Retirement is something working people starts planning very early in their career. Not because they don’t love their job but it’s the expenses that bothers them after retirement.
On an average a figure of one million dollar is thrown around by most of the companies as a replacement for 70 to 80 % of a person’s work income. A 2016 Blackrock survey found out that a working person on an average saves around one thirty six million dollars for retirement between the age of 55 to 66.
But for how long this money will last. Now with inflation in the market a million dollar is not a huge amount and that is the reason why many people are migrating to places which are comparatively pocket friendly.
GOBankingRates, a personal finance website, pegged Mississippi at the top of the list: In that state, $1 million could cover the needs of the average retiree for 26 years, 4 months. Hawaii is where you’re likely to blow through those savings the fastest ― in 11 years, 11 months.
The US census has set the average retirement age to be 63 years and at 65 years the average life expectancy of an American is more 19 years. So that approximately leaves 20 years during which the retirement savings are to be utilised.
Below is the list of states and the approximate period the savings would last:
- Mississippi (26 years, 4 months)
- Arkansas (25 years, 6 months)
- Oklahoma (25 years, 2 months)
- Michigan (25 years)
- Tennessee (25 years)
- Hawaii (11 years, 11 months)
- California (16 years, 5 months)
- Alaska (17 years)
- New York (17 years, 1 month)
- Connecticut (17 years, 4 months)
- Maryland (17 years, 4 months)
- Massachusetts (17 years, 4 months)
So people start saving!
Image Source: Nerd Wallet