11 Cities Where $1 Million In Retirement Lasts The Longest - Forbes

APR 11, 2018 @ 08:02 PM 6,491 The Little Black Book of Billionaire Secrets
11 Cities Where $1 Million In Retirement Lasts The Longest

Andrew DePietro , CONTRIBUTOR
I cover small business, real estate and cost of living. 
Opinions expressed by Forbes Contributors are their own.
Decades ago, people worked and saved their whole lives to enjoy a retirement that lasted around 10 to 15 years. In 2018, things have changed and, more often than not, people work for 40 years or more in order to support 30 years of retirement.

In a recent study, personal finance site GOBankingRates determined how many years $1 million in retirement savings will last in 50 major U.S. cities. This was done by analyzing the annual expenditures for someone 65 or older and the cost of living for each city. Living expenses evaluated in the report included housing, transportation, utilities, healthcare, groceries and miscellaneous costs.

With many American cities experiencing significant changes in cost of living, where you decide to retire is fundamental. Here's a look at the top 11 cities in the study where retirement savings lasts the longest.

Shutterstock | Retirement in Nashville

11. Nashville, Tenn.
$1 million will last: 23.10 years

People 65 or older in Nashville have annual expenses of approximately $43,285, and the most affordable healthcare cost per year out of all the cities analyzed in the study, with approximately $4,950 in expenses. Overall, living expenses in Nashville are cheaper than the national average, but the city is seeing its cost of living rise in recent years, according to WKRN.

Shutterstock | Retirement in San Antonio

10. San Antonio
$1 million will last: 23.15 years

San Antonio is one of three cities in Texas to make the top of the list. It has the lowest average annual utility costs in the nation, at just $3,044 per year, and total expenses of $43,194.


Shutterstock | Retirement in Omaha

9. Omaha, Neb.
$1 million will last: 23.60 years

Retirees face average expenses totaling $42,370 in Omaha, around $3,000 less than the national average.

Trending Now: How Much Climate Change Will Cost in Each State

Shutterstock | Retirement in Louisville

8. Louisville, Ky.
$1 million will last: 23.68 years

A major plus for retirees in Louisville is cheap healthcare, which costs approximately $5,180 per year for people 65 and older. Total annual expenses for retirees is $42,233.

Shutterstock | Retirement in Indianapolis

7. Indianapolis
$1 million will last: 23.73 years

According to the Indianapolis Star, retirees can get stretch their Social Security benefits farther in Indiana than most other states. In the capital, people 65 or older have to manage living expenses averaging $42,141 per year.

Shutterstock | Retirement in Columbus

6. Columbus, Ohio
$1 million will last: 24.07 years

Ohio is facing major issues with its public retirement system, but the capital, Columbus, offers very affordable cost of living for retirees. People 65 or older have average annual expenses totaling $41,546, which is about $5,000 less than the country overall.


Shutterstock | Retirement in Memphis

5. Memphis, Tenn.
$1 million will last: 24.23 years

Memphis boasts the cheapest transportation cost per year, and overall living expenses add up to an estimated $41,272 per year.


Shutterstock | Retirement in Tulsa

4. Tulsa, Okla.
$1 million will last: 24.31 years

Retirees in Tulsa benefit from housing costs that are almost half the national average. Annual living expenses total $41,135.


Shutterstock | Retirement in Austin


3. Austin, Texas
$1 million will last: 24.53 years

In Austin, average expenditures for people 65 or older total approximately $40,769 per year.


Shutterstock | Retirement in Oklahoma City

2. Oklahoma City
$1 million will last: 24.58 years

Oklahoma City has one of the lowest grocery and transportation costs per year at $3,018 and $3,370 respectively. Average annual expenses for a retiree come to roughly $40,677.


Shutterstock | Retirement in Houston

1. Houston
Average annual expenses: $38,527

$1 million will last: 25.96 years

With less-than-average costs of living across the board — notably the lowest grocery cost at $2,859 per year — Houston is the No. 1 city for making $1 million in retirement savings last the longest in the country. The number of retirees living and moving to Houston is increasing, according to the Houston Chronicle. And it's no surprise considering annual expenses add up to only $38,527, well below what retirees face in most cities.