If you manage to accumulate a retirement nest egg of $1 million, you’re in a rare club. Although many Americans view this as the ultimate retirement “number,” many fall well short in their quest to attain it. Of course, $1 million is just a number, and depending on where you live in the U.S., it may not stretch as far as you might imagine. Whereas areas like the South and Midwest are generally inexpensive, at least relatively speaking, living in the Northeast tends to cost more. This is something that early retirees looking to make their dollars last should take into consideration. 

                By                    John Csiszar

Be Aware: 29 Careless Ways Retirees Waste MoneySee: 5 Things You Must Do When Your Savings Reach $50,000

How Long Will $1 Million Last in the Northeast?

The nine states listed above were lumped together as the Northeast in order to find an average cost of living for the region. Based on the data, the average monthly rent for a one-bedroom apartment is $1,006, while the average monthly cost of living, which includes transportation, health, utility, grocery and miscellaneous costs, is $4,389.79. Combined, these two figures represent a total average monthly expenditure in the Northeast of $5,395.79. 

Based on those figures — and neglecting any investment gains that may be earned on that money — $1 million will last just 15.44 years on average in the Northeast.

Is the Northeast a Good Place To Stretch $1 Million in Retirement Savings?

Overall, the cost of living is quite high in the Northeast, particularly when compared with less expensive states like Mississippi, Alabama and Iowa. In fact, moving from these low-cost states to the Northeast will trim five or more years off the life of your retirement funds. In that sense, living in or moving to the Northeast isn’t a great idea if you’re looking to stretch your $1 million nest egg.  

See: With A Recession Looming, Take These 3 Retirement Moves To Stay On Track

Take Our Poll: Are You Concerned That Social Security Benefits Will Be Reduced During Your Lifetime?

How Can You Make Your Retirement Money Last Longer?

Whether you’ve recently moved to the Northeast or have lived there your entire life, there are still plenty of ways to help your retirement money last longer. Here are just a few.

Invest Prudently

One of the best ways to stretch your retirement money is to make wise investment decisions. After all, $1 million will only last a bit over 15 years in the Northeast, and that’s not going to cut it for most retirements. If you retire early, you’ll definitely fall short, as you’ll likely need that money to last 30 years or more. This is a good time to consult with a financial advisor to develop a successful long-term investment strategy for your nest egg. 

Downsize

A common problem many retirees have is that they live in homes that are too large for their needs. If you no longer have kids around the house, you may consider moving to a small residence, particularly if you want your money to last in the Northeast. Not only could you save on mortgage or rent payments, you’ll also spend less on things like maintenance and utilities. If your home is paid off, you could sell it and take some equity out as well when you downsize, adding to your retirement kitty.

Relocate — Even Within the Northeast

Even though the Northeast is an expensive region to live in from an aggregate perspective, there are still lots of options within the Northeast that may be less expensive than others. There are actually plenty of towns in the Northeast that don’t have big-city or rural-luxury costs, and choosing these areas can help make your money last longer.  

Get a Roommate

Getting a roommate can be a great way to trim expenses in the Northeast, as you can cut costs by as much as 50%.

Pick Up a Side Gig

If you want to make your retirement money last in the Northeast, particularly if you retire early, you may have to consider picking up a side gig to pull in some additional income.

  • Dollar Tree: 5 High-Quality Items To Buy NowDo You Have a Tax Question? Ask a Tax ProThe 10 Best Cash Back Credit Cards for 20236 Reasons Why You Shouldn’t Procrastinate on Your Taxes