Top Cities for Senior Financial Security Revealed: Arizona Leads the Way

In-Depth Analysis: Where Seniors Can Find Financial Security in Retirement

When it comes to financial security in retirement, location matters. A recent study by SmartAsset has shed light on the cities in the United States where seniors are most financially secure, and the results may surprise you. Here’s a closer look at the findings and what they mean for retirees.

Arizona Dominates the Rankings Topping the list as the city where seniors are most financially secure is Mesa, Arizona. Located just east of Phoenix, Mesa boasts several factors contributing to its top ranking. Notably, it has the highest percentage of senior homeownership at a remarkable 79.6%. Additionally, Mesa has the second-lowest percentage of senior poverty, at just over 10%, and a mere 5.5% of seniors rely on food stamps.

Joining Mesa in the top spots are Louisville, Kentucky, and Oklahoma City, Oklahoma. These cities also have a high percentage of senior homeownership, with 77.9% and 78.3%, respectively. The strong homeownership rates in these cities contribute significantly to seniors’ financial security.

Northeastern Cities Trail Behind While cities in Arizona, Kentucky, and Oklahoma are thriving in terms of senior financial security, many cities in the Northeastern United States are struggling in comparison. Boston, Massachusetts, finds itself at the bottom of the list, with less than half of its older residents owning a home, and a senior poverty rate approaching 20%.

New York City’s Housing Challenge New York City, often considered an iconic destination for retirees, ranks 35th out of 37 cities in the study. The city faces significant housing challenges for seniors, with a homeownership rate of just 45.2%, the lowest among the cities examined. New York City also has the second-highest rate of seniors who are housing-cost burdened, meaning over half of them spend more than 30% of their income on housing.

California’s Housing Struggles For retirees on fixed incomes, several major cities in California prove to be housing-cost burdened. Los Angeles, ranked second to last in the study, has more than half of its seniors spending 30% or more of their income on housing costs. This trend is seen in many other Californian cities, highlighting the state’s housing affordability challenges for retirees.

Jacksonville – Florida’s Representative in the Top 10 Surprisingly, Jacksonville, Florida, is the only city in the top 10 from the Sunshine State. While Florida is often associated with retirement living due to its desirable weather, experts are increasingly pointing out potential downsides. High home insurance premiums driven by the state’s vulnerability to natural disasters like hurricanes are one concern. In 2022, Florida homeowners paid an average annual premium of $7,788, nearly five times the national average.

Additionally, while Florida may not impose income tax, retirees could face other taxes, including those on purchases and property, which may impact their financial outlook.

In conclusion, the study reveals that when it comes to senior financial security in retirement, location plays a pivotal role. Cities in Arizona, Kentucky, and Oklahoma stand out as favorable options, while many cities in the Northeast and California present challenges related to housing affordability. Retirees need to carefully consider the financial implications of their chosen retirement destination and weigh factors like homeownership rates and living costs to ensure a secure and comfortable retirement.

Analysis provided by Reverse Mortgage Tribune.