How Long Will $1 Million In Savings Last For Louisiana Retirees?

My financial planner recently told me how much money I need to put in a month on my Roth IRA until I retire at 65 to have a million dollars saved up. I started doing some calculations on my own and figured out that if I live until my 90s, I'm screwed. Even though a million dollars sounds like a ton of money, it really isn't in the bigger picture of retirement.

I based my calculations on living off of $40,000 a year, and I figured that my wife and I could live comfortably on our retirement nest egg for 25 years. I started doing a deeper dive into the subject on Google and found a great article on the subject.

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The cheapest state to retire in is Mississippi, where $1 million could last over 22 years. The most expensive state is Hawaii, where you could only make it for about 14 years.

The 10 states where $1 million goes the farthest are:

1. Mississippi
2. Oklahoma
3. Kansas
4. Alabama
5. Iowa
6. Georgia
7. Indiana
8. Tennessee
9. Arkansas
10. Michigan

The states where you'd burn through it the fastest are:

1. Hawaii
2. New York
3. California
4. Massachusetts
5. Alaska

According to the article, in our neighboring states, in Texas, you could live off of $1 million for 20 years 8 months 15 days, in Arkansas, it would last 21 years 1 months 23 days, and in Mississippi 22 years 8 months 12 days.

Here's how it breaks down for Louisiana:

• Annual groceries cost: $4,443.04
• Annual housing cost: $8,849.72
• Annual utilities cost: $3,462.24
• Annual transportation cost: $3,938.88
• Annual healthcare cost: $7,058.12
• Total annual expenditures: $48,751.84

$1 million will last for 20 years, 6 months, and 4 days in Louisiana, I might need to think about doubling my monthly payment to my Roth IRA if I plan to be here for the long haul.

To add more salt in the wound for the Bayou State, there's a report out that Louisiana ranks as one of the worst states to retire in 2023.