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How Much Does It Cost to Retire in Detroit, MI?

As you get ready for retirement, there are several factors you need to take into consideration. For example, you should look into how much it will cost you to live where you want. Fortunately, Detroit is one of the least expensive places to live in the United States. In fact, you can expect to spend 27 percent less for your everyday expenses. In addition to the low cost of living, Detroiters love their city for its arts and culture as well as professional sports.

However, how does Detroit compare to the rest of the country when it comes to the biggest expenses you will face in retirement? We will try to answer this question and more below.

How Much Does Housing Cost?

Having your own home is great, but when you want help with housekeeping, meals, and paying for utilities, it is often worth moving into a senior living community with an assisted living option. If you decide to go this route, you can expect to pay $40,440 per year for the above services and housing.

According to Sperling’s Best Places, the median housing cost in Detroit is $35,700 based on the latest figures. You cannot find a better deal anywhere, but prices are increasing quickly, so now is the time to buy. Detroit’s suburbs rank among the best places to live in Michigan based on real estate and financial sites, like Niche and Movoto. Based on crime rates, quality of life, and housing costs, the best suburbs in Detroit are Novi, Farmington Hills, Troy, West Bloomfield, Birmingham, and Beverly Hills.

If you want to rent in Detroit, you can expect to pay about $839 per month for a one-bedroom apartment or $1,100 for two bedrooms.

What Is the Cost of Health Care?

The per capita Medicare spending in Wayne County, where Detroit is located, is well over that found in the rest of the country. The national average is about $9,501, while the Medicare costs per person in Wayne County are $12,507.

It is imperative that you budget for your health care expenses since you will have to pay for coinsurance and deductibles out of pocket. This is particularly crucial if you need to go to providers who do not accept Medicare at the fee-for-service rates. This is because you will have to pay the difference between the allowed amount and the Medicare reimbursement rate.

Is Transportation Expensive?

In the Motor City, transportation expenses, such as insurance and gas, are a little bit more than the national average. For example, depending on where you live, vehicle owners may have to pay up to $6,211 per year for car insurance or as little as $1,882. The average in Detroit is $3,964.

If you prefer to have someone else drive, DDOT provides bus services throughout Detroit. Seniors get a reduced rate. In fact, you can get a monthly pass for just $17.

Is There Anything Free?

Detroit is incredibly affordable when it comes to certain things. This includes the many free entertainment options. You can check out the Detroit Museum Adventure Pass to check out cultural attractions for free. Also, Marvin’s Marvelous Mechanical Museum is an affordable place to spend the afternoon with grandkids.

Learn more about Detroit Retirement Planning here:

What's the Cost of Living in Detroit, MI?

Detroit Financial Advisors

Detroit Elder Law Attorneys

Detroit Senior Realtors

Detroit Senior Movers and Downsizes

Detroit Neighborhood Guide

Live Like a Local in Detroit

Detroit Demographics and Lifestyle

Find assisted living in Detroit near you.