10 Major Cities Where $1 Million in Retirement Savings Won’t Last Long
Planning for retirement is a long-term process and financial experts often use the example of reaching $1 million in retirement savings as an ideal target. This number is just a guideline and may not stretch as far depending on where you live and how long you need to rely on your retirement fund.
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The cost of living is different in each city and based on GOBankingRates’ recent data, here are 10 major cities where $1 in retirement savings won’t last as long as you may need.
1. San Francisco
San Francisco is a large city with a high cost of living to the tune of $124,929.81 so it’s no surprise that $1 million in retirement savings won’t last long here. The median home price is well over $1 million, and healthcare costs can also be significantly above the national average. As a result, your retirement savings would only last 8 years here so you’d need to set aside a lot more.
2. San Jose, California
Adjacent to Silicon Valley, San Jose benefits from a strong economy — but that comes with a steep price tag. Like its neighbor, San Jose is a pricey place to live, with housing accounting for a high percentage of the cost of living. In this city, $1 million won’t last long — only 8.94 years.
3. New York City
In New York City, the average cost of living is $94,716.56. Living in New York City provides unparalleled access to some of the world’s best in arts and culture. The city’s population of people 65 and older is 16%, but it’s still not the best place to retire with $1 million since your funds would only last a little over 10 years.
4. Boston
Boston is another city with a high cost of living, driven by housing, transportation, and healthcare expenses. In Boston, $1 million in retirement savings only covers 10.68 years so your retirement season there would be short-lived.
5. Oakland, California
Just across the bay from San Francisco, Oakland is a vibrant city with a slightly lower cost of living. Housing is high but, even if your home is paid off or you have a lower mortgage, utilities add up to around $3,825 per year. Your savings would only last 10.79 years here.
6. Los Angeles
Los Angeles is a large city where the cost of living is 51% higher than the national average. Grocery prices are 11% higher than the national average and the median home price is over $1 million. Your retirement savings would last just under 11 years here.
7. Seattle
Seattle’s growth has brought both cultural richness and increased living costs. But it may not be the best place for retirees depending on your budget. If you spend the average amount of $82,195.44 here, it will only last 12.17 years.
8. Washington D.C.
Washington D.C. is a political and cultural hub of the U.S. and offers lots of great restaurants and free museums. Still, the cost of living is higher in this city and averages around $82,113.76 per year. So your $1 million retirement savings balance would last a little over 12 years.
9. Miami
While the state of Florida is a popular destination for retirees, the city of Miami itself is pretty costly. On average, the annual cost of living is around $74,107.86 so your retirement savings will last around 13 years. Luckily, there are several other affordable areas in the state of Florida to consider settling down in instead if Miami seems too expensive.
10. Denver
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Denver’s popularity has boomed taking on the nickname of the Mile High City as it’s a great distance from the mountains and home to many startups. This city may not be the best place to retire early since $1 million would last around 14.77 years.
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This article originally appeared on GOBankingRates.com: 10 Major Cities Where $1 Million in Retirement Savings Won’t Last Long
