If you’re getting ready to retire, you’re probably thinking about how to manage your expenses on a fixed income, especially if you’ll be relying mostly on Social Security and your 401(k) savings.
If you live in North Carolina, some costs might be lower, while others could be higher compared to the rest of the U.S. GOBankingRates conducted a study to see how long the average retirement income lasts in each state.
For North Carolina, here’s what they found:
- Years 401(k) Will Last with Social Security: 16.99 years
- Days: 6,206 days
- Annual Spending: $55,100.55
- After-Tax Spending: $32,703.27
This gives you a rough idea of how long your money might last in North Carolina, but it doesn’t break down specific costs like groceries, housing, utilities, transportation, and healthcare.
Here’s a breakdown of how long your 401(k) and Social Security benefits might last you in North Carolina based on GOBankingRates’ study.
Groceries
- Grocery Cost Index: 98.4
- Annual Grocery Spending: $4,720.25
Groceries in North Carolina cost a bit less than the national average, saving you about $80 a year.
Housing
- Housing Cost Index: 92.9
- Annual Housing Spending: $10,861.87
Housing costs in North Carolina are lower than the national average, saving you a few hundred dollars each year.
Utilities
- Utilities Cost Index: 98.8
- Annual Utilities Spending: $4,185.17
North Carolina’s utility costs are slightly below the national average, saving you around $50 annually.
Transportation
- Transportation Cost Index: 96.2
- Annual Transportation Spending: $4,755.17
Transportation costs in North Carolina are a bit lower than the national average, helping you stretch your budget further.
Healthcare
- Healthcare Cost Index: 105
- Annual Healthcare Spending: $7,917
Healthcare is where North Carolina retirees might spend more, with costs a few hundred dollars above the national average.
Overall, the study found that the average U.S. retiree can live about 15 years on just their 401(k) and Social Security. In North Carolina, retirees can expect their savings to last nearly 17 years, placing the state 28th in the nation, just behind South Carolina.
Methodology: GOBankingRates used data from the Bureau of Labor Statistics and the Social Security Administration to calculate how long $555,621 in 401(k) savings would last across different states. They factored in the cost of living in each state, focusing on expenses like groceries, housing, utilities, transportation, and healthcare. All data was updated as of May 22, 2024.