The average U.S. household over 65 years of age spends a little more than $49,000 per year, but in four cities, annual cost of living is closer to $100,000.
Using BLS data, GoBankingRates.com analyzed likely average spending for retirees in 100 U.S. cities. The findings show that in San Francisco and San Jose, Calif., New York City, Seattle, and Honolulu, retirees' average annual cost of living expenses are between $99,579 (Honolulu) and $151,103 in San Francisco, Realtor.com reports. In only two U.S. cities do retirees spend less than an average $40,000 per year, both in Ohio: Cleveland ($38,147), and Toledo ($38,643).
The biggest reason the Bay Area takes three of the top 10 spots on this list? Housing costs, explains GoBankingRates’s Lead Researcher and Data Analyst Andrew DePietro: “Housing is the biggest component of overall cost of living, and with median home prices just above and below $1 million — San Fran. is over $1 million, San Jose in the $900,000s — the cost is incredibly heavy.” He adds that non-housing costs like health care are also “markedly more expensive” in the Bay Area than in lower cost areas.
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