How much do you need to save to enjoy a comfortable retirement in Illinois?
Experts have conflicting opinions about the “magic number” needed for each state, with Charles Swab estimating $1.8 million and a Schroder’s survey landing at around $1.2 million.
GoBankingrates.com acknowledged the difficulty of determining the exact amount you need to save to retire comfortably, saying the traditional standard has been $1 million. But the figure could be less depending on where you decide to live during retirement, or much more.
“If you live in one of the more expensive states, like Hawaii or New York, you’ll want to work as long as possible and save as much money as possible because $1 million won’t even cover your living expenses for 15 years,” GoBankingRates.com states. “There is a bit more cushion in many Midwestern and Southern states.”
So how does Illinois stack up for retirees?
Here’s what you should know.
Analysis compares how far $1.5 million in retirement savings would last in every state
An Aug. 1 analysis from personal finance site GoBankingRates uses $1.5 million as the basis for a retirement-planning exercise.
“Many Americans are coming to terms with the fact that $1 million doesn’t guarantee a comfortable retirement in parts of the U.S.,” said CJ Williamson, a GoBankingRates researcher.
“The goal of this particular analysis was to take things a step further and uncover whether an even larger savings of $1.5 million would be enough to last 25 or 30 years in retirement in all 50 states.”
The report calculates the annual cost of living in each state, after deducting Social Security income, to determine how long $1.5 million in savings would last in retirement.
How long would $1.5 million of retirement savings last in Illinois?
Illinois ranked right in the middle of the list of affordable states for retirees, at No. 26.
Here’s how long the study estimated $1.5 million would last you in Illinois:
What are the 10 most affordable retirement states?
According to GoBankingRates.com, the ten most affordable retirement states to live with $1.5 million in retirement savings are:
“Those numbers should give comfort to the average retiree. An American who retires at 65 can expect to live roughly 20 more years, give or take, based on longevity data, GoBankingRates.com said.
What are the 10 most expensive retirement states?
Here is how long $1.5 million will last in the 10 of the most expensive states for retirees, according to GoBankingRates.com:
This article originally appeared on Journal Star: Study finds $1.5 million is retirement ‘magic number.’ Here’s how long it would last in Illinois
Reporting by Hannah Hudnall and Cheryl McCloud, Peoria Journal Star / Journal Star
USA TODAY Network via Reuters Connect
