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20 Best Cities to Retire on a Budget of $1800 a Month
Ghazal Ahmed
10 min read
This article takes a look at the 20 best cities to retire on a budget of $1800 a month. If you wish to skip our detailed analysis on financial insights and challenges, you may go to 5 Best Cities to Retire on a Budget of $1800 a Month.
Navigating Retirement: Financial Insights and Challenges
Embarking on a golden journey into retirement? According to US News & World Report, if you’re looking to retire this year, you should take a good look at your finances and prepare for a lifestyle change. Fortunately, many individuals have been proactive in securing their financial future for retirement these past few years, a fact substantiated by the statistics provided by Bank of America Corporation (NYSE:BAC). According to the Bank of America Corporation (NYSE:BAC) Retirement and Personal Wealth Solutions, in partnership with Bank of America Institute, the fourth quarter of 2023 Participant Pulse has revealed that average 401(k) account balances rose by 15% to $86,280 in 2023, up from $75,045 at the end of 2022. Both increases in the value of investments, and higher plan contributions, are responsible for this raise. Year-end 2023 Health Savings Account balances also witnessed an increase of 11% over the prior year.
“We were encouraged to see more plan participants taking positive actions in their accounts in the fourth quarter. These insights offer signs that people are prioritizing their retirement savings, with more employees increasing their contribution rates and fewer taking hardship distributions.”
Even though potential retirees are now saving more, they are still quite skeptical of what the future holds for them. This is because social security funds are expected to be depleted by 2034, leaving individuals wondering if they would have enough to survive their retirement years. However, it must be acknowledged that social security isn’t necessarily going “poof”. As social security funds rely on contributions from the working population, the ongoing participation of this demographic ensures a continuous influx of funds into the system. This sustained contribution dynamic is crucial for supporting retirees and facilitating the disbursement of social security benefits, even though the exact amount may not necessarily be the full entitlement. In essence, the ongoing engagement of the working population ensures a financial base that allows retirees to receive some level of social security benefits, though adjustments in the payout may occur based on various factors.
Even though social security isn’t necessarily going anywhere, it's important to recognize that individuals, once retired, benefit from a COLA (Cost –Of-Living-Adjustment) to address inflation as well. Notably, in 2023, the COLA stood at a substantial 8.7%, underscoring the system's commitment to adapting to the evolving economic landscape. However, the COLA for this year has been less impactful, with retirees experiencing a modest adjustment of 3.2% only. Even though this smaller COLA signifies easing inflation, folks from the Senior Citizen League are adamant that the cost of items seniors spend on is consistently outpacing this COLA. Many retirees are stating that even with the COLAs, they are not able to keep up with inflation.
For many of these retirees, the best course of action is to break out the packing tape and move to states that are best for the cost of living and taxes. Within these states, again they do their homework and search for some of the best cities to retire on a budget. There are many places to live for $2,000 a month, and it’s even possible to find places to live for less than $2,000 a month. Not only do these places offer an affordable cost of living, but are also filled with adequate amenities needed for a retiree to lead a comfortable retirement. All they have to do is look. To help you look, we have compiled a list of the best cities to retire on a budget of $1800 a month.
20 Best Cities to Retire on a Budget of $1800 a Month
To compile the list of best cities to retire on a budget of $1800 a month, we have used several sources such as our own list of cheapest places to retire, most affordable places to retire in 2024, and other sources such as NASDAQ, PODS, and Finance Buzz. We also delved into retiree reviews and data sources from forums such as Reddit and Quora to identify what affordable places retirees consider best for their golden years. After compiling an exhaustive list, we ranked them on factors such as cost of living index, median home price, and affordability. Individual scores were summed to generate a unique Insider Monkey Score. Places were then ranked in ascending order from the lowest to the highest scores. Cost of Living Index has been sourced from Best Places, Median Home Prices are from Redfin, and livability scores are from Area Vibes.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20. Birmingham, Alabama
Insider Monkey Score: 6
Cost of Living Index: 87
Median Home Price: $161,000
Livability Score: 65
One of the best cities to retire on a budget of $1,800 is Birmingham. In addition to its reasonable cost of living, the city is renowned for its tax-friendly environment, attributed to the absence of state income taxes. Retirees also love this city for its energizing culture, diverse recreational opportunities, and world-class healthcare. The city is home to more than 59,000 healthcare workers, more than 70 healthcare companies, and a world-class research base.
19. Augusta, Georgia
Insider Monkey Score: 13
Cost of Living Index: 80
Median Home Price: $286,000
Livability Score: 63
Retirees love Augusta for its year-round mild temperatures, plentiful recreational opportunities, and affordable cost of living. Revered for its rich golf tradition, retirees who love this sport can look forward to the prestigious Master's tournament, enjoy the beautiful Riverwalk project brimming with hotels and art galleries, and even explore places such as Woodrow Wilson's childhood home; Georgia Golf Hall of Fame's Botanical Gardens; and the Confederate Powderworks.
