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How long will a $1 million retirement savings last in Texas?

How long will a  million retirement savings last in Texas?
How long will a  million retirement savings last in Texas?

What do you plan to do when you retire? Will you go on a long hike in the Chisos Mountains of Big Bend National Park? Will you take the time to reel in that big bass at Toledo Bend? Will you walk among the wildflowers of the Texas Hill Country? Or maybe you’ll just sit in your front yard because you’re not sure you can afford to go anywhere or do anything? That’s what retirement in Texas looks like these days.

Planned Adventures – YouTube

Planned Adventures – YouTube

Most of us have no idea what the real answer to that question is. Just ask any financial planner from Denton to Dalhart to Commerce to Cut and Shoot, and they’ll tell you that most of us have no idea how we’re going to finance our retirement.

So unless you have a financial plan in place for when you’re no longer working and your regular paychecks turn into monthly government grants, you really need to talk to someone. However, if you ask most people what they think is a good amount to plan for their retirement, they’ll say a million dollars.

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That seems like a lot of money. It was a lot of money for me when I was a kid and I heard Jed Clampett from Beverly Hillbillies and his “50 million dollars” at Commerce Bank on TV. But how far does a million dollars really get you in your retirement years in Louisiana?

The folks at GoBankingRates.com, a personal finance website, looked at the question, “How long will a million dollar retirement savings last in each state?” As you can imagine, there are some states where the “golden years” only last as long as “The Golden Girls” TV series lasted. By the way, Blanche, Rose, Sophia and Dorothy graced your television screens for seven years.

Fortunately, in every state in America, if you retired with a million dollars in savings, you could observe the entire seven-year span, The Golden Girls Series. If you were to retire in Hawaii now, you would get those seven years and still have two years left for some 227, Amen or Empty Nest. That’s a long statement considering that a million dollars in retirement savings in Hawaii will last about nine years.

Massachusetts is another state where you have to “die young” to remain solvent. A million dollar will only last you 11 years there, as will the District of Columbia. In California, your million dollar nest egg can last you a dozen “golden years” and a few extra months.

Kal Visuals via Unsplash.com

Kal Visuals via Unsplash.com

How long will a $1 million retirement savings last in Texas?

If you want to know how long your money will last, we need to know what you’ll spend it on. The folks at GoBankingRates used these categories (groceries, housing, utilities, transportation, and healthcare costs) to come up with the numbers for this survey.

According to GoBankingRates.com, you can expect to spend about $4,600 on groceries, $9,800 on housing, $4,300 on utilities, transportation costs of about $4,500, and healthcare costs of $7,050. That’s an annual expense of just over $53,700.

Divide that by a million and you get this: If you retire in Texas at age 65 with a million in retirement savings, that should last the average resident 18 years, 7 months, and 7 days. So if you retire at 65, your bank account would be empty just before your 84th birthday.

Use these Texas pension figures for estimates only

Of course, there will be other expenses and perhaps other sources of income that will either make your retirement years better or worse. I know I wouldn’t rely on the federal government to step in with Social Security. I also wouldn’t retire without some kind of plan. As mentioned, most of us don’t have a retirement plan, let alone retirement goals, but we should.

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You can see the full list of states and pension information on GoBankingRates.com here. By the way, if you move to Mississippi, you get an extra year and four months, but then you’re just spending an extra year and four months in Mississippi and nobody wants that.

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