Yahoo Finance You’ll Need at Least $9.8 Million Saved To Retire Comfortably in These 10 Florida Hot Spots
The Sunshine State seems to have the perfect blend of warm weather, beautiful beaches and a relaxed lifestyle. There’s a reason Florida is such a popular retirement spot. But Florida is also an expensive place to live. If retiring to Florida is your dream, then you’re going to need to have a pretty big nest egg.
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How big? A recent study by GOBankingRates looked at the data on average home values, cost of living and other factors to determine the 10 most expensive Florida cities for retirees. The study defined living comfortably as spending no more than 50% of your monthly income on living expenses — which includes things like housing, food, transportation and healthcare.
Of course, many retirees don’t just rely on their savings. They also receive benefits. The study calculated how much you’ll need both with and without Social Security benefits. The average benefit for one person is about $1,867 per month, though this can vary widely based on your work history, retirement age and when you choose to start receiving benefits. Be certain to take this into account when making your plans.
The data suggests that Florida is an incredibly expensive place to retire if you want to maintain a comfortable lifestyle and your financial stability. This is particularly true in popular coastal areas and major metropolitan centers, where real estate prices have skyrocketed in recent years.
The cities on this list represent Florida’s priciest locales, where you’ll need to have a large amount of money saved before you can settle into your secure and enjoyable retirement.
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Fort Lauderdale
Average Monthly Mortgage Payment: $3,538
Average Monthly Expenses: $2,002
Annual Cost of Living Total: $66,483
Annual Cost to Live Comfortably, without Social Security: $132,967
Annual Cost to Live Comfortably, with Social Security: $110,553
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,324,164
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,326,636
Pembroke Pines
Average Monthly Mortgage Payment: $3,572
Average Monthly Expenses: $2,032
Annual Cost of Living Total: $67,254
Annual Cost to Live Comfortably, without Social Security: $134,507
Annual Cost to Live Comfortably, with Social Security: $112,093
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,362,679
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,345,116
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Plantation
Average Monthly Mortgage Payment: $3,772
Average Monthly Expenses: $1,990
Annual Cost of Living Total: $69,139
Annual Cost to Live Comfortably, without Social Security: $138,278
Annual Cost to Live Comfortably, with Social Security: $115,864
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,456,942
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,390,368
Davie
Average Monthly Mortgage Payment: $3,827
Average Monthly Expenses: $2,012
Annual Cost of Living Total: $70,073
Annual Cost to Live Comfortably, without Social Security: $140,147
Annual Cost to Live Comfortably, with Social Security: $117,733
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,503,674
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,412,796
Miami
Average Monthly Mortgage Payment: $3,792
Average Monthly Expenses: $2,077
Annual Cost of Living Total: $70,427
Annual Cost to Live Comfortably, without Social Security: $140,854
Annual Cost to Live Comfortably, with Social Security: $118,440
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,521,345
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,421,280
Coral Springs
Average Monthly Mortgage Payment: $3,896
Average Monthly Expenses: $2,021
Annual Cost of Living Total: $71,006
Annual Cost to Live Comfortably, without Social Security: $142,012
Annual Cost to Live Comfortably, with Social Security: $119,598
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,550,296
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,435,176
Doral
Average Monthly Mortgage Payment: $4,061
Average Monthly Expenses: $2,084
Annual Cost of Living Total: $73,747
Annual Cost to Live Comfortably, without Social Security: $147,494
Annual Cost to Live Comfortably, with Social Security: $125,080
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,687,351
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,500,960
Boca Raton
Average Monthly Mortgage Payment: $4,372
Average Monthly Expenses: $1,993
Annual Cost of Living Total: $76,389
Annual Cost to Live Comfortably, without Social Security: $152,777
Annual Cost to Live Comfortably, with Social Security: $130,363
Total Cost to Live Comfortably for 25 Years, without Social Security: $3,819,427
Total Cost to Live Comfortably for 25 Years, with Social Security: $1,564,356
Weston
Average Monthly Mortgage Payment: $4,966
Average Monthly Expenses: $2,049
Annual Cost of Living Total: $84,179
Annual Cost to Live Comfortably, without Social Security: $168,358
Annual Cost to Live Comfortably, with Social Security: $145,944
Total Cost to Live Comfortably for 25 Years, without Social Security: $4,208,957
Total Cost to Live Comfortably for 25 Years, with Social Security: $4,734,456
Miami Beach
Average Monthly Mortgage Payment: $15,343
Average Monthly Expenses: $2,030
Annual Cost of Living Total: $208,476
Annual Cost to Live Comfortably, without Social Security: $416,952
Annual Cost to Live Comfortably, with Social Security: $394,538
Total Cost to Live Comfortably for 25 Years, without Social Security: $10,423,803
Total Cost to Live Comfortably for 25 Years, with Social Security: $9,863,450
Methodology: For this study, GOBankingRates analyzed cities across Florida to find the amount needed to retire comfortably in major cities. First GOBankingRates found the top 50 cities in Florida by population, as sourced from the US Census American Community Survey. For each city a number of factors were found including: total population, total households, population ages 65 and over, household median income all sourced from the US Census American Community Survey. The cost-of-living indexes were sourced from Sperlings BestPlaces and by using the national average expenditure cost for retired residents, the average expenditure costs in each city can be calculated. The average home value was sourced from Zillow Home Value Index for single family homes and by assuming a 10% down payment and using the national average 30-year fixed mortgage rate, the average mortgage cost in each city can be calculated. Using the average mortgage and average expenditure costs, the total cost of living can be calculated. Using the 50/30/20 rule that states that needs should not be more than 50% of income, the total cost of living was doubled to find the amount needed to live comfortably. Using the annual amount needed, the amount needed for 15 and 25 years can be calculated. Using the average Social Security Benefits as sourced from the Social Security Administration, the amount needed while receiving Social Security Benefits can be calculated for one year, 15 years, and 25 years. All data was collected on and is up to date as of July 17th, 2024.
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This article originally appeared on GOBankingRates.com: You’ll Need at Least $9.8 Million Saved To Retire Comfortably in These 10 Florida Hot Spots
