A recent study conducted by GOBankingRates has revealed that a $1 million retirement fund would last a maximum of 22 years, 8 months, and 12 days in the United States. The analysis found significant variations in how far the sum would stretch across different states, with Mississippi leading as the state where the fund would last the longest. Meanwhile, Hawaii came in last, with savings running out after just 10 years, 3 months, and 22 days.

The study highlighted the impact of rampant inflation and soaring interest rates on the purchasing power of $1 million. In Mississippi, estimated annual spending was placed at $44,059, allowing the retirement fund to last longer. On the other hand, retirees in Hawaii would need to spend a staggering $96,982 annually, depleting their nest egg at a much faster rate.

Following Hawaii, the study identified New York and California as states where $1 million in retirement savings would run out relatively quickly. In New York, the funds would last 14 years and one month, while in California, they would last just 13 years and nine months. Massachusetts, Alaska, and Florida were also highlighted as states where the retirement fund would deplete within a specific timeframe.

Interestingly, the analysis revealed that Midwestern and Southern states had a greater cushion, with the funds stretching for over 22 years in Mississippi, Oklahoma, and Alabama. However, despite these differences, $1 million may not be sufficient to cover an individual's entire retirement period.

While the study outlined the challenges of stretching retirement funds, there was some positive news as well. The number of Americans with $1 million or more in their retirement accounts increased significantly in 2023, thanks to a booming stock market. The number of 401(K) millionaires grew by approximately 100,000, with Fidelity Investments reporting 349,000 401(K) owners and 339,000 workers with Individual Retirement Accounts (IRA) ending the year with seven-figure balances.

Experts have also shed light on the amount individuals need to save into their 401(K) accounts to reach the $1 million milestone. The Motley Fool suggests saving $325 per month for a 22-year-old to retire with $1.01 million at the age of 62. The required monthly savings increase to $500, $750, $1,200, and $1,900 for those starting at later ages.

To achieve these savings goals, The Motley Fool recommends allocating a portion of one's portfolio to stocks, based on the common rule of thumb of subtracting one's age from 110. This approach allows for higher risk tolerance and potential higher returns for younger investors.

As retirement planning continues to be a priority for many Americans, understanding the varying factors that impact the longevity of retirement funds becomes crucial. With the cost of living and inflation rates differing from state to state, individuals must consider these factors when planning for a financially secure future.