NYC Retirement: How Much Do You Need?

So, you’re entering your seniors years. And after decades of honest work, you’re about to face retirement. In many ways, this means finally getting some hard-earned rest; plus, you’ll have a lot of activities to look forward to. But on the other hand – you’ll need to choose a place where you’ll spend your senior years. Have you considered an NYC retirement? Trust us – with the right financial planning, this can be a great idea!

Have a Solid Plan

No matter what you’re doing in life; having a realistic plan in place is important. And that goes double when you’re about to undergo something as big as an NYC retirement. Trust us; putting retirement ideas into motion is something you don’t want to do on a whim. On one hand, you’ve got your savings to think about and invest wisely. And on the other, you can’t exactly reenter the workforce to make up for any loses that easily.

Taxi cabs in NYC.
Make sure you’ve got the chops for an NYC retirement!

With this in mind, you’d be wise to make a plan for retirement early on. For one, pick the right place to live. Sure, New York is a fine idea, but you need to be certain you can afford it. And even once you’re sure of that, there’s still quite a lot of choice left. To put it mildly, the Big Apple is a pretty big place. And all of the boroughs and neighborhoods offer something different; along with a varying level of bang for your buck. So, before choosing a location – think long and hard! And make sure that you’ve got the finances to support your plans! If you do this wisely, there’s absolutely no reason why you can’t have the relocation for seniors of your dreams.

Real Estate Choices

If you’ve made up your mind regarding your NYC retirement, the next question is – where will you live? And we don’t mean the location, though as we’ve mentioned above, that choice is equally important. But rather, we want you to focus on real estate matters right now. As a senior, it’s important to know what kind of money you’re dealing with. That way, you’ll know what your options are when it comes to New York City real estate. And let us tell you right away – as you might have guessed, this isn’t exactly a very forgiving market.

A street corner in NYC, with Manhattan in the background.
NYC offers a lot of real estate options – but they can be costly!

You’ll find that the median asking price for an apartment in Manhattan is more than half a million dollars. And that’s just for studio apartments! Let’s face it, this isn’t much of a surprise; after all, Manhattan is one of the most sought-after pieces of real estate in all of America. But if you can afford that sort of home-ownership, should you go for it? Or are there different options to explore?

Think About Renting

When you’re dealing with an NYC retirement, real estate costs aren’t the only thing you have to worry about. Heck, even the relocation itself can put quite a dent in your personal finances, if you’re not already living in New York. You should definitely take a look at moving calculators like in order to fully grasp the expenses you’ll have to face. But with such smaller expenses in mind; should you definitely buy a home?

Some experts believe that even if you can afford homeownership in your senior years; investing all of your savings into real estate may actually be a mistake. Why? Well, some people opt for this because of fairly logical reasons. You think that you don’t want to tie yourself down with rent, or a mortgage; so you just buy a place, and deal with maintenance. However, that may not be the smartest thing to do.

Invest the Money

Say that you spend $700,000 on a home in Manhattan. Sure, you can find a pretty nice apartment there for such a sum of money. And afterward, if we’re talking about a high-end apartment building; you’ll only have monthly maintenance costs to deal with. Certainly, that may sound lovely – but in reality, you could spend that money in a better way elsewhere.

Think about investing! If you took a chunk out of your savings for rent, at least for the first year; you’d be left with quite a sizable sum to make all sorts of investments! Plus, you won’t be dealing with property tax and that sort of nasty stuff. That’s why we believe that renting and investing may prove more fruitful in the long run.

Two old people sitting on a bench
Enjoy your retirement, make preparations on time

Other expenses

In the previous paragraphs, we’ve talked a lot about how NYC retirement may cost you a lot of money because of moving and the real estate you’ll buy. But in reality, there are plenty of other expenses you’ll have to deal with. That’s why we suggest doing thorough research before embarking on such an adventure. Sure, spending your golden years in New York seems like a great idea; but you’ll be miserable there if you can’t afford day-to-day costs.

And make no mistake – New York can be quite expensive when you don’t approach it with the right financial mindset. Especially if you’re coming from a small town; make sure that you can support retirement in the Big Apple when it comes down to everyday stuff as well!