5 Reasons You Need at Least $738K (Plus Social Security) To Retire in Nevada

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Nevada can be a great place to retire. The weather is warm and sunny pretty much year-round, and there are plenty of beautiful natural attractions, including parts of the Sierra Nevada and Red Rock Canyon. The state also has no income tax or state-level property tax, so you may get more out of your investments and any part-time work you still choose to do, according to RedFin.

If you’ve thought about moving to Nevada to retire or are currently a resident, you may have wondered how much you would need to save for the future. Based on data from the U.S. Bureau of Labor Statistics, the average American would need around $737,745 to retire in Nevada if they were planning for a 20-year retirement. Here’s what you need to know about the math for that and why living in Nevada costs what it does.

Also consider avoiding these money mistakes if retiring in Nevada. 

How Much Do I Need To Save for Retirement in Nevada? 

According to a GOBankingRates study analyzing data from the U.S. Bureau of Labor Statistics, the annual cost of living for an adult over 65 years old is $58,454 in Nevada. That’s only 1.1% more expensive than the national average of $57,818, which means Nevada may be a good option for retirement for many Americans who want to move out of a more expensive state.

The median Social Security benefit is currently around $21,567. This won’t be enough to cover all of your expenses, so you’ll need at least an additional $36,887 each year. This means that you’ll need to have $737,745 saved up to last you through a 20-year retirement. If you’re planning for a longer retirement, such as 25 or 30 years, you would need $922,181 or $1,107,725 in savings, respectively.

Of course, your lifestyle and needs will affect exactly how much you’ll need to save. While the overall cost of living in Nevada is close to the national average, certain spending categories are significantly cheaper or more expensive than in the rest of the country. Here are five reasons why living in Nevada costs what it does.

Groceries Are 4% More Expensive in Nevada

Groceries in Nevada cost about 4% more than the national average, with an annual expense of $4,988.88 compared to $4,797. This isn’t that big of a difference and if you’re moving to Nevada from a more expensive state, you may even find that you’re spending less than you’re used to. 

If you’re looking to save money in this category, then try shopping at more budget-friendly stores and buying in bulk when you can. Planning your meals based on weekly sales and seasonal produce can also reduce your grocery costs.

Keep an eye out for senior discounts as well. Certain stores will have days when seniors can get a discount on their groceries with a valid ID. For example, Albertsons has a 10% senior discount one day a month for customers who are over 55 years of age.

Housing Costs Are 6.5% Above the National Average

Housing in Nevada is a bit pricier, at $12,451.98 annually, which is about 6.5% more than the national average of $11,692. To keep your housing costs manageable, think about living a bit outside of the major city centers, where real estate tends to be less expensive. Renting in a retirement community may also be cost-effective.

Utilities Cost 0.5% More Than Average

Utilities in Nevada come out to about $4,257.18 annually, only 0.5% above the national average of $4,236. To lower these costs further, you could try energy-efficient upgrades like smart thermostats or high-efficiency appliances. Nevada also has plenty of sunshine — for some people, it may be a good idea to invest in solar panels, though it’s important to carefully calculate your costs to make sure you’ll end up saving in the long run.

Transportation Costs 18.7% More Than in the Rest of the US

Transportation in Nevada costs $5,867.34 annually, which is 18.7% more expensive compared to the national average of $4,943. Before you retire, it may be a good idea to buy a car with good gas mileage. Carpooling can also be a way to cut down on your costs and regularly maintaining your vehicle can prevent costly repairs. 

Healthcare Is 10.8% Less Expensive in Nevada

Healthcare costs in Nevada are notably lower, with expenses averaging $6,725.68 annually. This is about 10.8% less than the national average of $7,540, which can make retiring in Nevada a great idea for anyone who’s worried about their future healthcare costs.

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