A recent survey by Schroders found that Americans believe they need roughly $1.2 million in savings to retire comfortably. But that seven-figure nest egg goes a lot further in some states than others, according to a new analysis from the personal finance site MoneyLion.
MoneyLion calculated how long a hypothetical $1.2 million in retirement savings would last in every state, running two scenarios: one where retirees collect Social Security monthly and one where they don't. The results show stark geographic disparities in retirement security.
Where $1.2M Lasts Longest
In Oklahoma, a retiree who stops working at 67 and has $1.2 million in the bank could stretch that money until age 111—if they also receive Social Security. Without Social Security, the funds would run out much sooner, but still later than in many other states.
Other states where the money lasts well into the 90s include Mississippi, West Virginia, and Arkansas, where the cost of living is relatively low. In these states, retirees can maintain a modest lifestyle without depleting their savings prematurely.
Where $1.2M Runs Out Fast
At the other end of the spectrum, Hawaii is the toughest place to retire with $1.2 million. There, a retiree at 67 could run out of money by age 80, even with Social Security. The high cost of housing, food, and healthcare in the Aloha State erodes savings quickly.
Other expensive states like California, New York, and Massachusetts also see the money vanish before age 85 in some scenarios. In these areas, the same $1.2 million that lasts decades in the Midwest might only cover a few years of expenses.
The Social Security Factor
The analysis underscores how critical Social Security is for retirees, especially in high-cost states. Without monthly benefits, the $1.2 million would last even shorter periods, pushing many retirees into financial insecurity well before their life expectancy.
As the full retirement age continues to rise, the interaction between personal savings and government benefits becomes more complex. Retirees who delay claiming Social Security can boost their monthly checks, but they must also cover expenses in the meantime.
Political Implications
The findings add fuel to the ongoing debate over retirement policy, particularly proposals to expand Social Security or create new savings incentives. Lawmakers in high-cost states face pressure to address the unique challenges their constituents face, while those in low-cost states may resist one-size-fits-all federal solutions.
For now, the data offers a practical guide for Americans planning their retirement. Location matters—and the choice of where to live in retirement could be as important as how much you save.
