How Much Does It Cost To Retire in the Hamptons?

A summery day out at a beach in the Hamptons.
Miles Astray / Getty Images/iStockphoto

You want to retire near the beach, but a year-round tropical climate isn’t for you. Instead, you’re looking to spend your golden years in New York’s ultra-exclusive Hamptons.

Given the posh nature of this section of Long Island, it won’t be cheap, but you know some sections are — much — more expensive than others. Right now you’re in the research phase, so you’re interested in learning where you can stretch your dollar the farthest.

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For reference, keep in mind the 2022 U.S. average rent is $2,020 per month, annual grocery cost is $4,497 — $374.75 monthly — annual healthcare cost is $7,030 — $585.83 monthly — annual utilities cost is $3,921 — $326.75 — and monthly expenditures average $3,307.33. Here’s a breakdown of the cost of living in 12 Hamptons towns.

Average Cost of Living in the Hamptons

Hampton Bays

  • 2022 average monthly rent: $12,453
  • Livability: 74
  • Annual grocery cost: $4,857
  • Monthly grocery cost: $405
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $13,917

Westhampton

  • 2022 average monthly rent: $16,030
  • Livability: 65
  • Annual grocery cost: $5,140
  • Monthly grocery cost: $428
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $17,518
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Montauk

  • 2022 average monthly rent: $20,225
  • Livability: 73
  • Annual grocery cost: $5,212
  • Monthly grocery cost: $434
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,799
  • Monthly utilities cost: $400
  • Monthly expenditures: $21,709

East Quogue

  • 2022 average monthly rent: $22,758
  • Livability: 72
  • Annual grocery cost: $4,969
  • Monthly grocery cost: $414
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $24,232

Westhampton Beach

  • 2022 average monthly rent: $31,431
  • Livability: 76
  • Annual grocery cost: $5,252
  • Monthly grocery cost: $438
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $32,928

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Sag Harbor

  • 2022 average monthly rent: $32,325
  • Livability: 73
  • Annual grocery cost: $5,383
  • Monthly grocery cost: $449
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $33,833

East Hampton

  • 2022 average monthly rent: $35,530
  • Livability: 77
  • Annual grocery cost: $5,383
  • Monthly grocery cost: $449
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,886
  • Monthly utilities cost: $407
  • Monthly expenditures: $37,035

Southampton

  • 2022 average monthly rent: $45,025
  • Livability: 82
  • Annual grocery cost: $5,109
  • Monthly grocery cost: $426
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,886
  • Monthly utilities cost: $407
  • Monthly expenditures: $46,508
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Sagaponack

  • 2022 average monthly rent: $45,510
  • Livability: 76
  • Annual grocery cost: $5,707
  • Monthly grocery cost: $476
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $47,045

Bridgehampton

  • 2022 average monthly rent: $46,549
  • Livability: 72
  • Annual grocery cost: $5,626
  • Monthly grocery cost: $469
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,850
  • Monthly utilities cost: $404
  • Monthly expenditures: $48,072

Water Mill

  • 2022 average monthly rent: $57,416
  • Livability: 81
  • Annual grocery cost: $5,711
  • Monthly grocery cost: $476
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $58,951

Amagansett

  • 2022 average monthly rent: $58,461
  • Livability: 79
  • Annual grocery cost: $5,689
  • Monthly grocery cost: $474
  • Annual healthcare cost: $7,796
  • Monthly healthcare cost: $650
  • Annual utilities cost: $4,917
  • Monthly utilities cost: $410
  • Monthly expenditures: $59,994

Planning for Retirement in the Hamptons

Now that you know how much it costs to live in the Hamptons, it’s time to create a financial plan to make sure you can afford it.

“The Hamptons is well-known for its expensive real estate, as well as its pricey, high-end stores and restaurants,” said Levon L. Galstyan, a certified public accountant at Oak View Law Group, based in Glendale, California. “In the end, extravagant living is what attracts people to the shores.”

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He recommended making a potential retirement budget now, to make sure you don’t run out of money.

“To figure out how much you need to retire, it’s best to first figure out how much you expect to spend on average each month,” he said. “When you try to figure out how much you might spend in retirement, it’s easy to underestimate your costs.”

He advised taking advantage of as many investment-related tax breaks as possible since this is essentially free money.

“You can lower your tax bill by putting money into retirement accounts like a 401(k), an IRA, or a health savings account — HSA,” he said. “When you put money into a traditional 401(k) or IRA, you get a tax break in the year that you put the money in.”

Conversely, he said you don’t get an upfront tax break when you invest in a Roth 401(k) or a Roth IRA.

“However, withdrawals are tax-free, so you don’t have to put in more money to be able to pay the IRS later,” he said. And if you put money into an HSA and use the money for qualified healthcare costs in retirement, you can get a tax break on the money you put in right away and take money out of the account without paying taxes.”

Ultimately, he said it can be much easier to reach your retirement goals when you know how to manage your money well.

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Methodology: To find how much it costs to retire in the Hamptons (in Suffolk county, east of Westhampton, and located on the south fork of Long Island), GOBankingRates first used data from Zillow to find (1) average 2022 rent in the qualifying cities.

GOBankingRates then used Sperling’s Best to find the cost of living index for each selected city, looking at (2) grocery, (3) healthcare and (4) utilities index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics 2021 Consumer Expenditure Survey to find the annual expenditure amount for both grocery (“food at home”) and healthcare costs for people aged 65 and older, to determine how much a person 65 and over would spend on groceries and healthcare in each city on a monthly basis.

GOBankingRates then added monthly housing, grocery and healthcare costs together to see how much it costs to retire in each city in the Hamptons. All data was collected on and up to date as of September 14, 2022.

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About the Author

Jennifer Taylor is a West Coast-based freelance writer with more than a decade of experience writing about anything and everything. Since earning her MBA, personal finance has been her favorite topic, as she’s passionate about writing stories that educate, inform and empower. Specifically, she specializes in budgeting, debt repayment, savings and retirement.
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