How Much to Retire in Houston, TX (2026)
Cost-of-living index 95 (US avg = 100). Comfortable retirement costs ~$49,400/yr · Nest egg target ~$1.2M.
Retirement spending tiers
National baselines adjusted for Houston's COL index (95 vs 100 US average). Nest egg uses the 4% safe withdrawal rule (annual × 25).
Small apartment, cook at home, public transit, minimal travel
1BR apartment, dining out occasionally, one modest vacation/year
2BR home, regular dining out, two vacations/year, newer car
Owned home, frequent travel, generous entertainment budget
Upscale home, luxury travel, golf/clubs, full-time help
Monthly budget breakdown by tier
Estimated monthly allocation across spending categories
| Category | Modest | Comfortable | Premium | Affluent | Luxurious |
|---|---|---|---|---|---|
| Housing | $836 | $1,359 | $1,960 | $2,874 | $4,572 |
| Food | $380 | $618 | $891 | $1,306 | $2,078 |
| Healthcare | $355 | $576 | $831 | $1,219 | $1,940 |
| Transport | $304 | $494 | $713 | $1,045 | $1,662 |
| Leisure | $355 | $576 | $831 | $1,219 | $1,940 |
| Misc | $304 | $494 | $713 | $1,045 | $1,662 |
| Total / month | $2,533 | $4,117 | $5,938 | $8,708 | $13,854 |
Nest egg targets
How much you need saved to fund each lifestyle, using the 4% safe withdrawal rule
| Tier | Annual spend | Monthly spend | Nest egg (4% rule) |
|---|---|---|---|
| Modest | $30,400 | $2,533 | $760K |
| Comfortable | $49,400 | $4,117 | $1.2M |
| Premium | $71,250 | $5,938 | $1.8M |
| Affluent | $104,500 | $8,708 | $2.6M |
| Luxurious | $166,250 | $13,854 | $4.2M |
Houston retirement context
TX has no state income tax — retirement income (Social Security, withdrawals) is not taxed at the state level.
Frequently asked questions
How much money do you need to retire in Houston?
For a comfortable retirement in Houston, plan on roughly $49,400/year ($4,117/month). That requires a nest egg of about $1.2M using the 4% safe withdrawal rule. A modest lifestyle costs ~$30,400/year, while a premium lifestyle runs ~$71,250/year.
Is Houston a good place to retire?
Houston has a cost of living close to the US average (index 95). Retirement budgets here are fairly typical — neither a bargain nor a budget-buster.
How is the retirement cost calculated for Houston?
Each tier starts from a US national baseline and is scaled by Houston's cost-of-living index (95 vs 100 US average). Nest egg targets use the 4% safe withdrawal rule (annual spend × 25). The budget allocation assumes roughly 33% housing, 15% food, 14% healthcare, 12% transport, 14% leisure, and 12% miscellaneous.
Deep-dive by tier
Spending estimates adjusted by BLS cost-of-living data · 4% safe withdrawal rule (Bengen 1994) · 2026 estimates · For general guidance only