Is $1 Million Enough for Retirement in America? A City-by-City Analysis presented by Safe Money Lady™

Retirement planning is a critical aspect of financial stability, and many Americans wonder if $1 million in savings is sufficient to sustain them through their retirement years. The answer, as it turns out, varies significantly depending on the city in which one resides. Following, we explore a city-by-city analysis of how long $1 million in retirement savings would last, shedding light on the impact of location on retirement affordability.

How Long Will $1 Million Last in 50 Cities: To assess the adequacy of $1 million in retirement savings, GOBankingRates conducted a comprehensive analysis of the top 50 most populated U.S. cities. The study factored in the average expenditures of individuals aged 65 or older, using data from the Bureau of Labor Statistics, and incorporated cost-of-living indices from Sperling's Best Places. The calculations were further adjusted for average Social Security income.

The Results: Unsurprisingly, San Francisco emerged as the most expensive city on the list, with $1 million lasting approximately eight years. The high cost of living in San Francisco, particularly housing, contributes significantly to this shortened timeline. Housing costs in San Francisco are nearly six times the national average and 3.6 times higher than the state of California overall.

Other expensive cities include three more Californian cities - Los Angeles, San Jose, and San Diego - as well as New York City. In New York City, $1 million is expected to last a retiree about 12.7 years.

Conversely, Memphis, Tennessee, stands out as the most retirement-friendly city on the list, where $1 million could last an impressive 45.3 years. Housing costs in Memphis are about 2.7 times lower than the national average, making it a considerably more affordable place to retire.

The Impact of COVID-19 on Retirement Planning: While the analysis provides valuable insights into the regional variations in retirement affordability, it's crucial to note that retirement planning should not be delayed. A recent survey indicates that only 41% of women and 58% of men are actively saving for retirement. However, the COVID-19 pandemic has served as a financial wake-up call for many, with 70% of respondents claiming that the pandemic has prompted them to pay more attention to their long-term finances.

In conclusion, $1 million may or may not be enough for retirement in America, depending on where you live. The city-by-city analysis highlights the significant impact of regional cost-of-living variations on retirement savings. Regardless of location, it is essential for individuals to start planning for retirement as early as possible. The longevity of funds is particularly important given the trend of people living longer, emphasizing the need for comprehensive retirement planning strategies tailored to individual circumstances and geographical locations.

Best regards,

Sharon Ben-David

Your Safe Money Lady™

Protecting Your Nest Egg, Inc.

Phone: (954) 261-5200