When considering retirement, many individuals take the cost of living into account, especially regarding where they want to settle after their careers end. It’s interesting to note that some places are significantly pricier than others. A recent analysis by Gobankingrates identified 30 cities in the U.S. that are particularly costly for retirees.
To make these rankings, they focused on cities with populations exceeding 25,000, where over 25% of residents are aged 65 or older. They assessed various costs, including homeownership, rent, and everyday living expenses. Not surprisingly, out of the top ten cities listed, a majority are in California.
Saratoga, California
Saratoga was determined to be the priciest retirement spot, with annual homeowner costs hitting about $282,625, as per the report. Nestled in the Bay Area, this place certainly makes its mark as a costly haven for retirees.
Rancho Palos Verdes, California
Following closely is Rancho Palos Verdes, with annual living expenses for homeowners averaging $144,381. Notably, around 26% of its residents are 65 or older.
Walnut Creek, California
Meanwhile, Walnut Creek ranks third. Homeowners there face similar annual costs of around $144,381, and retirees typically spend around $5,551 on groceries each year according to the report.
Cerritos, California
Cerritos, another Californian city near Los Angeles, is fourth on the list. The Gobankingrates study places its homeowners’ expenses at about $91,644 annually.
Palm Springs, California
Palm Springs follows, with a living cost of $86,550 yearly. The report highlights that homes in this area average around $102 million, which is quite staggering.
Scottsdale, Arizona
Scottsdale, in Arizona, has an annual living cost of $81,525. With its 314 sunny days each year, it’s a lovely spot, as touted on the city’s government site.
La Quinta, California
Another California city, La Quinta, is noted for its retiree demographic, with roughly one-third of its population over 65. The reported annual living cost is $71,613.
Gloucester, Massachusetts
Gloucester, known as America’s oldest port and situated about 40 miles northeast of Boston, offers living costs around $71,334 annually for retirees.
Palm Beach Gardens, Florida
In Florida, Palm Beach Gardens ranks high, with 31% of its residents being 65 or older. The estimated homeowner cost here is about $70,601, with an average home value of $759,350.
Barnstable Town, Massachusetts
Finally, Barnstable Town in Cape Cod sees annual retiree living expenses at $68,453. Interestingly, a March survey by Fidelity Investments noted that 72% of recent retirees feel their resignations are “progressing as planned,” even as many report struggles with rising costs.
Research suggests that for over two-thirds of retirees, this new chapter is turning out to be “more fun than expected,” which is certainly encouraging amid financial concerns.
