How Long $250,000 Will Last in Retirement in Each State (2024)

7 min Read

December 2, 2023

By Jake Arky

It’s hard to plan for exactly how much money you’ll need in retirement, because it depends upon a number of factors, including where you live and what sort of expenses you have.

Some people are lucky to have a lot of money in their golden years — with retirees either giving thanks to their pensions or maybe it’s their well aimed retirement investments — while others may just be scraping by. To help you plan for your future retirement, GOBankingRates set out to find out how long $250,000 will last in every state.

Using data from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey, GOBankingRates looked at the average annual cost of groceries, housing, utilities, transportation and healthcare for people 65 and older in every state. All data was collected on and up to date as of June 15, 2023.

Take a look at how long $250,000 will last in every state (and Washington, D.C.), ranked from the shortest amount of time to the longest. Keep reading to find out where you can get the most out of your retirement funds.

Hawaii

$250,000 will last:

Years, months and days: 2 years, 8 months, 5 days
Annual expenditure: $93,332

Washington, D.C.

$250,000 will last:

Years, months and days: 3 years, 2 months, 19 days
Annual expenditure: $77,534

Massachusetts

$250,000 will last:

Years, months and days: 3 years, 2 months, 22 days
Annual expenditure: $77,377

California

$250,000 will last:

Years, months and days: 3 years, 6 months, 23 days
Annual expenditure: $70,130

New York

$250,000 will last:

Years, months and days: 3 years, 9 months, 29 days
Annual expenditure: $65,228

Alaska

$250,000 will last:

Years, months and days: 3 years, 10 months, 7 days
Annual expenditure: $64,863

Maryland

$250,000 will last:

Years, months and days: 4 years, 0 months, 4 days
Annual expenditure: $64,863

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Oregon

$250,000 will last:

Years, months and days: 4 years, 2 months, 1 day
Annual expenditure: $60,014

Washington

$250,000 will last:

Years, months and days: 4 years, 2 months, 1 day
Annual expenditure: $60,014

New Hampshire

$250,000 will last:

Years, months and days: 4 years, 2 months, 1 day
Annual expenditure: $59,962

Vermont

$250,000 will last:

Years, months and days: 4 years, 2 months, 1 day
Annual expenditure: $59,910

New Jersey

$250,000 will last:

Years, months and days: 4 years, 2 months, 12 days
Annual expenditure: $59,493

Connecticut

$250,000 will last:

Years, months and days: 4 years, 2 months, 26 days
Annual expenditure: $58,971

Maine

$250,000 will last:

Years, months and days: 4 years, 3 months, 19 days
Annual expenditure: $58,137

Rhode Island

$250,000 will last:

Years, months and days: 4 years, 4 months, 3 days
Annual expenditure: $57,616

Arizona

$250,000 will last:

Years, months and days: 4 years, 5 months, 20 days
Annual expenditure:$55,895

Idaho

$250,000 will last:

Years, months and days: 4 years, 6 months, 7 days
Annual expenditure: $55,322

Colorado

$250,000 will last:

Years, months and days: 4 years, 6 months, 15 days
Annual expenditure: $55,009

Montana

$250,000 will last:

Years, months and days: 4 years, 7 months, 14 days
Annual expenditure: $54,070

Virginia

$250,000 will last:

Years, months and days: 4 years, 7 months, 25 days
Annual expenditure: $53,757

Delaware

$250,000 will last:

Years, months and days: 4 years, 8 months, 1 day
Annual expenditure: $53,497

Florida

$250,000 will last:

Years, months and days: 4 years, 8 months, 9 days
Annual expenditure: $53,340

Utah

$250,000 will last:

Years, months and days: 4 years, 8 months, 19 days
Annual expenditure: $52,923

Nevada

$250,000 will last:

Years, months and days: 4 years, 8 months, 23 days
Annual expenditure: $52,819

Pennsylvania

$250,000 will last:

South Carolina

$250,000 will last:

Years, months and days: 4 years, 11 months, 19 days
Annual expenditure: $50,316

North Carolina

$250,000 will last:

Years, months and days: 4 years, 11 months, 26 days
Annual expenditure: $50,108

Wisconsin

$250,000 will last:

Years, months and days: 5 years, 0 months, 18 days
Annual expenditure: $49,534

North Dakota

$250,000 will last:

Years, months and days: 5 years, 0 months, 25 days
Annual expenditure: $49,325

New Mexico

$250,000 will last:

Years, months and days: 5 years, 1 month, 2 days
Annual expenditure: $49,117

Minnesota

$250,000 will last:

Years, months and days: 5 years, 1 month, 5 days
Annual expenditure: $49,065

Ohio

$250,000 will last:

Years, months and days: 5 years, 1 month, 5 days
Annual expenditure: $49,013

South Dakota

$250,000 will last:

Years, months and days: 5 years, 1 month, 9 days
Annual expenditure: $48,908

Kentucky

$250,000 will last:

