Top 10 financially secure cities for seniors

Top 10 financially secure cities for seniors

Most Financially Secure Cities for Seniors: Arizona, Kentucky, and Oklahoma Lead the Way

Retirement is a time of relaxation and contentment, but for many seniors, financial security is a top concern. In a recent study conducted by SmartAsset, it was revealed that the most financially secure cities for seniors are not located in the typical Northeastern areas but instead in Arizona, Kentucky, and Oklahoma.

The top-ranking city in this study is Mesa, Arizona. SmartAsset analyzed housing, poverty, income, and government assistance data for individuals aged 65 or older in 37 of the largest cities in the United States. Mesa emerged as the leading financially secure city for seniors based on six essential metrics.

One standout feature of Mesa is its high percentage of homeownership among residents over the age of 65. Additionally, the city boasts the second-lowest senior poverty rate and the lowest percentage of seniors reliant on food stamps. Mesa’s affordability, in relation to the median senior income, also contributes to its top position.

In second place is Louisville, Kentucky, which holds the record for the highest percentage of seniors with private retirement income, standing at slightly over 25%. Furthermore, less than a third of seniors in Louisville experience housing cost burden, meaning they pay over 30% of their income toward housing expenses.

Oklahoma City also ranks high on the list, excelling in multiple metrics. Nearly four out of five seniors in this city own their homes, and only just over 25% of residents’ retirement income is allocated to housing costs.

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Other cities that made it to the top 10 included Indianapolis, Albuquerque, and Kansas City. Interestingly, all of the cities in the top 10 are located in the Midwest, South, or Southeast regions, highlighting a regional dominance in senior financial security.

On the other end of the spectrum, some of the nation’s largest cities found themselves at the bottom of the ranking. Boston, for instance, ranked last due to its high senior poverty rate of nearly 20% and the low rate of seniors owning homes, which stands at under 50%. New York City and Los Angeles also ranked unfavorably, with tight housing markets placing significant burdens on seniors. In fact, over half of seniors in New York City are housing-cost burdened.

San Jose and San Francisco, known for their high costs of living, also face challenges in providing affordable housing for seniors. Over half of seniors in these cities are housing-cost burdened due to high income-to-housing cost ratios.

The study’s findings reflect the growing significance of financial security for seniors as life expectancy increases. According to Northwestern Mutual’s annual Planning and Progress Study, Americans believe they need an average of $1.27 million to retire comfortably. With such financial considerations in mind, relocating to cities like Mesa, Arizona or Louisville, Kentucky could offer seniors a healthier retirement.

However, for those seeking alternative retirement options, retiring abroad is becoming an increasingly popular choice. U.S. News & World Report’s Best Countries ranking for a comfortable retirement listed Switzerland as the top choice, followed by Portugal and Australia.

In conclusion, the most financially secure cities for seniors in the United States are found in Arizona, Kentucky, and Oklahoma. With low senior poverty rates, high homeownership percentages, and affordable housing costs, these cities offer promising environments for retirees. As the cost of retirement continues to rise, it is vital for seniors to explore various options, be it within the country or abroad, to ensure a comfortable and secure retirement.