Salary Needed to Live in Tempe as a Retiree
A retired individual (65+) needs approximately $62,312/year to live comfortably in Tempe, AZ, including 5% savings.
Direct Answer
A retiree needs about $62,312/year to live comfortably in Tempe, AZ. The bare-minimum salary is $58,044/year, but the comfortable figure includes a 5% savings target and a monthly after-tax budget of $3,731.
The minimum scenario leaves about $3,531/mo after tax and no planned savings. The comfortable scenario uses $5,193/mo gross pay to cover expenses, taxes, and a savings buffer.
Hybrid salary estimateBLS, HUD, ACS inputsLast verified May 2026
Comfortable Salary
$62,312
with 5% savings
Bare Minimum
$58,044
$4,837/mo gross, no savings buffer
Monthly Expenses
$3,531
3% below national avg
Detailed Monthly Budget for a Retiree in Tempe
| Expense | Tempe | Nat'l Avg | Diff |
|---|---|---|---|
| 1-2BR Senior-Friendly Rent | $1,307 | $1,448 | -10% |
| Groceries | $199 | $189 | +5% |
| Utilities | $161 | $183 | -12% |
| Transportation | $232 | $211 | +10% |
| Car Insurance | $157 | $215 | -27% |
| Health Insurance | $674 | $642 | +5% |
| Medicare Supplement | $208 | $200 | +4% |
| Prescription Drugs | $156 | $150 | +4% |
| Internet + Phone | $125 | $120 | +4% |
| Recreation & Social | $208 | $200 | +4% |
| Home Maintenance | $104 | $100 | +4% |
| Total Monthly | $3,531 | $3,658 | -3% |
How We Calculated the Salary
Monthly expenses:$3,531
Target savings (5%):$200/mo
Monthly after-tax needed:$3,731
Effective tax rate:27%
Gross annual salary needed:$62,312
What Drives the Salary Number?
Housing
$1,307
1-2BR Senior-Friendly rent is 37% 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%
$200/mo is reserved for savings so the salary is not just break-even.
Local index
104/100
Tempe is close to 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 $1,307/mo or adjust the salary target upward.
- Budget $801/mo for persona-specific costs such as Medicare Supplement and Prescription Drugs.
- Use $58,044/year as the survival floor and $62,312/year as the healthier negotiation target.
Other Household Types in Tempe
Related Pages
FAQ
What salary does a retiree need in Tempe?
A retiree needs approximately $62,312/year ($5,193/month gross) to live comfortably in Tempe with a 5% savings rate.
How much is rent for a retiree in Tempe?
A 1-2br senior-friendly in Tempe costs approximately $1,307/month, which is the largest single expense at 37% of the total budget.
Is Tempe affordable for a retiree?
Tempe is roughly average for retiree costs, requiring a salary close to the national median.