10 Major Cities Where $1 Million in Retirement Savings Won’t Last Long

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Planning for your retirement is a long-term process, and financial experts often use the example of reaching $1 million in retirement savings as an ideal target. This number is just a guideline and may not reach that far depending on where you live and how long you need to rely on your retirement fund.

The cost of living varies in every city, and based on recent data from GOBankingRates, here are 10 major cities where $1 in retirement savings won’t last as long as you need.

1. San Francisco

San Francisco is a big city with a high cost of living of $124,929.81, so it’s no surprise that $1 million in retirement savings won’t last long here. The average home price is well over $1 million, and healthcare costs can also be significantly above the national average. As a result, your retirement savings here would only last 8 years, so you would need to put a lot more aside.

2. San Jose, California

San Jose borders Silicon Valley and benefits from a strong economy, but that comes with a high price tag. Like its neighbor, San Jose is an expensive place to live, with housing accounting for a high percentage of the cost of living. In this city, $1 million won’t last long: only 8.94 years.

3. New York City

In New York City, the average cost of living is $94,716.56. Living in New York City offers unparalleled access to some of the world’s best art and culture. The city’s population age 65 and older is 16%, but it’s still not the best place to retire with $1 million because your money will only last a little more than 10 years.

4. Boston

Boston is another city with a high cost of living, caused by housing, transportation, and healthcare costs. In Boston, $1 million in retirement savings only covers 10.68 years, so your retirement season there would be short-lived.

5. Oakland, California

Located across the Bay from San Francisco, Oakland is a vibrant city with a slightly lower cost of living. Housing costs are high, but even if your house is paid off or you have a lower mortgage, utilities are about $3,825 per year. Your savings here would only last 10.79 years.

6. Los Angeles

Los Angeles is a major city where the cost of living is 51% higher than the national average. Grocery prices are 11% higher than the national average and the median home price is over $1 million. Your retirement savings here would last just under 11 years.

7. Seattle

Seattle’s growth has brought both cultural wealth and a higher cost of living. But depending on your budget, it may not be the best place for retirees. If you spend the average amount of $82,195.44 here, it will only last 12.17 years.

8. Washington DC

Washington DC is a political and cultural center of the US and offers many good restaurants and free museums. Still, the cost of living in this city is higher and averages about $82,113.76 per year. So your $1 million retirement savings balance would last just over 12 years.

9. Miami

While the state of Florida is a popular destination for retirees, the city of Miami itself is quite expensive. On average, the annual cost of living is about $74,107.86, so your retirement savings will last about 13 years. Fortunately, there are several other affordable areas in the state of Florida where you can consider settling if Miami seems too expensive.

10. Denver

Denver’s popularity has exploded and has been nicknamed The Mile High City because it is far from the mountains and is home to many startups. This city may not be the best place to retire early, as $1 million will last about 14.77 years.

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