wealthy couple wine vineyardMatthew Eisman / Stringer / Getty Images

‘Millionaire’ has a certain ring to it.

But if you plan to fund your post-work years with a $1 million nest egg, the amount of time it sustains you will depend on where you live. Millionaires fare best in the South, where a dollar stretches further than any other place in the US.

In a new report, GOBankingRates calculated how long $1 million in cash would last the average retiree in each US state, assuming a retirement age of 65.

Residents of high-price states, like California and New York, will burn through $1 million faster than others. Especially if the money is kept out of the stock market completely.

To determine the length of time, GOBankingRates found the national average for annual expenditures — groceries, housing, utilities, transportation, and healthcare — for a person 65 and older, then multiplied that amount by the cost of living index for each state.

AXIR Consulting

The report did not account for inflation, which averages 3% a year, and would eat even further into your savings if it wasn’t invested.

In Hawaii, the state with the highest cost of living index, the average retiree could support themselves for only 12 years before running out of money. In 13 states, retiring at 65 with $1 million in cash will last the average person fewer than 20 years.

Check out how long $1 million lasts in every US state below:

bi_graphics_million_finalAnaele Pelisson/Business Insider

Cash is the key word here, however. These estimates assume you keep your million dollars in a checking account that pays nothing in interest. If you invest part of your retirement savings instead, and manage your withdrawals strategically, a million dollars will last much longer.

That’s important, considering that the full retirement age today is 67, and the average 30-year-old is expected to live to age 82 for a man and 86 for a woman. That’s 15 to 19 years of retirement — or more if longevity runs in your family — so stretching your savings by investing and spending wisely is a necessity.

Still, considering the increasing interest in early retirement, the data underscores that those planning to retire before their 60s should be armed with far more than a million-dollar nest egg.

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