While the average U.S. resident between 55 to 65 years old has less than $200,000 saved for retirement , even $1 million may not last as long as you think in Pennsylvania, according to a recent article from finance website GoBankingRates.
The GoBankingRates article ranked all 50 states and Washington, D.C., for how long $1 million would last someone who’s retired. Pennsylvania landed in 27th spot, with 51st place being where the money would last the longest.
The methodology used the average annual expenditures for people 65 and older from the U.S. Bureau of Labor Statistics, a cost of living index score for each state from the Missouri Economic Research and Information Center and average annual costs for groceries, housing, utilities, transportation and health care to compare each state.
Here’s how the commonwealth stacked up to other U.S. states.
How much does it cost to retire in Pennsylvania?
Typical annual expenditures in Pennsylvania total $54,811 per year for a retired person, GoBankingRates reports.
Here’s how that number was calculated:
Annual groceries cost: $4,715
Annual housing cost: $9,599
Annual utilities cost: $4,516
Annual transportation cost: $5,146
Annual health care cost: $6,959
According to GoBankingRates’ calculation, $1 million would last a retired Pennsylvania resident 18 years, two months and 26 days. The median retirement age for U.S. residents is 62 , CBS News reports, so depending on life expectancy , a typical American could be retired for 20 years or more.
Pennsylvania was named the 10th-best state in the nation to retire by financial website WalletHub in January. The WalletHub report considered affordability, quality of life and health care metrics.
Centre County has six senior centers , with social, education, exercise, wellness, nutrition, travel and recreational programming options. A recent study, however, found Centre County was “unaffordable” for many potential homebuyers.
How do the states compare?
Here are the 10 states where $1 million will last the shortest amount of time in retirement, according to GoBankingRates:
Hawaii: $1 million will last nine years, seven months and 25 days
Massachusetts: 11 years, eight months and nine days
Washington, D.C.: 11 years, 10 months and 25 days
California: 12 years, eight months and five days
New York.: 13 years, eight months and one day
Alaska: 13 years, eight months and five days
Washington: 14 years, 11 months and 12 days
New Hampshire: 14 years, 11 months and 16 days
Vermont: 15 years and 19 days
Maryland: 15 years and 26 days
Here’s how the 10 states where $1 million would last the longest compare:
West Virginia: 20 years, three months and 19 days
Mississippi: 19 years, 11 months and 12 days
Oklahoma: 19 years, 11 months and five days
Kansas: 19 years, nine months and 15 days
Alaska: 19 years, seven months and 11 days
Missouri: 19 years, seven months and three days
Arkansas: 19 years, six months and 15 days
Iowa: 19 years, two months and 26 days
Tennessee: 19 years, one month and 17 days
Louisiana: 19 years and 26 days
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