How Long Will Your Retirement Last in Pennsylvania?
If you’re saving for retirement, did you know that there’s a “magic” number that you’re supposed to try to hit before you say farewell to the work world? It’s true,…
If you're saving for retirement, did you know that there's a "magic" number that you're supposed to try to hit before you say farewell to the work world? It's true, and although the number varies a bit depending on which expert is giving advice, it's all around the same ballpark number.
According to Charles Schwab, that magic number at $1.8 million, following a poll of retirement plan participants. "Workers still think they need $1.8 million saved for retirement and expect savings will last 23 years on average," they state in a 2024 study. According to a recent Schroders survey, that number is $1.2 million. A recent Northwestern Mutual survey says that magic number is $1.5 million.
How Long Retirement Will Last in Pennsylvania
So, how long will this kind of money last in Pennsylvania? Let's get into it.
A March analysis from the personal finance site GOBankingRates set out to determine how much a lump sum of retirement savings will last. The report used $1 million as the basis for their retirement-planning exercise and looked at long that money is projected to last for a retiree in every state.
"The accepted standard for a comfortable retirement is around $1 million — although you can get by on less in some states and need much more in other states," the study notes. "This number is way out of reach for many Americans, considering 28% of people recently told GOBankingRates that they had nothing saved and most of the rest don't have close to seven figures."
So, let's get to Pennsylvania. How long will $1 million last for a retiree in the state? According to GoBankingRates, it will last 19.4 years. That's actually a lot longer than in other states. Among the biggest expense in the state, according to the study, is housing costs at $7,187 per year.
Looking at general trends, GoBankingRates says that it you want to live in Hawaii or New York, you should work longer, because $1 won't last long. But, there's "a bit more cushion in many Midwestern and Southern states, though, if you live there or planning a move." What are your thoughts? Reach out to me and let me know.
