I Asked ChatGPT Where Retirees Will Run Out of $1 Million the Fastest

When planning retirement, people commonly ask for advice on how to make their money last. They turn to friends, family, and professionals — and even ChatGPT – for advice, posing the usual questions. How much will I need? Will I outlive my money?

No one's in a hurry to burn through their retirement savings. But what if you asked for advice on how to drain your life savings? In the same way you wonder whether or not a hot dog is truly a sandwich or how you'd decorate your Malibu beach palace, I decided to ask ChatGPT for its words of wisdom.

I asked the chatbot, "In which places will retirees burn through $1 million the fastest?" and here's what the AI oracle had to say.

Editor's note: Cost-of-living data comes from Apartments.com.

New York City, New York

With sky-high real estate, steep taxes, and expensive services, even modest comfort costs a premium. The Motley Fool ranks New York among the worst states to retire in for housing affordability, overall cost of living, safety, and tax rates.

According to Kiplinger, New York is the state where you're most likely to burn through your savings and wind up with a shortfall, pegging the average deficit at $448,000.

San Francisco / Silicon Valley, California

Housing in Silicon Valley is among the world's most unaffordable. San Jose, for example, has an average home value of just under $1.4 million according to Zillow, and this is down from a year ago.

The overall cost of living in the tech bubble is 81% higher than the national average, and it's not just sky-high housing costs. Residents pay 14% more for groceries and health care, 41% more for transportation, and 52% more for utilities.

Honolulu, Hawaii

Remote location drives up the cost of everything: shipping, utilities, and anything else you might buy — except for coconuts and local, tropical fruit.

In many maps of state retirement costs, Hawaii tops the list. With housing, health care, and other costs, total expenditures add up to over $110,00 a year, according to CNBC.

Los Angeles, California

Los Angeles, California, is another spot where retirees can easily run out of $1 million. While not as expensive as Silicon Valley, Los Angeles is still one of the nation's spendiest cities.

Compared to national averages, groceries, utilities, housing, and transportation are all pricier. Overall, living in L.A. costs nearly 49.7% more than in other U.S. locations.

Boston, Massachusetts

With high property taxes and a higher, overall cost of living, Boston's metro area is one of the nation's least affordable retirement destinations.

Everything costs more in Beantown. Housing is more than double the U.S. average, and health care — a major cost sink for seniors — is 24% higher.

Washington, D.C. / Northern Virginia

The nation's capital is packed, drawing full-time and part-time residents from around the globe. This density means sky-high rents, steep service costs, and heavy taxes on goods and services.

After New York and Hawaii, Kiplinger ranks Washington, D.C. as the "top place" for seniors to run out of retirement savings.

Miami, Florida

While Florida is known as a bastion for affordable living, the reality is very different in expensive urban areas like Miami. Heat, humidity, homeowner's insurance, and property values all push up costs.

And the area termites may eat through your home and wallet. According to Orkin, Miami is the worst city in America for these creepy crawlers, edging out Los Angeles and New York City. Treating your home for termites in Florida could set you back up to $8,000, and make room in your budget for annual inspections.

Seattle, Washington

While Washington boasts no state income taxes, the local sales tax in Seattle is 10.25%. Everything costs more in the Emerald City. On average, the cost of living in Seattle is 44.5% higher than the nation's average cost-of-living index.

Housing and health care are 105.4% and 24.3% more expensive there, making Seattle a difficult place to make $1 million last.

London, England

London's rich history and cultural buzz are appealing, but come at a steep price. Mercer ranks it among the world's 10 most expensive cities, with housing, dining, and transit costs far above global averages.

A strong British pound compounds expenses for U.S. retirees relying on dollar-based savings, where bad exchange rates can quickly siphon off a million.

Vancouver, Canada

Vancouver's lush, mountainous backdrop makes it a popular destination for retirees. While it doesn't have the cosmopolitan glam of London, it's still a spendy spot. Mercer's cost-of-living rankings place Vancouver as the second most expensive in Canada, coming in just behind Toronto.

According to BMO Harris, average home prices exceed 1.2 million Canadian dollars (about $857,000), and monthly expenses are over $1,000 just for one person. That's before you factor in things like out-of-country health insurance and medical costs.

Bottom line

ChatGPT's picks reinforce a universal truth: retirement is expensive everywhere, but some spots are true money pits. There, even modest withdrawals can exhaust your retirement savings in short order.

If you want some optimism to end on, consider a more affordable place like Oklahoma. ChatGPT suggested I consider the charms of Tulsa, as it ranks among the nation's cheapest cities to retire in, when accounting for housing, utilities, and general cost of living.

Suggesting Tulsa, Oklahoma as the antidote to living in New York City or London seemed a bit off the mark, like recommending cardboard huts for all to end the housing affordability crisis.

While there's a charm to its absurdity, your best bet is to map out your dream retirement lifestyle — and then stress test it against different housing, medical, tax, and cost scenarios — to see what you could afford, and then talk with a flesh-and-blood retirement planning expert.