Having $2 million saved for retirement can provide a substantial financial cushion, but the duration of that cushion varies dramatically depending on the state in which one resides. A recent analysis conducted by GOBankingRates offers a detailed breakdown of how long retirement savings can last across different states, revealing that the geographical cost of living plays a pivotal role.

According to the GOBankingRates analysis, the estimated longevity of a $2 million retirement fund, supplemented by Social Security payments, can last an astonishing 23 years in Hawaii but can stretch up to 72 years in West Virginia. This stark contrast is primarily attributed to the differences in the cost of living across various states, with housing prices being a significant contributing factor.

In states that are home to major urban centers, such as California, New York, and Massachusetts, retirees face substantially higher housing costs. Data indicates that retirees in these states might need to allocate an additional $30,000 annually just to cover housing compared to those living in more affordable areas. As a result, individuals in these high-cost states must save more to maintain their desired standard of living during retirement.

The analysis conducted by GOBankingRates took into account an array of typical expenses that retirees face, including groceries, housing, transportation, utilities, and healthcare. This data was extracted from the Bureau of Labor Statistics 2023 Consumer Expenditure Survey. To offer a clearer perspective on retirement spending, GOBankingRates adjusted these figures for each state using the Missouri Economic Research and Information Center's cost-of-living index.

While a nest egg of $2 million may seem substantial, it is noteworthy that this amount is a high benchmark, considering that only 1.8% of households actually manage to save this much, according to the Employee Benefit Research Institute. In fact, this level of savings is sufficient to cover more than 35 years of retirement in all but three states: Hawaii, Massachusetts, and California.

This target of $2 million isn't far from what many Americans aspire to achieve. Many surveys, including one conducted by Northwestern Mutual with responses from 4,588 Americans, suggest that the commonly accepted 'magic number' for retirement savings hovers around $1.5 million.

Below is a summary of how long $2 million, alongside average Social Security benefits, is projected to last in each state, arranged in alphabetical order.