Cost of Living in New York
Retiring in New York presents a unique financial challenge. With a Cost of Living Index of 186 (National Avg: 100), every $1,000 in retirement income effectively feels like $538 in local buying power. This "Inflation Gap" is the primary reason we raised your recommended portfolio target to maintain a standard quality of life.
Tax Considerations
Tax efficiency is critical in New York. While Social Security may be tax-free, the real factor is New York's property tax rate of 1.72%. For a retiree owning a median-priced home ($780,000), this creates a fixed annual expense of roughly $13,416 that must be covered by your guaranteed income sources.
See our Income Tax Calculator for a detailed breakdown →
Housing Strategy
Your biggest asset may be your home. With New York home values averaging $780,000 (cooling), "Rightsizing" your housing—moving to a lower-cost area or a smaller unit—could immediately unlock equity to bridge your $1290k projected gap.
Check the Refinance Calculator to see equity options →
Methodology
National Standard Goal ($1.5M) assumes a 4% withdrawal rate over 30 years in a median US city (COL Index 100). Target Goal for New York is adjusted using the latest 2025 Cost of Living Index (186) and local tax burden estimates. Projections assume a conservative 6% annual growth rate and do not account for extreme market volatility.
Data Sources
- Social Security Administration (SSA.gov): Baseline assumptions for life expectancy (Actuarial Life Table) and full retirement age logic.
- Bureau of Labor Statistics (BLS.gov): Historical CPI data used for inflation-adjustment benchmarks.
- Internal Revenue Service (IRS.gov): Contribution limits and tax bracket reference for 2024-2025.
Tools & Data Verified by the EverydayCalculators Financial Research Team.
Last updated: December 2025.