You need at least $1 million saved to retire in these cities

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language
Sporrer/Rupp | Image Source | Getty Images

How much do you think you'll need to save for retirement?

If you're in one of these major cities, the answer will be at least $1 million to live an average lifestyle, according to MagnifyMoney.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

To find the amount needed to retire in each city, analysts used data from the U.S. Bureau of Labor Statistics, Bureau of Economic Analysis, Tax Foundation, Census Bureau and Social Security Administration to calculate the pretax income necessary to meet average retiree spending.

!function(){“use strict”;window.addEventListener(“message”,(function(e){if(void 0!==e.data[“datawrapper-height”]){var t=document.querySelectorAll(“iframe”);for(var a in e.data[“datawrapper-height”])for(var r=0;r

“$1 million is a big number,” said certified financial planner Marguerita Cheng, CEO and co-founder of Blue Ocean Global Wealth and a member of CNBC's Advisor Council.

Global Tech News Daily

She added that people shouldn't necessarily be overwhelmed seeing that figure. There are things you can do beforehand to ensure you're prepared for retirement.

“You break it down and you build,” she said.

Where the most expensive cities are

Global Tech News Daily

The analysis found that there are 28 cities where you need more than $1 million to retire, about 7% of all the metros that were included in the report.

The most expensive places are concentrated on the East and West coasts, and only five states – Alaska, California, Hawaii, New York and Oregon – have more than two of the costliest cities. California has the most of any state, with 14 cities where retirees should have more than $1 million to live comfortably.

“It wasn't a huge surprise given that we know that a lot of coastal parts of the country tend to have the most expensive metros,” said Ismat Mangla, senior director of content at LendingTree, MagnifyMoney's parent organization.

The rest of the list also shows that costs vary greatly depending on where you plan to retire. It takes less than $1 million to retire in the remaining 93% of metros analyzed by MagnifyMoney.

“It really is going to depend on which area of the country you're planning to retire in,” Mangla said. “On the flip side, there are a lot of places in the country where you don't really need that much to retire.”

In one city – Jackson, Tennessee – the average retiree can make it on less than $500,000.

Start to prepare now

If you are worried about being able to save hundreds of thousands of dollars or even millions, it makes sense to start retirement planning as soon as possible, even if that means saving only $50 per month, Cheng explained.

Allowing that money as much time as possible to grow will set you up for success. In addition, remember that your retirement nest egg includes your savings and Social Security payments, Cheng said.

Taking advantage of things such as an employer match will help your retirement funds grow even more over time. This means it's important to put in enough to get any match you're eligible for, even if you can't put away the maximum amount, which for 2021 is $19,500 in an employer-sponsored 401(k) plan if you're under 50.

“There's a happy medium between the match and the max,” Cheng said.

She'd also encourage folks to take advantage of multiple retirement accounts with different tax advantages. While an employer-sponsored 401(k) plan grows pre-tax, you can also save in individual retirement accounts, which you contribute to post-tax. The 2021 maximum contribution for a Roth IRA is $6,000.

If you're behind on retirement saving and over the age of 50, you should take advantage of make-up contributions. If you're 50 or older, you can put $26,000 in a 401(k) and $7,000 in an IRA in 2021.  

If you're overwhelmed, it can be helpful to work with a financial professional to make sure you're on track for retirement, or to come up with a plan if you're not.

They can also help you make important decisions about your life in retirement, such as when you retire, where you want to live, what kind of house you need or other big expenses.

Working a few years longer could help you save what you need to live comfortably. You could also potentially cut expenses by “right-sizing” your life, Cheng explained.

For example, you could move to a different city, change up your living arrangement or even cut down from two cars to one if you retire around the same time as a partner.

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.

