The cost of living is an important factor for retirees deciding where to settle after leaving the workforce. A recent analysis by GOBankingRates highlighted the priciest cities in the U.S. for retirement, identifying 30 locations that stand out due to their high living costs. The study focused on urban areas with populations of at least 25,000 and where 25% or more of the residents are aged 65 and older. California dominates the list, with six cities appearing in the top ten.
Leading the pack is Saratoga, where the average annual cost of living for homeowners reaches a staggering $282,625. This Bay Area city is recognized as the most expensive retirement location. Following Saratoga is Rancho Palos Verdes, where homeowners spend approximately $144,381 per year, with around 26% of residents aged 65 or older. Walnut Creek comes next, also at a cost of $144,381 annually, along with Cerritos, which ranks fourth with an average annual expense of $91,644.
Palm Springs rounds out the California cities with a living cost of $86,550, where homes average over $1 million. Beyond California, Scottsdale, Arizona, also makes the list with a living cost of $81,525. La Quinta, another California town, is notable for its significant elderly population, with an annual cost of $71,613. In the Northeast, Gloucester, Massachusetts, sees retirees spending about $71,334 annually.
Florida’s Palm Beach Gardens features an impressive 31% of its population aged 65 and older, with a living cost of $70,601. Finally, Barnstable Town rounds out the top ten with expenses averaging $68,453. Overall, a recent study by Fidelity Investments noted that while many retirees feel their financial planning is holding steady, increasing living costs have impacted their savings. Nevertheless, a significant number report greater satisfaction in retirement than they expected.
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