With retirement on the horizon for many Americans, choosing a destination that offers both affordability and a comfortable climate is becoming a top priority. A new report from GoBankingRates reveals that Rio Verde, Arizona, stands out as the most popular retirement location in both Arizona and Florida, two of the country’s top states for retirees. The study not only ranks retirement destinations but also calculates how much savings are needed to enjoy a 15-year retirement in these sunny spots.
Arizona and Florida have long been known as retirement magnets, thanks to their favorable weather and tax-friendly policies. According to GoBankingRates, these two states dominate the list of America’s most sought-after retirement towns, with half of the top 50 located within their borders. But despite their popularity, the true cost of retiring in these destinations may surprise many future retirees.
The research found that depending on the city, a single person or couple may need at least $1 million in savings to cover expenses for 15 years in retirement, even after factoring in Social Security benefits. However, Rio Verde, Arizona, offers a more accessible option. With 86.6 percent of its population aged 65 or older, Rio Verde not only boasts a strong retirement community but is also one of the most affordable places to settle down. GoBankingRates estimates that a single person would need $896,947 to retire comfortably in Rio Verde for 15 years, while a couple would need $726,239. Both amounts include expected Social Security income.
To determine these figures, GoBankingRates analyzed data from the U.S. Census Bureau’s 2023 American Community Survey, focusing on towns with populations of at least 1,000 and where a minimum of 30 percent are retirees. The cost of living was calculated using indexes from Sperling’s BestPlaces, including expenses for groceries, healthcare, housing, utilities, transportation, and miscellaneous costs. The final calculations also incorporated national averages for spending by households aged 65 and up, as well as average Social Security income, to arrive at the annual cost of retirement for singles and couples.
All of Arizona ranked high for affordability, with only one town – Carefree, Arizona – surpassing the $1 million mark for a 15-year retirement. In Carefree, a single person would need $1,416,504, while a couple would need $1,245,795. On the other end of the spectrum, Quartzsite, Arizona, was identified as the most affordable location, with a single retiree needing just $230,067 to cover 15 years.
Meanwhile, Florida’s most desirable towns come with a steeper price tag. GoBankingRates found that retirees in eight cities across the Sunshine State – including Indian River Shores, Longboat Key, Palm Beach, and Marco Island – will require at least $1 million in savings for a single or couple to retire. In some areas, like Palm Beach, the costs skyrocket, with a solo retiree needing $11,637,136 and a couple requiring $11,466,427 for a 15-year stay.
For retirees looking to stretch their savings while enjoying great weather and a vibrant community of peers, Arizona’s Rio Verde offers an appealing balance between cost and quality of life, solidifying its position as a top choice in the latest rankings.
