New York Retirees Face Shorter $1M Lifespan Compared to Lower-Cost States

Study finds $1 million in retirement savings may only last 12.9 years in New York due to high living costs.

Apr. 10, 2026 at 6:53am

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A close-up, cinematic photograph of the intricate, heavy machinery that powers the financial industry, representing the physical and institutional weight of retirement costs in high-cost areas.The high costs of living in New York pose a significant challenge for retirees, as a $1 million nest egg may only last about 13 years on average.NYC Today

A recent study by GOBankingRates has revealed that $1 million in retirement savings may not last as long as expected for retirees living in New York. The analysis found that the average annual expenditures for those aged 65 and older in the Empire State is a staggering $77,773, with housing and healthcare costs being particularly high. As a result, a $1 million retirement fund would only provide about 12.9 years of coverage in New York, one of the shortest durations in the country. In contrast, retirees in states like Oklahoma, Mississippi, and Alabama can expect their $1 million to last nearly twice as long.

Why it matters

This study highlights the significant impact that the cost of living can have on retirement planning and savings. Retirees looking to make their money last may need to carefully consider the financial implications of where they choose to live, as the difference in longevity of a $1 million nest egg can vary greatly from state to state. Understanding these regional disparities is crucial for individuals to make informed decisions about their retirement location and ensure their savings are sufficient to support their desired lifestyle.

The details

The GOBankingRates study examined data from the Bureau of Labor Statistics' 2024 Consumer Expenditure Survey to calculate the average annual expenditures for retirees in each state. They then applied these figures to a $1 million retirement fund to determine how long the savings would last. In New York, the average annual expenditure for someone aged 65 or older is $77,773, with housing accounting for $23,209 and healthcare costs adding up to $8,805 annually. This means that a $1 million retirement fund would only last approximately 12.9 years in the state, one of the shortest durations in the country. Other high-cost states like Alaska, California, Massachusetts, and Hawaii also fell below the 13-year mark for $1 million in retirement savings. In contrast, states like Oklahoma, Mississippi, and Alabama offer much lower costs of living, allowing a $1 million nest egg to last an average of 19.3, 19, and 18.5 years, respectively.

  • The GOBankingRates study analyzed data from the Bureau of Labor Statistics' 2024 Consumer Expenditure Survey.
  • The findings were published in April 2026.

The players

GOBankingRates

A personal finance website that conducted the in-depth analysis on the longevity of $1 million in retirement savings across different states.

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What’s next

The findings of this study may prompt retirees to carefully consider the financial implications of where they choose to live in retirement, as the longevity of their savings can vary greatly depending on the cost of living in a particular state.

The takeaway

This study underscores the importance of factoring in regional cost-of-living differences when planning for retirement. Retirees seeking to make their savings last may need to prioritize lower-cost states, as the disparity in how long $1 million can sustain a comfortable lifestyle can be substantial across different parts of the country.