Here’s What a $500K Retirement Nest Egg Buys You Monthly in 20 Big Cities

You’re doing better than many Americans if you have $500,000 saved for retirement. No matter how much you have, it’s worth doing some detailed planning around how long it will last and what you’ll have on hand each month.

Median retirement savings sits at around $87,000 these days, based on data from the U.S. Census. Most Americans figure they’ll need more than $1 million. If you find yourself somewhere near the middle with $500,000, a recent GOBankingRates analysis can give you a preview of what your month-to-month financial life may look like — and a timeline for roughly how long you’ll be covered — in 20 large U.S. cities.

The 4% rule suggests that once you retire, you should withdraw 4% of your retirement account in the first year and then adjust for inflation. With 4% of $500,000 coming in at $1,667 a month, along with an average monthly Social Security payment of $2,007, let’s assume you’ll have $3,674 in available funds each month.

In some cities, that’s enough to cover basic necessities. In other cities, not so much — and you’ll either need other sources of income or deeper dives into your nest egg to make ends meet.

Here’s a rundown of the 20 most populous U.S. cities, along with information on living costs for retired renters and retired homeowners. Cities are listed in alphabetical order.

• Monthly cost of living for a retired renter: $3,779
  • Amount left over each month from $3,674: -$105
• Monthly cost of living for a retired homeowner: $5,193
  • Amount left over each month from $3,674: -$1,519

Retired renters can almost break even each month in Austin with a 4% drawdown on $500,000 and an average Social Security benefit. Homeowners will fall about $1,500 short. Austin has the 14th-highest living costs for renters and the 8^th-highest living costs for homeowners among the 20 cities listed.

In Austin, $500,000 will last the average retiree just 13 years if the person is paying a mortgage the entire time. A renter’s nest egg will extend 23.5 years.

• Monthly cost of living for a retired renter: $3,816
  • Amount left over each month from $3,674: -$142
• Monthly cost of living for a retired homeowner: $4,363
  • Amount left over each month from $3,674: -$689

In Charlotte, a 4% drawdown on $500,000 and an average Social Security benefit will leave both retired renters and retired homeowners short of covering basic necessities. Charlotte has the 12^th-highest living costs for retired renters and the 10^th-highest living costs for retired homeowners among the 20 cities listed.

A homeowner with a mortgage can make $500,000 (with Social Security) last about 18 years.

• Monthly cost of living for a retired renter: $4,524
  • Amount left over each month from $3,674: -$850
• Monthly cost of living for a retired homeowner: $4,010
  • Amount left over each month from $3,674: -$336

A 4% drawdown on $500,000 and an average Social Security benefit will leave retired renters $850 short of covering basic needs in Chicago. The Windy City has the sixth-highest living costs for retired renters and the 11^th-highest living costs for retired homeowners among the 20 largest U.S. cities.

It’s cheaper to have a mortgage than to pay rent in Chicago, on average. The homeowner with the mortgage can stretch the half-million dollars (with Social Security) over 20 years.

• Monthly cost of living for a retired renter: $3,451
  • Amount left over each month from $3,674: $223
• Monthly cost of living for a retired homeowner: $3,506
  • Amount left over each month from $3,674: $168

In Columbus, a 4% drawdown on $500,000 and an average Social Security benefit is just enough to get by for both retired renters and retired homeowners. Columbus has the fourth-lowest living costs for both retired renters and retired homeowners among the cities on this list.

You can retire on the 500 grand and Social Security for close to 28 years in Columbus.

• Monthly cost of living for a retired renter: $3,857
  • Amount left over each month from $3,674: -$183
• Monthly cost of living for a retired homeowner: $4,000
  • Amount left over each month from $3,674: -$326

Retired renters and homeowners in Dallas will be left just short of covering basic needs. Dallas has the 11^th-least expensive living costs for retired renters and the ninth-least expensive living costs for retired homeowners among the 20 largest U.S. cities.

The homeowner can plan for a 20-year retirement, the renter a slightly longer one.