18. Wichita, Kansas
Insider Monkey Score: 13
Cost of Living Index: 82.8
Median Home Price: $205,000
Livability Score: 66
Our first Kansas pick, Wichita is one of the best cities to retire on a budget of $1,800, boasting a cost of living that is 17.2% lower than the national average. Home to well-regarded medical facilities, Wichita offers retirees a relaxed pace of life, a friendly community, and a diverse range of cultural and recreational opportunities.
17. Greensburg, Pennsylvania
Insider Monkey Score: 13
Cost of Living Index: 86.1
Median Home Price: $200,000
Livability Score: 68
One of the best cities to retire to, Greensburg allures retirees with its scenic landscapes, quality healthcare, and a four-season climate. Additionally, retirees can engage in lifelong learning at Seton Hill University. Home prices are quite affordable here, while the livability score is also a decent 68.
16. Montgomery, Alabama
Insider Monkey Score: 15
Cost of Living Index: 79
Median Home Price: $161,000
Livability Score: 65
Montgomery is the right place to be for retirees looking for a slow pace of life. This city allows retirees to live easily on a budget of $1800 a month due to its lower-than-average cost of living. Comfortable lifestyle, diverse amenities, and easy access to the beach and mountains make this city an ideal destination to retire to.
15. Kalamazoo, Michigan
Insider Monkey Score: 15
Cost of Living Index: 87.7
Median Home Price: $190,000
Livability Score: 75
Boasting a remarkably low cost of living, a high livability score, and big-city amenities, Kalamazoo is definitely a good find for retirees who wish to have it all. Artists and creatives will especially love it here, as it is famed for being a vibrant art community itself.
14. Green Bay, Wisconsin
Insider Monkey Score: 16
Cost of Living Index: 86.1
Median Home Price: $238,000
Livability Score: 70
Offering the best blend of affordable living, good quality of life, and a diverse range of cultural and recreational amenities, Green Bay in Wisconsin is another one of the best cities to retire to.
13. Lawrenceburg, Tennessee
Insider Monkey Score: 17
Cost of Living Index: 77.8
Median Home Price: $213,000
Livability Score: 65
The Southern charm and hospitality of this city don't go unnoticed by seniors. Truly, Lawrenceburg is an ideal destination for the retiree seeking affordability and livability in a single package.
12. Tuskegee, Alabama
Insider Monkey Score: 20
Cost of Living Index: 74.9
Median Home Price: $80,000
Livability Score: 58
Revered for its significance to the Tuskegee Airmen and the Tuskegee Institute, Tuskegee provides retirees with a rich cultural backdrop, a budget-friendly cost-of-living, and an overall pleasant quality of life.
11. Lansing, Michigan
Insider Monkey Score: 22
Cost of Living Index: 83.6
Median Home Price: $129,900
Livability Score: 78
Next up on our list of best cities to retire on a budget of $1800 a month is Lansing, Michigan. This mid-sized college town has a lot to offer to retirees, who especially love it for its cultural amenities, including museums, theaters, and recreational activities. Lansing is also appreciated for offering retirees an active outdoor life and is one of the fastest-growing cities in Michigan.
10. Quincy, Illinois
Insider Monkey Score: 22
Cost of Living Index: 77.1
Median Home Price: $133,500
Livability Score: 66
Quincy isn’t just appreciated for its well-preserved architecture, but also because it allows retirees to stretch their retirement incomes and live a good quality of life. The livability score is also a decent 66, and home prices are below the national median as well.
9. Wichita Falls, Texas
Insider Monkey Score: 23
Cost of Living Index: 76.3
Median Home Price: $205,000
Livability Score: 66
Another good and budget-friendly destination to retire in the USA is Wichita Falls, Texas. Boasting a decent livability score, a lower-than-average cost of living, and affordable home prices, retirees can stretch their retirement income when they choose to live in this city.
8. El Paso, Texas
Insider Monkey Score: 26
Cost of Living Index: 81.9
Median Home Price: $243,000
Livability Score: 80
El Paso is an ideal destination for retirees due to its warm climate, plentiful recreational opportunities, and many parks and open spaces. Home prices and cost of living are both below the national average, while a livability score of 80 implies retirees can live a good quality of life here.
7. Marion, Iowa
Insider Monkey Score: 27
Cost of Living Index: 81.8
Median Home Price: $211,000
Livability Score: 80
Good livability, affordable living expenses, and reasonable house prices have earned Marion a spot in our list of best cities to retire on a budget of $1800 a month. Retirees can explore places like the historic Granger House Museum, the Marion Arts Museum, and the Uptown Marion Market.
6. Ada, Oklahoma
Insider Monkey Score: 29
Cost of Living Index: 75.8
Median Home Price: $159,000
Livability Score: 69
Revered for being a family city, Ada in Oklahoma is another fitting choice for retirees looking to retire on a budget. Home to many local boutiques, coffee shops, and galleries, the city offers its residents a good quality of life.
