There’s a Record Number of 401(k) Millionaires: Is It Enough To Retire in Your City?
According to a recent Fidelity Investments report, there’s a record number of 401(k) accounts with $1 million or more. At the start of 2024, there were approximately 485,000 401(k) millionaires. In the past few months, that number has risen to 497,000 — a 2.5% increase.
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Retirement savers have seen some significant gains in the past 12 months, as well. Since last year, the average 401(k) account balance has gone up by 13%.
Reaching $1 million in retirement savings is a major milestone. Some years ago, it would have even been enough to retire comfortably in most parts of the U.S. While it’s still worth celebrating becoming a millionaire, that amount might not be enough to retire in every city.
The average person spends about 20 years in retirement, according to the U.S. Department of Labor. Using that number and GOBankingRates’ data, these are 10 major U.S. cities where $1 million is — and isn’t — enough to retire on.
10 Cities Where $1 Million Is Enough To Retire
Unsurprisingly, half of these cities are located in the Midwest, where a typically lower cost of living stretches your money farther.
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El Paso, Texas
How long $1 million will last with Social Security: 39 years, 11 months, 27 days
How long $1 million will last without Social Security: 21 years, 1 month, 12 days
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Wichita, Kansas
How long $1 million will last with Social Security: 39 years, 2 months, 2 days
How long $1 million will last without Social Security: 20 years, 10 months, 20 days
Tulsa, Oklahoma
How long $1 million will last with Social Security: 37 years, 0 months, 24 days
How long $1 million will last without Social Security: 20 years, 3 months, 11 days
Oklahoma City
How long $1 million will last with Social Security: 36 years, 10 months, 27 days
How long $1 million will last without Social Security: 20 years, 2 months, 24 days
Indianapolis
How long $1 million will last with Social Security: 36 years, 9 months, 3 days
How long $1 million will last without Social Security: 20 years, 2 months, 5 days
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Memphis, Tennessee
How long $1 million will last with Social Security: 36 years, 8 months, 4 days
How long $1 million will last without Social Security: 20 years, 1 month, 27 days
Milwaukee
How long $1 million will last with Social Security: 35 years, 0 months, 14 days
How long $1 million will last without Social Security: 19 years, 7 months, 25 days
Kansas City, Missouri
How long $1 million will last with Social Security: 34 years, 9 months, 4 days
How long $1 million will last without Social Security: 19 years, 6 months, 26 days
Louisville, Kentucky
How long $1 million will last with Social Security: 33 years, 9 months, 4 days
How long $1 million will last without Social Security: 19 years, 3 months, 4 days
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Omaha, Nebraska
How long $1 million will last with Social Security: 33 years, 1 month, 26 days
How long $1 million will last without Social Security: 19 years, 0 months, 18 days
10 Cities Where $1 Million Isn’t Enough To Retire
These more expensive cities lie on the East and West Coasts — you’ll want a nest egg over $1 million to retire comfortably here.
Boston
How long $1 million will last with Social Security: 15 years, 5 months, 2 days
How long $1 million will last without Social Security: 11 years, 5 months, 20 days
Washington
How long $1 million will last with Social Security: 15 years, 3 months, 8 days
How long $1 million will last without Social Security: 11 years, 4 months, 22 days
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San Diego
How long $1 million will last with Social Security: 14 years, 10 months, 16 days
How long $1 million will last without Social Security: 11 years, 2 months, 2 days
Seattle
How long $1 million will last with Social Security: 14 years, 5 months, 23 days
How long $1 million will last without Social Security: 10 years, 11 months, 8 days
Long Beach, California
How long $1 million will last with Social Security: 14 years, 0 months, 21 days
How long $1 million will last without Social Security: 10 years, 8 months, 12 days
Los Angeles
How long $1 million will last with Social Security: 14 years, 0 months, 21 days
How long $1 million will last without Social Security: 10 years, 8 months, 12 days
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New York
How long $1 million will last with Social Security: 12 years, 11 months, 1 day
How long $1 million will last without Social Security: 10 years, 0 months, 10 days
Oakland, California
How long $1 million will last with Social Security: 11 years, 0 months, 10 days
How long $1 million will last without Social Security: 8 years, 10 months, 5 days
San Jose, California
How long $1 million will last with Social Security: 8 years, 11 months, 26 days
How long $1 million will last without Social Security: 7 years, 5 months, 27 days
San Francisco
How long $1 million will last with Social Security: 8 years, 4 months, 10 days
How long $1 million will last without Social Security: 7 years, 0 months, 18 days
Methodology: To find how long $1,000,000 will last in America’s biggest cities, GOBankingRates first found the 50 biggest cities in terms of total population as sourced from the 2022 American Community Survey, conducted by the U.S. Census Bureau. GOBankingRates then found (1) the national average annual expenditures for people 65 and older, sourced from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey data. Then, GOBankingRates created (2) city-level annual expenditure estimates by multiplying the national figure by each state’s overall cost of living index score from Sperling’s Best. Finally, GOBankingRates found (3) how many years $1,000,000 will last in each city by dividing $1,000,000 by each state’s average annual expenditures estimate, with and without Social Security as supplemental income. All 50 cities were then ranked, with No. 1 being the state where $1,000,000 will last the longest and No. 50 being the city where it will run out most quickly. All data was collected on and up to date as of March 21, 2024.
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.
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This article originally appeared on GOBankingRates.com: There’s a Record Number of 401(k) Millionaires: Is It Enough To Retire in Your City?
