How much do you need to retire? One rule is that by age 60, you should have 7-9 times your desired income saved, and by age 65, you should have 8-11 times that income. That means if you want $100,000 a year, you'll need $1 million.
In 2021, workplace retirement plan manager Fidelity Investments reported an all-time high in its number of 401(k)s and IRAs that had a $1 million balance, in about a third of the accounts.
But in the most recent 2019 Survey of Consumer Finances, the median household retirement savings for ages 55-64 is just $134,000, and for ages 65-74 is $164,000. And only about half of all American families even have retirement accounts, according to Federal Reserve data from 2019.
The commonly cited 4% rule -- albeit one that many retirement advisers say is outdated -- says if you have $1 million, you can withdraw 4% every year and not run out of money. That’s $40,000 a year, before taxes, plus hopefully you’re getting Social Security. Is that enough? It depends on many factors, including where you live.
This list takes a look at how long a cool million will last in the 50 most populated U.S. cities. To calculate it, GOBankingRates multiplied the annual expenditures for someone 65 and older by each city’s overall cost of living index. This annual expenditure figure then was reduced by the average annual Social Security benefits a retiree would receive. The final annual expenditure minus the Social Security benefits total was divided it into 1 million to get the years, months and days that $1 million would last in retirement for each city. The data come from the Bureau of Labor Statistics’ 2018 Consumer Expenditure Survey, the Social Security Administration, and Sperling’s Best Places.
Life expectancy in the U.S. was 78.8 years in 2019, according to the CDC. (It dropped to 77 in 2020.) But many retirement advisers recommend planning to live well into your 90s. After all, do you really want to be 95 and suddenly run out of money?
Based on the data from GoBankingRates, here’s how long $1 million will last in 50 U.S. cities.
The Most Expensive Cities:
San Francisco
- How long $1 million would last: 8.3 years
- Cost-of-living Index: 269.3
- Annual expenditures, after using annual Social Security: $120,355
The cost of living index scores are in relation to a national average of 100. If a place’s COL index is below 100, it’s cheaper than the national average. If it’s over 100, it’s more expensive than the national average, according to Sperlings. So San Francisco costs about 169% more than the national average.
San Jose, Calif.
- How long $1 million would last: 10.8 years
- Cost-of-living index: 214.5
- Annual expenditures, after using annual Social Security: $92,484
New York City
- How long $1 million would last: 12.7 years
- Cost-of-living index: 187.2
- Annual expenditures, after using annual Social Security: $78,599
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Oakland, Calif.
- How long $1 million would last: 13.8 years
- Cost-of-living index: 174.4
- Annual expenditures, after using annual Social Security: $72,089
Los Angeles
- How long $1 million would last: 13.9 years
- Cost-of-living index: 173.3
- Annual expenditures, after using annual Social Security: $71,530
Seattle
- How long $1 million would last: 14.0 years
- Cost-of-living index: 172.3
- Annual expenditures, after using annual Social Security: $71,021
Boston
- How long $1 million would last: 15.1 years
- Cost-of-living index: 162.4
- Annual expenditures, after using annual Social Security: $65,986
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Long Beach, Calif.
- How long $1 million would last: 15.3 years
- Cost-of-living index: 160.4
- Annual expenditures, after using annual Social Security: $64,969
San Diego
- How long $1 million would last: 15.4 years
- Cost-of-living index: 160.1
- Annual expenditures, after using annual Social Security: $64,816
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Washington, D.C.
- How long $1 million would last: 16.4 years
- Cost-of-living index: 152.1
- Annual expenditures, after using annual Social Security: $60,747
Portland, Ore.
- How long $1 million would last: 20.0 years
- Cost-of-living index: 130.8
- Annual expenditures, after using annual Social Security: $49,914
Denver
- How long $1 million would last: 20.4 years
- Cost-of-living index: 128.7
- Annual expenditures, after using annual Social Security: $48,846
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Miami
- How long $1 million would last: 21.7 years
- Cost-of-living index: 123.1
- Annual expenditures, after using annual Social Security: $45,998
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Austin, Texas
- How long $1 million would last: 22.7 years
- Cost-of-living index: 119.3
- Annual expenditures, after using annual Social Security: $44,065
Sacramento, Calif.
- How long $1 million would last: 22.9 years
- Cost-of-living index: 118.2
- Annual expenditures, after using annual Social Security: $43,506
Las Vegas
- How long $1 million would last: 24.8 years
- Cost-of-living index: 111.6
- Annual expenditures, after using annual Social Security: $40,149
20 Cities Closest to the National Average Cost of Living:
Atlanta
- How long $1 million would last: 26.3 years
- Cost-of-living index: 107.5
- Annual expenditures, after using annual Social Security: $38,064
Photo: Sean Pavone / Shutterstock
Chicago
- How long $1 million would last: 26.4 years
- Cost-of-living index: 106.9
- Annual expenditures, after using annual Social Security: $37,759
Minneapolis
- How long $1 million would last: 26.6 years
- Cost-of-living index: 106.5
- Annual expenditures, after using annual Social Security: $37,555
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Virginia Beach, Va.
