Retiring in a big city? You may need $1.6M to live comfortably

Social Security is supposed to replace about 40% of the income earned in working years, according to the federal agency. That’s why Americans are urged to save for retirement.

For retirees in big cities, however, Social Security dollars may not even go that far.

In large U.S. cities and their suburbs, Social Security income covers only around 30% of what the average retiree spends in a year, according to a new analysis from the personal finance site LendingTree.

Across the 100 largest metropolitan areas, Social Security covers anywhere from 24% of annual retirement spending (in San Francisco) to 35% of yearly spending (in McAllen, Texas), LendingTree found in the July 15 report.

To live a comfortable retirement in any of those cities, the report says, you’ll need lots of savings: $1.6 million in Los Angeles or San Francisco, $1.3 million in Philadelphia or Chicago, $1.1 million in Memphis, Tennessee.