There are several cities in the U.S. that make it possible to quickly lower the cost of retirement, due to their relatively low costs of living. In this article, Emily Brandon, senior editor for Retirement at U.S. News, highlights some of the American cities that offer a desirable quality of life at a very affordable price.
Reducing your housing costs can add to your retirement savings and make your ongoing bills more affordable.
U.S. News analyzed U.S. Census Bureau and Bureau of Labor Statistics data to determine where a retiree could cover his or her basic expenses, including typical costs for housing, food, transportation, health care and utilities, with less than $100 per day, or $36,500 per year, in retirement income.
It’s important to note that in many of these cities $100 a day just barely covered these five basic expenses. The analysis does not factor in the costs for recreation, clothing, consumer goods, hobbies or travel. A little extra income from savings or a part-time job would make you much more comfortable living in many of these places.
Housing costs are the biggest driver of retirement expenses, but they also vary considerably based on whether retirees rent, own or have paid off their mortgage, with homeowners who are living mortgage-free paying the lowest housing costs. “You can’t eliminate housing costs 100 percent because you still have property taxes to pay and insurance, but you could live with less if you find someplace that is cheaper for you to live or if you can get rid of your mortgage,” says Edward Fulbright, a certified public accountant and CEO of Fulbright Financial Consulting in Durham, North Carolina. It’s also important to factor in the transaction and moving costs when you relocate to a new city.
Here are 10 places where it’s possible to cover basic monthly costs on just $100 a day:
Dallas. This city in the Lone Star State has many innovative programs specifically for retirees. The Senior Source manages the Retired Senior Volunteer Program, which helps connect seniors to volunteer opportunities that match their desires and talents. The Dallas Arboretum and Botanical Garden holds weekly events specifically for people ages 65 and older and offers a senior discount on admission. And the University of Texas Southwestern Medical Center is nationally ranked for its geriatric care. Retiree renters in Dallas pay a median of $911 per month, while homeowners pay $1,544 monthly if they have a mortgage or $518 per month if they are mortgage-free. Texas doesn’t have a state income tax, but remember to factor in the property tax bill when purchasing a home.
Durham, North Carolina. Durham is the home of Duke University, which includes Duke University Hospital, and is one of the corners of the research triangle, known for its high-tech research and development. People ages 65 and older are eligible to ride the Triangle Transit bus system free of charge. There’s also an affordable door-to-door van option for people with disabilities. Median housing costs for older homeowners are $1,420 with a mortgage and $456 without one. Retiree renters pay a median of $857 in monthly housing costs.
Jacksonville, Florida. Jacksonville provides pleasantly mild winters and is just a short drive from white-sand Atlantic Ocean beaches. But housing in Jacksonville costs far less than many other parts of Florida. Retirees age 65 and older pay a median of $910 monthly to rent an apartment in Jacksonville. That cost climbs to $1,340 among homeowners with a mortgage, but that dips to $433 for retirees who have paid off their house. There’s also no state income tax in Florida.
Minneapolis. Those who dream of a retirement on the water have many options in Minneapolis, which offers access to a chain of lakes and the Mississippi River. The Grand Rounds National Scenic Byway provides plenty of walking and bicycle paths to enjoy the parks and scenery. Housing for retirees in the Minneapolis metro area, which includes St. Paul and Bloomington, costs a median of $1,594 per month with a mortgage, $520 with a paid-off house and $843 if you rent. Health care is available at the Abbott Northwestern Hospital. In nearby Rochester, Minnesota, you’ll find the top-ranked hospital in the country for geriatric care, the Mayo Clinic.
Phoenix. Arizona’s state capital is among the sunniest places in the country and is known for its hot summers and mild winters. Whatever professional sport you enjoy, Phoenix is likely to have a nearby team to root for, perhaps including the Cardinals, Diamondbacks, Suns or Coyotes. Phoenix has its own branch of the Mayo Clinic, as well as the Banner Good Samaritan Medical Center. Housing costs a median of $905 per month for renters and $1,330 for homeowners with a mortgage, while people who own their home mortgage-free pay just $392.
