I Asked a Retirement Planner What $1 Million Really Buys You in Different States — Here's the Brutal Truth
Your retirement nest egg isn't equal across America. A seven-figure savings account might feel luxurious in one region and barely stretch across a few years in another. The difference comes down to geography and the gap is far wider than most people realize.
To understand just how dramatically your $1 million changes depending on where you settle, MoneyLion spoke with D'Andre Clayton, co-founder of Clayton Financial Solutions. His analysis reveals something sobering: the same amount of money can fund a comfortable retirement in some corners of the country while falling short in others.
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Below, he breaks down the real purchasing power of $1 million across America's regions and shares what you should actually be preparing for.
Location Is Key
Like in real estate, it’s largely about location.
"On one hand, you could live in Hawaii and feel like you're poor because their cost of living is close to 84% higher than the rest of the country,” said Clayton. “[On] the contrary, maybe a state like West Virginia or even certain cities in Ohio and Indiana may be extremely affordable and allow a person to feel like they’re rich.”
According to the Missouri Economic Research & Information Center (MERIC), the six states with the lowest overall cost of living (COL) are*:
Oklahoma (83.5)
Alabama (85)
Mississippi (86.2)
Kansas (87.6)
West Virginia (87.9)
Indiana (88.3)
The six most expensive U.S. locations are:
Hawaii (184.8)
Massachusetts (147.8)
California (140.5)
District of Columbia (134.3)
Alaska (129)
New York (124.7)
*COL index is weighted against the national average of 100
What $1 Million Will Get You in Retirement
So, what will $1 million actually get you in retirement? And is it enough?
“I never state a specific number as a goal because it depends heavily on where you live and also how much remaining debt you are carrying,” said Clayton.
Housing is typically the largest retirement expense, and the gap between regions is staggering. Based on MERIC and Redfin data, here’s the median sales price of homes in the most (and least) expensive U.S. states:
West Virginia — $230,000
Oklahoma — $264,548
Mississippi — $278,996
Indiana — $283,978
Kansas — $303,906
Alabama — $306,248
Alaska — $436,430
New York — $557,992
D.C. — $677,562
Massachusetts — $690,000
Hawaii — $751,645
California — $759,766
You could theoretically purchase a primary residence in any state with $1 million, but that single purchase would consume vastly different portions of your savings depending on where you buy.
Beyond housing, though, the picture becomes even more telling. The Bureau of Labor Statistics breaks down average annual spending by region, and the differences are dramatic:
Northeast (CT, ME, MA, NH, NJ, NY, PA, RI, VT): $85,515 annually — meaning $1 million lasts 11.69 years
Midwest (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI): $73,654 annually — meaning $1 million lasts 13.57 years
South (AL, AR, DE, DC, FL, GA, KY, LA, MD, MS, NC, OK, SC, TN, TX, VA, WV): $69,373 annually — meaning $1 million lasts 14.41 years
West (AK, AZ, CA, CO, HI, ID, MT, NV, UT, WA, WY): $91,079 annually — meaning $1 million lasts 10.97 years
These figures account for housing, groceries, transportation, healthcare and utilities, but exclude taxes, which will reduce your purchasing power further depending on your state's tax structure.
Preparing for Retirement
You don’t need to wait until you’re older to plan for retirement. The sooner you start saving and investing, the more choices you’ll have when the time comes. But that’s not all there is to it.
"Many are tricked into believing that investing is the be-all-end-all. It isn't," Clayton said.
The reality is more nuanced. Aggressive investing can backfire if you're still carrying substantial debt or struggling with everyday expenses. What matters instead is a three-part balance: efficient debt payoff, strategic investing and insurance protecting what you've already built.
Clayton has seen this play out repeatedly in his practice. "I've met with clients who have close to a million in accounts but are drowning in credit card debt and housing debt," he explained. "It seems as though they are just so constrained."
Don’t invest aggressively if you’re struggling with everyday costs. Otherwise, you could end up withdrawing too much from your accounts. Your accounts will only grow “when money isn't constantly needed and there is personal liquidity outside of retirement accounts,” he said.
Start early if you can, but most of all start smart. That means being honest about your current financial constraints and building a plan that addresses both your debt and your savings simultaneously, not one at the expense of the other.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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