• Monthly cost of living for a retired renter: $4,072
  • Amount left over each month from $3,674: -$398
• Monthly cost of living for a retired homeowner: $5,477
  • Amount left over each month from $3,674: -$1,803

Retired homeowners in Denver will come up nearly $2,000 short of covering basic needs. Denver has the ninth-highest cost of living for retired renters and the seventh-highest cost of living for retired homeowners.

There is a pretty vast difference in the cost of a mortgage vs. a rental. If you are paying for your home, you will need more than $500,000 saved — or your retirement in Denver will last only about 12 years. It’s better to rent, which will stretch your money out for 20 years.

• Monthly cost of living for a retired renter: $3,839
  • Amount left over each month from $3,674: -$165
• Monthly cost of living for a retired homeowner: $3,851
  • Amount left over each month from $3,674: -$177

In Fort Worth, you can nearly break even on $3,674. Fort Worth has the 10^th-least expensive living costs for retired renters and the eighth-least expensive living costs for retired homeowners among the cities in this list.

You can retire for over 22 years on $500,000 — whether you are a mortgage payer or a renter in Fort Worth.

• Monthly cost of living for a retired renter: $3,742
  • Amount left over each month from $3,674: -$68
• Monthly cost of living for a retired homeowner: $3,677
  • Amount left over each month from $3,674: -$3

Retired renters and retired homeowners in Houston can nearly cover basic necessities on the $500,000 drawdown. Houston has the sixth-lowest living costs for retired renters and homeowners among the 20 biggest U.S. cities.

You can retire for about 25 years in Houston on the nest egg in question.

• Monthly cost of living for a retired renter: $3,389
  • Amount left over each month from $3,674: $285
• Monthly cost of living for a retired homeowner: $3,296
  • Amount left over each month from $3,674: $378

In Indianapolis, a 4% drawdown on $500,000 and an average Social Security benefit will leave both retired renters and retired homeowners will a small surplus each month. Indianapolis has the second lowest living costs for retired renters and retired homeowners among the cities in this list.

You have enough to retire for over 30 years in Indy.

• Monthly cost of living for a retired renter: $3,707
  • Amount left over each month from $3,674: -$33
• Monthly cost of living for a retired homeowner: $3,786
  • Amount left over each month from $3,674: -$112

Jacksonville retirees fall just short of covering basic needs if they rely on a 4% drawdown on $500K and an average Social Security benefit. Jacksonville has fifth lowest living costs for retired renters and the seventh lowest living costs for retired homeowners among the 20 largest U.S. cities.

Whether you have a mortgage or a lease, you are looking at a good 23 years or more off your nest egg.

• Monthly cost of living for a retired renter: $5,260
  • Amount left over each month from $3,674: -$1,586
• Monthly cost of living for a retired homeowner: $8,261
  • Amount left over each month from $3,674: -$4,587

If you’re a retired renter or homeowner in Los Angeles and relying on a 4% drawdown on $500,000 and an average Social Security benefit, you’ll fall well short of being able to cover your basic needs. Los Angeles has the fifth-highest living costs for retired renters and the fourth-highest living costs for retired homeowners among the cities in this list.

Bottom line: You will need to save a lot more than $500,000 if you are the average retiree in L.A.

• Monthly cost of living for a retired renter: $6,948
  • Amount left over each month from $3,674: -$3,274
• Monthly cost of living for a retired homeowner: $7,799
  • Amount left over each month from $3,674: -$4,125

In the Big Apple, relying on a 4% drawdown on $500,000 and an average Social Security benefit will leave you thousands of dollars short of covering your basic needs. Among the largest U.S. cities, New York has the highest living costs for retired renters and the fifth-highest living costs for retired homeowners.

You need to target about three times the $500,000 nest egg.

• Monthly cost of living for a retired renter: $3,311
  • Amount left over each month from $3,674: $363
• Monthly cost of living for a retired homeowner: $3,210
  • Amount left over each month from $3,674: $464

A 4% drawdown on $500,000 and an average Social Security benefit can go a long way in Oklahoma City, possibly covering basic needs for more than 30 years. Oklahoma City has the least expensive living costs for both retired renters and retired homeowners among the nation’s 20 largest cities.

