This article takes a look at the 25 best US cities where you can retire on $2,000 a month. If you wish to skip our detailed analysis on navigating unanticipated costs and financial challenges during retirement, go to 5 Best US Cities Where You Can Retire on $2,000 a month.
Retirement Realities: Navigating Unanticipated Costs and Financial Challenges
Let’s talk about Barbara for a minute. In her youth, she envisioned her golden years filled with relaxing spa retreats and exciting travel adventures. However, reality paints a different picture for her as healthcare costs take center stage, eating away a large chunk of her retirement income.
Just like Barbara, many retirees have the misconception that living costs drop drastically during retirement. However, the truth is that even though some categories of expenses do get lower, many others rise drastically. According to the US Bureau of Labor Statistics, the cost of medical care is 30% higher than it was a decade ago. Health View Services further reports that a healthy 65-year-old couple retiring in 2023 will spend nearly 70% of their lifetime Social Security benefits to cover their medical costs during retirement. This alarming trend puts retirees, even those with Medicare, at risk of outliving their savings due to such escalating costs.
“Many folks just assume Medicare is going to pay for everything but, in reality, it only covers about two-thirds of your costs,”
– Ben Storey, director, Retirement Research & Insights, Bank of America Corporation (NYSE:BAC)
Financial advisors at Merrill Edge, a subsidiary of Bank of America Corporation (NYSE:BAC), agree that healthcare can be a huge surprise cost. Expenses such as premiums, deductibles, critical services, and other out-of-pocket expenses often add up and eat a large chunk of your income. If worrying about your health wasn’t enough, an analysis from investment management company T. Rowe Price Group, Inc. (NASDAQ:TROW) reveals that home maintenance costs are another major expense that retirees do not account for during retirement planning.
In a survey comprising of 1300 American households, almost half reported a 25% increase in spending, a large chunk of which goes into mortgages and maintenance. Even if you manage to fully pay off your house, the costs for maintaining a house, as of 2023, stand at $17,500. Often times, these spending shocks expose retirees to what is known as the “sequence of returns risks.”
“A bad sequence of returns in your portfolio could force you into having to spend less in retirement to avoid depleting your nest egg too quickly,”
-Joe Toledano, Managing Director, Head of Insured Solutions, Morgan Stanley (NYSE:MS) Wealth Management.
When you begin to tap in your portfolio in retirement, especially during periods of stock market volatility, they can hurt your overall savings. Bank of America Corporation (NYSE:BAC) asserts that individuals need to be educated enough to know what to do, as well as be professionally managed to achieve a comfortable retirement.
Many retirees are in turn returning to the workforce in what is deemed as “un-retirement”. “Unretiring,” a report by T. Rowe Price Group, Inc. (NASDAQ:TROW), reveals that out of the retired respondents, 20% worked either full-time or part-time, while 7% were also looking for employment after the pandemic.
“Many retirees either choose to work or need work to be included in their retirement lifestyle,”
-Judith Ward, CFP®, a thought leadership director at T. Rowe Price Group, Inc. (NASDAQ:TROW)
In contrast, considering the grave challenges retirees are facing, one would anticipate that a large portion of retirees would have gone back to work. However, the United States of America still has 2 million more retirees than anticipated. After all, factors such as age, skills atrophy, and lack of motivation make it rather difficult for older workers to rejoin the workforce.
Consequently, many retirees are trying to make the best of what they already have, for instance, their social security income. There are numerous places where these retirees can live on their social security income in the USA. For those looking for a bit of travel and adventure, seniors may be pleased to know that many countries with low costs of living allow them to live on their social security checks. Some of the best places to retire on social security around the world include Bali, Indonesia; Da Lat, Vietnam; and Cuenca Ecuador.
For those of you looking to stay back in the States because of family, social circle, or other reasons, there are many places where you can retire on $2,000 a month.
