How much you need in savings to support your retirement, is not always easy to answer.
A million dollars in savings for retirement may not be enough, according to the Financial Advisor in “How Far Does $1 Million Go In Retirement.”
One large retirement nest egg number that gets thrown around a lot is $1 million. It is a nice round number and it seems like a lot to most people.
The average cost of living varies greatly between different states and often between different regions in the states themselves. In Hawaii, $1 million would last about 12 years. However, $1 million would last nearly twice as long in Alabama.
Those figures assume that the money is sitting in a no-interest account and do not reflect any expected gains or losses on money which is still invested.
What does this mean for you? As you approach retirement age and begin to make decisions about when you want your retirement to start, you need to think carefully about the amount of money you have, where you want to live and how you want to live.