How Long Will Your $1.5 Million Last in Retirement? State-by-State Reality Check

When planning for retirement, the critical question isn’t just how much you’ve saved — it’s how long that money will actually sustain you. A recent analysis examining retirement sustainability reveals that $1.5 million in combined retirement savings and Social Security benefits creates dramatically different lifespans depending on where you live. The gap is startling: your nest egg could stretch across more than half a century in some states, yet barely last two decades in others.

Cost of Living: The Decisive Factor in Retirement Longevity

The primary driver behind retirement duration is straightforward: state-level cost of living. Researchers analyzed spending patterns of Americans age 65 and older using official government data sources, including the 2023 Consumer Expenditure Survey and 2025 Social Security administration figures, then adjusted these figures by each state’s cost-of-living index. The results paint a clear picture of geographic inequality in retirement purchasing power.

In the most affordable regions, retirees can stretch their $1.5 million considerably further. West Virginia tops the list with residents able to sustain themselves for 54 years when combining modest annual living expenses of approximately $27,800 (after accounting for Social Security income) with their savings. Kansas and Mississippi follow closely, supporting 52 and 51 years of retirement respectively. These lower-cost states reflect reduced expenses for housing, healthcare, food, and utilities — the major budget items for seniors.

High-Cost States: When $1.5 Million Falls Short

The opposite end of the spectrum tells a sobering story. Hawaii’s exceptionally high living expenses mean that the same $1.5 million depletes in just 17 years, requiring annual outlays of nearly $87,800 above Social Security payments. California and Massachusetts present similarly challenging environments, with retirement funds lasting only 24 and 23 years respectively. New York and Alaska also demand approximately $51,000 annually in additional spending beyond Social Security, reducing retirement duration to 29 years.

Middle Ground: Where Most Americans Retire

The majority of states cluster in a middle range where $1.5 million sustains retirement for 35-45 years. Texas, Georgia, Florida, and North Carolina — popular retirement destinations — fall within this band, offering moderate cost structures that preserve retirement security while avoiding the expense shock of coastal high-cost areas. States like Colorado and Utah sit at the boundary between affordable and expensive categories, where careful budget management becomes essential.

What This Means for Your Retirement Strategy

The variation across the country underscores a critical insight: geographic arbitrage in retirement remains powerful. Relocating from an expensive state to a moderate-cost region could potentially extend retirement funds by 20-30 years. However, non-financial factors — proximity to family, healthcare quality, climate preferences, and community connections — often matter equally. The analysis demonstrates that while $1.5 million represents substantial retirement savings, its real-world impact depends entirely on location choices and spending discipline. Understanding your target state’s cost structure should inform both retirement destination planning and savings targets for those still accumulating wealth.