Henryk Sadura/Shutterstock.com
Methodology
To compile the list of best US cities where you can retire on $2,000 a month, we have used several sources such as NASDAQ, Finance Buzz, and Forbes, amongst others to gather the best US cities with a cost of living lower than $2,000. Subsequently, we computed an average rank to formulate an Insider Monkey score, taking into consideration key factors including livability, monthly expenditures, average rent, and house prices.
Next, we ranked the places based on their Insider Monkey Scores (average ranking) from the lowest to the highest scores. The places detail average house rents for a one-bedroom apartment, median listing home price as of September 2023, and monthly expenditures, sourced from different websites such as Redfin, Zillow, Realtor, Zumper, and others.
Here are the best US cities where you can retire on $2,000 a month:
25. Brownsville, Texas
Insider Monkey Score: 5
Monthly Expenditures: $2,000
Average rent: $1,100
Median Listing Home Price: $244,500
Deemed as one of the best places to retire in Texas, Brownsville is cherished for its clean air, warm weather, and good healthcare system. Retiring in Texas is a plus as the state doesn’t tax social security or pensions.
24. North Royalton, Ohio
Insider Monkey Score: 6
Monthly Expenditures: $1,770
Average rent: $1,250
Median Listing Home Price: $317,000
North Royalton is one of the best places to live in Ohio because of its quiet suburban atmosphere, access to parks and trails, and affordability. There are well-maintained parks, a variety of housing options, and plenty of recreational opportunities.
23. Augusta, Georgia
Insider Monkey Score: 8
Monthly Expenditures: $1,745
Average rent: $1,264
Median Listing Home Price: $204,000
Known as a “Great Small City for Retiring in Good Health,” Augusta is home to the prestigious Augusta University Health System. The beautiful city also offers a warm climate, affordable costs of living, and plenty of amenities.
22. Abilene, Texas
Insider Monkey Score: 8
Monthly Expenditures: $1,692
Average rent: $1,100
Median Listing Home Price: $279,000
Abilene, Texas makes it to our list of best US cities where you can retire on $2,000 a month. The city is ideal for those looking for a quiet, suburban environment while enjoying modern amenities.
21. Fargo, North Dakota
Insider Monkey Score: 8
Monthly Expenditures: $1,680
Average rent: $1,006
Median Listing Home Price: $314,000
Average temperatures in January may drop below zero in Fargo, but it is still one of the best US cities where you can retire on $2,000 a month. Fargo shines in aspects such as walkability, doctors per capita, and quality of life.
20. Greeley, Colorado
Insider Monkey Score: 8
Monthly Expenditures: $1,699
Average rent: $1,165
Median Listing Home Price: $439,000
From plentiful attractions and outdoor destinations to quality healthcare, Greeley is a nice place to live in Colorado. The city is retirement-friendly as money goes a long way here, allowing retirees to live a comfortable lifestyle.
19. Fort Wayne, Indiana
Insider Monkey Score: 9
Monthly Expenditures: $1,700
Average rent: $1,240
Median Listing Home Price: $260,000
Fort Wayne makes it to our list of best US cities where you can retire on $2,000 a month because of its beautiful parks, quality healthcare, cultural venues, and plentiful volunteering opportunities.
18. Bellevue, Nebraska
Insider Monkey Score: 10
Monthly Expenditures: $1,830
Average rent: $1,010
Median Listing Home Price: $275,000
Bellevue is a nice place to live in Nebraska because of its affordability, safety, and quality healthcare. The vibrant city offers much to do and explore in the city, such as the Strategic Air Command and Aerospace Museum, popular restaurants, and more.
17. Oklahoma City, Oklahoma
Insider Monkey Score: 11
Monthly Expenditures: $1,774
Average rent: $866
Median Listing Home Price: $305,000
Retirees prefer Oklahoma as it is one of the best states for taxes and cost of living. Oklahoma City, in particular, appeals to retirees because of its great weather, affordable housing, and plentiful outdoor activities.
