Retirees in five U.S. cities beat the national retirement income average by at least $25,000/year

Watch the retirement gap: Retirees in five U.S. cities beat the national retirement income average by at least $25,000/year

Watch the retirement gap: Retirees in five U.S. cities beat the national retirement income average by at least $25,000/year

In the United States, some retirees have one lot more money than others.

In fact, there is a $56,932 gap between the average retirement income in the city where seniors bring in the most money and the city where they bring in the least.

This is evident from a recent study conducted by SmartAsset, a financial technology company. SmartAsset looked at data from 345 of the largest U.S. cities to find the average retirement income (from both Social Security and retirement accounts) for their residents.

Here’s a look at where retirees are most likely to have enough cash, and how you can make your own retirement more secure, no matter where you’re based.

Where the retirees are the richest

Although the average retirement income in the nation’s major cities is $52,723, the five cities with the highest average retirement incomes far exceed that:

  • Arlington, Virginia: $90,140

  • Cambridge, MA: $79,563

  • The Woodlands, Texas: $79,539

  • Berkeley, California: $78,949

  • Alexandria, Virginia: $77,952

It should come as no surprise that retirees in these areas are taking in a lot of retirement money. Arlington and Alexandria are both part of the DC metro area and are a haven for highly paid lobbyists and others enriched by the DC area’s political infrastructure. , while Cambridge and Berkeley are home to world-class universities – Harvard and UC Berkeley respectively.

The median household income among the entire population in each of these cities is much higher than the national average, with the Federal Reserve reporting that typical households in Arlington earned $131,020, compared to a national median income of $74,755.

The other cities on this list all had similarly high incomes, with an average income of more than $100,000 in each city.

Rich people tend to become wealthy retirees because they have more money to save and invest for the future.

Those who work for the government or universities are also significantly more likely to be eligible to participate in defined benefit plans. These are retirement plans where employers offer a fixed income for life, rather than just the chance to contribute to a retirement investment account like a 401(k), where your retirement income depends on your investment choice and the performance of your portfolio. .

What it all means to you

If your hometown isn’t among the places where wealthy retirees are a haven, that doesn’t mean you can’t expect to retire wealthy. And that doesn’t always cost €75,000 per year.

In fact, most retirees not bring home more than $75,000. Census data shows that the median retirement income was $50,290 for households age 65 and older. However, you don’t necessarily need $75,000 or more. The goal is generally to replace about 70% to 85% of your own income before retirement, not to reach an arbitrary income goal.

you DoingHowever, you need to make sure you save money to achieve your own goals, as Social Security alone cannot meet your needs in retirement. Even in areas where wealthy retirees are concentrated, Social Security benefits are not very impressive.

In Arlington, for example, only $24,296 of the $90,140 in retirement income the average senior earned came from Social Security. And in none of the top five cities with the highest average retirement income, did Social Security provide even close to half of the money coming in to seniors.

This means that wherever you live, you will want to invest regularly throughout your career to ensure you have the retirement income you personally need to live with the retirement security you deserve.

This article provides information only and should not be construed as advice. It comes without any form of warranty.