As you get ready for retirement, there are several considerations you should think about. The cost of living in your preferred city is chief among these. Luckily, Phoenix is incredibly affordable for a city of its size.
According to the latest numbers from Forbes, the cost of living in Phoenix is 2.3 percent above the nationwide average. But, what does this mean for the expenses that seniors face? How does the “Valley of the Sun” stack up to the rest of the country?
Housing prices and rent exhibit strong upward trends in Phoenix, and this is likely to continue into the near future as job growth remains healthy and a steady stream of new residents settle in the area. According to Forbes’s number from July of 2015, the median home value in Phoenix is $184,600. Those who prefer to rent can expect to pay $929 on average per month for a one-bedroom apartment. Two-bedroom apartments cost about $1,141.
The portion of household expenditures that Phoenicians spend on food is greater than the national average but not by a significant margin. On average, 13.9 percent of household spending goes to food. Residents tend to spend more on groceries than on eating out as compared to the rest of the United States. Some average prices for common household groceries are $2.98 for a dozen eggs, $2.26 for a gallon of milk, and $3.85 for a pound of boneless, skinless chicken breasts.
Again, the portion of household expenditures that Phoenix residents spend on transportation is greater than the rest of the country, but the difference is not significant. On average, 19.4 percent of Phoenicians’ household spending is on transportation. This is even less if you do not have a daily commute to worry about. As of July 2016, the cost of gas ranges from $1.80 per gallon to $2.49 in Phoenix. The cost of auto insurance in Phoenix is above the national average. The average rate in the city is $1,295 per year. This compares to $1,099 nationally.
When it comes to senior care in Phoenix, the costs are all over the place. Assisted living and a semi-private room in a nursing home both cost less than the national medians at $41,460 and $75,555 respectively. This is compared to the national averages of $43,539 and $82,125. Home health aides are more expensive costing $48,757 per year in Phoenix versus $46,332 nationally. Adult day health care is also $5,000 more than the rest of the country in Phoenix. And, a private room in a nursing home will cost you $95,630 in Phoenix versus $92,378 nationwide.
You will get the most out of your retirement savings when you take the time to comparison shop throughout Phoenix to find housing that has good walkability, is close to affordable transportation, and is priced well.
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