LMS Post ~ Cities Where Your Nest Egg Goes Farther

If feel like this is a topic that needs a little consideration in planning for services and infrastructure. Such a large part of our population is hitting the retirement years now and will be looking to make what finances they have left stretch the farthest. And while this article is a month old, it is even more pertinent now that those finances are even more in question.

And maybe just a teensy tinesy shout out to my suburban Columbus alma mater, Go OWU!!

Cities Where Your Nest Egg Goes Farthest

Maurna Desmond, 10.20.08, 4:00 PM ET

A significant number of Americans will soon retire, but the economic downturn may be causing some to rethink how they'll spend their golden years.

Topping the list of second-act must haves? A place with affordable housing, low cost of living and decent job prospects.

That's what they'll find in Columbus, Ohio. This river city tops our list of cities where your nest egg goes farthest, thanks to reasonably priced housing relative to income and a 4.5% inflation rate that allows a buck to stretch a little further than other quickly growing areas. With tens of thousands of Ohio State Buckeyes, folks will enjoy the verve and energy that comes with a bustling college town.

Texas also welcomes retirees. Dallas and Houston ranked second and fourth, respectively. A warm climate and growing economies make both of these spots great places to live up your golden years. Each city can brag about latter-year employment possibilities for the enterprising type; that's because 20% of those 65 and over collect a weekly paycheck.

Minneapolis, Minn., ranked third. The South made a strong showing with No. 9 Atlanta and No. 10 Nashville, Tenn.

Behind the Numbers
To find the best areas in the U.S. for a sustainable and exciting second act, we ranked the 40 largest Census-defined metropolitan statistical areas and looked at cost of living factors like housing affordability and inflationary pressures. All our data was provided by the Bureau of Labor and Statistics and the U.S. Census.

With a growing number of retirees planning on continuing to work or start a second career, we also factored in the number of persons over 65 who are currently employed.

To get a pulse on what retirees are thinking based on where they flock, we looked at net migration for persons over 65. To get a feel for how they fare in their community, we looked at what percent of people living below the poverty level are in their golden years.

Finally, with retirees living longer and health a top priority, we included the number of doctors per capita, as well as the number of citizens tapping their Medicare benefits per thousand people--an important issue for those 65 and older.

The Census in August reported that by 2030, nearly one in five U.S. residents is expected to be 65 and older. By 2050, this silver-haired crowd is expected to increase to 88.5 million, more than doubling the 38.7 million currently. What's more, the 85 and older population is expected to more than triple, from 5.4 million to 19 million between 2008 and 2050.

Most in this burgeoning demographic will want--and need--to make their dollars stretch as much as possible. This relates to longer life expectancy and shorter savings among baby boomers as much as it relates to suddenly slimmer nest eggs.

Top Spots
Cynthia Rickman, a spokesperson for the Columbus Department of Development, says Columbus attracts retirees because the community is walkable and has a low-cost of living. What's more, empty nesters are migrating in droves from the suburbs to the city's recently revitalized downtown.

With low taxes and lots of professionals, Dallas has its own gravitational talent pull and tax revenue wellspring.

Are you concerned about having enough for retirement? Weigh in. Post your thoughts in the Reader Comments section below.

"It's the capital of corporate headquarters second to New York," says Ed Friedman, an economist at Moody's. "Texas in general is really strong. It's the only state that has no trace of an economic slowdown versus anywhere else in the United States."

Friedman says Dallas' growth is unique because it doesn't have a natural feature, like a coast, to explain its growth over the last few decades. Big companies have been relocating there steadily, which has lead to an "agglomeration effect," where other firms want to be move to be near large businesses.

Houston's economy, meanwhile, is rooted in promising industries like energy, health care technology and computer technology, making it a good long-term bet with regard to continued growth and an industrious population.

It was former U.S President Calvin Coolidge who said, "There is no dignity quite so impressive, and no one independence quite so important, as living within your means."

Most important, make sure that no matter where you retire, sticking to your budget won't get in the way of living your life the way you want to.