The 8 States Where $1 Million in Retirement Savings Runs Out the Fastest (Is Yours One?)

Reaching a retirement balance of $1 million has long been regarded as an ultimate financial milestone. And while retiring a millionaire may have once been the standard for entering your golden years, the new truth is that how far $1 million stretches depends entirely on where you live.

Differences in housing costs, taxes, health care expenses, and everyday living expenses can really shrink (or stretch) the purchasing power of a seven-figure nest egg. Whether you simply need to downsize or are just seeking to save money in retirement, now more than ever, it is critical to evaluate not just how you live but where you live.

Here are the states where retirement savings are expected to run out the fastest, and why living there can make even $1 million deplete sooner than expected.

Editor's note: Rankings are evaluated by a combination of data from the Q3 2026 MERIC Cost of Living Index and housing data that is sourced from Zillow, unless otherwise stated.

Hawaii

To live in Hawaii is to literally live in paradise for some. But is the price of paradise feasible in retirement? Hawaii consistently ranks as the most expensive state in the nation, making it one of the fastest places to drain a $1 million retirement account.

The latest report from the MERIC Cost of Living Index ranks Hawaii at an overall 186, against a national average of 100.00 (with states scoring under 100.00 being the most affordable).

But Hawaii's most expensive category is Housing, clocking in at a whopping 307.1 on the MERIC. This score reflects Hawaii's average home value of $832,932, which is more than double the U.S. average of $364,812.

In addition to housing, elevated grocery, utility, and health care expenses all drive annual spending well above the national average. While Hawaii may offer favorable tax treatment for retirees, its high cost of living outweighs the benefits.

California

California's combination of soaring housing costs and having one of the highest overall costs of living in the nation pushed it up the list. According to the MERIC Cost of Living Index, the state consistently ranks among the most expensive in America, with an index of 137.9.

Housing accounts for much of the affordability crisis, with an average home price in the state being around $761,538, per Zillow.

California also taxes many forms of retirement income, which increases the financial burden for some retirees. A $1 million portfolio would likely be depleted years sooner than it would in lower-cost states, considering these factors.

Massachusetts

Ranking at 148.6 on the MERIC Cost of Living Index, Massachusetts has particularly high housing prices, health care costs, and overall everyday expenses.

The state has many higher-than-average expenses, but its near-top spot on the MERIC can largely be attributed to its $655,219 average home value.

While the quality of health care is often regarded as excellent, retirees find themselves paying more for houses and essentials compared to the average American, meaning your $1 million nest egg may not stretch as far.

New York

Despite regional costs varying vastly across the state, New York remains one of the most expensive states for retirees.

The MERIC Cost of Living Index shows above-average expenses driven by housing, transportation, and health care. Housing for the state weighs in at an average of $524,952, with some areas like New York City being nearly double that.

Although some retirement income receives favorable tax treatments, this is offset by high property taxes and overall living costs. New Yorkers may need to withdraw substantially more each year than the traditional 4% rule assumes.

Alaska

Isolated Alaska may be a surprise to those who aren't aware that it is one of the nation's costliest states. While residents do benefit from no state income tax, the MERIC Index shows that groceries, utilities, transportation, and health care are considerably more expensive than the national average.

The state's remote location also increases the cost of many everyday necessities, which quickly drains a $1 million retirement account. Though resources may be scarce and more expensive, Alaska's average house price is around $397,932, which is only just above the national average.

New Jersey

New Jersey combines expensive housing with some of the highest property taxes in the country, with an effective rate above 2% in some areas. These factors combined make it one of the least affordable states for retirees living on savings.

MERIC's Cost of Living Index also places the state well above the national average with an index of 116.4. And assuming a retiree uses the rule of 4 (which equates to $40k annual spending for 25 years on a balance of $1 million), New Jersey residents would quickly burn through their savings.

Maryland

Maryland's MERIC score of 119.9 is largely driven by expensive housing and utilities. However, health care costs and everyday living expenses also lack affordability. 

While the state does offer tax benefits for specific retirement income, many retirees still face an overall high tax burden compared to lower-cost states. With an average home value of $424,890, housing may not be the most optimal in Maryland for those living on $1 million, either.

Washington

While Washington benefits from having no state income tax, the higher cost of living in some areas can quickly erode savings. MERIC consistently places Washington in the top ten above the national average for cost of living.

The average house in the state is around $587,533, but this average is significantly lower than housing in more expensive areas on the western coast, like around Seattle. Health care and consumer prices are also higher than average, meaning $1 million may not go as far in The Evergreen State.

Bottom line

Where you choose to retire can have just as much impact on your financial security as how much you save. $1 million in retirement savings may provide decades of income in some areas, while in others it may deplete much sooner thanks to housing costs, taxes, and overall living expenses.

Factoring your location into your retirement plan can help you better estimate how long your savings will last into your golden years.

If you're still several years away from retirement, consider running your own projections using your state's cost of living, not just a national average. Small adjustments, such as relocating to a lower-cost area or delaying retirement by a year or two, can stretch your retirement dollars further.

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