Many Americans will spend 20 years or more in retirement, if they retire at age 65. Today’s 65-year-old American has an average life expectancy of 85 years, according to insurance company TIAA. Their savings, however, may be unable to afford a longer lifespan. A new study from GOBankingRates reveals there are five states where single retirees with $1 million in savings plus Social Security will burn through these funds in 20 years or less.
GOBankingRates found how far $1 million in savings plus Social Security income goes in each state by studying key factors such as the population ages 65 and over and the average cost of living for retired households. We utilized the Social Security Administration to source the average Social Security income for one person and a married couple. From there, the cost of living after Social Security income was calculated to determine how long $1 million in savings would last for a single retiree and a couple.