Top 25 Retirement Destinations in the US: The average retirement age in the United States has increased by three years over the last thirty years, from 59 to 62 for women and from 62 to 65 for men. The Social Security Administration of the United States has increased the full normal retirement age for those born after 1960 to 67. That is to say, Americans are currently delaying retirement and working longer than ever before.
Furthermore, the current administration is facing mounting pressure from the Republicans, a prominent political party in the United States, to raise the full retirement age from 67 to 69. They contend that an increase in life expectancy in the United States warrants a corresponding rise in the retirement age; it is “logical” that they be permitted to continue working.
Republicans also make the claim that social security funds are running out of money. Republican presidential candidate Nikki Haley predicts that social security funds will decrease substantially over the next decade. Haley’s assertions are corroborated by the 2022 Social Security Trustees report, which concludes that retirees will not be eligible for complete Social Security benefits until 2034 due to low inflow (income received through payroll taxes) and high outflow (monthly benefit paid to retirees by the state).
In the event that legislative measures remain inactive and Social Security benefits are disbursed in their entirety beyond 2034, the trust funds would only be adequate to cover 77% of the total Social Security benefits. It is an urgent matter that could potentially be resolved through a government increase in the retirement age. Despite the possibility that an increase in the retirement age will prevent the depletion of Social Security funds entirely, it is anticipated that prospective retirees will react in a variety of ways.
One benefit is that retirees who desire to continue working will be pleased, as an extension of the retirement age will enable them to do so. Conversely, retirees who meticulously planned their retirement age and had every aspect of their lives in order will perceive the government as having deceived them. The latter carries greater significance, as a considerable proportion of anticipated retirees would prefer not to delay their golden years until the 1970s.
Additionally, a portion of the retired fear losing their flexible retirement option. It should be noted that individuals who are 62 years old at present have the option to enroll in flexible retirement plans. However, should the retirement age be raised to 69 as advocated by the Republican Party, this could lead to a corresponding increase in the eligibility age for such plans, ultimately resulting in diminished benefits for the retiree.
Given the contemplation of an increase in the retirement age, the gravity and potential repercussions of the decision on millions of Americans cannot be disregarded. As of 2023, the US Census Bureau reported that 77.5 million Americans are aged 60 or older, representing 23.4% of the total US population that may retire within the next decade.
Nonetheless, as the age of retirement approaches, it appears that fewer members of the populace have made the necessary preparations to ensure a comfortable retirement. 56% of Americans, according to a 2023 CNBC survey, said they were not on track or earning sufficient funds to retire comfortably. The escalating cost of commodities has further complicated the task of devising long-term plans and adjusting one’s lifestyle accordingly.
One possible explanation for the gradual increase in the average retirement age is that individuals are becoming less prepared for retirement and more concerned with the rising cost of living. Changing states and relocating to a less expensive location is an effective strategy for addressing both of these issues (refer to the list of the 25 best US cities where you can retire for $2500 per month).
It is essential to note, however, that the cost of living differs between cities and states in the United States. Hawaii is the most expensive state to reside in 2024, according to the Insider Monkey cost of living index, with an annual cost of more than $103,000. Conversely, Mississippi has the lowest annual cost of living among states, at approximately $50,000.
Living in Hawaii is prohibitively expensive due to the fact that it is an archipelago state with insufficient land for manufacturing and agriculture. As a result, the government is extremely dependent on imported food and consumer goods, which incurs shipping expenses and raises the prices of essential items.
The United States has experienced fluctuations in costs beyond commodities; healthcare expenditures have also increased over the last two decades. A report by the Centers for Medicare & Medicaid Services indicates that healthcare expenditures in the United States increased by 4.1% in 2022, amounting to $4.5 trillion, or $13,493 per capita. Moreover, national healthcare expenditures will increase at an average rate of 5.4% between 2022 and 2031. Anticipated costs for equivalent pharmaceutical prescriptions and medical services will increase with age. An analogous pattern applies to additional goods and services.
In essence, to ensure comfortable coverage for future living expenses, it is imperative to consider inflation and increase savings beyond current expenditures. As Social Security funds are rapidly depleting, it is opportune for many prospective retirees in the United States to consider alternative retirement strategies that will enable them to spend their golden years in opulence and comfort.
One might consider exploring private retirement savings plans, such as an Individual Retirement Account (IRA) or 401(k), which afford the advantage of tax-free savings and investment. The 401(k) plan is provided by the majority of American employers. According to the U.S. Census Bureau, 34.6% of the population used it in 2020, making it the most widely used private retirement savings plan.
The Retirement Savings Goal for a Comfortable Life in Indiana Revealed
Leading Companies For Prospective Retirees
At Berkshire Hathaway Inc. (NYSE: BRK.B) and Axa SA (EPA: CS), IRAs have great potential. Like Apple Inc. (NASDAQ: AAPL) and Microsoft Corp. (NASDAQ: MSFT), Berkshire Hathaway (NYSE: BRK.B) wants to reach trillion dollars. Berkshire Hathaway (NYSE: BRK.B) also invests heavily in Fortune 500 companies like Chevron (NYSE: CVX), Bank of America (NYSE: BAC), and Coca-Cola.
Pension pots and stock investments are offered by Legal & General Group PLC (LON: LGEN), the UK’s largest financial services provider. Retirement savings accounts are available from Legal & General Group PLC (LON: LGEN) to retirees and those close to retirement. Upon launching in the US in 2015, Legal & General Retirement America (LGRA) will protect over 27,000 annuitants by 2023.
