How Many Years Will $1.5 Million Last In Retirement?
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In years past, if you had $1 million saved for retirement, you were in a good spot. However, with the cost of consumer goods skyrocketing and inflation soaring, many experts believe $1.5 million to be the new magic number for living comfortably in retirement.
If you find yourself with $1.5 million tucked away for your later years, or you plan to have that number saved by the time retirement hits, good work — you’re well on your way to a life of leisure! For how long? Now, that’s a different story.
The simplest way to estimate how long your money will last in retirement is to weigh your total savings against your annual expenses, adjusted for inflation, of course.
How much you spend in retirement each year will largely depend on the cost of living in your area. To find how long $1.5 million will last across the country, Retirement Living considered how spending habits and location affect retirement budgets. More specifically, we looked at the following factors:
- An individual’s spending, including discretionary spending (i.e., groceries, healthcare, housing, utilities, transportation, and entertainment) to calculate the annual retirement income needed to cover these living expenses. We also accounted for annual inflation and the cost of living index for each state.
- Savings longevity, which we calculated by dividing $1.5 million by the annualized expenditures.
- Recommended retirement age, which we determined by comparing how long $1.5 million retirement savings will last against the average American lifespan in each state.
Many financial planners also suggest considering your investment returns over time. We excluded this data point from our findings, as investment strategies (and their average returns) vary greatly by individual. You’ll probably also collect Social Security during retirement. But with Social Security cash reserve funds expected to run dry starting in 2035, we excluded these funds from the estimated recommended retirement savings.
How Long $1.5 Million Lasts In Retirement Across the Country
So how long will a $1.5 million nest egg last in your state? Here’s an alphabetical look at the breakdown and how where you live can affect your retirement timeline. (We also ranked all 50 states below.)
Alabama
- How long $1.5 million will last: 20 years, 8 months
- Lifespan (years): 81.6
- Age you can retire: 60.9
Alaska
- How long $1.5 million will last: 15 years, 7 months
- Lifespan (years): 83.8
- Age you can retire: 68.1
Arizona
- How long $1.5 million will last: 17 years, 7 months
- Lifespan (years): 83.5
- Age you can retire: 65.9
Arkansas
- How long $1.5 million will last: 20 years, 6 months
- Lifespan (years): 81.9
- Age you can retire: 61.4
California
- How long $1.5 million will last: 14 years, 4 months
- Lifespan (years): 84.5
- Age you can retire: 70.1
Colorado
- How long $1.5 million will last: 18 years
- Lifespan (years): 84.0
- Age you can retire: 66.0
Connecticut
- How long $1.5 million will last: 17 years, 1 month
- Lifespan (years): 84.0
- Age you can retire: 66.9
Delaware
- How long $1.5 million will last: 18 years, 7 months
- Lifespan (years): 83.4
- Age you can retire: 64.8
Florida
- How long $1.5 million will last: 18 years, 8 months
- Lifespan (years): 84.2
- Age you can retire: 65.5
Georgia
- How long $1.5 million will last: 20 years, 2 months
- Lifespan (years): 82.4
- Age you can retire: 62.2
Hawaii
- How long $1.5 million will last: 11 years, 7 months
- Lifespan (years): 85.1
- Age you can retire: 74.4
Idaho
- How long $1.5 million will last: 19 years
- Lifespan (years): 83.8
- Age you can retire: 64.8
Illinois
- How long $1.5 million will last: 20 years
- Lifespan (years): 83.0
- Age you can retire: 63.0
Indiana
- How long $1.5 million will last: 20 years, 2 months
- Lifespan (years): 82.3
- Age you can retire: 62.1
Iowa
- How long $1.5 million will last: 20 years, 3 months
- Lifespan (years): 83.2
- Age you can retire: 62.9
Kansas
- How long $1.5 million will last: 20 years, 10 months
