; they do not project future inflation, investment returns, or changing spending needs.

Saving $1.2 million for retirement is a substantial achievement. But a MoneyLion analysis shows that where retirees live can dramatically change how much spending those savings support.

Oklahoma ranked first, followed by Alabama and Mississippi. Hawaii placed last, with Massachusetts and California also among the most expensive states.

The analysis shows that with Social Security income, $1.2 million in savings would last more than 44 years in Oklahoma – less than 24 years without Social Security. At the opposite end, $1.2 million in savings would last just 13.46 years in Hawaii, even with Social Security income.

The MoneyLion analysis used federal spending data for people 65 and older, adjusted by state cost-of-living indexes. It then divided $1.2 million by estimated annual expenses, with a separate calculation subtracting Social Security income.

A comparison, not a retirement forecast

That calculation makes the rankings useful for comparing locations, but it cannot establish how long an individual’s savings will actually last.

For example, dividing a savings balance by today’s annual expenses effectively holds those expenses steady. Rising prices would increase withdrawals over time, while investment earnings could help replenish the balance. Taxes on withdrawals could also affect how much money is available to spend.

State averages can conceal substantial differences within a state. Someone with a paid-off home may have a very different budget from a neighbor paying rent or a mortgage.

Build a budget around your own circumstances

For retirees considering a move, the findings offer a starting point for comparing costs. A practical next step is to estimate housing, insurance, transportation, and healthcare expenses in the specific community under consideration, including the cost of moving.

Retirement planning also requires a personal income estimate. Actual Social Security benefits, pensions, and other income determine how much must come from savings. Planning for major repairs, medical expenses, and possible long-term care needs can make that budget more realistic.