One of the most common questions that financial advisors hear is, “How much money do I need to retire?”
If you’re planning to spend your retirement in one of these major cities, the answer is “at least $1 million.”
MagnifyMoney analysts used the U.S. Bureau of Labor Statistics and other demographic and financial data to determine the amount of gross income workers would need to retire in numerous cities.
$1 million might seem like a huge number to some people, especially those who haven't spent much time on retirement planning and investing. There are ways to ensure that you are prepared for retirement, though – breaking down and building is critical to ensuring that you don't run out of money.
Where do you need a million dollars to retire?
The MagnifyMoney report identified 28 cities that require retirement savings of at least $1 million. These cities represent about 7% of all metropolitan areas included in the study.
Not surprisingly, most “millionaire retiree” cities are located on the East and West coasts. Only five states - Alaska, California, New York, Oregon, and Hawaii - are home to two or more of these cities. A whopping 14 of the cities on the list are located in California.
The retirement savings required to live in any of these cities comfortably lies in stark contrast to how much it takes to maintain a comfortable retirement in other areas. For example, in Jackson, Tennessee, retirees can enjoy a comfortable lifestyle on less than $500,000.
What if you're unprepared for retirement?
If you are a mid-career employee or a worker nearing retirement, you may be concerned about how you will save enough to live comfortably in retirement. Although getting started may seem overwhelming, starting with any amount is a tremendous step in the right direction. Even if you can only save $50 a month, you can still spark growth that can help cover your costs in retirement.
Also, remember that your retirement savings and investments aren't necessarily your only sources of income in retirement. If your employer offers a pension, you may be entitled to an ongoing monthly payment for the rest of your life, which can help fund your retirement.
Also, Social Security payments may also be available to help you cover costs throughout your retirement years. Annual cost-of-living increases help ensure that your Social Security payments keep pace with a higher cost of living in the future.
Want to know more about how you can maximize your retirement income today? Get in touch with one of our professionals today.