- How long $1 million would last: 26.9 years
- Cost-of-living index: 105.6
- Annual expenditures, after using annual Social Security: $37,097
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Colorado Springs, Colo.
- How long $1 million would last: 27.3 years
- Cost-of-living index: 104.5
- Annual expenditures, after using annual Social Security: $36,538
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Mesa, Ariz.
- How long $1 million would last: 27.4 years
- Cost-of-living index: 104.2
- Annual expenditures, after using annual Social Security: $36,385
Phoenix
- How long $1 million would last: 27.6 years
- Cost-of-living index: 103.7
- Annual expenditures, after using annual Social Security: $36,131
Fresno, Calif.
- How long $1 million would last: 28.1 years
- Cost-of-living index: 102.6
- Annual expenditures, after using annual Social Security: $35,572
Raleigh, N.C.
- How long $1 million would last: 28.2 years
- Cost-of-living index: 102.3
- Annual expenditures, after using annual Social Security: $35,419
Dallas
- How long $1 million would last: 28.4 years
- Cost-of-living index: 101.6
- Annual expenditures, after using annual Social Security: $35,063
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Nashville, Tenn.
- How long $1 million would last: 28.5 years
- Cost-of-living index: 101.4
- Annual expenditures, after using annual Social Security: $34,961
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Philadelphia
- How long $1 million would last: 28.6 years
- Cost-of-living index: 101.2
- Annual expenditures, after using annual Social Security: $34,860
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Arlington, Texas
- How long $1 million would last: 28.8 years
- 100.6 (closest to national average of 100)
- Annual expenditures, after using annual Social Security: $34,554
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Forth Worth, Texas
- How long $1 million would last: 29.3 years
- Cost-of-living index: 99.8 (closest to national average of 100)
- Annual expenditures, after using annual Social Security: $34,148
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Charlotte, N.C.
- How long $1 million would last: 29.6 years
- Cost-of-living index: 98.9
- Annual expenditures, after using annual Social Security: $33,690
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Houston
- How long $1 million would last: 30.8 years
- Cost-of-living index: 96.5
- Annual expenditures, after using annual Social Security: $32,469
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New Orleans
- How long $1 million would last: 30.8 years
- Cost-of-living index: 96.3
- Annual expenditures, after using annual Social Security: $32,367
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Jacksonville, Fla.
- How long $1 million would last: 32.3 years
- Cost-of-living index: 93.5
- Annual expenditures, after using annual Social Security: $30,943
Tucson, Ariz.
- How long $1 million would last: 33.3 years
- Cost-of-living index: 91.6
- Annual expenditures, after using annual Social Security: $29,977
Albuquerque
- How long $1 million would last: 33.6 years
- Cost-of-living index: 91.1
- Annual expenditures, after using annual Social Security: $29,723
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13 Cities 10% or More Below the National Average Cost of Living:
Omaha, Neb.
- How long $1 million would last: 34.3 years
- Cost-of-living index: 89.8
- Annual expenditures, after using annual Social Security: $29,062
San Antonio, Texas
- How long $1 million would last: 34.4 years
- Cost-of-living index: 89.7
- Annual expenditures, after using annual Social Security: $29,011
Baltimore
- How long $1 million would last: 35.3 years
- Cost-of-living index: 88.2
- Annual expenditures, after using annual Social Security: $28,248
Louisville, Ky.
- How long $1 million would last: 35.3 years
- Cost-of-living index: 88.4
- Annual expenditures, after using annual Social Security: $28,349
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Detroit
- How long $1 million would last: 35.8 years
- Cost-of-living index: 87.6
- Annual expenditures, after using annual Social Security: $27,943
Kansas City, Mo.
- How long $1 million would last: 36.7 years
- Cost-of-living index: 86.2
- Annual expenditures, after using annual Social Security: $27,231
Columbus, Ohio
- How long $1 million would last: 37.2 years
- Cost-of-living index: 85.5
- Annual expenditures, after using annual Social Security: $26,875
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Oklahoma City
- How long $1 million would last: 37.3 years
- Cost-of-living index: 85.4
- Annual expenditures, after using annual Social Security: $26,824
Milwaukee
- How long $1 million would last: 37.6 years
- Cost-of-living index: 84.9
- Annual expenditures, after using annual Social Security: $26,569
Indianapolis
- How long $1 million would last: 38.6 years
- Cost-of-living index: 83.5
- Annual expenditures, after using annual Social Security: $25,857
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Tulsa, Okla.
- How long $1 million would last: 38.8 years
- Cost-of-living index: 83.2
- Annual expenditures, after using annual Social Security: $25,705
Wichita, Kan.
- How long $1 million would last: 39.7 years
- Cost-of-living index: 82.1
- Annual expenditures, after using annual Social Security: $25,145
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El Paso, Texas
- How long $1 million would last: 40.3 years
- Cost-of-living index: 81.4
- Annual expenditures, after using annual Social Security: $24,789
Memphis, Tenn.
- How long $1 million would last: 45.3 years
- Cost-of-living index: 76
- Annual expenditures, after using annual Social Security: $22,043
See the detailed methodology for this study at GoBankingRates.com.
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