You are right, but who in the right mind would setup retirement home in an expensive city? What i mean is the typical retirement city, not Manhattan, SF, DC or LA or any major city. I live in south florida FLL, house, cars and motorcycles are all paid for, plus no personal income tax. My burn rate is just below $4k per month which include all expenses. The average household income across USA is 52k/year as per attached. I draw $1,000 everyweek but i end up returning capital into my trading account https://en.wikipedia.org/wiki/Household_income_in_the_United_States
Maybe they have just lived there all there life and don't want to move? 2k area here burn rate, need 1k per month out soon.
Then more capital is required or forget about retirement. Something's got to give. I used to live up north also but retiring in south florida is the best. FA say you need about $2 million to retire but they have an alternative motive, to churn your account for commissions. They don't guaranty return, but their commissions are guaranteed. Are you including all your expenses? my HOA fee is $548 a month, FPL $100, water, $70, health insurance $423, home insurance $50 per month, $250 property taxes. Approximately $1500/month. Then i have $2500 for groceries and misc expense. It works for me.
I keep my expenses low haven't got to work as hard then, exchange to bring it back is good to, gbp here but usd account.