Retirement planning is a long-term process, and financial experts often cite reaching $1 million in retirement savings as an ideal goal. This number is just a guideline and may not be that great depending on where you live and how long you have been dependent on the pension fund.
The cost of living varies from city to city. Based on the latest data, here are 10 major cities where $1 won’t last as long as you need your retirement savings.
1. San Francisco
San Francisco is a large city with a high cost of living at $124,929.81. So it’s no wonder $1 million in retirement savings doesn’t last long here. The average home price is well over $1 million, and medical costs can also be significantly higher than the national average. As a result, the retirement fund will only last him eight years, so he will need to save even more.
2. San Jose, California
San Jose borders Silicon Valley and benefits from a strong economy, but it comes at a high price. Like its neighbors, San Jose is an expensive place to live, with housing costs making up a high percentage of the cost of living. In this city, $1 million doesn’t last long, only 8.94 years.
3. New York City
The average cost of living in New York City is $94,716.56. Living in New York City gives you unprecedented access to some of the world’s best arts and culture. This city’s population is 16% over the age of 65, but it’s still not the best place to retire with $1 million.
4. Boston
Boston is also a city with a high cost of living due to housing, transportation, and medical expenses. In Boston, $1 million in retirement savings will only cover you for 10.68 years, so your retirement season in Boston won’t last long.
5. Oakland, California
Located on the San Francisco Bay, Oakland is a vibrant city with a slightly lower cost of living. Homes are expensive, but even if your mortgage is paid off or your mortgage is reduced, the additional cost will be about $3,825 per year. Here your savings will only last 10.79 years.
6. Los Angeles
Los Angeles is a large city where the cost of living is 51% higher than the national average. Food prices are 11% higher than the national average, and the average home price is over $1 million. Your retirement savings will last you almost 11 years.
7. Seattle
Seattle’s growth has brought cultural richness and a rising cost of living. However, depending on your budget, it may not be the best place for retirees. If he spends an average amount of $82,195.44 here, it will last him only 12.17 years.
8. Washington, D.C.
Washington, D.C. America’s political and cultural capital, home to many great restaurants and free museums. Still, the cost of living in this city is high, averaging around $82,113.76 per year. That means your $1 million in retirement savings will last you just over 12 years.
9. Miami
Florida is a popular destination for retirees, but the city of Miami itself is very expensive. On average, your annual living expenses are about $74,107.86, so your retirement savings will last you about 13 years. Fortunately, if Miami seems too expensive, there are several affordable areas in Florida you can settle in instead.
10. Denver
Denver is becoming increasingly popular, earning it the nickname “Mile High City” due to its distance from the mountains and home to many startup companies. Since $1 million lasts about 14.77 years, this city may not be the best place to retire early.