$2 Million Nest Egg Could Buy You Seven Decades — Or Barely Two: Best And Worst States For Retirement Longevity

Two million dollars might sound like an iron-clad nest egg, but where you spend your golden years can make it evaporate or endure for decades.

What Happened: A new GOBankingRates study finds the same bankroll plus average Social Security checks would last 72 years in West Virginia, yet only 23 years in Hawaii — a three-fold swing driven largely by housing costs.

Analysts tallied typical retiree expenses for groceries, health care, transportation, utilities and shelter using the Bureau of Labor Statistics' 2023 Consumer Expenditure Survey, then adjusted those figures with the Missouri Economic Research and Information Center's cost-of-living index for each state.

Low-cost Appalachia dominates the longevity leaderboard. After West Virginia, Kansas stretches $2 million for 69 years, while Mississippi, Oklahoma and Alabama hover between 66 and 68 years. Retirees in these states can expect post-Social-Security budgets near $30,000 a year, leaving plenty of cushion even with modest investment returns.

See also: Dave Ramsey Calls Social Security A ‘-4% Return’ —But This Wealth Expert Says That’s A Dangerous Oversimplification That Could Cost Thousands

At the other extreme, three states with sky-high real-estate tabs would burn through the same savings in roughly 30 years or less. Hawaii's retirees face annual outlays of nearly $88,000 after Social Security. California and Massachusetts trail close behind at about $64,000 and $65,000, respectively, shortening the portfolio's lifespan to 31 years.

The Bottom Line: The gap shows how sharply shelter costs skew retirement math. In coastal states with dense urban centers, housing alone can run $30,000 more per year than in the heartland, the report shows.

Although hitting $2 million is a reach for most — just 1.8 percent of households have amassed that much, according to the Employee Benefit Research Institute — the analysis suggests even a seven-figure balance can be fragile in pricey ZIP codes. Financial planners say the findings are a reminder to weigh state taxes, health-care access and, above all, living costs before picking a retirement haven.

Image via Shutterstock

Read next: 65-Year-Old With $110K Saved Asks If He Can Retire in 7 Years — Dave Ramsey Says ‘You Have No Money’ and Tells Him to Stop 401(k) Contributions