Retirement Cost in Cambridge, MA: 2026 Budget Guide
A comfortable retirement in Cambridge costs approximately $90,896/year — 75% above the national average of $52,000. Here's the full breakdown.
$90,896
Annual retirement cost
$7,575
Per month
$2,272,400
Nest egg needed (25× rule)
Direct Answer
Retiring in Cambridge, MA costs about $90,896 per year, or $7,575 per month. That is 75% above the national retirement budget benchmark, with an estimated $2,272,400 nest egg using the 4% rule.
Annual budget
$90,896
Range: $59,082-$131,799
Monthly budget
$7,575
Housing, healthcare, food, transport, utilities, and lifestyle
Portfolio target
$2,272,400
25x annual spending, before personalized tax planning
Tax note
State tax check
Review MA retirement income rules
Cambridge is an above-average-cost retirement destination. Factor in MA state taxes on retirement income when planning your budget.
Annual Retirement Budget in Cambridge
Based on BLS Consumer Expenditure Survey (65+ households), adjusted for Cambridge's cost index (168). Range: $59,082–$131,799.
How Much Do You Need to Retire in Cambridge?
Standard
$2,272,400
4% Rule (25×)
Most common retirement planning benchmark
Conservative
$2,726,880
3.3% Rule (30×)
Conservative approach for longer retirements
After SS
$69,896
Savings needed/year
After avg Social Security (~$21,000/yr)
How Cambridge Compares
Cambridge Annual Cost
$90,896
National Average
$52,000
Difference
+$38,896/yr
75% more expensive
Retirement Planning Tips for Cambridge
✓Research Massachusetts's tax treatment of retirement income — some sources like Social Security may be partially or fully exempt.
✓Housing in Cambridge accounts for roughly $31,814/year of retirement costs — consider whether renting or owning makes more sense given your timeline.
✓Healthcare costs here run approximately $16,361/year. Compare Medicare Advantage plans by ZIP code — coverage and premiums vary significantly.
✓The estimated nest egg needed to retire in Cambridge is $2,272,400 using the 4% withdrawal rule.
✓Cambridge is more expensive than average — if flexibility allows, nearby metros may offer significant savings.
Retirement Decision Checklist
Compare housing at $2,651/month against your rent, mortgage, HOA, and property tax plan.
Budget healthcare at about $1,363/month before Medicare supplement, dental, and long-term care choices.
Stress test the plan with the conservative $2,726,880 portfolio target if you want a lower withdrawal rate.
Use $69,896/year as the rough portfolio-funded gap after average Social Security assumptions.
More for Cambridge
Frequently Asked Questions
How much does it cost to retire in Cambridge?
A comfortable retirement in Cambridge costs approximately $90,896 per year ($7,575/month). This includes $31,814 for housing, $16,361 for healthcare, and $13,634 for transportation. Actual costs range from $59,082 to $131,799 depending on lifestyle.
How much money do I need to retire in Cambridge?
Using the 4% withdrawal rule, you need approximately $2,272,400 in savings to retire in Cambridge. For a more conservative 3.3% withdrawal rate (30× rule), the target is $2,726,880. If you expect average Social Security benefits (~$21,000/year), your portfolio needs to cover the remaining $69,896/year.
Is Cambridge a good place to retire?
Cambridge has above-average retirement costs at $90,896/year — 75% more than the national average. Higher costs may be justified by amenities, climate, or family proximity.
What is the biggest retirement expense in Cambridge?
Housing is the largest retirement expense in Cambridge, accounting for approximately 35% of the budget at $31,814/year ($2,651/month). Healthcare is the second-largest at $16,361/year, followed by transportation at $13,634/year.