There is a general belief that people with a million-dollar nest egg are pretty well situated for retirement. But a million dollars doesn’t go as far in some places as it does in others.
For the third year, SmartAsset released a study to determine where in the U.S. $1 million lasts the longest. The results indicate people may not want to spend their retirement years in Pittsburgh.
The study found that $1 million lasts 23.14 years in retirement in Pittsburgh. That might sound pretty good, but Pittsburgh ranks 166th out of 250 cities included in the study nationwide, and number four out of six in Pennsylvania.
The study first examined data from the Bureau of Labor Statistics on the average annual expenditures of seniors. It then factored in expenses for housing, food, health care, utilities and more to determine where $1 million covers retirement costs for the longest time period, assuming that million would grow at a real return (interest minus inflation) of 2%.
Harlingen, Texas is where $1 million goes the furthest in retirement, a total of 31.68 years.
Another Texas town, McAllen, came in second at 31.29 years followed by Memphis, Tenn. at 29.78, Richmond, Ind. at 29.75, and Knoxville, Tenn. at 28.89.
Muskogee, Oklahoma, Kalamazoo, Mich., Wichita Falls, Texas, Conway, Ark., and Jonesboro, Ark. round out the top ten.
