If Social Security Runs Out, How Long Will $2 Million Last on the East Coast?

A GOBankingRates study estimates how long $2 million in retirement savings would last on the East Coast, assuming Social Security benefits are unavailable; the analysis, based on 2023 Bureau of Labor Statistics data and state cost-of-living indexes, finds that savings could last from approximately 22 years in Massachusetts (annual expenditures: $88,268) to over 36 years in Georgia (annual expenditures: $54,980), compared to a national average of 33.3 years.

Analysis

A GOBankingRates study, based on 2023 Bureau of Labor Statistics expenditure data and 2024 state-level cost-of-living indices, projects that $2 million in retirement savings, absent Social Security benefits, would last between approximately 22 and 36 years for retirees on the U.S. East Coast. This duration varies significantly by state, with Massachusetts representing the shortest timeframe at 22.7 years due to high annual expenditures of $88,268, while Georgia offers the longest at 36.4 years with annual expenditures of $54,980. The national average for $2 million to last under these conditions is 33.3 years, highlighting that several East Coast states, including New York (27 years, $74,147 annual expenditures) and New Jersey (29 years, $68,980 annual expenditures), fall notably below this benchmark, whereas states like North Carolina (34.1 years, $58,645 annual expenditures) and Maryland (33.7 years, $59,426 annual expenditures) offer longevity slightly above or at the national average. The study's findings, pertinent for individuals planning retirement around age 67 or older, underscore the critical impact of geographic location and associated living costs on the sustainability of retirement funds in a hypothetical scenario without Social Security income.

Key Decisions for Investors

• Investors planning retirement on the East Coast should meticulously evaluate state-specific annual expenditure data, such as the significant variance between Massachusetts ($88,268) and Georgia ($54,980), to accurately assess the longevity of their retirement portfolios.
• It is prudent to incorporate stress-testing for scenarios involving the absence or reduction of Social Security benefits into retirement financial planning, particularly if intending to reside in higher-expenditure states where $2 million in savings may deplete faster than the 33.3-year national average.
• Consider the potential financial benefits of relocating to East Coast states with lower annual expenditures, such as Georgia or South Carolina (35 years, $57,203 annual expenditures), which could substantially extend the duration of retirement savings compared to higher-cost states like Massachusetts or New York.