The Challenge of Retirement in High-Cost U.S. Cities
Due to rising living expenses, soaring rent and real estate prices, and unpredictable inflation after COVID-19, saving for retirement has become increasingly difficult. By the age of 65, the average American accumulates around $609,000 in retirement savings.
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In some areas, this amount could sustain a comfortable lifestyle for several years. However, the high costs in other cities mean that retirees may quickly deplete their savings and may have to find additional sources of income.
GOBankingRates has compiled a list of cities where retirees may find their funds exhausted rapidly, primarily due to high mortgage rates associated with these expensive areas. For those with average savings, relocating to more affordable cities might be a wiser choice.
Monsey, New York
- Average monthly mortgage: $7,445
- Annual cost of living: $118,091
- Years to deplete average savings: 5.16
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Garden City, New York
- Average monthly mortgage: $7,509
- Annual cost of living: $119,917
- Years to deplete average savings: 5.08
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Morgan Hill, California
- Average monthly mortgage: $8,363
- Annual cost of living: $127,215
- Years to deplete average savings: 4.79
San Francisco, California
- Average monthly mortgage: $8,355
- Annual cost of living: $127,744
- Years to deplete average savings: 4.77
Kihei, Hawaii
- Average monthly mortgage: $8,499
- Annual cost of living: $129,593
- Years to deplete average savings: 4.70
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Great Neck, New York
- Average monthly mortgage: $8,562
- Annual cost of living: $132,600
- Years to deplete average savings: 4.59
Kailua, Hawaii
- Average monthly mortgage: $9,158
- Annual cost of living: $138,379
- Years to deplete average savings: 4.40
Short Hills, New Jersey
- Average monthly mortgage: $12,445
- Annual cost of living: $176,050
- Years to deplete average savings: 3.46
Foster City, California
- Average monthly mortgage: $12,648
- Annual cost of living: $179,056
- Years to deplete average savings: 3.40
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Belmont, California
- Average monthly mortgage: to be continued…
Top 6 Cities Where Your Retirement Savings Might Not Last
1. New York City, New York
- Average Monthly Mortgage: $13,479
- Annual Cost of Living: $188,970
- Years to Draw Down Average Savings: 3.22
2. Greenwich, Connecticut
- Average Monthly Mortgage: $14,097
- Annual Cost of Living: $197,269
- Years to Draw Down Average Savings: 3.09
3. San Carlos, California
- Average Monthly Mortgage: $14,400
- Annual Cost of Living: $199,970
- Years to Draw Down Average Savings: 3.05
4. Los Gatos, California
- Average Monthly Mortgage: $15,737
- Annual Cost of Living: $215,660
- Years to Draw Down Average Savings: 2.82
5. Burlingame, California
- Average Monthly Mortgage: $16,317
- Annual Cost of Living: $222,910
- Years to Draw Down Average Savings: 2.73
6. Hillsborough, California
- Average Monthly Mortgage: $30,603
- Annual Cost of Living: $394,440
- Years to Draw Down Average Savings: 1.54
Methodology: This report by GOBankingRates examines cities in the U.S. to identify those where residents may struggle to maintain their retirement savings. Data sources include the Federal Reserve’s Survey of Consumer Finances, Sperling’s BestPlaces for cost of living, and U.S. Census American Community Survey demographics. The analysis also considers average mortgage rates from the Federal Reserve and utilizes the average retirement account balances to estimate how long savings may last. All information is as of October 7, 2024.
This article originally appeared on GOBankingRates.com: 15 Cities Where You’re Likely To Outlast Your Retirement Savings
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
