Detroit homeowners need $132,504 to retire

SmartAsset calculated the specific dollar amounts required for average retirees to cover essential and typical extra expenses across 55 of the largest counties in the United States. The study distinguishes between households that own their homes and those that rent, as well as those receiving Social Security benefits and those that are not.

For residents of Detroit who own their homes and receive Social Security, the study determined that $132,504 is needed to retire. That figure is the second-lowest requirement among the Midwestern counties analyzed. Only Indianapolis, Indiana, at $87,212, requires a smaller savings amount for homeowners with Social Security.

The cost structure shifts dramatically for renters in the same city. A renter in Detroit who receives Social Security needs $252,760 to retire. Without Social Security income, the required savings for a Detroit homeowner rises to $670,400, while a renter in that scenario needs $790,655.

SmartAsset advises that individuals who wish to retire comfortably should withdraw 4.7% of their salary for retirement over a 30-year period. This recommendation applies to those planning to save for their future needs.

Comparisons with other Midwestern cities show distinct differences in required savings. In Chicago, a renter with Social Security needs $381,657, whereas a homeowner with the same benefits requires $215,699. In Minneapolis, the figures are $264,471 for renters with Social Security and $118,939 for homeowners with Social Security.

Milwaukee presents a similar pattern to Detroit, with renters needing $241,115 with Social Security and homeowners needing $155,072 with the benefit. In Cleveland, the required amounts are $224,241 for renters with Social Security and $131,560 for homeowners with Social Security.

The data for areas without Social Security income shows higher capital requirements across the region. In Naperville, Illinois, renters need $913,915 without the benefit, while homeowners need $773,745. Joliet, Illinois, requires $909,574 for renters and $743,106 for homeowners in the absence of Social Security.

Troy, Michigan, shows the lowest homeowner requirement in the Midwest list, with $97,306 needed for those with Social Security. Indianapolis follows with $87,212 for homeowners with the benefit. These figures place Detroit homeowners at the lower end of the savings spectrum for the region.

The study was conducted by SmartAsset and reported from Eden Prairie, Minnesota. The analysis covers the 55 largest counties in the country, providing a baseline for retirement planning based on local cost of living and housing status.