You're planning to retire and have your sights set on a warm climate. Specifically, you want to settle down in the South, but you need to find new hometown that's affordable on a fixed income.
As of April 2022, the average Social Security benefit is $1,538.14 per month, according to the Social Security Administration. A June 2022 GOBankingRates study found this is actually lower than the average cost of a one-bedroom apartment in the U.S. — $1,927 per month.
See: 15 Worst States To Live on Just a Social Security Check
Find: Best Cities To Retire on a Budget of $1,500 a Month
Of course, housing isn't the only expense you need to think about. The average annual cost of groceries in the U.S. $4,942 — $411.83 monthly — while healthcare expenses average $5,177 per year — $431.42 monthly. Additionally, the average cost of monthly expenses is $2,770.25, so you'll want to keep that in mind when creating your budget.
In addition to affordability, it's also important choose a Southern town with a sizable 65 and older population. The U.S. average is 16%, so remember this, as it will be important to your social life.
Ready to explore GOBankingRates' findings? Here are the five best Southern cities to retire on with a budget of $1,500 per month.
5. Lubbock, Texas
Monthly expenditures: $1,577.10
Percent of population 65 and older: 13%
Livability: 68
A major plus, the average cost of groceries in Lubbock is the lowest on the list at $378.47 per month. The average monthly cost of a one-bedroom apartment is $746.50 — still just a fraction of the $1,927 per month national average — and the average healthcare expense is $452.12 per month — higher than the national average of $431.42 per month. However, both of these numbers are the priciest of all five cities.POLL: Do You Think You Will Be Able To Retire at Age 65?
4. Midland, Texas
Monthly expenditures: $1,522.90
Percent of population 65 and older: 18%
Livability: 72
Monthly groceries are the most expensive of all cities on this list, averaging $400.30 in Midland — just under the national average of $411.83 per month. Rent is also the second highest, averaging $716 per month for a one-bedroom apartment. However, healthcare costs fall right in the middle at an average of $436.59 per month.
3. Lake Charles, Louisiana
Monthly expenditures: $1,410.36
Percent of population 65 and older: 15%
Livability: 70
Monthly healthcare costs in Lake Charles are the second lowest on the list, averaging $419.77. The city falls right in the middle for both the average rent on a one-bedroom apartment — $608 per month — and groceries — averaging $382.59 per month.