retirement

5 expensive US cities to retire in

Retirement » 5 Expensive US Cities To Retire In

Retiring in expensive, urban places
5 expensive US cities to retire in © Videowokart/Shutterstock.com

In the 20th century, many retirees in America flocked to the Sun Belt looking for low taxes, cheap living and warm sun. As baby boomers retired to the once sparsely populated region, golf courses and luxury developments sprouted up in Las Vegas, Phoenix, Santa Fe, N.M., and Orlando, Fla.

But today, more seniors are choosing to stay close to the urban offerings of major metropolitan cities across the country. The biggest problem with retirement planning in these cities, of course, is the hit to the pocketbook. To afford living in some of the most expensive U.S. cities, retirees are finding new strategies to cope with the high prices and high taxes that come with enjoying a big-city lifestyle.

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Retirement often means learning to live on a fixed income, and many retirees choose to move somewhere with a less expensive cost of living. But frugal retirees can make it in a big city.

Living frugally in New York might sound impossible, but 91-year-old Grace Weaver found ways to stay in the Big Apple in retirement. Grace uses public transportation and shops in thrift stores to keep her day-to-day costs down. She's lived in the same rent-stabilized apartment for 50 years and pays less than $1,000 a month for rent. With a decent pension and some smart investments, she's living out her golden years in New York.

Retirees who are trying to live in a large city should research tax regulations. If Hawaii sounds like your dream retirement spot, there's good news. Pensions are mostly tax-exempt there. If you can't afford to live in the trendiest part of Honolulu, head just outside of town to save thousands on rent.

 

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