Retirees are encouraged to have somewhere in the ballpark of $1 million in retirement funds by the time they retire, with the expectation that those funds, plus Social Security, will be enough to get you through your golden years.
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While a cool million sounds pretty good, depending on where you live, that money can burn up quicker in some states than in others.
I asked ChatGPT to tell me at a glance where $1 million in retirement savings will run out the fastest if someone retired today and also took Social Security benefits.
Where $1 Million in Retirement Savings Runs Out Fastest
ChatGPT drew on data from GOBankingRates’ own studies, the Bureau of Labor Statistics, the National Association of Realtors and more to analyze cost of living essentials like housing, food, transportation and utilities. Here are the states you might want to think twice about retiring in.
New Jersey: Depending on the age of retirement, you might be able to swing a full retirement in the Garden State, where, coupled with Social Security, $1 million can last about 24.2 years, the AI told me. New Jersey has pretty significant property taxes, and healthcare and other living costs also run higher than average in this densely populated state. For retirees, that translates into $1 million in savings stretching for just over 24 years.
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Washington: The Evergreen State is the next quickest state to deplete your savings, most likely due to its position as a tech hub that has driven up house prices and brought transplants from other states and countries. Though Washington doesn’t have a state income tax, sales and property taxes seem to make up for it, ChatGPT said. Food and utility costs are also above average, and transportation expenses climb due to congestion and fuel costs. You still might be able to spend the bulk of your last years in Washington as $1 million would stretch for around 21.9 years before running dry.
Massachusetts: New England is not generally known as being an especially affordable region overall, but the Bay State will really take it out of your retirement, ChatGPT warned. You’ll be lucky to get about 19.4 years out of $1 million in retirement funds here. Big metro areas like Boston also have pricey housing and high property taxes. Additionally, the state’s premium medical facilities don’t come cheaply, and utilities soar to handle super cold winters and hot, muggy summers.
California: By the time we get to the Golden State, the fourth largest economy in the world, it takes quite a bit more to survive, the AI said. One million dollars in retirement funds will run out in approximately 16.3 years. Housing is the biggest culprit in a state where median home values in the big cities can soar well above $700,000. The state also has high state income and property taxes, some of the nation’s most expensive gas prices and groceries that cost more than the U.S. average.
Hawaii: Lastly, you can expect your retirement savings to go the least far in the loveliest, tourist-driven place — Hawaii. Your $1 million would last about 12.5 years here. You pay more for almost all goods due to hefty shipping mark-ups, more for utilities due to imported oil and exorbitant housing prices — the median home price is over $800,000. While you might enjoy every minute of your stay, longevity would not be possible on only $1 million.
While $1 million may still be the retirement benchmark, it won’t last the same everywhere. Planning carefully, especially around location, can help ensure your golden years shine as long as possible.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT Where Retirees Will Run Out of $1 Million the Fastest
