- Sep 12, 2012
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https://www.msn.com/en-us/money/ret...l-last-in-retirement-in-each-state/ss-AAzw8YK
Spending is coming strictly from savings and doesn't take SS into account. Also, there are a ton of variables to consider. People tend to spend less. They don't go on as many trips when they're older. But, illnesses and accidents start to become more pronounced which offsets the trips and spending lifestyle of a young person. Also, it doesn't count assets like owning a home, stocks, rental property. That's why IMO passive income is a muist when you're younger, so you have money coming in while you're retired. Hell, even when you're asleep so you're not trading your time for money. But, that's for another discussion.
The worst state is Hawaii. $500K will last a little over 5 years. The best state is Mississippi to retire in with $500k lasting about 12 years. The cost of living in Mississippi is super cheap. That could all change by the time you retire though. The average is between 8-10 years for most states.
I always say that you should do the math. I had a coworker who was bragging that he could reitre at 45. He has about $250k in the bank and lives in a trailer. So, his expenses are low. But then I told him to do the math. If you lived for another 30 years, that's 250/30 and it's alittle over $8k a yea. I guess if he wants to eat dog food for the rest of his life then he should go for it. Maybe I'm wrong but it just seems that most people are underestimiating what they'll need to retire on, and many think that theu can somehow get thru with ZERO-little savings at 60, and then they'll start to save. It doesn't work like that. The compound effect is an amazing tool, but it takes years, even decades until you start seeing results.
So, how much should you have before making the leap into retirement? IMO, at least $1m dollars. If $500k is going to last about 10 years. Simple math, that's $50k. That's not including taxes, illnesses not covered by insurance, things going wrong in life, and inflation. That's from 65 to 75. If you live to 85 which is very possible with our health care system today, then you should have at least $1m, and maybe even a bit more to take you to 85 plus. So then, you're not a burden on the government and your family when and if you do run out of money.
BTW, the cost of living in the states is why I saw so many old expats in SE Asia.The dollor goes much farther so you could get by with a smaller amount of savings or pension. Not idea, but doable.
Spending is coming strictly from savings and doesn't take SS into account. Also, there are a ton of variables to consider. People tend to spend less. They don't go on as many trips when they're older. But, illnesses and accidents start to become more pronounced which offsets the trips and spending lifestyle of a young person. Also, it doesn't count assets like owning a home, stocks, rental property. That's why IMO passive income is a muist when you're younger, so you have money coming in while you're retired. Hell, even when you're asleep so you're not trading your time for money. But, that's for another discussion.
The worst state is Hawaii. $500K will last a little over 5 years. The best state is Mississippi to retire in with $500k lasting about 12 years. The cost of living in Mississippi is super cheap. That could all change by the time you retire though. The average is between 8-10 years for most states.
I always say that you should do the math. I had a coworker who was bragging that he could reitre at 45. He has about $250k in the bank and lives in a trailer. So, his expenses are low. But then I told him to do the math. If you lived for another 30 years, that's 250/30 and it's alittle over $8k a yea. I guess if he wants to eat dog food for the rest of his life then he should go for it. Maybe I'm wrong but it just seems that most people are underestimiating what they'll need to retire on, and many think that theu can somehow get thru with ZERO-little savings at 60, and then they'll start to save. It doesn't work like that. The compound effect is an amazing tool, but it takes years, even decades until you start seeing results.
So, how much should you have before making the leap into retirement? IMO, at least $1m dollars. If $500k is going to last about 10 years. Simple math, that's $50k. That's not including taxes, illnesses not covered by insurance, things going wrong in life, and inflation. That's from 65 to 75. If you live to 85 which is very possible with our health care system today, then you should have at least $1m, and maybe even a bit more to take you to 85 plus. So then, you're not a burden on the government and your family when and if you do run out of money.
BTW, the cost of living in the states is why I saw so many old expats in SE Asia.The dollor goes much farther so you could get by with a smaller amount of savings or pension. Not idea, but doable.
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