9 Cities Frugal Retirees Never Spend Their Golden Years

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Choosing the right city to spend your retirement years is a crucial decision for those who have carefully managed their finances. Frugal retirees, in particular, seek destinations where their savings stretch further, allowing for a comfortable lifestyle without the worry of high living costs.

While some cities offer affordability, mild climates, and senior-friendly amenities, others are known for their steep living expenses, making them less than ideal for retirees on a budget. Here are nine cities where frugal retirees might think twice before settling down, due to high costs of living, expensive healthcare, and other financial challenges.

1. San Francisco, California

San Francisco is renowned for its cultural diversity, iconic landmarks, and beautiful landscapes. However, it’s also one of the most expensive cities in the United States. High housing costs, alongside pricey healthcare and daily expenses, make it a challenging place for retirees looking to maximize their savings.

Average savings needed to retire: $1.37 million

2. New York City, New York

The allure of New York City is undeniable, with its vibrant arts scene, endless dining options, and world-class entertainment. However, the city’s high cost of living, including some of the most expensive housing markets in the country, can be prohibitive for retirees on fixed incomes.

Average savings needed to retire: $1.28 million

3. Honolulu, Hawaii

Honolulu offers tropical climates and picturesque landscapes, making it a dream retirement spot for many. However, the high cost of living in Hawaii, driven by expensive groceries, healthcare, and housing, can make it difficult for frugal retirees to manage their budgets effectively.

Average savings needed to retire: $1.8 million

4. Los Angeles, California

Los Angeles attracts retirees with its warm weather, diverse communities, and plethora of recreational activities. Nonetheless, the city’s high housing costs, coupled with above-average healthcare and transportation expenses, make it less appealing for those watching their expenditures closely.

Average cost to retire: $4,500 a month

5. Seattle, Washington

Seattle is known for its natural beauty, coffee culture, and tech-driven economy. However, the city’s rising living costs, particularly in housing and utilities, can strain retirees’ budgets, making it a less favorable option for those seeking affordability.

Average savings needed to retire: $1.1 million

6. Boston, Massachusetts

Boston’s rich history, excellent healthcare facilities, and cultural amenities are attractive to many retirees. Yet, the city’s high cost of living, especially in terms of housing and healthcare, can be a significant barrier for those looking to preserve their retirement savings.

Average cost to retire: $120,000 a year

7. Washington, D.C.

The nation’s capital offers retirees a plethora of historical and cultural experiences. However, the high costs associated with living in Washington, D.C., including expensive housing and higher-than-average healthcare costs, make it a challenging city for retirees on a budget.

Average cost to retire: $109,000 a year

8. Chicago, Illinois

Chicago is a city with a rich cultural heritage, renowned museums, and a vibrant culinary scene. However, despite its attractions, the city’s relatively high cost of living, particularly in desirable neighborhoods, and the state’s financial instability can deter frugal retirees.

Average cost to retire: $948,000 a year

9. Denver, Colorado

Denver has become increasingly popular due to its outdoor lifestyle, mild climate, and thriving social scene. Nevertheless, the city’s growing popularity has led to rising housing costs and living expenses, which may be concerning for retirees aiming to minimize their spending.

Average savings needed to retire: $900,000

Making Smart Choices for Retirement

For frugal retirees, the goal is to find a city that offers not only a high quality of life but also affordability that matches their financial planning. While the cities listed above offer many attractions and amenities, their high cost of living can significantly impact a retiree’s budget and financial security. Fortunately, many other cities across the U.S. and abroad offer the benefits of affordable living, quality healthcare, and a range of activities suitable for a fulfilling retirement, without the hefty price tag.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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