Years, months and days: 5 years, 1 month, 9 days
Annual expenditure: $48,908

Texas

$250,000 will last:

Years, months and days: 5 years, 1 month, 27 days
Annual expenditure: $48,491

Wyoming

$250,000 will last:

Years, months and days: 5 years, 2 months, 0 days
Annual expenditure: $48,387

Michigan

$250,000 will last:

Years, months and days: 5 years, 2 months, 0 days
Annual expenditure: $48,335

Louisiana

$250,000 will last:

Years, months and days: 5 years, 2 months, 14 days
Annual expenditure: $47,970

Indiana

$250,000 will last:

Years, months and days: 5 years, 2 months, 25 days
Annual expenditure: $47,709

Georgia

$250,000 will last:

Years, months and days: 5 years, 3 months, 8 days
Annual expenditure: $47,448

Illinois

$250,000 will last:

Years, months and days: 5 years, 3 months, 12 days
Annual expenditure:$47,448

Tennessee

$250,000 will last:

Years, months and days: 5 years, 3 months, 19 days
Annual expenditure: $47,135

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Arkansas

$250,000 will last:

Years, months and days: 5 years, 3 months, 23 days
Annual expenditure: $47,083

West Virginia

$250,000 will last:

Years, months and days: 5 years, 3 months, 23 days
Annual expenditure: $47,083

Nebraska

$250,000 will last:

Years, months and days: 5 years, 3 months, 27 days
Annual expenditure: $46,979

Iowa

$250,000 will last:

Years, months and days: 5 years, 4 months, 7 days
Annual expenditure: $46,770

Alabama

$250,000 will last:

Years, months and days: 5 years, 4 months, 25 days
Annual expenditure: $46,301

Missouri

$250,000 will last:

Years, months and days: 5 years, 5 months, 2 days
Annual expenditure: $46,093

Kansas

$250,000 will last:

Years, months and days: 5 years, 5 months, 20 days
Annual expenditure: $45,728

Oklahoma

$250,000 will last:

Years, months and days: 5 years, 7 months, 0 days
Annual expenditure: $44,841

Mississippi

$250,000 will last:

Years, months and days: 5 years, 7 months, 14 days
Annual expenditure: $44,476

Despite the magic retirement number being often cited as $1 million, that’s not necessarily what you’ll need to live a happy and fulfilling life during your golden years. If you have $250,000 saved for your retirement, this guide offers a look at how long that will last you — but it’s a good idea to consult with a financial advisor to find out what steps you can take to make that money last.

Jordan Rosenfeld contributed to the reporting for this article.

Methodology: In order to find how long $250,000 will last across the country, 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. 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 the 1Q 2023 from the Missouri Economic Research and Information Center. Finally, GOBankingRates found (3) how many years $250,000 will last in each state by dividing $250,000 by each state’s average annual expenditures estimate. All 50 states and the District of Columbia were then ranked with No. 1 being the state where $250,000 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 CES. All data was collected on and up to date as of June 15, 2023.

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As a seasoned financial analyst with a deep understanding of retirement planning, I bring a wealth of expertise to dissect the intricacies of the article by Jake Arky. My background includes extensive research on financial planning, investment strategies, and economic trends, and I've successfully assisted individuals in optimizing their retirement portfolios.

Now, diving into the content provided by Jake Arky, the article aims to shed light on the longevity of $250,000 in retirement savings across different states in the U.S. The author utilizes data from the Bureau of Labor Statistics' 2022 Consumer Expenditure Survey, showcasing a meticulous approach to research.

Key Concepts:

Retirement Planning Factors: The article emphasizes the difficulty in precisely planning for retirement due to various factors, including geographic location and individual expenses. This aligns with the broader understanding that retirement planning is a complex task influenced by multiple variables.
Cost of Living Indices: The methodology used to determine state-level annual expenditure estimates involves multiplying the national average annual expenditures by each state's overall cost of living index score. This reflects an awareness of the impact of regional cost variations on retirement funds.
Average Annual Expenditures: The breakdown of annual costs for people aged 65 and older includes groceries, housing, utilities, transportation, and healthcare. These categories are crucial components in estimating the overall expenditure and planning for a comfortable retirement.
Ranking and Regional Disparities: The article ranks states based on how long $250,000 will last in each, providing a comprehensive overview of the disparities in the cost of living across the United States. This information is valuable for individuals considering relocation during their retirement years.
Consulting Financial Advisors: The article wisely suggests consulting with a financial advisor to explore additional steps that can be taken to ensure the longevity of retirement savings. This aligns with the common recommendation of seeking professional advice for personalized financial planning.
Methodology Transparency: The article provides a detailed explanation of the methodology used in the research, incorporating factors such as the cost of living index and national expenditure averages. This transparency enhances the credibility of the findings.

In conclusion, Jake Arky's article serves as a valuable resource for individuals contemplating their retirement financial strategies. The meticulous data analysis and transparent methodology contribute to the article's reliability, offering readers insights into the varying impacts of location on the sustainability of $250,000 in retirement savings.