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18 Best Southern Cities to Retire on a Budget of $1,500 a Month

Rabia Mazhar
11 min read

In This Article:

This article takes a look at the 18 best Southern cities to retire on a budget of $1,500 a month. If you wish to skip our detailed analysis on budgeted retirement living in Southern America, you may go to 5 Best Southern Cities to Retire on a Budget of $1,500 a Month.

A Grand and a Half in Retirement

Beaches, golf courses, volunteering in the community, taking up a new hobby, reconnecting with old friends and spending time with family - these are the answers that people give when asked about how they would like to spend their retirement years.

Now imagine this - you’re 70 years old, living on $1,500 a month with rent, utilities, medical bills, and groceries to take care of. For most places in the US, living on a grand and a half does not come easy, and unless spent smartly it doesn’t include a lot of beaches or golfing. In fact, findings by the Bureau of Labor Statistics state that the average expenditure of Americans aged 65 and over is $4,345 a month - a $2,800 disparity from the $1,500 a month that many Americans are tasked with surviving on.

Studies by the Center for Retirement Research found that the average retired American household goes through spending cuts of 1.5-1.6% per retirement year. It’s a common belief that people spend less when retired - they eat out less, don’t shop as much, and spend less on commute. So, if Americans really are decreasing their retirement spending, then where does over $4,000 a month go?

“While maintaining steady consumption may seem intuitive, little research has focused on longer periods of consumption in retirement . Most previous studies have looked at the change at retirement, finding a sharp post-retirement drop as retirees consume less than they did while working”

Healthcare costs are a big culprit. Figures from Fidelity Investments’ Retiree Healthcare Cost Estimate state that America’s average retired couple will spend $315,000 on healthcare expenses over the course of their retirement. If this figure seems daunting, then the Centers for Medicare & Medicaid Services’ decision to raise Medicare Part B premiums by 6% in 2024 is another step in that direction. Couple this with increasing food costs - the Bureau of Labor Statistics’ Consumer Price Index report states that food costs saw a 2.7% increase over the December 2022 and December 2023 period - and it’s not hard to believe that retirees are forced to spend more than just a $1000 every month.

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