Emerging data reveals the disparity in the Cost of Living Indexes (2017 Q2) among different US States and its potential impact on savings. Without a proper savings-plan particularly in the States of Iowa and Nebraska, it could be difficult, if not impossible, to reap the benefits of decades of hard work. In Hawaii $1 million savings can only last about 13 years due to a high Cost of Living Index (166.4), yet, a similar savings of senior citizens in Mississippi and Arkansas can last almost twice as much due to relatively low Cost of Living Index that stands at 85.5 and 87.4 respectively. The infographic below illustrates a comparative analysis of how $1 million savings could last in different States on an average annual expenditure of persons with 65 years and above.
Top 5 Friendly States for Retirement
1. Mississippi - $1 million lasts 25 yrs 6 months
2. Arkansas - $1 million lasts 25 yrs
3. Tennessee - $1 million lasts 24 yrs 5 months
4. Kansas - $1million lasts 24 yrs 5 months
5. Oklahoma - $1million lasts 24 yrs 4 months
Top 5 least Friendly States for Retirement
1. Hawaii - $1 million lasts 13 yrs 1 months
2. District of Columbia - $1 million lasts 14 yrs 2 months
3. California - $ 1million lasts 15 yrs
4. Oregon - $1 million lasts 16 yrs 7 months
5. New York - $1 million lasts 16 yrs 7 months
How long can your savings fund the kind of retirement you envision in your current State? Keep in mind that your retirement income is limited to three sources; employment-related, government pensions, and personal investments. To meet your lifestyle expectation, structure your retirement in consideration of the Cost of Living Index of your State. This way, you’ll come up with competitive yields and monthly payouts that will guarantee a retirement where you live on your own terms.
Data: Table 1.1