29 US Cities Ideal for Retiring on a $2000 Monthly Budget

29 US Cities Ideal for Retiring on a $2000 Monthly Budget: This article examines 29 communities in the United States where one can retire on $2,000 per month. To bypass our comprehensive examination of financial strategies and social security realities, please refer to the list of ten U.S. cities where one can retire on a monthly income of $2000.

Financial Strategies and Social Security Factions in 2024

In one month, $1,907 can purchase what? Given that this is the average amount a retiree will receive from Social Security in 2024, the likelihood is minimal. The Bureau of Labor Statistics calculated the exact figures and stated that in 2021, the average monthly expenditure for people 65 and older was $4,345. Food costs constituted the most rapidly increasing expenditure for 44% of the surveyed seniors, while a mere 48% were able to maintain their overall expenditures below $2,000.

Although many retirees strive to reduce their expenditures in preparation for unanticipated costs that may arise in the future, this is not the case for a significant proportion of the retiree population. Data from the Federal Reserve, which shows that 43% of people aged 55 to 64 had no retirement savings as of 2022, further illuminates this. Is that the only hope they have? Benefits from Social Security retirement.

However, not all individuals find retirement savings to be an appealing endeavor. The “financial vortex” consumes a great number of individuals, according to Goldman Sachs Asset Management of The Goldman Sachs Group, Inc. (NYSE:GS).

“For emergencies, only 36% of American workers have three months’ worth of income or more saved.” A great number of individuals veer off course due to unforeseen and frequently unpredictable financial obstacles, and it can be challenging to recover. Retirement savings must continue to be a top priority.

Senior Retirement Strategist at Goldman Sachs Asset Management, The Goldman Sachs Group, Inc. (NYSE:GS), Chris Ceder stated as much.

Although it is crucial to save for retirement, there are three significant hazards associated with doing so. According to the Goldman Sachs Group, Inc. (NYSE:GS), individuals who are saving for retirement encounter a “complex financial backdrop.” Furthermore, these savings are not without their inherent hazards. Inflation, longevity, and market decline are some examples. Constant threats include the possibility of inflation exceeding the value of one’s nest fund, the possibility of outliving one’s savings, and the potential for a recession to ultimately jeopardize long-term investments.

Benefits from Social Security are therefore the only dependable funds that will be available to you. Worryingly, they do not suffice. Moreover, all of these benefits are slated to be depleted by 2034, which leaves prospective retirees uncertain as to whether they will continue to receive them. The Social Security Administration states that certain benefits may continue to be disbursed despite the depletion of trust funds. This is because the anticipated annual income from the trust funds is projected to cover approximately 79% of the program’s total expense, even in the event of complete depletion of the reserves.

“Assure clients, ‘It will certainly be there for you; nevertheless, some modifications may occur.'” In order to generate additional funds, this may necessitate later retirement dates for future recipients, reduced benefits for retirees who can afford them, or increases in the Social Security payroll tax.

– Senior financial planning analyst at The Charles Schwab Corporation’s (NYSE:SCHW) Schwab Center for Financial Research, Robert Aruldoss

Additionally, Mike Townsend of The Charles Schwab Corporation (NYSE:SCHW) provides the following insight regarding the future of Social Security:

“Any proposed solution would almost certainly be implemented gradually over a number of years, which would be advantageous for beneficiaries. Individuals who are nearing or have already reached retirement age would almost certainly be granted an exemption from its implementation.” Indeed, numerous Americans have devised retirement strategies predicated on specific Social Security assumptions; it would be inequitable to deviate from those assumptions without allowing sufficient time for them to adapt.

The Charles Schwab Corporation’s (NYSE:SCHW) managing director of legislative and regulatory affairs, Mike Townsend, stated as much.

Given the financial circumstances described above, it is prudent for retirees to acquire the skills necessary to exist comfortably on the bare minimum. After accounting for rent, supplies, and utilities, this amount decreases to around $2,000 per month. Thus, those curious: Is a monthly income of $2,000 suitable for retirement? The answer is highly dependent on the location of your retirement.