- Lifespan (years): 82.9
- Age you can retire: 62.0
Kentucky
- How long $1.5 million will last: 20 years
- Lifespan (years): 81.9
- Age you can retire: 61.9
Louisiana
- How long $1.5 million will last: 20 years, 2 months
- Lifespan (years): 81.6
- Age you can retire: 61.4
Maine
- How long $1.5 million will last: 17 years, 4 months
- Lifespan (years): 84.0
- Age you can retire: 66.6
Maryland
- How long $1.5 million will last: 16 years, 7 months
- Lifespan (years): 83.4
- Age you can retire: 66.8
Massachusetts
- How long $1.5 million will last: 13 years, 9 months
- Lifespan (years): 83.9
- Age you can retire: 70.1
Michigan
- How long $1.5 million will last: 20 years, 3 months
- Lifespan (years): 82.8
- Age you can retire: 62.5
Minnesota
- How long $1.5 million will last: 19 years, 8 months
- Lifespan (years): 84.1
- Age you can retire: 64.4
Mississippi
- How long $1.5 million will last: 21 years
- Lifespan (years): 81.1
- Age you can retire: 60.1
Missouri
- How long $1.5 million will last: 20 years, 7 months
- Lifespan (years): 82.4
- Age you can retire: 61.8
Montana
- How long $1.5 million will last: 18 years, 4 months
- Lifespan (years): 83.4
- Age you can retire: 65.0
Nebraska
- How long $1.5 million will last: 20 years, 2 months
- Lifespan (years): 83.3
- Age you can retire: 63.1
Nevada
- How long $1.5 million will last: 18 years, 7 months
- Lifespan (years): 82.8
- Age you can retire: 64.2
New Hampshire
- How long $1.5 million will last: 16 years, 10 months
- Lifespan (years): 84.1
- Age you can retire: 67.2
New Jersey
- How long $1.5 million will last: 16 years, 10 months
- Lifespan (years): 83.2
- Age you can retire: 66.3
New Mexico
- How long $1.5 million will last: 19 years, 8 months
- Lifespan (years): 83.3
- Age you can retire: 63.6
New York
- How long $1.5 million will last: 15 years, 7 months
- Lifespan (years): 83.4
- Age you can retire: 67.8
North Carolina
- How long $1.5 million will last: 19 years, 6 months
- Lifespan (years): 83.0
- Age you can retire: 63.5
North Dakota
- How long $1.5 million will last: 19 years, 7 months
- Lifespan (years): 83.2
- Age you can retire: 63.6
Ohio
- How long $1.5 million will last: 19 years, 7 months
- Lifespan (years): 82.5
- Age you can retire: 62.9
Oklahoma
- How long $1.5 million will last: 21 years
- Lifespan (years): 81.6
- Age you can retire: 60.6
Oregon
- How long $1.5 million will last: 16 years, 9 months
- Lifespan (years): 84.3
- Age you can retire: 67.5
Pennsylvania
- How long $1.5 million will last: 19 years, 4 months
- Lifespan (years): 83.1
- Age you can retire: 63.7
Rhode Island
- How long $1.5 million will last: 17 years, 3 months
- Lifespan (years): 83.6
- Age you can retire: 66.3
South Carolina
- How long $1.5 million will last: 19 years, 6 months
- Lifespan (years): 82.7
- Age you can retire: 63.2
South Dakota
- How long $1.5 million will last: 20 years
- Lifespan (years): 83.3
- Age you can retire: 63.3
Tennessee
- How long $1.5 million will last: 20 years, 3 months
- Lifespan (years): 82.0
- Age you can retire: 61.7
Texas
- How long $1.5 million will last: 19 years, 10 months
- Lifespan (years): 82.7
- Age you can retire: 62.8
Utah
- How long $1.5 million will last: 18 years, 3 months
- Lifespan (years): 83.8
- Age you can retire: 65.5
Vermont
- How long $1.5 million will last: 16 years, 9 months
- Lifespan (years): 84.5
- Age you can retire: 67.7
Virginia
- How long $1.5 million will last: 18 years, 6 months
- Lifespan (years): 83.6
- Age you can retire: 65.1
Washington
- How long $1.5 million will last: 16 years, 8 months
- Lifespan (years): 84.5
- Age you can retire: 67.8
Washington, D.C.
- How long $1.5 million will last: 13 years, 9 months
- Lifespan (years): 82.7
- Age you can retire: 68.9
West Virginia
- How long $1.5 million will last: 20 years, 9 months
- Lifespan (years): 82.0
- Age you can retire: 61.2
Wisconsin
- How long $1.5 million will last: 19 years, 6 months
- Lifespan (years): 83.5
- Age you can retire: 64.0
Wyoming
- How long $1.5 million will last: 20 years
- Lifespan (years): 83.1
- Age you can retire: 63.1
How Long Can $1.5 Million Last in Retirement?
