Where You Live Affects Your Retirement Savings

Inflation is like a sneaky thief, stealing from your wallet bit by bit. It's not just about the price of your morning coffee today, but also about how much your money will be worth when you retire. The longer you keep your money idle, the more inflation nibbles away at its value. Different places in the US have different inflation rates. In August 2025, the average inflation rate was 2. 9%, but it was as low as 2% in the West South Central region and as high as 3. 7% in New England. Even within regions, there were big differences. For example, Dallas-Fort Worth saw a tiny 0. 9% increase, while San Diego-Carlsbad had a 4% jump. Retirement savings grow slowly over time. Experts say you can expect a modest return of 5% to 7% per year. But when you factor in inflation, the real growth is much less. For instance, if you have $100, 000 in retirement savings growing at 7%, after 30 years, you'd have about $1. 7 million in Dallas, but only about $1. 55 million in San Diego. That's a difference of over $156, 000, just because of where you live. High inflation in some areas also means people have less money to save for retirement. It's a double whammy: your savings grow slower, and you have less to save in the first place. To protect your retirement savings from inflation, you need to be smart about where you put your money. Don't just rely on one type of investment. Spread your money around to avoid big losses. Also, think about what you'll need to live comfortably in retirement, not just cover the basics.