Salary Needed to Live in Phoenix as a Retiree
A retired individual (65+) needs approximately $59,665/year to live comfortably in Phoenix, AZ, including 5% savings.
Direct Answer
A retiree needs about $59,665/year to live comfortably in Phoenix, AZ. The bare-minimum salary is $55,578/year, but the comfortable figure includes a 5% savings target and a monthly after-tax budget of $3,572.
The minimum scenario leaves about $3,381/mo after tax and no planned savings. The comfortable scenario uses $4,972/mo gross pay to cover expenses, taxes, and a savings buffer.
Hybrid salary estimateBLS, HUD, ACS inputsLast verified May 2026
Comfortable Salary
$59,665
with 5% savings
Bare Minimum
$55,578
$4,632/mo gross, no savings buffer
Monthly Expenses
$3,381
8% below national avg
Detailed Monthly Budget for a Retiree in Phoenix
| Expense | Phoenix | Nat'l Avg | Diff |
|---|---|---|---|
| 1-2BR Senior-Friendly Rent | $1,187 | $1,448 | -18% |
| Groceries | $209 | $189 | +11% |
| Utilities | $175 | $183 | -4% |
| Transportation | $238 | $211 | +13% |
| Car Insurance | $193 | $215 | -10% |
| Health Insurance | $585 | $642 | -9% |
| Medicare Supplement | $206 | $200 | +3% |
| Prescription Drugs | $155 | $150 | +3% |
| Internet + Phone | $124 | $120 | +3% |
| Recreation & Social | $206 | $200 | +3% |
| Home Maintenance | $103 | $100 | +3% |
| Total Monthly | $3,381 | $3,658 | -8% |
How We Calculated the Salary
Monthly expenses:$3,381
Target savings (5%):$191/mo
Monthly after-tax needed:$3,572
Effective tax rate:27%
Gross annual salary needed:$59,665
What Drives the Salary Number?
Housing
$1,187
1-2BR Senior-Friendly rent is 35% of this monthly budget.
Taxes
27%
Estimated federal plus AZ state tax reserve used to convert take-home needs into gross salary.
Savings target
5%
$191/mo is reserved for savings so the salary is not just break-even.
Local index
103/100
Phoenix is below the national baseline; the model adjusts baseline spending by local rent and cost data.
Compare Salary Needed in Nearby west Cities
Salary Planning Checklist
- Keep 1-2br senior-friendly housing near $1,187/mo or adjust the salary target upward.
- Budget $794/mo for persona-specific costs such as Medicare Supplement and Prescription Drugs.
- Use $55,578/year as the survival floor and $59,665/year as the healthier negotiation target.
Other Household Types in Phoenix
Related Pages
FAQ
What salary does a retiree need in Phoenix?
A retiree needs approximately $59,665/year ($4,972/month gross) to live comfortably in Phoenix with a 5% savings rate.
How much is rent for a retiree in Phoenix?
A 1-2br senior-friendly in Phoenix costs approximately $1,187/month, which is the largest single expense at 35% of the total budget.
Is Phoenix affordable for a retiree?
Yes, Phoenix is 8% more affordable than the national average for a retiree.