Salary Needed to Live in Cambridge as a Retiree
A retired individual (65+) needs approximately $95,212/year to live comfortably in Cambridge, MA, including 5% savings.
Direct Answer
A retiree needs about $95,212/year to live comfortably in Cambridge, MA. The bare-minimum salary is $88,600/year, but the comfortable figure includes a 5% savings target and a monthly after-tax budget of $5,617.
The minimum scenario leaves about $5,316/mo after tax and no planned savings. The comfortable scenario uses $7,934/mo gross pay to cover expenses, taxes, and a savings buffer.
Hybrid salary estimateBLS, HUD, ACS inputsLast verified May 2026
Comfortable Salary
$95,212
with 5% savings
Bare Minimum
$88,600
$7,383/mo gross, no savings buffer
Monthly Expenses
$5,316
43% above national avg
Detailed Monthly Budget for a Retiree in Cambridge
| Expense | Cambridge | Nat'l Avg | Diff |
|---|---|---|---|
| 1-2BR Senior-Friendly Rent | $2,060 | $1,448 | +42% |
| Groceries | $351 | $189 | +86% |
| Utilities | $276 | $183 | +51% |
| Transportation | $286 | $211 | +36% |
| Car Insurance | $247 | $229 | +8% |
| Health Insurance | $802 | $690 | +16% |
| Medicare Supplement | $336 | $200 | +68% |
| Prescription Drugs | $252 | $150 | +68% |
| Internet + Phone | $202 | $120 | +68% |
| Recreation & Social | $336 | $200 | +68% |
| Home Maintenance | $168 | $100 | +68% |
| Total Monthly | $5,316 | $3,720 | +43% |
How We Calculated the Salary
Monthly expenses:$5,316
Target savings (5%):$301/mo
Monthly after-tax needed:$5,617
Effective tax rate:28%
Gross annual salary needed:$95,212
What Drives the Salary Number?
Housing
$2,060
1-2BR Senior-Friendly rent is 39% of this monthly budget.
Taxes
28%
Estimated federal plus MA state tax reserve used to convert take-home needs into gross salary.
Savings target
5%
$301/mo is reserved for savings so the salary is not just break-even.
Local index
168/100
Cambridge is well above the national baseline; the model adjusts baseline spending by local rent and cost data.
Compare Salary Needed in Nearby northeast Cities
Salary Planning Checklist
- Keep 1-2br senior-friendly housing near $2,060/mo or adjust the salary target upward.
- Budget $1,294/mo for persona-specific costs such as Medicare Supplement and Prescription Drugs.
- Use $88,600/year as the survival floor and $95,212/year as the healthier negotiation target.
Other Household Types in Cambridge
Related Pages
FAQ
What salary does a retiree need in Cambridge?
A retiree needs approximately $95,212/year ($7,934/month gross) to live comfortably in Cambridge with a 5% savings rate.
How much is rent for a retiree in Cambridge?
A 1-2br senior-friendly in Cambridge costs approximately $2,060/month, which is the largest single expense at 39% of the total budget.
Is Cambridge affordable for a retiree?
Cambridge is above the national average for retiree living costs, requiring 43% more salary than the US median.