In recent years, some of the fastest-growing communities in the United States have shifted their focus away from traditional family-oriented neighborhoods, instead championing the retiree lifestyle.
These age-restricted developments, mostly open to those aged 55 and older, often boast impressive amenities such as pickleball courts, inviting community centers, and roads designed for golf carts.
Strategically located in warm, low-tax states, they are particularly appealing for retirees aiming to make the most of their savings.
As a significant portion of baby boomers retire from the workforce, these communities have become prime destinations, frequently cited in lists ranking the best places to retire.
Consequently, many of them have seen a dramatic rise in the proportion of residents aged 65 and older.
An exemplary case in point is The Villages in Florida, which has grown into a massive, self-proclaimed ‘active adult community’ housing approximately 140,000 residents, predominantly aged 55 and older.
The Villages even earned the title of the fastest-growing metropolitan area in the U.S. in 2023, as reported by the Census Bureau.
Communities such as Sun City West in Arizona and Lady Lake in Florida are experiencing similar growth trends as they cater to a continuously expanding pool of retirees.
While the allure of retirement communities remains strong, it is crucial to note that not all of these places are affordable.
In several instances, achieving a ‘rich’ retirement might necessitate savings of over $3 million.
To understand what it takes to retire comfortably, GoBankingRates undertook a detailed analysis, pinpointing U.S. locations with a high percentage of residents aged 65 and older using Census Bureau data.
Their analysis then estimated the overall savings required to cover 25 years of expenses, calculated at double the average annual spending for local senior households.
The research spans both incorporated cities and unincorporated Census Designated Places with a minimum population of 15,000 residents.
Living expense estimates were derived from the average spending habits of seniors on essentials like housing, food, transportation, and healthcare, utilizing Bureau of Labor Statistics data that was subsequently tailored to the specific city level through analytics from Sperling’s BestPlaces cost-of-living index.
Here’s a closer look at 15 locations where older adults constitute a significant portion of the community and the financial requirements to retire ‘rich’ in these areas.
1. Sun City West, Arizona: 86% of the population are aged 65 and older, with estimated savings needed to retire rich at $2,241,035.
2. The Villages, Florida: 85% of residents are 65 or older, requiring $1,784,374 to retire comfortably.
3. Laguna Woods, California: With 83% aged 65 and over, the community demands savings of $3,785,271 for a rich retirement.
4. Green Valley, Arizona: This area has 80% of residents aged 65+, needing $1,742,313 to retire wealthy.
5. Sun City, Arizona: Here, 75% of the population is 65 and older, with an estimated $2,232,022 required for a wealthy retirement.
6. Sun City Center, Florida: 62% are 65+, necessitating $1,961,631 to retire ‘rich’.
7. Venice, Florida: Home to 60% aged 65 or older, it requires $1,994,679 in savings to retire well.
8. Hot Springs Village, Arkansas: 60% of the population is aged 65+, with an estimated retirement fund requirement of $1,339,730.
9. Englewood, Florida: 59% of the population are seniors, needing $2,000,687 to retire comfortably.
10. Marco Island, Florida: Also featuring 59% of seniors, the retirement savings needed here is $2,247,044.
11. Naples, Florida: With 56% aged 65 and over, the estimate for a comfortable retirement stands at $2,226,014.
12. Punta Gorda, Florida: Home to 54% of seniors, retirees in this area would need $1,646,174.
13. Lady Lake, Florida: 52% of residents are over 65, requiring $1,844,461 to live comfortably in retirement.
14. Estero, Florida: 51% of the population is aged 65+, and it would take $1,958,626 to retire wealthy here.
15. Rancho Mirage, California: With half the population being 65 or older, the estimated savings for a rich retirement stands at $2,742,762.
While the allure of these retirement havens grows, prospective retirees must carefully evaluate their financial readiness in the face of rising costs.
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