Cape Coral is the top retirement hotspot. So reports two top websites.
It has been named the Best Place to Retire in the United States by GOBankingRates and Yahoo! Finance.
The annual retirement costs for homeowners in Cape Coral, Florida, is $33,541.98. At the same time, the Annual retirement costs for renters is $35,761.98.
Yahoo! Finance says, “If you’re thinking about leaving the rat race, you’ll inevitably wonder about the best places to retire in the U.S. Finding the right city is essential, especially if you want to get the most out of your retirement nest egg.”
GOBankingRates identified the 50 best American cities retirement with costs for homeowners and renters. In the calculations it considered everything from grocery and healthcare expenses to taxes and also crime rates.
Why Cape Coral is the top retirement hotspot
It says, “Healthcare costs in Cape Coral are by far the most expensive on GOBankingRates’ list at $8,013.20 per year. But, if you move to this southwest Florida city, you’ll be able to buy a house for a low median list price of $262,200. And, you can rent for a cheap median price of $1,185 per month.”
Overall, Florida takes the crown with seven of the top 10 cities for retirement.
GOBankingRates analyzed the top 100 cities with a population over 100,000 based on the percentage of the population ages 65 and older. The data is sourced from the U.S. Census Bureau’s 2017 American Community Survey’s five-year estimates. It then ranked them across five factors. They took into account violent crime rate per 1,000 residents, sourced from NeighborhoodScout. They also included property crime rate per 1,000 residents, sourced from NeighborhoodScout. Livability score, sourced from AreaVibes was considerd, along with average annual temperature, sourced from Weatherbase.com. These factors were scored and combined. A lower score is better. The total cost-of-living necessities was then calcualted for the top 50 cities.
Annual cost factors
To determine the total cost-of-living necessities, GOBankingRates found the annual costs of a:
- 1) 30-year fixed-rate mortgage at a 3.99% APR, as determined by the St. Louis Federal Reserve Bank on May 30, 2019, based off median home list prices as sourced from Zillow.
2) Annual rent costs, sourced from RentCafe.com.
3) Annual cost of food/groceries based on “food at home” annual expenditures for people ages 65 and older.
4) Annual cost of utilities, based on “utilities, fuels, and public services” annual expenditures for people ages 65 and older.
5) Annual cost of healthcare, based on “healthcare” annual expenditures for people ages 65 and older.
6) Annual cost of transportation, based on “transportation” minus “vehicle purchases” (It assumed that new retirees will not be purchasing a new car) and also annual expenditures for people ages 65 and older. These factors were then combined to give an
7) Annual necessities cost for homeowners and
8) Annual necessities cost for renters in all 50 best cities to retire.
GOBankingRates also found supplemental tax data for each city, which included (1) local sales tax rate as sourced from each city/county’s website; (2) state sales tax rate, sourced from the Tax Foundation’s “State and Local Sales Tax Rates, 2019”; (3) whether the states taxed Social Security benefits as sourced from the AARP; and also (4) whether the states taxed retirement income such as 401(k) plans, pensions, etc. as sourced from each state’s tax/revenues website.