How Long Will $1 Million Last in Retirement? | WealthWave
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How Long Will $1 Million Last in Retirement?

February 25, 2025
Personal Finance
Retirement
Saving
How Long Will $1 Million Last in Retirement?
February 25, 2025
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It Depends on Where You Live

Retirement is a dream we all work toward, but how long our savings will last depends on several factors, including when we start saving, how consistently we contribute, and where we choose to retire. Financial experts often recommend having 25 times your annual salary saved before retiring, a number many see as a solid benchmark. However, with the rising  cost of living, inflation, and unexpected expenses, even that amount might not stretch as far as originally planned. For many, it’s clear that retirement planning requires more than a one-size-fits-all approach.

One critical factor that often gets overlooked is location, as it plays a huge role in determining how long your nest egg will last. The cost of living varies dramatically between cities, states, and countries, and these differences can lead to drastic disparities in how far your savings go. For example, $1 million could sustain retirees for over 45 years in Memphis, Tennessee, where housing and daily expenses are much lower than the national average. On the other hand, the same $1 million might only last a little over eight years in San Francisco, where the high cost of living can quickly deplete savings. That’s a massive difference and a stark reminder of why retirement planning isn’t just about how much you save, but also where and how you plan to spend it.

Additionally, thinking beyond location, retirees must also consider their lifestyle choices. Will you be traveling extensively, or do you envision a quieter, more frugal retirement? Will healthcare needs or caregiving costs become a factor as you age? All of these considerations highlight the importance of starting retirement planning early, regularly reassessing your goals, and being realistic about what your savings can support.

The Power of Starting Early  

When it comes to building wealth, starting early is one of the most powerful strategies you can adopt. The magic lies in compound interest—the process where your investments earn returns, and those returns go on to earn more returns. Over time, even small, consistent contributions can grow into a significant nest egg.  

Let’s break it down. Imagine investing just $200 a month in a diversified portfolio with an average annual return of 9%:  

  • Start at 25, and you could accumulate a staggering $1,125,400 by age 67. That’s the power of 42 years of compounding working in your favor.  
  • Start at 35, and your total savings would drop to $443,300. Waiting just 10 years means you lose out on $682,100 in potential growth.  
  • Start at 45, and your total shrinks further to just $165,100, as you’ve only got 22 years for compounding to work.  

The earlier you begin, the more time your investments have to grow. Waiting even a decade can drastically reduce your overall savings, as the compounding effect has less time to work its magic.  

If you’re starting late, don’t panic—it’s never too late to begin. But keep in mind that starting later will require you to save significantly more each month to reach the same financial goal. For example, saving $200 a month starting at 25 may give you ample returns, but if you start at 45, you’d likely need to save closer to $1,000 a month to make up for lost time.  

The takeaway? Begin as early as possible—your future self will be grateful.

How Long Does $1 Million Actually Last?  

Ever wondered how far $1 million could stretch, depending on where you live? Using cost-of-living data, we've broken down how many years this nest egg would realistically cover in different U.S. cities. The results highlight just how much location impacts the longevity of your savings.

Cities Where $1 Million Lasts the Longest:  

If you're looking for cities where your money goes further, consider these options:  

  • Memphis, TN – A low cost of living means $1 million could last an impressive 45 years, 4 months, and 1 day. This makes Memphis one of the most affordable cities to retire or live long-term.  
  • El Paso, TX – In El Paso, $1 million could cover 40 years, 3 months, and 22 days, giving you decades of financial peace of mind.  
  • Wichita, KS – With $1 million, you could live comfortably for 39 years, 8 months, and 27 days in Wichita, thanks to its affordable housing and everyday expenses.  
  • Tulsa, OK – In Tulsa, your savings would last 38 years, 10 months, and 15 days, giving you plenty of time to enjoy your wealth without overspending.  
  • Indianapolis, IN – The cost of living in Indianapolis allows $1 million to stretch for 38 years, 7 months, and 23 days.  
Cities Where $1 Million Runs Out Fast:  

On the flip side, living in high-cost cities means your $1 million won't last nearly as long. Here's where it runs out the fastest:  

  • San Francisco, CA – Known for sky-high housing costs, $1 million lasts just 8 years, 3 months, and 19 days here.  
  • San Jose, CA – Tech hubs like San Jose are expensive, with $1 million covering only 10 years, 9 months, and 20 days.  
  • New York, NY – Living in the Big Apple is far from cheap, where $1 million runs out in just 12 years, 8 months, and 16 days.  
  • Oakland, CA – Neighboring San Francisco, Oakland isn’t much better, with $1 million lasting for 13 years, 10 months, and 10 days.  
  • Los Angeles, CA – In the City of Angels, high living expenses mean $1 million covers only 13 years, 11 months, and 19 days.  

Whether you're looking to stretch your savings or live in a high-cost city, these stats make it clear just how much your location can shape your financial future. Make your money work for you by choosing wisely!  

The Path to $1 Million—and Beyond  

Building wealth and achieving financial freedom starts with a plan, and the WealthWaveONE app Investment Goal Calculator is here to help. This powerful tool lets you determine exactly how much you need to save each month to reach $1 million—or more—based on your starting age and target timeline.  

If you start saving early, even small monthly contributions can grow significantly over time, thanks to the magic of compound interest. On the other hand, if you delay getting started, you'll likely need to save much more each month to make up for lost time, putting additional pressure on your finances.  

It’s crucial to take action now because the cost of waiting can be staggering. Every year you delay is money that could have been earning interest and growing for your future. Whether your goal is $1 million, $2 million, or beyond, the path to financial freedom relies on consistent saving and a clear strategy.  

The earlier you start, the easier it is to reach your goals without overburdening your present. Imagine the peace of mind that comes with knowing your future is secure. Start saving today, take control of your financial destiny, and give your future self a gift they’ll thank you for over and over again.

The Bottom Line: Be Realistic and Plan Ahead!  

When it comes to retirement planning, there's no one-size-fits-all solution. It's essential to be realistic about your goals and current financial situation and plan accordingly. The earlier you start, the more time your investments have to grow, but it's never too late to begin saving for retirement. Research different options and consider factors such as location and cost of living when making decisions. By taking a proactive approach to retirement planning, you can ensure financial stability for your golden years.

Retirement planning is not a one-time task; it requires continuous evaluation and adjustment throughout your working years. As you age, your priorities may shift, and your financial situation may change. It's crucial to regularly review your retirement plan and make necessary adjustments to ensure that you stay on track toward reaching your goals.

Retirement planning may seem daunting and overwhelming, but it is a crucial step toward securing your financial future. By starting early, being realistic about your goals, and regularly reassessing your plan, you can set yourself up for a comfortable and stress-free retirement. Remember to do thorough research, seek out a financial professional, and stay proactive in managing your finances. So don't delay any longer – start building your retirement plan today! And remember: the power of starting early cannot be underestimated when it comes to securing your financial future. Happy planning!