Retirement Budget Breakdown: What $750K Gets You in the Western U.S
Planning for retirement means understanding how long your savings, combined with Social Security benefits, will last. In the Western U.S., where living costs vary significantly from state to state, $750,000 in retirement savings plus Social Security may stretch further in some areas than others. Here’s a breakdown of how long you can expect your nest egg to last in key Western states.
Hawaii: The Most Expensive Option
Hawaii’s stunning beaches come with a high price tag. With its elevated cost of living, $750,000 plus Social Security would last retirees about 8.8 years, making it the most expensive state in the West for retirement. Housing and day-to-day living expenses are among the highest in the nation, eating into savings quickly.
California: Golden State Costs
California retirees can expect their savings and benefits to last approximately 12.21 years. While the state offers mild weather and plenty of attractions, the high cost of housing and taxes make it a challenging choice for those on a fixed income.
Washington: A Balance Between Beauty and Budget
In Washington State, retirement savings will last about 16.99 years. While housing and healthcare are pricier than in some states, retirees are drawn to Washington for its lack of state income tax and outdoor lifestyle.
New Mexico: The Affordable Gem
For retirees seeking affordability, New Mexico stands out. Here, $750,000 plus Social Security benefits can stretch to 23.66 years. Lower housing costs and a moderate overall cost of living make it one of the most budget-friendly states in the West.
Key Factors That Impact Retirement Savings in the West
Several factors affect how far your money will go:
- Housing Costs: States like California and Hawaii are notorious for their high housing prices, while New Mexico offers more affordable options.
- Healthcare Expenses: Healthcare costs vary widely, making it important to consider access and affordability when choosing a retirement destination.
- Taxes: States like Washington, which has no income tax, are more favourable for retirees than states with high tax burdens.
Tips to Make Your Savings Last Longer
- Choose a State That Fits Your Budget: Consider a state with a lower cost of living to stretch your savings.
- Plan for Healthcare Costs: Factor in out-of-pocket expenses for medical care, as these tend to rise with age.
- Work With a Financial Advisor: A professional can help you manage your savings and optimize withdrawals to ensure your funds last as long as possible.
