Wait—what’s this? Good news out of Detroit? Sort of. If 401(k) advisors slacked on the job and participants are left with little for retirement, five cities, in particular, will help stretch savings the farthest.
GOBankingRates.com examined the average costs for a 65-year-old for housing, utilities, groceries, and healthcare in the 100 largest cities to calculate where a retiree can stretch their retirement savings the furthest.
To put these costs in perspective, the website took the approximate median nest egg retirees have saved—$150,000—and subtracted one year’s worth of costs in each of those cities to show how much of a hit their savings will take.
The top five are all located mainly in the Midwest, and include:
- Detroit
Retiree cost of living: $33,356.12
Nest egg left over: $116,643.88
- Memphis, Tenn.
Retiree cost of living: $33,859.44
Nest egg left over: $116,140.56
- Toledo, Ohio
Retiree cost of living: $35,094.85
Nest egg left over: $114,905.15
- Cleveland, Ohio
Retiree cost of living: $36,055.73
Nest egg left over: $113,944.27
- Fort Wayne, Ind.
Retiree cost of living: $37,153.87
Nest egg left over: $112,846.13
The website added that while most of the top cities for retirement savings are located in the Midwest, two cities in Texas land on this list this year: El Paso and Corpus Christi.
Also, despite (or rather because of) the state’s popularity among retirees, Jacksonville is the only city in Florida that ranks in the top 10.
On the other end, Lexington-Fayette, Ky. tops the list for most expensive housing expenditures.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
