If retiring in one of America’s top luxury destinations is your goal, prepare to set aside more money than you might think.
A new report from GOBankingRates reveals the staggering amounts needed to retire rich in the nation’s top retirement hotspots. California locations dominate the list of most expensive destinations. These figures account for everyday expenses and annual Social Security income. They also include the premium costs associated with living in desirable communities where retirees comprise a large portion of the population.
For Americans planning their golden years, these findings highlight the importance of adopting aggressive saving strategies and implementing realistic financial planning to achieve the coveted “rich” retirement lifestyle. The study focused on cities with populations over 15,000, where seniors comprise the highest percentage of residents.
California Commands Top Dollar For Luxury Retirement
California dominates the list of priciest retirement destinations, claiming all five top spots. Laguna Woods ranks as the most expensive, requiring over $3 million for a 20-year wealthy retirement. Seal Beach follows closely in second place, also demanding more than $3 million. Palm Springs, Palm Desert, and Rancho Mirage round out the top five, each requiring at least $2 million for a 20-year retirement. These costs increase dramatically for longer retirements, with 30-year plans in these locations potentially costing between $3.3 million and $4.5 million.
While California towns top the charts, several other states host premium retirement communities. Parole, Maryland, ranks sixth, followed by three Arizona locations: Prescott, Sun City West, and Sun City. Florida makes its first appearance, with Marco Island ranking eighth. These destinations require approximately $1.8 million for a 20-year wealthy retirement and around $2.2 million for a 25-year retirement plan.
For retirees seeking luxury on a relative budget, several destinations offer a wealthy lifestyle for considerably less. St. Simons, Georgia, and North Myrtle Beach, South Carolina, both require approximately $1.2 million for a comfortable retirement. Hot Springs Village, Arkansas, presents the most affordable option among popular destinations, with just over $1 million needed to retire rich.
Planning To Retire Rich
While many Americans aim for Northwestern Mutual’s recommended $1.26 million savings target, this amount may provide only basic comfort in the nation’s most desirable retirement communities. Those dreaming of a truly luxurious retirement should consider either significantly increasing their savings goals or exploring more affordable locations where their nest egg will stretch further.
