A 2019 report from the Federal Reserve on the financial well-being of U.S. households says that only 37% of Americans think that their savings are on observe for retirement. The rising prices of residing, medical bills and long-term care could make it tough to avoid wasting sufficient for annual retirement expenses. With this context in thoughts, SmartAsset in contrast information from 100 cities nationwide to determine and rank the locations the place seniors are probably the most and least financially safe.
We thought of elements together with common senior retirement earnings, share of seniors beneath the poverty line, share of seniors on SNAP, share of seniors who personal their properties, share of seniors with personal retirement earnings, share of seniors who’re housing cost-burdened and housing prices as a share of senior retirement earnings. For particulars on our information sources and the way we put all the knowledge collectively to create our last rankings, take a look at the Information and Methodology part beneath.
• Prime 5 retains a safe maintain yr over yr. Solely one of many 5 cities the place seniors are most financially safe doesn’t have the identical rank as final yr. Whereas Anchorage, Alaska jumps up from sixth place in 2020 to interchange Solar Metropolis, Arizona in fourth place in 2021, the opposite high 4 cities repeat in the identical positions in each years. These 4 cities all stand out for his or her comparatively excessive percentages of seniors with personal retirement earnings and low percentages of seniors who’re housing cost-burdened.
• Northeastern cities fare poorly. Out of the 100 cities we studied, no metropolis within the Northeast ranks among the many high 50 cities the place seniors are extra financially safe. What’s extra, three cities within the area – New York, New York; Boston, Massachusetts; and Philadelphia, Pennsylvania – all rank within the 10 cities the place seniors are least financially safe. These cities have comparatively excessive percentages of seniors who’re residing beneath the poverty line and who’re depending on SNAP advantages.
The place Seniors Are Most Financially Safe
1. The Villages, FL
The Villages, an prosperous retirement-focused neighborhood in central Florida, leads this record. This metropolis ranks first or second in all of our metrics, together with main for the next:
• Proportion of seniors on SNAP: 0.4%
• Proportion of seniors who personal their very own dwelling: 96.0%
• Proportion of seniors who’re cost-burdened by housing: 21.35%
• Housing prices as a share of common senior retirement earnings: 13.95%
2. Shock, AZ
Only one.8% of seniors in Shock, Arizona are on SNAP, the second-lowest share of the cities we studied. This metropolis additionally has the third-highest variety of seniors with personal retirement earnings (63.4%). Shock ranks fourth-lowest for the proportion of seniors residing beneath the poverty line (5.1%) and share of seniors who’re housing cost-burdened and in addition ranks fourth-highest for the proportion of seniors who personal their very own properties (87.0%).
3. Huntsville, AL
Solely 22.61% of seniors in Huntsville, Alabama are burdened by housing prices, the second-lowest price for this metric within the examine. This metropolis additionally ranks second-best for comparatively low housing prices as a share of the town’s common senior retirement earnings (17.91%). Huntsville locations fifth for the retirement earnings metric, as 60.9% of seniors have some form of personal retirement earnings flowing in.
4. Anchorage, AK
Anchorage, Alaska ranks fourth for common senior retirement earnings of $63,044. Anchorage additionally finishes within the high 5 in the case of low poverty charges, with 5.5% of seniors residing beneath the poverty line. And roughly 81.5% of seniors personal their very own properties, the sixth-best price for this metric general.
5. Lexington, KY
Solely 26.15% of seniors in Lexington, Kentucky are burdened by housing prices, the third-lowest price for this metric within the examine. The town doesn’t carry out as properly in the case of the common senior retirement earnings (rating forty eighth out of 100 at $50,227). However, 56.3% of seniors do have at the very least some personal retirement earnings, putting the town eighth for this metric within the examine.
The place Seniors Are Least Financially Safe
1. Hialeah, FL
The typical retirement earnings in Hialeah, Florida – a suburb of Miami – is simply $27,886, the bottom of all of the cities we analyzed. Hialeah additionally ranks final for its excessive share of seniors on SNAP (51.2%) and housing prices as a share of the common senior retirement earnings (52.67%).
2. Miami, FL
Miami, Florida, a neighbor of Hialeah, is second on this record. Round 31.6% of seniors in Miami reside beneath the poverty line, the largest share out of the cities we analyzed. Solely 17.1% of seniors in Miami have any personal retirement earnings – the bottom share for this metric within the examine. Greater than 53% of seniors are burdened by housing prices, placing Miami second-to-last for that metric.
3. New York, NY
The Large Apple isn’t the perfect place for monetary safety for seniors. Solely 44.2% of seniors within the metropolis personal their properties, the second-lowest price noticed on this examine. Almost 50% of seniors are burdened by housing prices, placing the town 97th out of the 100 cities we studied. Moreover, 25.8% of seniors are on SNAP, the seventh-highest share right here.
4. Boston, MA
Almost 21% of seniors in Boston, Massachusetts reside beneath the poverty line, the third-highest share for this metric within the examine. Beantown ranks fourth from the underside in two classes: the proportion of seniors on SNAP (27.2%) and the proportion of seniors who personal their very own properties (47.3%).
5. Baltimore, MD
Baltimore, Maryland’s common retirement earnings $41,724, the eighth-lowest out of all of the cities we analyzed. Baltimore ranks ninth from the underside when it comes to seniors needing assist to purchase meals, as 21.5% of seniors within the metropolis are on SNAP. The Allure Metropolis performs considerably higher when it comes to what number of seniors have some form of personal retirement earnings, ending proper within the center at 48.7%.