How Much Would You Need to Have in the Bank to Feel Comfortable Retiring in the Philadelphia Area?
The amount of money you'll need for retirement in Philadelphia depends on several factors, including your lifestyle, housing situation, and healthcare needs. Acts Retirement-Life Communities has 50+ years of experience in the senior living realm, based in Fort Washington, PA, overseeing several communities located near Philadelphia. With that in mind, we can state with confidence that Philadelphia is more affordable than cities like New York or San Francisco, but still has significant expenses. Key cost considerations include:
- Housing – If you own your home outright, you’ll need less. Renting a one-bedroom apartment costs around $1,500–$2,500/month in the city.
- Healthcare – Medicare helps, but out-of-pocket costs can range from $5,000–$10,000+ per year. This is for independent seniors, if you need assisted living or skilled nursing it would be drastically higher.
- Food & Groceries – Expect to spend $400–$800 per month, depending on your diet and whether you dine out often.
- Transportation – If you drive, consider car costs; if not, SEPTA has a Senior Fare Card, to ride all SEPTA modes of transportation, including buses, trolleys, subways and regional rail for free.
- Entertainment & Miscellaneous – Travel, dining out, hobbies, and unexpected home expenses could add $500–$1,000+ per month.
Financial planners in Philadelphia often recommend these retirement budgets:
Basic Retirement ($40K/year) – $1M Savings
- Comfortable if you own your home.
- Modest lifestyle, limited travel/dining out.
- Reliant on Social Security + savings.
Moderate Retirement ($60K-$80K/year) – $1.5M-$2M Savings
- Can afford rent or property taxes comfortably.
- Occasional travel, dining, and hobbies.
- Good healthcare cushion.
Luxury Retirement ($100K+/year) – $2.5M+ Savings
- Prime Center City living, high-end dining, frequent travel.
- Comprehensive healthcare & long-term care planning.
There’s another option when it comes to having a comfortable retirement – especially nowadays with economic uncertainty and the unpredictability of healthcare costs. Consider a continuing care retirement community (CCRC) near Philadelphia, with easy access to city life without dealing with the hassles of living within the city limits. This could be the best of both worlds – you are close enough to enjoy all the city has to offer, with the reassurance of a predictable monthly fee (which includes property taxes, utilities, etc) and access to health care like assisted living or skilled nursing if you ever need it, without a price hike tied to solely needing more care. Good luck with your decision!
To start by reviewing the best CCRCs available in the area, check out Acts Retirement-Life Communities.
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