This article takes a look at the 20 best US cities to retire with $1 million in retirement savings. If you wish to skip our detailed analysis on navigating the financial landscape of the retirement period in the US, you may go to 5 Best US Cities to Retire with $1 Million in Retirement Savings.
The $1 Million Retirement Myth – and How to Counter It
What could you do with $1 million? EquityAtlas says that you could buy a luxury vehicle, secure your own private island, or set out on a world tour.
Now think about $1 million in retirement, and the reality changes. In fact, in many cities in the US, it may become difficult to purchase a home, the reality of which depends on whether you’re living in one of the most expensive cities in the U.S. to buy a house. With Redfin Corp (NASDAQ:RDFN) quoting median house prices in the US to be $402,523 as of January 2024 – a 5.2% hike from the previous year – your forever home might just cost you a sizeable 40% of your retirement savings. Of course, some retirees do end up paying less as they search for the most affordable housing markets in the US. Maine and Florida are two of the most popular states to retire to in the US. For these states, median house prices sit at $375,300 and $403,700, respectively, as reported by Redfin Corp (NASDAQ:RDFN). However, what is potentially more concerning is the price hikes that housing in these states underwent – 14.1% for Maine and 4.5% for Florida – since 2023.
In reality, how long $1 million will last you in retirement depends on the number of years that make up your retirement period. While the age to which a person lives is determined by several factors, including their medical health, their genetics, their fitness routine, and their lifestyle, among others, there are estimates. On average, a 65-year-old retiree can expect to live another 20 years, as reported by the Organisation for Economic Cooperation and Development.
$1 million for a 20-year retirement comes out to $50,000 a year – really not very much when you look at it. Sure, at first glance $50,000 seems like a comfortable yearly amount on which to live out your retirement. After all, what is a retiree going to spend $50,000 on? Going a step further, it even comes close to the Bureau of Labor Statistics’ $52,141 figure for the average yearly expenses of citizens aged 65 or older. However, envisioning $50,000 to be a luxurious retirement sum is not a very accurate truth. Of the spending figure quoted by the Bureau of Labor Statistics, the majority is spent on necessities such as housing, groceries, healthcare, and transport. Very little, if any, is left behind for emergencies, home repairs, vacations, and the holiday season. Not to mention, taxation is also a big part of retirement spending depending on where you live.
With how the income and expenses tally, many retirees are left spending their entire Golden period on rent, never actually making it close enough to afford the houses for sale on Redfin Corp (NASDAQ:RDFN), Zillow Group, Inc (NASDAQ:Z), Realtor, and the likes. Of course, rent is not always a much more favorable option and many retirees struggle with the rent burden. Based on data shared by Zillow Group, Inc (NASDAQ:Z), average rent figures for one-bedroom housing in the US is $1,593. Depending on where you retire, though, these figures differ. Average Florida one-bedroom rent, for instance, rises to $1,850, whereas Zillow Group, Inc (NASDAQ:Z) puts California one-bedroom rent at an expensive $2,167. Many others simply run out of savings, left with an empty bank and an uncertain future.
In order to avoid this, retirees often move – cities, states, countries – whatever suits their boat and their circumstances. They venture out in a bid to find lower costs of living, cheaper rents, and a more favorable housing market.
To assist present and potential retirees, we have compiled this list of the 20 best US cities to retire with $1 million in retirement savings.
Ruslan Guzov/Shutterstock.com
Methodology
To compile this list of the 20 best US cities to retire with $1 million in retirement savings, we turned to our range of articles on affordable places to retire in the US. Namely, 20 Best Cities to Retire on a Budget of $1,800 a Month, 25 Most Affordable Places to Retire in the U.S. in 2024, 18 Best Southern Cities to Retire on a Budget of $1,500 a Month, and 15 Best East Coast Cities to Retire on a Budget of $1,200 a Month. Once a list of places was compiled using these articles, we shortlisted them on the basis of livability score, keeping only those with a score of 70 and above. For reference, livability scores were taken from Area Vibes. With a list of places in hand, we then turned to Best Places. Here, we gathered the minimum annual income needed by a single person to live comfortably in each of our selected places. We then divided $1 million against this figure, determining the number of years that the said amount in retirement savings would last an individual in each of these cities. The 20 cities with the greatest number of years survived made up our list of best US cities to retire with $1 million in retirement savings. It is crucial to emphasize that the list does not encompass out-of-pocket health expenses and other significant expenditures that a retiree may encounter. The resulting list is presented in ascending order, with the city guaranteeing the greatest number of years of financial survival being presented last. It is important to remember that personal preference plays a big part. The best course of action is to visit the place you plan to move to, converse with locals, take advice from a financial consultant, and only then make your final decision.
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Here are the 20 best US cities to retire with $1 million in retirement savings:
20. Tulsa, Oklahoma
Insider Monkey Score: 6
Livability Score: 73
Years Lived on $1 Million: 30.9
First up on our list of best US cities to retire with $1 million in retirement savings is Tulsa in Oklahoma. Located on the Arkansas River, Tulsa is situated in one of the cheapest states to retire in the US. Retirees can visit the Gilcrease Museum, the Philbrook Museum of Art, or take the Art Deco Walking Tour – and then catch a bite at the famed El Rio Verde restaurant.
19. Biloxi, Mississippi
Insider Monkey Score: 7
Livability Score: 72
Years Lived on $1 Million: 31.7
Known for its beaches and casinos, Biloxi is the perfect retirement spot for the adventurous retiree. With $1 million lasting over 30 years in the city, retirees can afford to splurge – maybe take a trip, indulge in some gadgets, or even hire domestic help to make their lives easier.
