When it comes to planning for retirement, the golden question is, “How long will my savings last?” With $750,000 set aside, your financial security depends heavily on where you decide to live. The cost of living varies dramatically across the United States, from affordable Southern states to costly coastal cities. Here’s a breakdown of how far $750,000 will take you in different regions.
Best U.S. Regions for Stretching $750K
Some areas of the country allow retirees to make their savings last longer due to lower living expenses, affordable healthcare, and lower taxes.
- The South
- States like Mississippi, Alabama, and Arkansas are consistently ranked among the most affordable places to retire.
- Housing is a major advantage, with median home prices under $200,000 in many areas.
- Lower taxes and inexpensive utilities make $750K stretch 25–30 years, depending on your spending habits.
- The Midwest
- Known for its affordability, the Midwest offers low housing costs and an overall low cost of living.
- States like Iowa, Indiana, and Ohio are excellent options for retirees looking to live comfortably on their savings.
- $750K can last 25+ years here, especially in smaller towns.
- Mountain States
- Regions like Wyoming and Montana combine affordability with beautiful landscapes.
- With low property taxes and fewer expenses overall, $750K could last 20–25 years.
Most Expensive U.S. Regions for Retirement
Some areas, while appealing, can drain your retirement savings faster due to high housing costs, taxes, and daily expenses.
- The Northeast
- States like New York, Massachusetts, and Connecticut are known for high property taxes and costly healthcare.
- Even with careful budgeting, $750K may only last 15–18 years.
- The West Coast
- While the West Coast offers stunning scenery, cities like San Francisco, Los Angeles, and Seattle come with steep living costs.
- Median home prices can exceed $1 million, significantly shortening how long $750K can last—often to 10–15 years.
- Hawaii
- Paradise comes at a price. Hawaii has some of the highest costs for housing, food, and utilities in the nation.
- $750K might last only 10–12 years here.
Key Factors That Impact Retirement Savings
- Housing Costs:
- Housing is often the largest expense. Retiring in regions with affordable home prices or downsizing can significantly stretch savings.
- Healthcare Expenses:
- Healthcare costs rise with age. Choosing a state with lower medical expenses and Medicare-friendly policies can make a big difference.
- Taxes:
- Some states, like Florida, Texas, and Nevada, have no state income tax, which means more of your retirement income stays in your pocket.
- Lifestyle Choices:
- Retirees who prefer an active social life, travel, or frequent dining out may spend more, while those living modestly can extend their savings further.
Tips for Making $750K Last Longer
- Choose a Tax-Friendly State: States with no income tax or lower property taxes help maximize savings.
- Downsize Your Living Arrangements: Smaller homes or relocating to less expensive areas can cut costs significantly.
- Budget for Healthcare: Factor in potential out-of-pocket healthcare costs as you age.
- Explore Passive Income Options: Consider part-time work, rental properties, or investments to supplement your savings.
Final Thoughts
With $750,000 saved for retirement, where you choose to live will play a critical role in how far your money goes. Regions like the South and Midwest offer affordability and quality of life, making your savings last 25–30 years. In contrast, high-cost areas like the Northeast or West Coast may require a more careful approach to budgeting, with savings potentially lasting only 10–15 years.
Planning and understanding your priorities can help you make the best decision for your retirement lifestyle. For more guidance, consult a financial advisor to ensure your golden years are financially secure.