The methodology

We revised our previous list of 25 US cities where one can retire for $2,000 per month to construct our current list of 29 US cities where one can retire for that amount. We then incorporated additional cities into the compilation and assigned them livability scores, cost of living index, and average rent for one-bedroom apartments. The aggregate of individual scores determined the ranking of locations, which was accomplished in ascending order from lowest to highest scores. Rent information was obtained from Zumper, Zillow, and other relevant sources, whereas livability scores were obtained from Area Vibes, and the cost of living was obtained from Best Places.

Additionally, Insider Monkey is a website that monitors the investments of hedge funds and corporate insiders. By employing a comparable consensus methodology, we discern the most advantageous stock recommendations of over 900 hedge funds that allocate capital to US equities. Over the past decade, hedge fund consensus stock selections have outperformed the S&P 500 Index by over 140 percentage points (see details here). Whether you are an experienced investor or a novice seeking the most favorable equities to purchase, the insights of hedge funds and corporate insiders can be of great assistance.

US States with the Lowest or No Sales Tax: A Comparison of 16 Locations

Let’s examine every city in the United States where one can retire on $2,000 per month:

Knoxville, Tennessee, 29th

Score on Insider Monkey: 19

Index of Cost of Living: 91.8

One-bedroom average rent: $1,246

72 is the livability score.

Knoxville is the first city in the United States where one can retire on a monthly income of $2000. This Tennessee city of average size is a popular location to reside due to its charming downtown, delicious Southern cuisine, and affordable housing.

Baytown, Texas, 28

Score on Insider Monkey: 20

Index of Cost of Living: 96.9

One-bedroom average rent: $1,053

69 is the livability score.

Baytown, which is regarded as one of the best locations to retire in Texas, allows residents to do so comfortably on $2,000 per month. Due to its location along the Texas Gulf Coast, senior citizens can participate in a variety of water-based activities, including boating, fishing, and simply admiring the waterfront.

Clute, Texas, 27th

Score on Insider Monkey: 23

99.7 on the Cost of Living Index

The average one-bedroom rent is $929.

62 is the livability score.

Retirees adore Clute due to the abundance of annual festivals, historical sites, and opportunities to observe local wildlife. The livability score and relatively low rents indicate that this is a respectable place to reside.

Midland, Texas, 26th

Score on Insider Monkey: 25

Index of Cost of Living: 92.2

One-bedroom average rent: $1,195

78 is the livability score.

Midland is included on our list owing to its favorable climate, expense of living, and comprehensive healthcare infrastructure. The Sibley Nature Center offers cultural experiences, while the I-20 Wildlife Preserve provides opportunities for outdoor activities and exploration for retirees.

Parma Heights, Ohio 25th

Score on Insider Monkey: 26

Index of Cost of Living: 83

One-bedroom average rent: $1,072

Obtainability Rating: 65

Parma Heights is regarded as an exceptional residential community in Ohio due to its cost-effective housing options, amiable inhabitants, and laid-back atmosphere. Additionally, numerous retailers and restaurants can be found in the city.

Augusta, Georgia, 24

Score on Insider Monkey: 32

Index of Cost of Living: 80

One-bedroom average rent: $1,152

63 is the livability score.

Augusta, which is internationally renowned as the “Great Small City for Retiring in Good Health,” accommodates the esteemed Augusta University Health System. In addition to its mild climate, reasonable cost of living, and abundance of amenities, the lovely city also provides a warm climate.

Lake Charles, Louisiana (23).

Score on Insider Monkey: 33

Index of Cost of Living: 84.1

One-bedroom average rent: $1,006

68 is the livability score.

Lake Charles, which is renowned for its picturesque lakes including Calcasieu Lake and Prien Lake, is an additional location that merits contemplation for a pension of $2,000 per month. Retirees occupy their time with an impressive arts and culture scene, an abundance of golf courses, and numerous festivals.

Cincinnati, Ohio 22

Score on Insider Monkey: 33

Index of Cost of Living: 88.3

One-bedroom average rent: $1,153

80 is the livability score.