Below are the states where $1.5 million lasts the longest (and the shortest). According to our findings, your dollar will stretch the farthest in Oklahoma and Mississippi.
| Rank | State | How Long Will $1.5 Million Last (Years, Months) | Recommended Retirement Age |
|---|---|---|---|
| 1. | Oklahoma | 21y 0m | 60.6 |
| 2. | Mississippi | 21y 0m | 60.1 |
| 3. | Kansas | 20y 9m | 62.0 |
| 4. | West Virginia | 20y 8m | 61.2 |
| 5 | Alabama | 20y 7m | 60.9 |
| 6. | Missouri | 20y 6m | 61.8 |
| 7. | Arkansas | 20y 3m | 61.4 |
| 8. | Iowa | 20y 3m | 62.9 |
| 9. | Tennessee | 20y 3m | 61.7 |
| 10. | Michigan | 20y 2m | 62.5 |
| 11. | Georgia | 20y 2m | 62.2 |
| 12. | Nebraska | 20y 2m | 63.1 |
| 13. | Indiana | 20y 2m | 62.1 |
| 14. | Louisiana | 20y 10m | 61.4 |
| 15. | Kentucky | 20y 0m | 61.9 |
| 16. | Illinois | 20y 0m | 63.0 |
| 17. | South Dakota | 20y 0m | 63.3 |
| 18. | Wyoming | 20y 0m | 63.1 |
| 19. | Texas | 19y 8m | 62.8 |
| 20. | New Mexico | 19y 8m | 63.6 |
| 21. | Minnesota | 19y 7m | 64.4 |
| 22. | North Dakota | 19y 7m | 63.6 |
| 23. | Ohio | 19y 6m | 62.9 |
| 24. | Wisconsin | 19y 6m | 64.0 |
| 25. | North Carolina | 19y 6m | 63.5 |
| 26. | South Carolina | 19y 4m | 63.2 |
| 27. | Pennsylvania | 19y 10m | 63.7 |
| 28. | Idaho | 19y 0m | 64.8 |
| 29. | Florida | 18y 8m | 65.5 |
| 30. | Nevada | 18y 7m | 64.2 |
| 31. | Delaware | 18y 7m | 64.8 |
| 32. | Virginia | 18y 6m | 65.1 |
| 33. | Montana | 18y 4m | 65.0 |
| 34. | Utah | 18y 3m | 65.5 |
| 35. | Colorado | 18y 0m | 66.0 |
| 36. | Arizona | 17y 7m | 65.9 |
| 37. | Maine | 17y 4m | 66.6 |
| 38. | Rhode Island | 17y 3m | 66.3 |
| 39. | Connecticut | 17y 1m | 66.9 |
| 40. | New Jersey | 16y 9m | 66.3 |
| 41. | New Hampshire | 16y 9m | 67.2 |
| 42. | Oregon | 16y 8m | 67.5 |
| 43. | Vermont | 16y 7m | 67.7 |
| 44. | Washington | 16y 10m | 67.8 |
| 45. | Maryland | 16y 10m | 66.8 |
| 46. | Alaska | 15y 8m | 68.1 |
| 47. | New York | 15y 7m | 67.8 |
| 48. | California | 14y 4m | 70.1 |
| 49. | Massachusetts | 13y 9m | 70.1 |
| 50. | District of Columbia | 13y 9m | 68.9 |
| 51. | Hawaii | 11y 7m | 74.4 |
States Where $1.5 Million Can Last 30 Years in Retirement
According to our calculations, there is no state in which $1.5 million dollars lasts 30 years in retirement. To stretch your dollars for at least 30 years, you’ll need to have saved between $2.5 million (Alabama) and $5.1 million (Hawaii).
Methodology
To determine how long a savings of $1.5 million would last the average American across the country, Retirement Living divided $1,500,000 by each state’s average annual expenditures estimate.
To calculate the total cost of expenditures for a retired person in each state, we determined average annual expenditures using the latest Consumer Expenditure Survey from the Bureau of Labor Statistics. Retirement Living derived spending estimates from annual spending on (1) groceries, defined as “food”; (2) housing; (3) transportation; (4) healthcare; (5) utilities and discretionary spending defined as (6) apparel and services; (7) entertainment; (8) personal care; (9) reading; (10) education; (11) tobacco products and smoking supplies; and (12) miscellaneous.
For a more accurate estimate of how much money a retired person would spend each year of their retirement throughout the duration of their retirement, we adjusted annual expenditures to account for (1) inflation and rising costs of consumer goods using an annualized inflation rate calculated based on reported rates since 2010; and (2) the cost of living index for each state from the Missouri Economic Research and Information Center’s cost of living series.