How Much to Retire in Memphis, TN (2026)
Cost-of-living index 83 (US avg = 100). Comfortable retirement costs ~$43,160/yr · Nest egg target ~$1.1M.
Retirement spending tiers
National baselines adjusted for Memphis's COL index (83 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 | $730 | $1,187 | $1,712 | $2,511 | $3,994 |
| Food | $332 | $540 | $778 | $1,141 | $1,816 |
| Healthcare | $310 | $504 | $726 | $1,065 | $1,695 |
| Transport | $266 | $432 | $623 | $913 | $1,452 |
| Leisure | $310 | $504 | $726 | $1,065 | $1,695 |
| Misc | $266 | $432 | $623 | $913 | $1,452 |
| Total / month | $2,213 | $3,597 | $5,188 | $7,608 | $12,104 |
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 | $26,560 | $2,213 | $664K |
| Comfortable | $43,160 | $3,597 | $1.1M |
| Premium | $62,250 | $5,188 | $1.6M |
| Affluent | $91,300 | $7,608 | $2.3M |
| Luxurious | $145,250 | $12,104 | $3.6M |
Memphis retirement context
TN 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 Memphis?
For a comfortable retirement in Memphis, plan on roughly $43,160/year ($3,597/month). That requires a nest egg of about $1.1M using the 4% safe withdrawal rule. A modest lifestyle costs ~$26,560/year, while a premium lifestyle runs ~$62,250/year.
Is Memphis a good place to retire?
Memphis is below the US average cost of living (index 83 vs 100 national average), making it an affordable retirement destination. Your retirement savings will stretch further here than in most US cities.
How is the retirement cost calculated for Memphis?
Each tier starts from a US national baseline and is scaled by Memphis's cost-of-living index (83 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