Mon Sep 09 15:01:22 UTC 2024: ## Record Number of 401(k) Millionaires: Is it Enough to Retire Comfortably?
**According to a recent Fidelity Investments report, the number of 401(k) accounts holding at least $1 million has reached a record high, surpassing 497,000.** This represents a 2.5% increase from earlier this year. While reaching the $1 million milestone is a significant accomplishment, its actual value in retirement depends greatly on the cost of living in your state.
**Experts say the average American retirement lasts about 20 years.** With a $1 million nest egg and no additional income sources, that equates to roughly $50,000 per year. Factoring in Social Security benefits, which average around $22,884 annually, boosts the total to approximately $72,884 per year (excluding taxes).
**GOBankingRates conducted a study analyzing the cost of living in each state and how long a retirement fund of $1 million, with or without Social Security, would last.** The results revealed that several states are too expensive for a comfortable retirement with these funds alone.
**For example, states like California, New York, and Hawaii require a significantly higher income to maintain a comfortable lifestyle.** On the other hand, states like Mississippi, West Virginia, and Arkansas offer more affordable living options, allowing a $1 million nest egg to last considerably longer.
**While reaching the $1 million mark is a notable achievement, it’s important to consider individual circumstances and adjust retirement planning accordingly.** Factors like location, health expenses, and desired lifestyle all play a crucial role in determining financial preparedness for retirement.
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