How Much to Retire in Tempe, AZ (2026)
Cost-of-living index 103 (US avg = 100). Comfortable retirement costs ~$53,560/yr · Nest egg target ~$1.3M.
Retirement spending tiers
National baselines adjusted for Tempe's COL index (103 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 | $907 | $1,473 | $2,125 | $3,116 | $4,957 |
| Food | $412 | $669 | $966 | $1,416 | $2,253 |
| Healthcare | $385 | $625 | $901 | $1,322 | $2,103 |
| Transport | $330 | $536 | $773 | $1,133 | $1,803 |
| Leisure | $385 | $625 | $901 | $1,322 | $2,103 |
| Misc | $330 | $536 | $773 | $1,133 | $1,803 |
| Total / month | $2,747 | $4,463 | $6,438 | $9,442 | $15,021 |
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 | $32,960 | $2,747 | $824K |
| Comfortable | $53,560 | $4,463 | $1.3M |
| Premium | $77,250 | $6,438 | $1.9M |
| Affluent | $113,300 | $9,442 | $2.8M |
| Luxurious | $180,250 | $15,021 | $4.5M |
Tempe retirement context
Frequently asked questions
How much money do you need to retire in Tempe?
For a comfortable retirement in Tempe, plan on roughly $53,560/year ($4,463/month). That requires a nest egg of about $1.3M using the 4% safe withdrawal rule. A modest lifestyle costs ~$32,960/year, while a premium lifestyle runs ~$77,250/year.
Is Tempe a good place to retire?
Tempe has a cost of living close to the US average (index 103). Retirement budgets here are fairly typical — neither a bargain nor a budget-buster.
How is the retirement cost calculated for Tempe?
Each tier starts from a US national baseline and is scaled by Tempe's cost-of-living index (103 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