Insider Monkey
51 Best Cities to Retire on $3,500 a Month
Ghazal Ahmed
20 min read

In This Article:

This article takes a look at the 51 best cities to retire on $3,500 a month. If you wish to skip our detailed analysis of the struggle of American workers, you may go to 10 Best Cities to Retire on $3,500 a Month.

The Struggle of American Workers in an Unstable Financial Landscape

According to retirement expert Teresa Ghilarducci, the retirement system in the United States of America has left behind the bottom 90% of workers. Unable to support themselves on Social Security benefits and savings, these people often find themselves working into old age. Credit Karma, a financial services firm, reveals that an estimated 27% of people aged 59 or older have no retirement savings at all, further reinforcing the need to work post-retirement to support themselves. These findings are noteworthy considering the Social Security trust fund is all set to be depleted by 2034, resulting in a cut in benefits for the millions of Americans who depend on it.

Of the 67 million retirees depending on Social Security, a depleted trust fund implies that each beneficiary ought to receive only 77 cents for every $1 in benefits- with the poorest Americans being affected the most. However, it’s not that Americans don’t want to save for retirement, but rather that they don't have an option otherwise. As noted by a retirement survey by The Charles Schwab Corporation (NYSE:SCHW), a growing number of US workers are finding it hard to save for retirement altogether. As of 2022, 47% of the respondents in the The Charles Schwab Corporation (NYSE:SCHW) survey revealed that they believed they were "very likely" to reach their retirement goals. However, this percentage went down to 37% in a year.

The Goldman Sachs Group, Inc. (NYSE:GS) accurately captures this phenomenon in what they consider to be a “financial vortex”. Due to this financial vortex, The Goldman Sachs Group, Inc. (NYSE:GS) warns that workers fail to understand what to prioritize, and this is in turn pushing back their retirement by many years. This is true despite many Americans having improved their level of savings in the past year. However, the complex financial landscape, characterized by competing responsibilities like credit card debt, saving for college, and providing financial support to family members, has disrupted savings strategies. This has resulted in a delay in retirement plans by four or more years for 21% of respondents, according to a Goldman Sachs Asset Management (GSAM) retirement report.

"While retirement sentiment improved over last year, the financial vortex remains a huge problem for many workers and retirees. Its challenges are largely immune to improvement in markets and the economy and will continue to impact new generations of retirement savers”.

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