How Long Your 401(k) Plus Social Security Benefits Will Last You in New York

Before you retire , it’s important to know if you have enough funds from your 401(k) and Social Security to support you well into your golden years.

GOBankingRates analyzed how long an average 401(k) balance will last across the U.S. when combined with Social Security. It used 2022 Consumer Expenditure Survey data and Social Security Administration data from June 2024 to estimate annual expenses and income for retirees. By factoring in each state’s cost of living, it ranked all 50 states and D.C. on how long retirees can expect their 401(k) to last, also providing insights into the average annual costs for essentials like groceries, housing and healthcare.

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According to Empower, the average 401(k) balance for those in their 60s is $555,621. The average annual Social Security benefit for retirees is $22,437.24.

Out of all 50 states and the District of Columbia, New York ranked No. 46 in terms of how long your 401(k) plus Social Security benefits will last. In other words, New York ranks as the sixth-fastest state to run out of these funds .

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How Long Will Your 401(k) Plus Social Security Last?

According to the study, the average 401(k) amount of $555,621 and the average annual Social Security benefit of $22,437.24 will last 11.4 years for people living in the state of New York. Broken down into years, months and days, that equals 11 years, four months and 25 days — or approximately 4,164 days.

That means that if you retire at full retirement age, which according to the Social Security Administration is 67 for people turning 62 in 2024, your retirement funds would run out right before you turn 78.5 years old.

After that, the 401(k) funds will be depleted and retirees will only be left with their Social Security income — which likely won’t be enough to cover expenses in New York. Theoretically, you could play the odds and maybe have enough money to last you the rest of your life. According to the Centers for Disease Control and Prevention, the life expectancy at birth for both sexes is 77.5. For males, the life expectancy is 74.8, and for females, it’s 80.2.

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What Annual Expenses Can You Expect as a Retiree?

The annual expenses you can expect to face as a retiree living in New York are much higher than what you’ll face in West Virginia — the state where your 401(k) plus Social Security benefits will last the longest.

Overall Expenses

As a retiree in New York, you can expect to spend $71,173.96 per year overall. Compare that to $48,451.48 in West Virginia.

After the average Social Security benefit is factored in, your annual expenditure would be $48,736.72, while in West Virginia, it would total just $26,014.24.

Grocery Expenses

Annual grocery expenses in New York total $4,955.30, while in West Virginia, the expense is not even $200 less at $4,777.81. (Suffice to say food costs are a burden for retirees across the country.)

Housing Expenses

When it comes to annual housing expenditures, New York’s total is $19,432.10, while West Virginia’s are over 65% cheaper at $6,711.21. This is most of the reason why living in New York is so expensive compared to the majority of other states.

Utilities Expenses

You can expect to pay $4,333.43 per year in New York for utilities. In West Virginia, utilities are $4,003.02 annually — only about $300 cheaper than New York.

Transportation Expenses

In the state of New York, transportation expenditures total $5,432.36, while in West Virginia, they’re $4,587.10 — approximately $845 a year cheaper.

Healthcare Expenses

And when it comes to healthcare expenses, New York’s are $7,969.78 annually, while West Virginia’s are only a few hundred dollars cheaper at $7,638.02 per year.

Methodology: In order to find how long the average 401(k) will last across the country with Social Security, GOBankingRates first found (1) the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey data and (2) annual Social Security income as sourced from the Social Security Administration’s June 2024 data. Then, GOBankingRates created (2) state-level annual expenditure estimates by multiplying the national figure by each state’s overall cost-of-living index score for 2024 Q1 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years the average 401(k) will last in each state by dividing $555,621 by each state’s average annual expenditures estimate minus yearly Social Security income. All 50 states and the District of Columbia were then ranked with No. 1 being the state where $555,621 and Social Security will last the longest and No. 51 being the state where it will run out most quickly. GOBankingRates provided supplemental information on the average annual cost of groceries, housing, utilities, transportation and healthcare for people 65 and older in each state by again using MERIC’s cost-of-living indices for each category to factor out national estimates from the CEX. All data was collected on and up to date as of July 15, 2024. The average 401(k) balance was sourced by Empower for those in their 60s.

This article originally appeared on GOBankingRates.com : How Long Your 401(k) Plus Social Security Benefits Will Last You in New York