16. Bossier City, Louisiana
Insider Monkey Score: 11
Monthly Expenditures: $1,749
Average rent: $1,205
Median Listing Home Price: $264,000
Louisiana is one of the best states to live in after retirement, and Bossier City, with its warm climate, vibrant culture, and relatively affordable cost of living, is an appealing choice within this state.
15. Longview, Texas
Insider Monkey Score: 11
Monthly Expenditures: $1,746
Average rent: $1,200
Median Listing Home Price: $295,000
Another appealing choice to retire in Texas for a single person living on $2,000 a month is Longview. Known as the heart of East Texas, the city is revered for its Boorman Trail system, amazing arts activities, and small-town charm.
14. Knoxville, Tennessee
Insider Monkey Score: 12
Monthly Expenditures: $1,740
Average rent: $1,131
Median Listing Home Price: $385,000
The cost of living in Knoxville, Tennessee is 9% lower than the national average. This mid-sized city is a popular place to live in Tennessee because of its beautiful downtown, Southern food, and affordable living.
13. Independence, Missouri
Insider Monkey Score: 13
Monthly Expenditures: $1,753
Average rent: $1,076
Median Listing Home Price: $210,000
The charming city of Independence in Missouri is one of the best cities here you can retire on $2,000 a month. Blessed with natural beauty, Independence offers plenty of museums and historical attractions for retirees to explore.
12. Des Moines, Iowa
Insider Monkey Score: 15
Monthly Expenditures: $1,661
Average rent: $787
Median Listing Home Price: $225,000
Des Moines also stands out amongst places to live below $2,000 a month owing to its reputable healthcare facilities, four seasons, and friendly community. The city is also famous for its arts, culture, and activities.
11. Parma Heights, Ohio
Insider Monkey Score: 15
Monthly Expenditures: $1,706
Average rent: $1,079
Median Listing Home Price: $199,900
Parma Heights is one of the best places to live in Ohio because of its affordable housing, friendly people, and relaxed pace of life. There are many restaurants and stores in the city as well.
10. Baytown, Texas
Insider Monkey Score: 15
Monthly Expenditures: $1,719
Average rent: $967
Median Listing Home Price: $280,000
Acclaimed as one of the best beach cities to retire in Texas, retirees in Baytown can easily retire on $2,000 a month. Its location along the Gulf Coast region of Texas means seniors can enjoy many water-based activities such as boating, fishing, and simply enjoying the waterfront.
9. Lake Charles, Louisiana
Insider Monkey Score: 16
Monthly Expenditures: $1,792
Average rent: $1,033
Median Listing Home Price: $239,900
Besides the affordable living and mild climate, Lake Charles is also famous for its stunning lakes such as the Calcasieu Lake and Prien Lake. There is an impressive arts and cultural scene, numerous golf courses, and plenty of festivals that keep retirees busy.
8. Cincinnati, Ohio
Insider Monkey Score: 16
Monthly Expenditures: $1,629
Average rent: $1,016
Median Listing Home Price: $270,000
For retirees who don’t mind the cold weather, Cincinnati can be a good option to explore. There are world-class restaurants, museums, zoos, theaters, and walkable neighborhoods near the river.
7. Clute, Texas
Insider Monkey Score: 17
Monthly Expenditures: $1,688
Average rent: $1,014
Median Listing Home Price: $299,900
For beach-loving retirees, Clute is another nice place to live in Texas. Your dollars go further here because of the affordable housing and rent, leaving extra money to enjoy the many things offered by Clute. Retirees can explore local wildlife, historical attractions, and numerous festivals throughout the year.
6. Little Rock, Arkansas
Insider Monkey Score: 17
Monthly Expenditures: $1,691
Average rent: $934
Median Listing Home Price: $275,000
The mild climate, stunning natural beauty, and modern amenities make Little Rock a nice place to live in Arkansas. Situated along the Arkansas River, the city offers plenty of parks, outdoor spaces, and scenic landscapes for retirees.
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Disclosure: none. 25 Best US Cities Where You Can Retire on $2,000 a Month is originally published on Insider Monkey.
