How Long $1,000,000 Will Last in Retirement in Minnesota, Wisconsin, and Iowa
We all hope to retire one day. But sometimes, especially right now, it seems like an impossible task to save enough money to retire. Plus, how much are you actually supposed to save anyway? Is there a magic number? $1,000,000 sounds pretty nice and like it should last you at least through retirement, right? A site called Go Banking Rates did the number crunching for us and figured out how long $1,000,000 would last us in retirement in Minnesota, Wisconsin, and Iowa.
$1,000,000 sounds like a lot of money, but it may not go as far as you think. Go Banking Rates not only looked at our three states, but every state to see how long you could go in retirement with a savings of a million. Minnesota, Wisconsin, and Iowa are some of the best states, a million bucks will get you decently far. But in other states, like Hawaii, New York, and California, it'll last you between 10 and 15 years.
In order to figure out the average amount of time $1,000,000 in savings will last in retirement, here's what Go Banking Rates looked at:
[We] analyzed data from the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey and factored in the state’s overall cost of living index score for 2021 from the Missouri Economic Research and Information Center. Annual costs were further broken down by multiplying more specific annual expenditure figures from the CES by MERIC’s cost of living for groceries, utilities, transportation and heath care.
Let's take a look at how long, on average, we can last with $1,000,000 in retirement in Iowa first.
How Long Will $1,000,000 Last in Retirement in Iowa?
Out of the three states we're looking at, Iowa will stretch your money the furthest. They say that $1,000,000 will last you 23 years, 4 months, and 12 days. So if you retire at 65 with $1,000,000 saved, you'd be good until about age 88 if you live in Iowa.
How Long Will $1,000,000 Last in Retirement in Wisconsin?
Next we'll look at Wisconsin. $1,000,000 in retirement in Wisconsin won't go as far as in Iowa but it takes you further than Minnesota. In Wisconsin, it'll last you 21 years, 9 months, and 13 days. So, again, retiring at 65 with $1,000,000 in savings, you'd be good until about age 86.
How Long Will $1,000,000 Last in Retirement in Minnesota?
Finally, out of the three states, we're looking at Minnesota does the worst with stretching $1,000,000 in retirement. According to Go Banking Rates, retiring with $1,000,000 in savings in Minnesota will last you 20 years, 11 months, and 31 days. To make things simple (and I'm not sure why they didn't do this) we'll say the 31 days equals one month which means in Minnesota you'll be able to go 21 years in retirement with $1,000,000 in savings. So if you retire at 65, that means you'll be good until about 86.