18. Asheboro, North Carolina
Insider Monkey Score: 9
Livability Score: 72
Years Lived on $1 Million: 32.1
Home to the North Carolina Zoo, Asheboro is a relatively small American city. Despite this, it boasts a happening downtown area with a brewery, a concert venue, and a range of quality restaurants. The best part is the median house price – at an average of $244,000, it sits over $140,000 below the national median price.
17. Roanoke, Virginia
Insider Monkey Score: 11
Livability Score: 75
Years Lived on $1 Million: 32.1
Nestled in the Blue Ridge Mountains, Roanoke is located in Southwest Virginia. The city hosts a range of attractions, including the Mill Mountain Star, the Taubman Museum of Art, and the Mill Mountain Theatre. Roanoke also offers a variety of grocery options such as Kroger, Aldi, and Walmart Supercenter.
16. Fayetteville, Arkansas
Insider Monkey Score: 13
Livability Score: 79
Years Lived on $1 Million: 32.1
A college town, Fayetteville is home to the University of Arkansas. One of the best US cities to retire with $1 million in retirement savings, Fayetteville boasts a cost of living that is 10.2% lower than the national average. Retirees can visit the Botanical Garden of the Ozarks, Wilson Park, or the Walton Arts Center.
15. Fort Wayne, Indiana
Insider Monkey Score: 14
Livability Score: 83
Years Lived on $1 Million: 32.1
Our first Indiana pick for the best US cities to retire with $1 million in retirement savings, Fort Wayne is popular as a center of higher learning. Home to four higher learning educational institutes, the city enjoys the privileges of a college town – including a lower cost of living.
14. McAllen, Texas
Insider Monkey Score: 17
Livability Score: 74
Years Lived on $1 Million: 32.9
The home of classic barbecue and southern food, Texas is the location of our next best place to retire in the US for retirees. Art enthusiasts can enjoy the International Museum of Art & Science’s displays on Picasso, visit the Nuevo Santander Gallery, or roam through the South Texas College Visual Arts Gallery. After they’re done spending the day out and about, senior citizens can enjoy a delicious meal at Romano’s Macaroni Grill.
13. Midland, Michigan
Insider Monkey Score: 17
Livability Score: 82
Years Lived on $1 Million: 32.9
Up next on our list of best US cities to retire with $1 million in retirement savings is none other than Midland in Michigan. Michigan’s technology hub, Midland is host to two Fortune 500 company headquarters – namely, Dow Corning and Dow Chemical. Apart from being a technologically advanced city, Midland also offers a ton of exciting activities that are perfect for retirees. This includes the Midland Center for the Arts and the Dow Gardens.
12. La Grande, Oregon
Insider Monkey Score: 17
Livability Score: 76
Years Lived on $1 Million: 33.3
If you’re thinking of where to retire with $1 million, then La Grande in Oregon should definitely be considered. Located in Union County, La Grande offers senior citizens a homely and welcoming environment where they will easily fit in. A mountain-surrounded city, residents can engage in outdoor activities such as biking, hiking, and skiing.
11. Green Bay, Wisconsin
Insider Monkey Score: 18
Livability Score: 70
Years Lived on $1 Million: 33.8
If you’re wondering how long should $1 million last in retirement, then you’ll be pleased to know that in this Wisconsin city, it’ll last for over 30 years. Home to the Green Bay Packers, Green Bay offers residents a host of other attractions. Some of the most famous include the Lambeau Field, the Neville Public Museum, and the Bay Beach Wildlife Sanctuary.
10. Harlingen, Texas
Insider Monkey Score: 21
Livability Score: 71
Years Lived on $1 Million: 34.2
Our top ten for the best US cities to retire with $1 million in retirement savings starts with another Texas pick. Harlingen offers a suburban feel, perfect for retirees who want a more peaceful and laid-back mode of life. Retirees can visit the Harlingen Community Theatre, the Hugh Ramsey Nature Park, or the La Playa Mexican Cafe.
9. Brownsville, Texas
Insider Monkey Score: 21
Livability Score: 78
Years Lived on $1 Million: 34.7
Continuing with the pattern, Brownsville in Texas takes the next spot on our list of best US cities to retire with $1 million in retirement savings. With a minimum annual income of $28,800 needed for an individual living in Brownsville, retirees with $1 million in savings can afford to live luxuriously.
8. Tupelo, Mississippi
Insider Monkey Score: 21
Livability Score: 73
Years Lived on $1 Million: 35.2
Set in Northeast Mississippi, Tupelo is popular for being the birthplace of Elvis Presley. Retirees can find a lot to do in the city. They can enjoy wildlife at the Tupelo Buffalo Park and Zoo, visit the Tombigbee Lake State Park, and dine at O’Charley’s Restaurant & Bar.
7. Springfield, Missouri
Insider Monkey Score: 23
Livability Score: 72
Years Lived on $1 Million: 36.2
Located in Southwestern Missouri, Springfield is a populous city – perfect for retirees who are looking for a busy life. Roam the Discovery Center and engage with interactive exhibits, meet the animals at Dickerson Park Zoo, or take a stroll through the Nathaneal Greene/Close Memorial Park – all in a day’s work.
6. Decatur, Alabama
Insider Monkey Score: 25
Livability Score: 71
Years Lived on $1 Million: 37.3
Known as the ‘River City’, Decatur is the largest city in Morgan County. Retirees can live comfortably on $1 million for a good 35+ years – leaving plenty of room to spend a little on the more luxurious things during retirement.
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Disclosure: none. 20 Best US Cities to Retire with $1 Million in Retirement Savings is originally published on Insider Monkey.