One of the most important factors to consider as you prepare for retirement is how you are going to pay for it. The city you choose to live in will play a major role in determining your costs. Thankfully, the cost of living in Phoenix is right on par with what you will find in the rest of the country. This seems like a small price to pay to live in a city with such great entertainment, air service, and pleasant winters.
Yet, how does Phoenix stack up against the rest of the United States when it comes to bigger expenses? We will explore this below.
Not everyone wants to live in their own home. Some of us prefer to have others take care of daily tasks such as housekeeping, cooking meals, and paying for utilities. Fortunately, there are several senior living communities in Phoenix that offer assisted living. The average cost for a year in an assisted living facility will run you about $39,000 with all of the above services and housing included.
According to the latest numbers published on Sperling’s Best Places, the median home price in Phoenix is about $159,800, and home appreciation is high, so you can count on your investment increasing in value. Based on Allstate, Movoto, and other leading real estate and financial sites, there are several suburbs around Phoenix that are ranked highly for retirees. Some of the best suburbs based on cost of living, crime rates, and access to health care include Mesa, Scottsdale, Tempe, Glendale, Gilbert, and Chandler.
If you would prefer to rent, the average monthly rent for a one-bedroom apartment in Phoenix is about $929. For two bedrooms, it is $1,141.
Phoenix is nestled in Maricopa County, and the Medicare spending in Maricopa County is well below the national average. Medicare spends $9,023 per Maricopa County beneficiary, while the national average is $9,501.
Despite the affordable health care costs, you still need to budget for coinsurance, deductibles, and other out-of-pocket expenses. This is particularly crucial if you want to see providers who do not accept Medicare at the fee-for-service rates. As a matter of fact, you will need to pay the difference between the allowed amount and the Medicare reimbursement rate.
Transportation expenses, such as gas and insurance, are a bit more in Phoenix than the national average. Car owners can expect to pay anywhere from $790 to $2,102 per year for car insurance depending on where they live in the city. The average is $1,295.
If you prefer not to drive, Valley Metro offers reduced fares for seniors age 65 and over with valid ID. At the reduced rates, you can get a 31-day pass for just $32.
Not everything in Phoenix costs money. In fact, there are plenty of things that are completely free. On Wednesday evenings, you can enjoy the Phoenix Art Museum for free. Explore the Desert Botanical Garden for free on the second Tuesday of each month. Also, on the second Saturday of each month, take a tour on the Scottsdale trolley.
Find assisted living in Phoenix near you.