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North Carolina City 3rd Best Nationally For Saving For Retirement

Author Melanie Day

It’s never too early to start saving for retirement in North Carolina. And if you’re like most people you may wonder if you’re doing enough. The way the economy is and as inflation continues to soar there may not be “enough” to do. But some places can set you up better for that fantasized-about part of life.

Saving For Retirement In North Carolina

And one North Carolina city actually ranks as the 3rd best place to save for retirement. This is according to a new study by MutualFunds.com. They emphasize that where you live can have a monumental impact on your finances and savings. So MutualFunds.com set out to determine the cities that offer residents the best opportunities to save money for retirement.

Two North Carolina cities actually made the top 10 of this list, so if you are currently saving for retirement in North Carolina this is welcome news.
According to a new study by financial resource MutualFund.com, Overland Park, KS is the best city in the U.S. for building a retirement nest egg, while Los Angeles, CA is the worst. Researchers “analyzed key financial metrics across America’s 170 largest cities”. These metrics included household income, housing costs, poverty rate, and tax rates. They also accounted for variables including income growth, housing prices, cost of living, and unemployment rates.
Durham North Carolina came in at number 3 overall on this list behind Overland Park Kansas and Bosie Idaho. I’m clearly biased but I certainly rather live in Durham than Kansas or Idaho. Charlotte was the other North Carolina city saving for retirement in the best location. Here were the full top 10:
  1. Overland Park, KS
  2. Boise, ID
  3. Durham, NC
  4. Gilbert, AZ
  5. Arlington, TX
  6. Garland, TX
  7. Chandler, AZ
  8. Charlotte, NC
  9. Mesa, AZ
  10. Clarksville, TN
Being out west seems to be a good move when it comes to retirement planning. Though I personally don’t think I could handle summers in Arizona! Thanks to our friends at MutualFunds.org for sharing their research with us. You can read the full study here.

How Much Do You Need to Retire?

Have you ever wondered how much money you need to retire? It’s a big question and has a complicated answer. But, there are some ways to estimate how much money you’ll need to retire comfortably. So, how much do you need to retire?

Before we get into those numbers, let’s look at how the age at which you retire impacts how much retirement you currently get from Social Security. What is the maximum Social Security retirement benefit payable? According to Faq.ssa.gov, the maximum benefit is dependent on the age you retire. “For example, if you retire at full retirement age in 2024, your maximum benefit would be $3,822,” they state. “However, if you retire at age 62 in 2024, your maximum benefit would be $2,710. If you retire at age 70 in 2024, your maximum benefit would be $4,873.” Also, when you want to apply for retirement benefits, you can do so using their online retirement application here.

You’re able to apply for your monthly retirement benefit as early as 62 years old. You can apply any time between age 62 and 70. The government calculates your payment by looking at how much money you’ve earned during your entire career. “The amount will be higher the longer you wait to apply, up until age 70,” they explain. “The timing is up to you and should be based on your own personal needs.” They also have a handy tool to estimate how much you’ll get when you apply at different ages. Find the tool here. They also have a chart here where you can look at various dates and see how much retirement you get if you were born in those years. Wow. I have a ways to go, looking at those dates.

So, how much do you need to retire? Let’s look at what some experts say and how to find out your needs.

  • It depends on when you want to retire

    The age you want to retire can have a massive impact on the amount you need to save. If you delay your retirement, it gives your savings longer to grow, and your Social Security benefit will be higher. So, the longer you can delay, the better. In other words, working longer will make it easier save enough money to retire.

  • What kind of retirement lifestyle do you want?

    Do you want to really live it up in your retirement, or will you be frugal? If you think your expenses might go up in your retirement, you have to save for it. But, if you plan to downsize, you can retire on less.

  • How much can you withdraw from savings each year?

    The AARP sources a 1998 study from Trinity College in Texas, which attempted to “find the most sustainable withdrawal rate from retirement savings accounts over various time periods.” In conclusion, the study stated that “an investor with a portfolio of 50 percent stocks and 50 percent bonds could withdraw 4 percent of the portfolio in the first year and adjust the withdrawal amount by the rate of inflation each subsequent year with little danger of running out of money before dying.”

  • Retirement calculator

    Fidelity has a handy calculator that will help you figure how how much you need to retire. First, they ask, what is your age? Then, what is the age you expect to retire? Finally, what do you think your lifestyle will be in retirement? Use their calculator HERE, and they’ll give you some useful estimates.

Melanie Day is a graduate of North Carolina State University. She has worked for Beasley since 2012 in a variety of behind-the-scenes roles in both digital and promotions. Melanie writes about a diverse range of topics some of her favorites include travel, restaurants, Taylor Swift, and college athletics. When not at work you'll find her at a country concert or NC State sporting event.

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