Americans now believe they need roughly $1.2 million tucked away to retire comfortably, according to a Schroders survey released earlier this year. But that seven-figure nest egg doesn't stretch equally across the country, and a fresh analysis from personal finance site MoneyLion shows just how much geography matters.
MoneyLion calculated how long a hypothetical $1.2 million in savings would last in each state, running two scenarios: one where retirees also collect Social Security and one where they don't. The results are striking. In Oklahoma, for example, a 67-year-old with $1.2 million could stretch those savings until age 111 if they're also receiving Social Security. In Hawaii, the same amount might run dry before the retiree turns 80.
The analysis underscores the growing anxiety over retirement readiness, especially as Social Security's full retirement age edges higher and trust in government programs wavers. A recent Gallup poll found that a record 89% of Americans see widespread government corruption, which may further fuel skepticism about relying on federal benefits in old age.
MoneyLion's figures assume a retiree stops working at 67, the current full retirement age for those born in 1960 or later. The site factored in state-specific costs of living, including housing, healthcare, and everyday expenses, to estimate annual spending. The gap between the best and worst states is enormous: in Oklahoma, the $1.2 million could last more than four decades, while in Hawaii it might cover less than 13 years.
Other states where the money goes far include Mississippi, West Virginia, and Arkansas, all of which have relatively low living costs. On the flip side, California, New York, and Massachusetts also fall short of the national average, with savings likely to run out before age 85 even with Social Security. The analysis highlights how the same dollar amount buys very different levels of security depending on where you call home.
For those without Social Security, the picture is grim everywhere. In no state would $1.2 million last past age 95, and in high-cost states like Hawaii and California, it could be gone by the early 80s. This underscores the importance of the program, which remains a political flashpoint as lawmakers debate its long-term solvency.
The findings come as more Americans worry about outliving their savings. A separate survey by the Employee Benefit Research Institute found that confidence in having enough money to last through retirement has declined in recent years, particularly among lower-income households.
For policymakers, the data point to a growing geographic divide in retirement security. While a $1.2 million portfolio might be sufficient in the rural South, it's far from enough in coastal metros. This could fuel calls for regional adjustments in retirement policies or expanded access to healthcare subsidies that help offset living costs in expensive areas.
Ultimately, the analysis serves as a reminder that retirement planning isn't just about how much you save, but where you choose to spend those years. As the debate over Social Security and retirement policy intensifies, the geographic disparities highlighted by MoneyLion add a new layer to the conversation.
