Before you retire, it is good to know what the cost of living will be in your preferred city. This will give you an idea of how much you need to save to retire. Fortunately, if you are considering retiring to Philadelphia, you will find that it is surprisingly affordable for a city of its size, and for some expenses, it is fairly inexpensive.
The cost of living in Philadelphia is 2.4 percent above the United States average according to Forbes. But, how does the City of Brotherly Love compare to the rest of the nation when it comes to specific budget categories?
Both the housing costs and rent show a mild upward trend in Philadelphia, but this will likely continue to slow down with the low job growth and population increase numbers. As of July 2015, the median home price is $151,300. And, if you prefer to rent, the average cost for a one-bedroom apartment in Philadelphia is $1,474 per month and $1,911 per month for a two-bedroom apartment. You are also likely to find some good deals if you shop around in some of the suburbs.
The proportion of the household expenses that Philadelphians spend on food is not significantly different from that of the rest of the country. Residents spend an average of 12.5 percent of their budget on food. They are also on par with the rest of the country on how much they spend on food prepared at home versus eating out. On average in Philadelphia, a gallon of milk costs $3.61, eggs are $3.28 a dozen, and boneless, skinless chicken breasts are $4.61 per pound.
Transportation is also not proportionally more in Philadelphia than the rest of the US. Households spend about 16.4 percent of their budget on transportation, and this number is even lower for retirees who do not have a daily commute. Gas prices range from $2 to $2.79 per gallon in Philadelphia. And, car insurance rates are among the highest in the nation with residents spending an average of $2,931 per year for insurance. You may be able to find lower rates depending on where in the city you live, your driving history, type of vehicle, and driving habits.
Senior care in Philly is more expensive than the national median in all categories. Home care in Philadelphia averages about $51,000 per year compared to $46,000 nationwide. Adult day health care is $19,955 versus $17,680 for the rest of the country. In Philadelphia, seniors can expect to pay an average of $52,560 per year for assisted living, which is $9,000 more than the national average. And, the costs for private and semi-private rooms in a nursing home are $127,750 and $114,975 respectively in Philadelphia and $92,378 and $82,125 nationally.
Before deciding on your housing, it is well worth doing your research in Philadelphia since prices vary dramatically.
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