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The same amount of money may stretch nearly two decades in many other states.
Healthcare Costs
One significant factor is healthcare costs.
Arizonas large retiree population means that demand for healthcare services is high, which can drive up costs.
Annual healthcare costs in the southwestern state are $7,178 on average.
This amount is only slightly under the2024 first-quarter cost of livingfor healthcare average in the United States.
Even those who own their homes outright may face increasing property taxes and maintenance costs.
The average annual housing cost in the state is $15,059.
Housing costs in Arizona are approximately 28% higher than the national average.
Inflation
Inflation is another critical factor, said Shirshikov.
Over the span of 15 years, the purchasing power of money can significantly decline.
This means that the same basket ofgoods and serviceswill cost more in the future than it does today.
Retirees on a fixed income need to account for an average inflation rate of about 2-3% annually.
Inflation, which is measured by the Consumer Price Index, soared to near-record levels in 2022.
While inflation has cooled over the last few years, it can still affect retirees significantly.
Lifestyle Expectations
Lifestyle expectations also play a role, added Shirshikov.
He concluded, In comparison to other states, Arizonas affordability is nuanced.
All 50 states and the District of Columbia were then ranked with No.
1 being the state where $1,000,000 will last the longest and No.
51 being the state where it will run out most quickly.
All data was collected on and up to date as of April 23, 2024.
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