When you are planning for retirement, you need to know how expensive it will be. Overall, the cost of living in Sacramento is about 13 percent higher than the national average, but it is nearly 40 percent less than the average for California, and there are some advantages to the city for cost-conscious older adults. Plus, Sacramentans usually find that the mild winters, nearby recreation, and central location are worth the additional cost, and Sacramento is still much less expensive than cities like Boston, New York, and San Francisco.
Let’s take a look at how Sacramento stacks up on the big expenses that most of us have.
You can expect to pay an average of $40,200 per year, if you decide to move into a senior living community that provides an assisted living alternative instead of living on your own. This figure includes weekly housekeeping, housing, some utilities, and meals.
According to Sperling’s Best Places, the median home price in Sacramento is $207,200 based on the most recent figures. Home prices across California’s Central Valley are rising, but if you know where to look, there are good values to be found. Based on scores that take housing costs and quality of life into consideration, real estate and personal finance sites, such as Movoto, rank Sacramento suburbs Winters, Walnut Grove, Citrus Heights, Roseville, Arden-Arcade, and Gold River highly for retirement living.
If you prefer to rent, the average rate, as of June 2016, for a one-bedroom apartment near Sacramento is $1,081 and $1,294 for a two bedroom unit.
Medicare spending per person in Sacramento County does not deviate significantly from the national average. In 2014, Medicare paid $9,638 per Sacramento County beneficiary. This is compared to $9,501 spent per person nationally.
Though Sacramento is not much more expensive than the rest of the country, it is still a good idea to budget carefully for any coinsurance or deductibles you will have to pay out-of-pocket. This is particularly true if you pick providers who accept Medicare, but not at the fee-for-service rate. In this instance, you will be expected to pay the difference between the allowed charge and the Medicare reimbursement amount.
Insurance, gas, and other transportation costs average out to about thirteen percent more than the national average. Depending on where in Sacramento you live, car owners can expect to pay between $1,095 and $2,264 per month for car insurance with an average rate of $1,667. Ask about safe-driver discount options as you shop around for the best deal. You may even be able to lower your rate based on the actual number of miles you drive. This is a smart idea if you do not have a daily commute. If you prefer to ride, RT offers discounted rates for riders aged 62 and over. You can buy a monthly pass for $55. If you are 75 or older, it is $42.
You do not have to pay for everything in Sacramento. For a quarter century, Concerts in the Park have been a summer institution in the city, and best of all, it’s free! There are free trivia nights around the city, including at Blue Cue. If you need even more free ideas, here are 96.
Find assisted living in Sacramento near you.