How Much Do You Need to Retire in Scottsdale, Arizona?
A practical look at retirement savings targets for Scottsdale and Phoenix, including cost of living, healthcare, taxes, and a planning framework you can use this week.
There is no single number that works for every Scottsdale retiree, but many families we work with land in a range we can talk about clearly. Scottsdale's cost of living runs roughly 15-20% above the national average, and healthcare and property taxes deserve their own line in your plan. The right target is the one that funds the life you actually want, not a generic rule of thumb.
Start with the income you need, not the lump sum
We start every plan with a monthly income picture rather than a savings goal. For a couple in north Scottsdale or Paradise Valley, a comfortable retirement lifestyle often falls between $7,500 and $12,000 per month after taxes. That covers housing, healthcare, travel, vehicles, and the discretionary spending many retirees underestimate in year one.*
From there we work backward. Subtract guaranteed income — Social Security, pensions, annuity income — and the remaining gap is what your portfolio needs to produce reliably, year after year, in any market.
A reasonable starting range
- Modest lifestyle in Scottsdale or Phoenix: roughly $750K-$1.2M in investable assets, plus Social Security.
- Comfortable Scottsdale lifestyle with travel: roughly $1.2M-$2.5M.
- North Scottsdale, Paradise Valley, or a paid-off second home: $2.5M+ is common.
Three local factors people miss
Healthcare before 65. If you retire early, replacing employer coverage with an ACA plan in Maricopa County can run $1,200-$2,200 per month for a couple before Medicare kicks in.
Property taxes are friendly, but HOAs are not. Arizona property taxes are modest, but Scottsdale HOA dues, club memberships, and pool/landscape maintenance add up.
Sequence-of-returns risk. A 20-25% market drop in the first few years of retirement does more long-term damage than the same drop in year 15. Protection planning typically matters more early.
What we'd suggest doing this month
Write down your real monthly spending — not a budget, the actual number. Add expected healthcare costs. Subtract Social Security and any pension. The remainder is your portfolio's job. If you'd like a second set of eyes on the math, we offer a no cost 45-minute strategy session in our Scottsdale office or by video.
*Hypothetical example and figures shown for illustrative purposes only and will vary by your specific circumstances.
Frequently asked
Questions Scottsdale retirees ask us
- How much money do I need to retire in Scottsdale, Arizona?
- Many Scottsdale households target roughly $1.2M-$2.5M in investable assets alongside Social Security for a comfortable lifestyle, while north Scottsdale and Paradise Valley retirees often plan on $2.5M or more. The right number depends on your monthly income need, healthcare costs, and how much guaranteed income you already have.
- Is Scottsdale expensive to retire in compared to the rest of Arizona?
- Yes. Scottsdale's cost of living runs roughly 15-20% above the national average, driven mostly by housing, HOA dues, and lifestyle spending. Property taxes are actually low across Maricopa County, but club memberships, landscaping, and travel are the line items most retirees underestimate.
- What is sequence-of-returns risk and why does it matter early in retirement?
- Sequence-of-returns risk is the risk that a large market drop in the first few years of retirement — while you're withdrawing income — permanently reduces how long your portfolio lasts. The same average return can produce very different outcomes depending on when the losses happen, which is why protection planning usually matters most in the first five years.