It is imperative that you look into the cost of living of your preferred retirement destination. This will help you budget your money. New York is an expensive city. There is no getting around that fact. Yet, for older adults trying to live on retirement savings, there are some costs in the city that are actually affordable.
According to Forbes, the cost of living in New York City is 23.3 percent above the national average. This is to be expected living in the most populous city in the United States. But, how does the Big Apple compare to the rest of the nation when it comes to the key expenses in retirement?
When it comes to rent and home prices, New York is exhibiting a mild upward trend. This trend will probably continue with the city’s job and population growth. The median home value was $531,600 as of July 2015. Rent for a one-bedroom apartment in New York averages $2,848 per month and $3,631 per month for a two-bedroom unit. Housing in New York is pretty expensive, but you can find more reasonable prices outside of the city limits.
With housing expenses so high, New Yorkers spend a smaller percentage of their income on food when compared to the rest of the nation. They also spend less on food prepared at home. Instead, they eat out or order takeout more. Some typical grocery expenditures in New York are $5.53 for a pound of boneless and skinless chicken breasts, $3.64 for a dozen eggs, and $4.07 for a gallon of milk.
The overall proportion of New York’s household budgets spent on transportation is significantly less than the US average. Just 13.4 percent of residents’ budgets are spent on transportation, and for golden agers who do not have a daily commute, it is even less. Gas prices range from $2.39 to $2.89 per gallon. And, car insurance is among the highest in the country at $2,712 per year. This is compared to the national average of about $1,100. However, you can generally find lower rates depending on your driving habits, driving history, and type of vehicle.
Senior care in New York City is much more expensive than the national average. For instance, home health care is an average of $50,336 per year in NYC but $46,332 nationally. New York adult day health care is nearly $50,000, which is much more than the US average of $17,680. And, whether you want a private or semi-private room in a nursing home, you can expect to pay $164,250 per year. Whereas, a private room is $92,378 on average for the rest of the country.
Since the prices vary quite a bit in New York City, it pays to comparison shop for housing based on walkability, inexpensive transportation alternatives, and pricing.
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