Kinga / Shutterstock.com A recent Fidelity Investments report found that there are currently about 497,000 401(k) accounts with at least $1 million. That’s a 2.5% increase from earlier this year when the number of 401(k) millionaires was 485,000. It’s also a new record.
Accumulating $1 million in retirement savings is a key milestone, one that’s worth celebrating. Depending on where you live and what age you plan to retire, it might even be enough money to quit your day job and live out your retirement years in comfort.
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If you’re like the average American, you’re probably going to spend about 20 years in retirement, as per the U.S. Department of Labor data. That means you’ll need to split your $1 million across 20 years (assuming there are no interest gains or taxes due). That’s about $50,000 a year.
Besides your 401(k) savings, you may also have Social Security to fall back on. As of January 2024, the average Social Security recipient gets $1,907 a month or $22,884 a year. With that benefit amount, you’d earn an additional $457,680 over 20 years if everything stays exactly the same. This would give you a grand total of about $1,457,680 or $72,884 a year (excluding taxes).
Assuming all of these factors hold true, and using data from a recent GOBankingRates study , these are the top U.S. states where that amount of money is enough to retire on in descending order. Can you figure out which five are too expensive to make the cut?
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West Virginia Total yearly expenditure (average): $49,261 How long $1 million will last in savings: 20 years, 3 months, 19 days How long $1 million with Social Security will last in savings: 29.6 years Mississippi Total yearly expenditure (average): $50,128 How long $1 million will last in savings: 19 years, 11 months, 12 days How long $1 million with Social Security will last in savings: 29 years
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Oklahoma Total yearly expenditure (average): $50,186 How long $1 million will last in savings: 19 years, 11 months, 5 days How long $1 million with Social Security will last in savings: 29 years Kansas Total yearly expenditure (average): $50,533 How long $1 million will last in savings: 19 years, 9 months, 15 days How long $1 million with Social Security will last in savings: 28.8 years Alabama Total yearly expenditure (average): $50,995 How long $1 million will last in savings: 19 years, 7 months, 11 days How long $1 million with Social Security will last in savings: 28.6 years
Missouri Total yearly expenditure (average): $51,053 How long $1 million will last in savings: 19 years, 7 months, 3 days How long $1 million with Social Security will last in savings: 28.5 years Arkansas Total yearly expenditure (average): $51,169 How long $1 million will last in savings: 19 years, 6 months, 15 days How long $1 million with Social Security will last in savings: 28.5 years Iowa Total yearly expenditure (average): $51,978 How long $1 million will last in savings: 19 years, 2 months, 26 days How long $1 million with Social Security will last in savings: 28 years Tennessee
Total yearly expenditure (average): $52,267 How long $1 million will last in savings: 19 years, 1 month, 17 days How long $1 million with Social Security will last in savings: 27.8 years Louisiana Total yearly expenditure (average): $52,441 How long $1 million will last in savings: 19 years, 0 months, 26 days How long $1 million with Social Security will last in savings: 27.8 years Georgia Total yearly expenditure (average): $52,557 How long $1 million will last in savings: 19 years, 0 months, 11 days How long $1 million with Social Security will last in savings: 27.7 years Nebraska Total yearly expenditure (average): $52,614 How long $1 million will last in savings: 19 years, 0 months, 4 days How long $1 million with Social Security will last in savings: 27.7 years
Michigan Total yearly expenditure (average): $52,614 How long $1 million will last in savings: 19 years, 0 months, 4 days How long $1 million with Social Security will last in savings: 27.7 years Indiana Total yearly expenditure (average): $52,672 How long $1 million will last in savings: 18 years, 11 months, 27 days How long $1 million with Social Security will last in savings: 27.7 years Illinois Total yearly expenditure (average): $53,077 How long $1 million will last in savings: 18 years, 10 months, 3 days How long $1 million with Social Security will last in savings: 27.5 years South Dakota Total yearly expenditure (average): $53,077 How long $1 million will last in savings: 18 years, 10 months, 3 days How long $1 million with Social Security will last in savings: 27.5 years Ohio Total yearly expenditure (average): $53,308 How long $1 million will last in savings: 18 years, 9 months, 4 days How long $1 million with Social Security will last in savings: 27.3 years Texas Total yearly expenditure (average): $53,701 How long $1 million will last in savings: 18 years, 7 months, 7 days How long $1 million with Social Security will last in savings: 27.1 years Wyoming Total yearly expenditure (average): $53,886 How long $1 million will last in savings: 18 years, 6 months, 23 days How long $1 million with Social Security will last in savings: 27 