CHECK OUT: How to make money with creative side hustles, from people who earn thousands on sites like Etsy and Twitch via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

News Related

OTHER NEWS

Gaining financial literacy can help Hispanics save and invest money

Getty Images Whether it is saving for retirement or building wealth, Hispanics are lagging behind. They may also be staying away from traditional bank accounts. A number of reports highlight ... Read more »

'It's going to hurt us tremendously:' Parents worry about the end of monthly child tax credit payments

Getty Images Without the child tax credit, Stormy Johnson is worried about having enough to eat. Johnson, 44, works as a student support specialist in Preston County Schools in Kingwood, ... Read more »

What your budget might look like if you make the federal minimum wage

More than a third of U.S. states still adhere to the federal minimum wage in 2021. A full-time worker making $7.25 per hour will take home around $1,000 every month ... Read more »

Here are four unhealthy beliefs about money you may have learned from your childhood

Your relationship with money was most likely formed before you even had bills to pay. “We are living out a script around money right now that quite often somebody wrote ... Read more »

'The Power of Habit' author: Giving yourself more gifts can help you save more money. Here's how

Getting more gifts for your own stocking may be just what you need to save more money this holiday season.   Rewarding yourself can be a powerful tool to change ... Read more »

New $415 million bond backed by music rights for The Who, Tim McGraw

NEW YORK (BLOOMBERG) – Bond investors will soon be able to buy a piece of the music catalogs of a wide range of pop, country and classic rock acts including ... Read more »

Bitcoin lingers near lows as central banks ready stimulus cuts

NEW YORK (BLOOMBERG) – While Bitcoin lingers near recent lows after tumbling from its November all-time high, many crypto investors see an overarching theme that could be behind some of ... Read more »

Inflation and omicron are weighing on markets. Here's what to keep in mind

The “Charging Bull” statue at Bowling Green in New York's Financial District.Drew Angerer | Getty Images As the U.S. stock market is whipped by rising inflation and the new omicron ... Read more »

Student-loan forgiveness would mean everything to Latinx students stuck in a debt cycle

The amount of student loan debt in the United States is $1.8 trillion dollars — and counting. The price to get an education has never been more expensive. The student ... Read more »

Three ways to invest in your employees in 2022

Customer second, employees first. That is the adage of Sir Richard Branson, founder and chairman of the Virgin Group. A Gallup report says employees who are engaged are more likely ... Read more »

Never mind how Omicron blows, no shortage of economic forecasts

(NYTIMES) – The Omicron variant of the coronavirus could be dangerous enough to disrupt the lives of virtually everyone on the planet. Or it could represent a blip in a ... Read more »

Transforming Asia's food system to tackle our food and climate crises

Technology could help the agri-food sector transform by bolstering climate resiliency and sustainable food production. If you want more of what you like to eat, it’s time to think and ... Read more »

Here's what a lot of college grads don't know about their first job offer

Throughout our lives as students, we work hard to get a good education that will lead us to a solid job and fruitful career. But we aren't prepared for what ... Read more »

These are the five best states for drivers in 2021

Commuting doesn't have to be a bad thing. Ohio ranked as the best state for drivers in 2021, according to a study by Bankrate. The best states for drivers include ... Read more »

Smart moves to make with your retirement portfolio before the end of the year

Cravetiger | Moment | Getty Images As you make your to-do list to wrap up the year, don't forget to include checking on your retirement portfolio. There are several moves ... Read more »

Making New Year's resolutions during Covid has paid off: Fidelity survey

Uwe Krejci | Stone | Getty Images New Year's resolutions can be easy to make and even easier to break, but having a goal can help keep you upbeat and ... Read more »

Crypto is the 'top contender' for correction, money managers say

NEW YORK (BLOOMBERG) – By many counts, 2021 was the year cryptocurrencies were finally embraced by institutions. Now those same money-managers say the asset class is ripe for a big ... Read more »

Figuring out these three budget numbers will help you pay off debt and save more for retirement in 2022

The start of a new year can be a great time to revisit your budget. Your first steps should be figuring out how much money you actually have and finding ... Read more »

Covid mortgage bailout is expiring. Here's what to do if you still can't pay

courtneyk | E+ | Getty Images Covid relief programs allowed millions of struggling Americans to pause mortgage payments, and many of those bailouts are now expiring, putting cash-strapped borrowers at ... Read more »

BlackRock, Goldman opt for China over more pricey India stocks

(Bloomberg) In a change of tone over the world’s two biggest emerging markets, global investors overseeing billions of dollars are slowly starting to favour China over India – reversing a ... Read more »

Inflation-proof gifts with your time and schmaltz

Consider the gifts of tech, travel and time, says the writer. (NYTIMES) If groceries, petrol or cars were any part of your budget this year, inflation has hit you hard. ... Read more »

