Got a $1.5M retirement nest egg? How long that lasts in NJ
You may not be thinking about retirement. For some of us, it’s a long way into the future.
But did you ever wonder how much it would take to be built up in that nest egg for you to say goodbye to the 9-5 forever? Unless we’re financial pros, most of us can’t even conceive of how we’ll make it last once we hit our golden years.
That’s why I was so interested in this recent study by GOBankingRates that compared how long $1.5 million in retirement savings (plus Social Security benefits) would last you in different states.
The cost of living counts
Some of the results were pretty predictable but others were actually eye-opening.
For example, it’s not surprising that one of our poorest states, West Virginia, came out on top, with $1.5 million lasting retirees a solid 54 years while they cover about $27,800 in living costs each year after Social Security benefits. If that doesn’t sound like a good deal, I don’t know what does.
On the other end of the spectrum, states like Georgia and North Dakota only get retirees about 47 years of financial security with that same amount.
The study used data from several sources, including the Bureau of Labor Statistics and the Social Security Administration, to calculate how far $1.5 million and Social Security would go for retirees in each state. In the end, this analysis showed that the cost of living in each state plays a big role in how long your nest egg will last.
Some states, like the aforementioned West Virginia and also Kansas, offer a much better financial deal than others when you factor in the cost of living in those states. Makes me wanna take the whole retirement bundle and catch a plane to the plain. (See what I did there?)
How long it lasts in New Jersey
You’re probably not surprised to hear that New Jersey is sixth from the bottom of all 50 states when it comes to how long you can stretch that $1.5.
New Jersey will only give you 33 years ($45,829 post-Social Security cost of living per year)
The only states that are worse are Alaska, New York, California, Massachusetts and Hawaii. No surprises there.
So, if you’re planning on retiring anytime soon, maybe it’s time to consider where your dollar will stretch the furthest! And it certainly ain’t here!
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Gallery Credit: Stacker
Opinions expressed in the post above are those of New Jersey 101.5 talk show host Judi Franco only.
