How Does Your Retirement Savings Compare To Your Neighbors’?
Updated: Jul 8, 2021
By Novi Wealth Partners
Funding your retirement takes time, patience, and, of course, a wise investment strategy. But no matter how long you have been saving and investing, it will always be a bit difficult to estimate the amount you actually need for a well-managed and stable retirement. Additionally, what you need to support your lifestyle in the future may look different in comparison to your friends and family.
The discrepancy between your neighbors’ retirement savings and your own may be because they are based on and calculated with different variables, including the duration of your retirement, your retirement location, and any future medical costs or needs. Some of these aspects of your life can be difficult to predict, but luckily you can estimate many of these costs based on your location.
Below, we have compiled a guide to retirement costs in different locations. We hope this helps you as you map out your wealth management strategy in retirement.
Princeton, New Jersey
While Princeton has a slightly larger-than-average population of seniors, it is probably not surprising to any Princeton resident that retirement costs here are a bit higher than the national average. That’s because Princeton is a fairly affluent community. To start with, the average home cost is $695,114, and the median household income is $137,672. (1,2)
For retirees, long-term care costs range from $270 per day to $360 per day with a median cost of about $335 per day. The median cost of long-term care per year in Princeton is $122,275. (3) And the average retirement income for a person in Princeton is $49,630. (4)
With residents over the age of 65 making up nearly 30% of Marion County’s population, it is safe to say that its county seat, Ocala, is a retiree hotspot. Many Northeasterners flock to this mecca of retirement to exchange the brutal winters and high costs of living for a more hospitable climate, affordable housing prices, and reasonable living expenses.
So how affordable is Ocala? In comparison to Princeton, New Jersey, or Santa Clara, California, Ocala is incredibly economical. The average home price in 2021 is $180,877, while the median income for the general population in Ocala is $25,274.
When examining retiree expenses specifically, the cost of long-term care in Ocala ranges from $240 to $285 a day, with a median cost of $269 per day. This comes out to $98,185 annually. (5) The average monthly cost of in-home healthcare is $4,576, and the average retirement income in Ocala is $20,684. (6)
The bottom line is this: For people looking to stretch their retirement income while enjoying balmy temperatures and sunny skies, Ocala is ideal.
Santa Clara, California
To help you compare and contrast, let’s look at costs for retirees in the Santa Clara and San Jose area, which is part of California’s Silicon Valley. In the San Jose area, the average long-term care cost is a whopping $483 a day for a private room, and $176,295 per year. Shared rooms average $413 per day and $150,745 for the entire year. (7) Full-time in-home healthcare for a resident of Santa Clara costs an average of $6,006 per month. (8)
If this seems high, it’s because it is. In general, the cost of living in Santa Clara is a lot higher compared to the rest of the country. In Santa Clara, home values average at $1.4 million, and the median household income for the area was $109,593 in 2019. (9) The average retirement income for retirees in Santa Clara was difficult to find, but we did discover that the projected annual spending of people over the age of 65 living in the area is $128,809. (10)
We Can Help
With all the variables and unknowns, planning for retirement can be challenging, but it is by no means impossible. Let us help you create a wealth management plan based on the life you want to live in retirement. Call 609-921-7002 or email email@example.com to make an appointment.
About Novi Wealth Partners
Novi Wealth Partners is an independent, fee-only comprehensive financial planning firm dedicated to empowering clients to discover their definition of true wealth while providing the confidence to achieve it. With 20+ years of experience, we have found that most people don’t care about money, but instead, they care about what money can do for them and their loved ones. As a result, we focus on guiding our clients to find their unique vision for their life and developing a plan to help them live out their values. Our goal is to truly understand our clients on a personal level and help them navigate life’s many changes.
We are located in Princeton, New Jersey and we service clients both locally and nationally. There are four CERTIFIED FINANCIAL PLANNER® practitioners in the firm, all of whom are members of the prestigious National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA). We prioritize a team-based approach, which allows us to deliver comprehensive financial planning, investment management, tax planning advice, retirement planning, estate planning advice, risk management advice, and concierge level wealth management. We are committed to providing each of our clients a level of service as unique as they are and we are proud, as Fee-Only™ financial advisors, to offer unbiased financial expertise. To learn more about Novi Wealth Partners or to get started on your financial journey, visit our website or connect with us on LinkedIn.