- A new report by GOBankingRates calculated how much you’ll need to retire in the most popular destinations in the U.S.
- California dominated the top five, but places in Arizona, Maryland, and Florida made appearances in the top 10.
- Some of the “cheapest” places that you can retire wealthy include towns in Georgia, South Carolina, and Arkansas.
Sure, you may have enough saved to retire comfortably, but what if you want to feel rich during your golden years?
GOBankingRates, a personal finance and banking publication, recently revealed how much you’ll need saved to retire wealthy in the top 50 most popular retirement destinations in the U.S., which it defined as “50 cities with a population over 15,000 and with the highest percent of population over age 65.”
To determine exactly how much you need saved to be rich in these cities, it first calculated the annual cost of expenses for retirees in each location. In addition to every day expenses, it also took into account things like annual social security income. And while GOBankingRates cited Northwestern Mutual’s “magic number” of $1.26 million (the amount most Americans will need to retire comfortably), it found that you may need far more to retire and be rich in the nation’s most popular retirement towns.
Perhaps as no surprise to those in the know, some of the most popular places to retire in the U.S. are located in California, and retirees will need more than $3 million to retire rich for at least 20 years in Laguna Woods (No. 1) and Seal Beach (No. 2). You’ll need more than $2 million to retire in Palm Springs (No. 3), Palm Desert (No. 4), and Rancho Mirage (No. 5).
The site also notes that a “rich” retirement spanning 25 years will cost between $2.7 million and $3.8 million in these five locations, while a 30-year retirement can cost anywhere between $3.3 million and $4.5 million. Even if you’re planning to live less lavishly, you’ll need at least $1.9 million to retire for 25 years in Laguna Woods.
However, while California towns dominated the top five, several locations outside of the Golden State made appearances in the top 10: Parole, Maryland (No. 6); Prescott, Arizona (No. 7); Marco Island, Florida (No. 8); Sun City West, Arizona (No. 9); and Sun City, Arizona (No. 10). You’ll need around at least $1.8 million to retire rich for 20 years in any of these locations, and around $2.2 million if you plan to retire for 25 years.
Some of the most affordable places that you could live and retire wealthy include St. Simons, Georgia (where you’ll need a little over $1.2 million); North Myrtle Beach, South Carolina (also requiring around $1.2 million); and Hot Springs Village, Arkansas, where you’ll need a little over $1 million.
See the full report and explore all the destinations where you can retire for less at GOBankingRates’ website.