years Kentucky Total yearly expenditure (average): $53,886 How long $1 million will last in savings: 18 years, 6 months, 23 days How long $1 million with Social Security will last in savings: 27 years New Mexico Total yearly expenditure (average): $54,291 How long $1 million will last in savings: 18 years, 5 months, 2 days How long $1 million with Social Security will last in savings: 26.8 years North Dakota Total yearly expenditure (average): $54,522 How long $1 million will last in savings: 18 years, 4 months, 3 days How long $1 million with Social Security will last in savings: 26.7 years South Carolina Total yearly expenditure (average): $54,522 How long $1 million will last in savings: 18 years, 4 months, 3 days How long $1 million with Social Security will last in savings: 26.7 years Minnesota Total yearly expenditure (average): $54,580 How long $1 million will last in savings: 18 years, 3 months, 27 days How long $1 million with Social Security will last in savings: 26.7 years Pennsylvania Total yearly expenditure (average): $54,811 How long $1 million will last in savings: 18 years, 2 months, 26 days How long $1 million with Social Security will last in savings: 26.5 years Wisconsin Total yearly expenditure (average): $55,158 How long $1 million will last in savings: 18 years, 1 month, 16 days How long $1 million with Social Security will last in savings: 26.4 years North Carolina Total yearly expenditure (average): $55,621 How long $1 million will last in savings: 17 years, 11 months, 23 days How long $1 million with Social Security will last in savings: 26 years Idaho Total yearly expenditure (average): $57,240 How long $1 million will last in savings: 17 years, 5 months, 20 days How long $1 million with Social Security will last in savings: 25.4 years Delaware Total yearly expenditure (average): $58,281 How long $1 million will last in savings: 17 years, 1 month, 13 days How long $1 million with Social Security will last in savings: 25 years Florida Total yearly expenditure (average): $58,396 How long $1 million will last in savings: 17 years, 1 month, 13 days How long $1 million with Social Security will last in savings: 24.9 years Nevada Total yearly expenditure (average): $58,454 How long $1 million will last in savings: 17 years, 1 month, 9 days How long $1 million with Social Security will last in savings: 24.9 years Virginia Total yearly expenditure (average): $58,627 How long $1 million will last in savings: 17 years, 0 months, 22 days How long $1 million with Social Security will last in savings: 24.8 years Montana Total yearly expenditure (average): $59,610 How long $1 million will last in savings: 16 years, 9 months, 10 days How long $1 million with Social Security will last in savings: 24.4 years Utah Total yearly expenditure (average): $60,420 How long $1 million will last in savings: 16 years, 6 months, 18 days How long $1 million with Social Security will last in savings: 24.1 years Colorado Total yearly expenditure (average): $61,807 How long $1 million will last in savings: 16 years, 2 months, 4 days How long $1 million with Social Security will last in savings: 23.5 years Arizona Total yearly expenditure (average): $63,600 How long $1 million will last in savings: 15 years, 8 months, 20 days How long $1 million with Social Security will last in savings: 22.9 years New Jersey Total yearly expenditure (average): $63,773 How long $1 million will last in savings: 15 years, 8 months, 6 days How long $1 million with Social Security will last in savings: 22.8 years Maine Total yearly expenditure (average): $64,005 How long $1 million will last in savings: 15 years, 7 months, 15 days How long $1 million with Social Security will last in savings: 22.7 years Rhode Island Total yearly expenditure (average): $64,756 How long $1 million will last in savings: 15 years, 5 months, 10 days How long $1 million with Social Security will last in savings: 22.5 years Connecticut Total yearly expenditure (average): $65,855 How long $1 million will last in savings: 15 years, 2 months, 4 days How long $1 million with Social Security will last in savings: 22 years Oregon Total yearly expenditure (average): $66,317 How long $1 million will last in savings: 15 years, 0 months, 29 days How long $1 million with Social Security will last in savings: 21.9 years Maryland Total yearly expenditure (average): $66,375 How long $1 million will last in savings: 15 years, 0 months, 26 days How long $1 million with Social Security will last in savings: 21.9 years Vermont Total yearly expenditure (average): $66,433 How long $1 million will last in savings: 15 years, 0 months, 19 days How long $1 million with Social Security will last in savings: 21.9 years New Hampshire Total yearly expenditure (average): $66,838 How long $1 million will last in savings: 14 years, 11 months, 16 days How long $1 million with Social Security will last in savings: 21.8 years Washington Total yearly expenditure (average): $66,895 How long $1 million will last in savings: 14 years, 11 months, 12 days How long $1 million with Social Security will last in savings: 21.7 years This article originally appeared on GOBankingRates.com : There’s a Record Number of 401(k) Millionaires: Is It Enough To Retire in Your State?
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