Seniors who are not averse to frigid weather may find Cincinnati to be a worthwhile destination to investigate. Strollable neighborhoods, museums, aquariums, and theaters are located near the river.

North Royalton, Ohio 21st

Score on Insider Monkey: 35

Index of Cost of Living: 83

One-bedroom average rent: $1,188

76 is the livability score.

Located in Ohio, North Royalton is renowned for its cost-effectiveness, proximity to hiking trails, and tranquil suburban environment. An assortment of accommodation alternatives, appropriately maintained parks, and an abundance of recreational prospects are all present.

Bossier City, Louisiana, ranks twentieth.

Score on Insider Monkey: 36

Index of Cost of Living: 84.9

The average one-bedroom rent is $965.

70 is the livability score.

Many consider Louisiana an ideal state for retirement, with Bossier City standing out for its pleasant climate, vibrant community, and affordable cost of living.

Laredo, Texas 19.

Score on Insider Monkey: 37

Index of Cost of Living: 82.2

One-bedroom average rent: $1,111

73 is the livability score.

Laredo, considered one of the most cost-effective Southern communities for retirement, boasts a pleasant temperate climate, a distinctive cultural fusion shaped by its geographical proximity to the Mexico border, and picturesque landscapes.

Bellevue, Nebraska 18.

Score on Insider Monkey: 42

Index of Cost of Living: 95.2

One-bedroom average rent: $1,030

86 is the livability score.

Bellevue, Nebraska is a desirable location to reside due to its practicality, security, and high-quality medical services. There is much to do and discover in the bustling metropolis, including the Strategic Air Command and Aerospace Museum, well-known eateries, and more.

Montgomery, Alabama 17.

Score on Insider Monkey: 42

Index of Cost of Living: 79

One-bedroom average rent: $1,006

Obtainability Rating: 65

Historic landmarks abound in Montgomery, including Old Alabama Town and the Civil Rights Memorial, providing retirees with a culturally vibrant environment in which to enjoy a fruitful retirement.

Lansing, Michigan 16.

Score on Insider Monkey: 44

Index of Cost of Living: 83.6

One-bedroom average rent: $1,027

78 is the livability score.

Seniors in the college town of Lansing have much to offer. Numerous parks, footpaths, and waterways provide opportunities for active lifestyles, making it an ideal location for those in search of a harmonious blend of leisure and outdoor engagements.

Independence, Missouri, 15.

Score on Insider Monkey: 46

Index of Cost of Living: 88.4

The average one-bedroom rent is $962.

81 is the livability score.

Independence, an attractive municipality, is our selection from the state of Missouri. Independence, which is endowed with natural beauty, provides retirees with an abundance of historical sites and institutions to investigate.

Dothan, Alabama 14.

Score on Insider Monkey: 48

Index of Cost of Living: 80.4

The average one-bedroom rent is $956.

69 is the livability score.

On our list of the new cities in the United States where one can retire for $2,000 per month is Dothan, Alabama. This sizable “little city” is renowned for its arts and music scene, affordable accommodation, and “extremely” hospitable citizens, earning it respect. In addition to social gatherings at the Westgate Recreation Center, seniors can attend cultural events at the Dothan Civic Center and stroll through the picturesque Dothan Area Botanical Gardens.

Wichita, Kansas 13.

Score on Insider Monkey: 49

Index of Cost of Living: 82.8

The average one-bedroom rent is $871.

66 is the livability score.

An excellent community spirit, affordable housing, and high-quality medical care all contribute to Wichita’s appeal as a retirement destination in Kansas. For those looking to somewhat extend their dollar amounts of money, the city is a pleasant place to reside in Kansas.

Fort Wayne, Indiana, 12.

Score on Insider Monkey: 51

Index of Cost of Living: 82

One-bedroom average rent: $1,106

Alivability Rating: 84

Fort Wayne made it to our list of retirement-friendly cities in the United States for its numerous volunteer opportunities, beautiful parks, and top-notch healthcare.

Des Moines, Iowa 11.