Yahoo Finance I’m a Retirement Planner: You May Regret Retiring in These 3 Costly Cities
For most people, retirement means a significant reduction in income. Even for scrimpers and savers, retirement can require a huge lifestyle adjustment from when you were working a 9 to 5. Retirees are often on a tight budget and may face increasing healthcare costs. They must factor in things like inflation, cost of living and more when deciding where to spend their golden years.
While many seniors flock to Southern states like Florida and Alabama, which have a lower cost of living and favorable tax breaks for retirees, there are some areas around the country that you may want to avoid once you turn in your timecard. Pricier states, like New York and California, are often difficult for retirees to live comfortably in because of their high cost of living and extraordinary housing costs.
To dive further into the topic, GOBankingRates asked Scarlette Joyce Rojas, a financial advisor with Money Mindset Wealth Management, to weigh in on the topic. When asked about cities where retirees may regret retiring, she noted, “One thing I strongly consider when financially planning for my clients is the city they plan to live in because I know they’ll need health care and assisted living at some point in the future.”
Considering these things, here are the costly cities you might want to avoid if you are retiring.
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New York City and the Metropolitan Area
For retirees looking at the Big Apple, Rojas cautioned, “Anywhere in the New York City and Metropolitan area, including New Jersey, can cost you upwards of $390 per day for assisted living. That’s over $142,000 per year to live in an assisted living facility.”
According to BestPlaces, the cost of living in New York City is over 72% higher than the average in the United States. It is also 42% higher than the state average. For retirees on a strict budget, this can be difficult to maintain. To live comfortably in the city, it is estimated that you would need a “minimum annual income of $129,600 for a family and $92,000 for a single person.”
Other factors that retirees should consider before moving to “The City That Never Sleeps” are higher than average healthcare costs. Healthcare in the city is over 27% higher than the national average. Transportation is also significantly more expensive than in other parts of the country, and you will have to plan more for utilities.
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Bridgeport-Stamford-Norwalk, Connecticut
Another area that may be too costly for retirees is the Bridgeport-Stamford-Norwalk area of Connecticut. BestPlaces shows that the cost of living in the Bridgeport-Stamford-Norwalk metro area is 37.6% higher than the average in the U.S. and over 23% higher than the state average. Housing prices are 71% over the national average, and rent for a two-bedroom apartment averages $2,100, compared to the average in the U.S. of $1,430. Healthcare, groceries, utilities and transportation will also cost you more than in other areas in the state and nationwide.
Rojas said, “Bridgeport-Stamford-Norwalk area of Connecticut is another place to stay away from. The average cost of a room in a nursing home there has reached $159,359.”
Anchorage, Alaska
Harsh weather isn’t the only reason you might want to think twice about retiring in Anchorage, Alaska. While Alaska’s most populous city offers some incredible sightseeing experiences, it also comes with a considerable price tag, particularly if you will need assisted care in the future.
Rojas cautioned retirees that they may want to, “stay away from Anchorage, Alaska where the average annual nursing home cost of $156,950.”
The cost of living in Anchorage, Alaska, is approximately 15.5% higher than the national average. A typical home in the city is slightly more expensive than the average in the United States at $344,400. It is estimated that you will need “a minimum annual income of $65,880 for a family and $44,400 for a single person.” Healthcare costs, transportation, utilities and groceries are all also just over what you would pay in other places across the country.
Cost of living data is accurate as of June 20, 2024, and was sourced from BestPlaces.
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This article originally appeared on GOBankingRates.com: I’m a Retirement Planner: You May Regret Retiring in These 3 Costly Cities
