As the cost of living rises in the U.S., so too does the amount needed for a comfortable retirement.
Recent research by GOBankingRates found that in many big cities — 48 to be exact — you need more than $1 million to retire rich. But there are two major metros where you can get away with having less in the bank.
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Those two cities are Wichita, Kansas and El Paso, Texas. How much do you need to retire “rich” in these places? What are these locations like in terms of heritage, demographics, livability and home prices? Let’s have a look.
Wichita, Kansas
- Savings needed for a ‘rich’ retirement for 20 years: $994,950
- Minimum amount needed for retirement for 20 years: $497,475
- Annual cost of living: $47,873.30
- Annual cost of living minus Social Security income: $24,873.74
Wichita, Kansas has a population of close to 400,000 people — surely tens of thousands more than it had when it was incorporated as a “city of the third class” in 1870. Back then, Wichita was strictly thought of as a trading post and cow town — as it had been for thousands of years prior to it becoming an official city.
Today, Wichita is the largest city in Kansas and a booming spot for job seekers in the manufacturing industry. Though Wichita real estate has been going up in price, homes are still quite affordable, with the average home valued at $196,225 as of Nov. 28, 2024 — well below the national average of $359,099. Groceries are also cheaper in Wichita, as are utilities.
Niche ranked Wichita as the 23rd best city to buy a house in the U.S. and gave the city an A- ranking, highlighting the location’s dense suburban feel, family-friendliness and above-average public school system.
Around 15.1% of the population in Wichita, Kansas is 65 years of age or older, and we could see more retirees heading there in 2025. Niche gave Wichita B+ in the “good for retirees” department.
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El Paso, Texas
- Savings needed for a ‘rich’ retirement for 20 years: $974,135
- Minimum amount needed for retirement for 20 years: $487,068
- Annual cost of living: $47,352.94
- Annual cost of living minus Social Security income: $24,353.38
Situated at the far west tip of Texas, El Paso is packed with history that dates back to, well, prehistory. Humans first settled in the region as early as 10,000 to 12,000 B.C.E. El Paso was incorporated as a city in 1873, but it wasn’t until 1881 — when the city got its first railroad — that El Paso took off as a lively frontier community comprising more than 10,000 people.
Today, El Paso has a population north of 888,000 and is the 6th largest city in Texas. The once tiny town is seeing tremendous growth, particularly among millennials (the median age of residents in El Paso is 34).
Like Wichita, El Paso boasts a cost of living that is notably below the national average — 12% lower, according to PayScale. Housing, utilities and groceries are each cheaper in El Paso than they are at a national level. Home prices are up 3.5% year-over-year, but the average home is still substantially cheaper than the national average at $223,042.
Niche gave El Paso, Texas an A-, citing it as the best city in Texas to raise a family. But even if you’ve already raised your family and are now settling down to care for yourself and possibly your partner in your golden years, El Paso could be an excellent choice to hang your hat.
The city certainly seems to be gaining steam among retirees; El Pasoans over 65 were 17.6% of registered voters in 2016, rising to 18.9% in 2020 and 20.4% in 2024.
Methodology: In order to find out exactly how much you need to retire in some of America’s biggest cities, GOBankingRates found the annual cost of expenditures for a retired person in each city by multiplying the 65 year and older expenditures from the Bureau of Labor Statistics’ 2022 Consumer Expenditure Survey by the cost of living index for each city from Sperling’s Best. To find how much money a retired person would need to save, we divided each city’s annual expenditures, minus the annual Social Security income as sourced from the Social Security Administration’s Monthly Statistical Snapshot, May 2024, by 0.0333%, 0.04% and 0.05% — assuming 20, 25 and 30 years of retirement respectively. To determine how much one would need to retire rich, GOBankingRates took the 20, 25 and 30 year minimums and doubled those amounts. All data is collected and is up to date as of Jun. 17, 2024.
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This article originally appeared on GOBankingRates.com: 2 of America’s Largest Cities Where You Need Less Than $1 Million To Retire Rich
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