May 5, 2025
A record number of people are reaching retirement age. Each day, more than 11,200 Americans turn 65 — adding up to 4.1 million Americans hitting retirement age per year.
And yet very few of them feel they have enough saved to last the rest of their lives. The Federal Reserve reports that the reality is that most Americans aged 65 to 75 have approximately $426,000 in their 401(k).
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According to a Northwestern Mutual survey, most Americans believe they’d need closer to $1.46 million for a comfortable retirement.
Experts disagree. Suze Orman, for example, called $2 million in retirement savings “chump change”.
So $2 million is a high bar. But according to a recent analysis from GOBankingRates, it should be enough to last you in all but three states: Hawaii, Massachusetts, and California.
Here are some states where a $2-million nest egg will make you feel like a millionaire in retirement — and states you may want to avoid if you have a more modest retirement nest egg.
The rankings
GOBankingRates ranked all the states based on how long $2 million would last in retirement. They looked at average Social Security payouts and the average annual expenditure for Americans 65 and older (based on the 2023 Bureau of Labor Statistics Consumer Expenditure Survey).
Then they compared that data to each state’s overall cost of living to determine how many years retirees could make $2 million last.
The state where it would last the longest? Virginia, where a $2-million nest egg would last a whopping 71.93 years. Average annual expenses in that state would be $27,803 a year, after accounting for Social Security income.
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Unfortunately, living in West Virginia post-retirement has some downsides. The state has some of the worst health-care outcomes in the U.S.. Other retiree-friendly states on the list include Kansas, Mississippi and Oklahoma, with $2 million projected to last up to 69 years.
In contrast, $2 million would not last even half as much in California, Massachusetts and Hawaii, which ranked at the bottom of the list for long-term affordability. The $2-million nest egg would last about 31 years in California and Massachusetts and Hawaii 22.75 years.
In other words, if you retire at 65 in the Aloha state, your money would likely last until you’re 88, but no longer.
That may not seem so bad, but this analysis didn’t take into account high health-care costs, so your $2 million nest egg may shrink more quickly than the data suggests.
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Deciding where to live in retirement
Choosing when, where and how to retire is an individual decision based on multiple variables. Here are some factors to consider as you contemplate areas to live in retirement.
- Local cost of living, This varies across the country, as GOBankingRates’ analysis shows.
- Housing supply and prices. This is a major consideration if you’re planning to move states or downsize to a smaller home after you retire. Hawaii, like many states, is facing a housing supply crisis, while Massachusetts and California also report low levels of housing supply, driving up the cost of living in these states.
- Public services. For example, you will likely need health facilities and use public transportation more as you age.
- Convenience and amenities. Are there supermarkets, pharmacies and gas stations within an easy distance? Community centres? Restaurants and theatres? As you age, proximity matters, and you’ll be less likely to want to cope with an inconvenience in your living arrangements.
Whether or not you have $2 million, it pays to be realistic about your fixed income and make wise decisions about where to retire. That way you can ensure that your golden years are comfortable ones.
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