Australia's $3.3 trillion pension pot reaps dividends with ESG

Australians are moving their money to reap not only benefits for society and the environment, but also their retirement savings. (BLOOMBERG) Responsible investing is paying dividends for Australia’s A$3.4 trillion ... Read more »

Investors snap up metaverse real estate in virtual land boom

A tower in Decentraland that Tokens.com hopes will generate revenue from leases and advertising. Digital realms may appear as cartoonish, gummy-coloured fantasy worlds, or digital applications of places we know. ... Read more »

Four keys that could unlock a better, more sustainable world

To reduce the world’s reliance on fossil fuels and reach net-zero emissions by 2050, global investments in clean energy must triple by the end of the decade, says the International ... Read more »

How much you'll need to invest to earn $35,000, $40,000 or $50,000 per year in interest for retirement

Living off your investment returns can help remove one of the biggest fears about life after leaving your job: Will my money outlast me? Once you decide how much you ... Read more »

Did you work from home this year? When you can claim the home-office tax deduction

Did your “Great Resignation” lead you to start a business or become your own boss this year? You may be able to write off the cost of your home office ... Read more »

This is how you can make the world a better place as you invest

With the range of investment opportunities offered by Prudential, investors can protect and grow their wealth while playing their part to leave a better world for the future. Our roles, ... Read more »

Making sense of insurance amid uncertain times

With a wide range of insurance policies available, it is vital to understand the differences before you commit. Insurance is crucial to better prepare for life’s uncertainties. Paradoxically, the wide ... Read more »

How much you can expect to get from Social Security if you make $30,000, $35,000 or $40,000 per year

The largest Social Security cost-of-living adjustment increase in decades is set to go into effect in 2022. The 5.9% pay bump was meant to help seniors cover the cost of ... Read more »

How a government shutdown would affect your Dec. 15 child tax credit payment

lisegagne | E+ | Getty Images Millions of American families with kids are set to receive the last of six advance monthly child tax credit payments Dec. 15. Yet, just ... Read more »

This millennial saved $100,000 and quit her marketing job by age 25. Here's how she did it

Having an emergency fund should be a cornerstone of household budgets. Experts commonly recommend you have at least three months of expenses in savings to handle unexpected setbacks. But how ... Read more »

The metaverse, crypto and EVs are among 2021's big tech winners

SAN FRANCISCO (BLOOMBERG) – When Americans gather around the Thanksgiving table this week, the blistering rally in technology, electric vehicles and crypto-related stocks is likely to be a part of ... Read more »

7 ways college students can help save the environment — and not go broke

The environment is one of the top concerns for Gen Z — even amid a pandemic. And, while some products that are billed as sustainable cost more, there are a ... Read more »

Fintech tools take the guesswork out of investing

The recent integration of Central Depository investment data to the SGFinDex further democratises financial planning for investors of all levels. When the pandemic hit last year, human resources executive Ms ... Read more »

If you don't get a 6% raise, are you taking a pay cut due to inflation? Here's what experts say

A worker helps a customer at the Presidente Supermarket in Miami on April 13, 2020.Joe Raedle | Getty Images Workers across the U.S. are wondering how rising inflation might be ... Read more »

Suze Orman: Can you afford to join the Great Resignation? Answer these 5 questions

Charnchai | iStock | Getty Images Working is not working out for a record number of us. According to federal data, the number of people quitting has never been higher ... Read more »

How much you need to invest per month to retire with $500,000, $750,000 or $1 million, broken down by age

Saving for retirement traditionally takes more than 40 years of work. Given that kind of time, investing a little extra cash every month can pay off exponentially in the stock ... Read more »

As inflation rises, here's where to find opportunities to make and save money

LeoPatrizi | E+ | Getty Images Rising inflation has Americans worried about purchasing power and their retirement plans. Yet there are some opportunities to make and save money in this ... Read more »

The 'Great Resignation' may help you land your dream job. What to know

Ben Hasty | MediaNews Group/Reading Eagle | Getty Images Thinking of quitting your job soon? It may help you find a better gig. Many Americans are leaving their current employers ... Read more »

Temasek offers Singapore retail investors rare opportunity to buy its bonds

SINGAPORE – Temasek Holdings launched a $350 million five-year bonds sale on Monday (Nov 15), part of which will be available for purchase by retail investors in Singapore. The state ... Read more »