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Don't Overlook the Big City for Your Retirement Home

For Loretta Halter, every day is like vacation. The 65-year-old spends her time spotting celebrities after Broadway plays, lining up to meet bestselling authors at book signings and wandering through some of the world's most renown art museums. Halter isn't a tourist. She's a retiree who decided to move to New York City for her golden years.

"For 40 years, I vacationed here in New York City," she says. "I loved everything about it and decided 18 years ago to retire here."

Halter would have to wait another 15 years before making her dream a reality, but three years ago she packed up all her possessions and traveled from Augusta, Georgia, to the Big Apple.

"I sold my car and gave away [almost everything] to family and friends," Halter explains. "I told them: 'Pretend I died and you own everything.'"

Now, the fine arts enthusiast says she relishes the chance to visit iconic institutions such as the Museum of Modern Art, Whitney Museum of American Art and Metropolitan Museum of Art whenever she wants. She's met celebrities on Broadway such as Neil Patrick Harris, Hugh Jackman and Sally Field. What's more, thanks to senior discounts, she doesn't even have pay full-price for tickets and activities she enjoys.

Housing Prices: Biggest Obstacle to Big City Living

Linda Hoffman, president of the New York Foundation for Senior Citizens, is in charge of the program that helped Halter find affordable housing in the city.

"The highest priority for seniors is affordable housing," Hoffman says. "Everyone needs to know they can afford housing and that neighborhoods are safe and accessible."

To that end, the foundation manages 10 buildings with 900 rental units throughout New York's five boroughs. A home-sharing program also matches seniors to compatible hosts who open their house or apartment to an older housemate. Hoffman notes that while people must apply for these housing programs, eligibility isn't necessarily limited to low-income seniors.

Other major cities have housing assistance programs and initiatives focused on seniors. The Los Angeles Housing Department notes 30 percent of its city's privately-owned affordable housing is for seniors, and public subsidy programs are available to promote the construction of new senior apartments. In 2014, Boston set a number of goals related to senior housing, including the development of 3,500 housing units for older residents by the year 2030. And in Seattle, the Seattle Housing Authority offers one- and two-bedroom apartments throughout the city to income-eligible seniors.

Without these and other senior housing programs, many retirees may find it impossible to move to the big city once they quit their job. In New York City, people age 65 or older with mortgages pay an average of $2,172 per month for their housing, according to Census Bureau data. That price makes buying a retirement home in the city virtually unattainable for all but the wealthiest of retirees. However, average rents for retirees in New York City is a more affordable $880 per month and subsidized housing or home sharing programs can bring the cost down even further.

Big City Living Offers More Culture, Services

While housing prices can be a drawback in many metropolitan areas, advocates of urban living say that negative is outweighed by the many city services and social opportunities available to seniors.

"It's senior-friendly," Hoffman says. "There are more goods and services in New York City than any other city in the country, maybe even the world."

Those services include coordination of benefits for those who are homebound, bus and van programs for transportation and senior centers for social activities.

"Another huge advantage [of retiring to a big city] I see is the opportunity to be engaged mentally," says Cecilia Beach Brown, a certified financial planner with Lincoln Financial Services in Annapolis, Maryland. "There are volunteer activities, cultural events and access to the arts. Of course, transportation is key [to accessing opportunities]."

When it comes to transportation, some cities run specialized van and bus systems for seniors. Others are making improvements to public transportation that benefit both younger and older riders alike. For instance, Cleveland's HealthLine bus transit route runs 24/7 and goes by both the Cleveland Clinic and University Hospitals Case Medical Center. Buses feature level boarding stations which may be easier for older Americans to navigate, and they arrive as often as every five minutes during peak periods.

Plan Carefully to Ensure a Successful Retirement

Despite programs intended to keep senior costs low, moving to a metropolitan area may mean an increased cost-of-living.

"People underestimate the cost of daily living, things like parking and groceries," says Shanna Tingom, owner of Heritage Financial Strategies in Gilbert, Arizona. "Shopping at the corner bodega may be convenient, but it's more expensive."

Those who want to live in a city during retirement should plan carefully and create a realistic budget of expected expenses, taxes and other costs before moving. "The big question is if there is a big increase in expenses, do you have enough money to make it all the way through retirement?" Tingom asks.

Although big city living may not fit every retiree's taste or budget, Halter wouldn't have it any other way. Even New York's cold winters haven't dampened this former Southern's enthusiasm for her new home.

"I love it," she says. "It's the best choice I ever made in my life."



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