TL;DR: Las Vegas offers tax perks and sunshine for retirees, but its economy is shifting.
Main points:
- Tourism is slowing, visitor numbers down 6.5% in 2025.
- Living costs sit 5% above U.S. average.
- Inflation hits fixed incomes.
- The job market is uncertain.
- Careful budgeting is essential for retirement security.
The Las Vegas, Nevada, economy is in transition. Visitor numbers are lower than in past years, and living costs are slowly rising. Yet the city still attracts retirees looking for good weather, tax benefits, and affordable housing.
This blog explains the cost of living, inflation, and job opportunities for older adults. It shows how the local economy affects retirement plans and whether Las Vegas is still a smart choice for long‑term living.
The Current Economy of Las Vegas
The economy of Las Vegas shows both strength and strain in 2025. Overall, the Las Vegas economics reflect a city adjusting to lower visitor demand and rising local costs. Growth is uneven. For retirees, the mix of rising costs and existing tax perks makes planning essential.
Tourism drives much of the local economy. In May 2025, visitor volume dropped 6.5 percent compared to 2024. Hotel occupancy fell nearly three points to 83 percent.
Daynight average room rates slipped 2.2 percent to about $198.20 per night. Gaming revenue also slowed, and experts expect a further dip in visitor volume and revenue through 2026.
The unemployment rate remained elevated at 5.9 percent, among the highest in the nation. Casinos and resorts still fuel state revenues. GDP rose about 3.0 percent year-over-year in early 2025.
What’s the Cost of Living in Las Vegas, Nevada?
According to Salary.com, Las Vegas costs about 5 percent more than the US average in 2025. Transportation and housing drive most of the difference. Food and healthcare costs run slightly below or near national levels.
Overall, the cost of living in Las Vegas, Nevada, remains moderate. Retirees on fixed income may find that Las Vegas offers housing and utility costs that fit their budget. But rising energy bills in summer can strain tight finances.
What’s the Inflation Rate in Las Vegas, Nevada?
The inflation rate in Las Vegas aligns closely with the broader West of the US. Prices in this region rose to about 2.7 percent over 12 months through June this year. Food costs climbed to 3.5 percent, and medical care rose around 4 percent, according to the Bureau of Labor Statistics.
Retirees on fixed incomes feel these changes. Rising costs erode purchasing power. Social Security adjustments may not keep pace.
Local trends also indicate higher expenses for insurance and utilities. Those rising costs can strain household finances, especially during hot summer months or with premium increases.
Moderate inflation in the Las Vegas, Nevada, economy will cause those with a fixed income to rethink their spending. Goods and services will likely continue to rise.
Jobs for Retirees in Las Vegas
Working in retirement can be a result of either needing the additional income or simply needing to keep busy. With the shakiness of Las Vegas economic state, the former may be some retirees’ future. Jobs for retirees in Las Vegas often come from hospitality, retail, and event services. Part‑time roles in casinos, resorts, and restaurants remain common, even as tourism slows.
If you have enough funding, you might be better off with your own business (if you have the entrepreneurial skills to pursue it). Nevada’s lack of state income tax helps stretch earnings. For retirees who want social interaction or supplemental income, Las Vegas can give you opportunities if you know where to look.
How the Las Vegas Economy Impacts Retirement Planning
Las Vegas economics influence how retirees manage savings and income. Rising housing and energy costs require careful budgeting. Tax advantages and moderate living expenses offset some of this pressure.
Public pensions also play a role. The Nevada Public Employees’ Retirement System (PERS) paid more than $1 billion in benefits last year. That spending supported over $1.2 billion in total economic output statewide and generated $174 million in tax revenue.
Each pension dollar spent in Nevada creates $1.09 in overall economic activity. The ripple effect helps support more than 10,000 jobs beyond PERS retirees.
The Nevada Employee Savings Trust (NEST) adds another layer of support. This program requires eligible private sector employers to autoenroll workers into Roth IRA accounts if no other retirement plan is offered. Contributions start at 5 percent, giving workers who lack pensions a simple way to build savings over time.
For retirees who qualify for PERS, steady income reduces exposure to market swings and inflation. For others, understanding this impact shows how public pensions stabilize the local economy and keep demand for services steady. These factors shape housing costs, job availability, and community resources—all key when planning for retirement in Las Vegas.
Planning Strategies to Survive the Economy of Las Vegas
An uncertain economic climate can cause anyone to panic. If you have a fixed income and you aren’t working, this makes it even tougher. A clear financial plan helps protect savings and ensures a steady lifestyle. Good planning combines budgeting, income strategies, and flexibility.
Here’s what you should consider in this economy:
Keeping a Cool Head
Don’t let anxiety and stress overwhelm you into making rash decisions. Try your best to avoid making emotional decisions when it comes to finances. An objective third party, like a fiduciary, can help you pivot and make smarter decisions without jeopardizing your current investments.
Also, in uncertain economic times, bad actors tend to take advantage of those who react emotionally. Get-rich-quick schemes and investments that sound too good to be true pop up all the time. Pay attention to the advice you receive and where it comes from. Keep in mind that advice you hear from friends and family may work for them, but may not apply to you.
Creating an Action Plan
A budget highlights where to cut costs, such as downsizing housing or limiting summer utility usage. Track every major expense, including housing, healthcare, transportation, and leisure. Use current data for the cost of living in Las Vegas, Nevada, to project monthly spending.
Relying on one income source is risky. Combining Social Security, pensions, part-time work, and investments creates stability. Reevaluate housing to see if downsizing or relocating to a lower‑cost area in Las Vegas makes sense.
Make a Comfortable Retirement a Reality
Las Vegas offers sunshine, entertainment, and tax benefits that appeal to retirees. The city’s economy is shifting, with tourism cooling down.
Living costs remain moderate, but inflation and housing trends demand careful planning. You need expertise with experience to navigate this landscape. Start planning your retirement in Las Vegas, Nevada.
Stewart Willis is the founder and president of Asset Preservation Wealth & Tax, a financial planning firm in Phoenix, Arizona. Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.
The commentary on this blog reflects the personal opinions, viewpoints and analyses of the author, Stewart Willis, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.