• Monthly cost of living for a retired renter: $4,150
  • Amount left over each month from $3,674: -$476
• Monthly cost of living for a retired homeowner: $3,646
  • Amount left over each month from $3,674: $28

In Philadelphia, retired homeowners can barely cover their basic needs with a 4% drawdown and an average Social Security benefit. Retired renters will fall several hundred dollars short each month. Philadelphia has the eighth-most expensive living costs for retired renters but the fourth least expensive living costs for retired homeowners among the cities in the list.

• Monthly cost of living for a retired renter: $3,794
  • Amount left over each month from $3,674: -$120
• Monthly cost of living for a retired homeowner: $4,530
  • Amount left over each month from $3,674: -$856

Retired homeowners in Phoenix who rely on just a 4% drawdown on $500,000 and an average Social Security benefit will fall nearly $1,000 short of covering basic needs each month. Phoenix has the ninth-highest living costs for retired homeowners but just the 13^th-highest living costs for retired renters, which means you could stretch your nest egg out for 16 years.

• Monthly cost of living for a retired renter: $3,435
  • Amount left over each month from $3,674: $239
• Monthly cost of living for a retired homeowner: $3,427
  • Amount left over each month from $3,674: $247

Retirees who rent or own in San Antonio and rely on a 4% drawdown on $500,000 and an average Social Security benefit will have a couple hundred dollars left after covering basic needs each month. Among the 20 largest U.S. cities, San Antonio has the third-least expensive living costs for retired renters and homeowners — which means your $500,000 will last 22 years.

• Monthly cost of living for a retired renter: $5,360
  • Amount left over each month from $3,674: -$1,686
• Monthly cost of living for a retired homeowner: $8,261
  • Amount left over each month from $3,674: -$4,587

Retied renters and retired homeowners in San Diego will fall well short of covering basic needs, if they are relying solely on a 4% drawdown on $500,000 and an average Social Security benefit. San Diego has the fourth-highest living costs for retired renters and the third-highest living costs for retired homeowners among cities in this list.

You really cannot retire in San Diego if you are still paying the average mortgage, and even a renter will need about three times the nest egg we started with in this gallery.

• Monthly cost of living for a retired renter: $6,274
  • Amount left over each month from $3,674: -$2,600
• Monthly cost of living for a retired homeowner: $10,667
  • Amount left over each month from $3,674: -$6,993

Relying on the 4% drawdown on $500,000 and an average Social Security benefit will leave retired renters and homeowners well short of covering the basics in San Francisco. The City by the Bay has the second-highest living costs for retired renters and homeowners among the 20 most populous U.S. cities.

You need at least $2 million to retire in San Francisco, based on these average numbers.

• Monthly cost of living for a retired renter: $5,863
  • Amount left over each month from $3,674: -$2,189
• Monthly cost of living for a retired homeowner: $11,247
  • Amount left over each month from $3,674: -$7,573

Retired homeowners in San Jose will come up more than $7,000 short of covering basic needs if they are relying solely on a 4% drawdown on $500,000 and an average Social Security benefit. San Jose has the highest living costs for retired renters among the 20 largest U.S. cities.

You need about triple the $500,000 nest egg.

• Monthly cost of living for a retired renter: $4,474
  • Amount left over each month from $3,674: -$800
• Monthly cost of living for a retired homeowner: $7,566
  • Amount left over each month from $3,674: -$3,892

If you’re a retired renter or retired homeowner in Seattle and relying on only an average Social Security benefit and a 4% drawdown on $500,000, you’ll fall well short of covering your basic needs. Seattle has the seventh-highest living costs for retired renters among the 20 most populous U.S. cities. For retired homeowners, Seattle’s living costs are sixth highest.

Methodology: For this study, GOBankingRates analyzed the 20 largest U.S. cities by population (sourced from the U.S. Census 2023 American Community Survey). Data was sourced from Sperling’s BestPlaces, the Bureau of Labor Statistics Consumer Expenditure Survey, the Zillow Home Value Index, Federal Reserve Economic Data and the Social Security Administration. All data is up to date as of Aug. 20, 2025.