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

Florida is one of the most popular states in the country for retirement . Whether it is the moderate temperatures, reasonable cost of living or lack of state income taxes, retirees often flock to the Sunshine State for their golden years.

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According to the AARP, Florida’s idyllic coastlines continue to draw retirees, with the state drawing 11.1% of all inbound moves in 2023. It marked the second year in a row that the state was a top destination for retirees.

As people live longer and hope to retire earlier, it has never become more necessary to understand how much you may need once you quit your morning commute. If you are one of the thousands looking to retire on the peninsula, you will want to know how far your dollars will stretch.

Find out just how long your 401(k) plus social security benefits will last you in Florida to determine whether you are ready to retire .

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How Long Will the Average 401(k) plus Social Security Benefits Last in Florida?

A recent GBR study found the average 401(k) in the United States to be about $555,621. This amount of money plus social security benefits is expected to last a retiree 14 years, 11 months and 12 days in Florida.

Individuals hoping to retire early may need to ensure that they have more money saved to ensure that they don’t outlive their retirement money.

How Much Does It Cost To Live in Florida?

Retirees can expect to pay around $59,610 each year in expenditures, which include groceries, housing, utilities, transportation, healthcare and miscellaneous expenses. The good news is that this is only slightly higher than the national annual expenditure average of $57,818.

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What Are the Annual Housing Expenditures in Florida?

The annual housing expenditures for someone 65 and older in Florida are expected to be approximately $12,674. Again, this amount falls slightly above the national average of $11,692 but is still manageable. Many of the Florida cities most popular with retirees have an even lower cost.

Healthcare expenses, utilities, transportation costs and groceries in Florida also exceed the national average, but just slightly. For a person making an average living, Florida may be a reasonable retirement destination.

Where Will the Average 401(k) Last the Longest?

While a 401(k) balance of $555,621 will last you nearly 15 years in Florida, you will get a bigger bang for your buck in West Virginia. The state ranked number one for the number of years that the average 401(k) plus social security benefits would last.

You can expect to have over 21 years and 4 months of retirement with an average 401(k) in the Mountain State. Annual expenditures of nearly $10,000 less than the national average help to make this a favorable state for retirees on a budget.

At the other end of the spectrum is Hawaii, where the average 401(k) plus social security will only buy you 6 years and 6 months. A high cost of living, including annual expenditures of nearly $50,000 over the average in the U.S., contributes to these financial challenges for retirees.

Other states where an average 401(k) and social security benefits will last you less than 10 years include Massachusetts and California.

How To Know If You Have Enough To Retire in Florida

While there is no magic retirement number, it is important to have a firm understanding of your financial situation and what it may take to live comfortably on a fixed income. Working with a financial advisor or retirement planner is strongly recommended to ensure that you are prepared for the unexpected and make informed decisions for your future.

Florida is undoubtedly a hot spot for retirement, but you will want to do your homework before you relocate or say goodbye to your steady paycheck. The more research you do, the better off you will be in the long run.

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 Florida