5 Reasons Your $1 Million Retirement Will Only Last 17 Years in Nevada
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If you’re planning to retire soon, you already know that your desired location can have a big impact on how much money you’ll need to have saved. Costs for housing and groceries can quickly eat up your retirement savings.
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We often hear about needing between one and two million to comfortably retire. In fact, according to a survey from Northwestern Mutual, the typical American worker thinks they need $1.46 million to retire comfortably. But the average amount held in a retirement account today is just about $88,000.
That’s bad enough, but when you figure in the rising cost of just about everything, even $1.46 million probably won’t go as far as many people think in many popular areas for retirement. If you’re thinking about making Nevada your retirement spot, here’s a look at some reasons why $1 million will only last you about 17 years in retirement.
Nevada Is Expensive
Let’s start with this — Nevada is probably not as cheap as you might think. Sure, it can be much more affordable than states like Hawaii and California, but it still ranks in the lower half of states in affordability. In general, the cost of living in Nevada is nearly 10% higher than the national average.
In a GOBankingRates survey looking at how long $1 million will last in retirement in each state, we found that it’ll last about 17 years in Nevada. That’s based on the total annual expenditures in the state totaling $58,454. Here’s how that breaks down:
- Annual groceries cost: $4,989
- Annual housing cost: $12,452
- Annual utilities cost: $4,257
- Annual transportation cost: $5,867
- Annual healthcare cost: $6,726
Total annual expenditures: $58,454
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Housing Is Expensive
You’ve may have heard about how expensive housing can be in Nevada. Luxury home sales have been on the rise, and more people moving to popular areas of the state have led to higher housing prices. While you may be able to find a great deal, it’s important to factor in higher housing costs when looking at how long that $1 million will last you in retirement.
Groceries are Expensive
You may have noticed the annual grocery cost in Nevada is about $5,000. According to Help Advisor, the state ranks second for the nation’s highest average weekly grocery bills. Only California is higher. Since groceries are a big part of the financial strain on retirees with fixed incomes, this can be a challenge when spending your retirement in Nevada.
Paying for Tourism
Nevada is known for tourism — and you’ll help pay for that as a retiree. You’ll see higher-than-average sales taxes. You might be able to avoid some of it by skipping the popular tourist spots, but it’s doubtful you can steer clear of them totally.
Gas Prices are Expensive
Gas prices are another challenge for retirees in Nevada. One reason is that the state relies heavily on natural gas, but produces none. Prices for gas to fill up your car can also be pretty high in Nevada.
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This article originally appeared on GOBankingRates.com: 5 Reasons Your $1 Million Retirement Will Only Last 17 Years in Nevada