Aging populations require more healthcare. 77% of the elderly have two or more chronic diseases, and 92% develop one, according to the American Psychological Association. Older adults are more likely to compromise their health if they cannot afford healthcare. Fortunately, the US has some of the best insurance companies. Several programs from UnitedHealth Group Inc. (NYSE: UNH) offer retiree-specific group Medicare Advantage plans. AARP Medicare Supplement plans from UnitedHealthcare (NYSE: UNH) cover costs not covered by Original Medicare. UnitedHealthcare (NYSE: UNH) allows retirees to switch Medicare plans if their current plan doesn’t meet their needs through their exchange model.
However, moving states as you near retirement may be one of the best ways to save money and live comfortably in your golden years.
The Methodology We Employ
Among the many resources consulted in the compilation of the list of the 25 Best Places in the United States to Retire on $5000 per Month were Yahoo Finance, Travel & Leisure, US News, and Nasdaq. We then filtered out cities with average monthly rents for two-bedroom units exceeding $1,184 and requiring an average monthly budget of $3,932 using data from Best Places for cost of living.
The cities were subsequently ranked according to the sum of their monthly total costs and average rent. Additionally, we have assigned scores to each location according to the AARP Livability Index for livability, weather comfort index, crime index, and healthcare. Each position on the AARP Livability Index is assigned a value of 100, with 50 representing the national average. An elevated score signifies enhanced livability. The locations have been arranged in descending order according to their expense levels.
Additionally, Insider Monkey is a website that monitors the investments of hedge funds and corporate insiders. By employing a consensus methodology, we discern the most optimal stock recommendations from over 900 hedge funds that allocate capital to US stocks. Over the past decade, hedge fund consensus stock picks 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 stocks to purchase, the insights of hedge funds and corporate insiders can be of great assistance.
25 Best Places in the US to Retire on $5000 a Month
25. Frostburg, Maryland
Monthly living budget: $4,571
Monthly average rent: $880
For $5,000 per month, Frostburg, Maryland stands out as one of the top retirement destinations in the United States. Renting costs an average of $880 per month, with living expenses totaling $4,571 monthly. The town boasts an impressively low crime rate, with only 4.0 incidents per 1000 inhabitants. In addition, Frostburg, Maryland has a strong local economy and plenty of volunteer and part-time job options.
Frostburg, Maryland may have chilly winters, but the community experiences all four seasons and offers retirees a variety of outdoor activities to enjoy. Consider the town’s general allure if you are on a budget and desire a tranquil retirement. Moreover, several top-notch local healthcare facilities are available.
24. Tiffin, Ohio
Monthly living budget: $4,453
Monthly average rent: $800
A thirty-minute drive from Lake Erie will bring you to the Ohioan town of Tiffin, where the inhabitants are affable and watch out for one another. Compared to the national average, both violent and property crime rates in Tiffin make it one of the safest municipalities in Ohio. In addition, Tiffin’s monthly cost of living is $4,453, which is 28.8% less than the average city in the United States.
With summer apexes attaining an average temperature of 84 °F and winter apexes attaining a minimum of 18 °F, the climate in the city is agreeably comfortable and pleasant throughout the year. Tiffin is an optimal destination for retirees desiring to retire in the lap of nature, due to its pleasant climate, picturesque lakes, and breathtaking hiking trails. Additionally, it boasts a variety of dining establishments and recreational facilities, including the McKinley Memorial Library and Ritz Theater.
23. Waterloo, Iowa
Monthly living budget: $4,453
Monthly average rent: $940
Waterloo, an Iowa city that may have encountered economic difficulties in the past but presently enjoys a reasonable cost of living, is an excellent location for retirees seeking to establish a budget. In addition to having adequate healthcare facilities, medical services in Waterloo are also less expensive than the national average.
Although crime rates differ throughout the city, there are numerous desirable residential areas. In addition to its abundance of museums, cultural events, and picturesque parks, Waterloo, Iowa offers an enriching retirement experience.
22. Huntington, West Virginia
Monthly living budget: $4,318
Monthly average rent: $890
Situated in the Appalachian region, Huntington, West Virginia, is renowned for its picturesque landscapes and expansive national parks. The city maintains a moderate crime rate, thereby affording its inhabitants an environment that is generally secure. Huntington, akin to Waterloo, has experienced a challenging economic history but is presently undergoing initiatives to rejuvenate its regional economy.
Retirees can enjoy abundant outdoor activities, and the proximity of the Ohio River adds to the area’s picturesque appeal. Sadly, Huntington also has a significant crime rate. However, with a livability score of 51, it is among the most desirable locations in the United States for retirees seeking a low cost of living and access to nature.
21. Phoenix, Arizona
Monthly living budget: $4,281
Monthly average rent: $1,770
Phoenix, Arizona occupies the twenty-first position on our list of the top retirement destinations for $5,000 per month. It is a location that offers a variety of amenities and pleasant weather. Within the confines of a $5,000 budget, sustaining oneself in Phoenix would not pose much of a challenge. Despite an increase, the cost of living in this major city remains affordable in comparison to others. Investigate the various neighborhoods in the city to determine which has the lowest crime rate. Additionally, Phoenix’s temperate climate is ideal for individuals who enjoy the outdoors and bask in the sun. However, it is crucial to mention that the summer months are typically quite warm, necessitating the use of air conditioning.
Maximum Social Security Retirement Payment at Age 65: Explained
20. Leon, Iowa
Monthly living budget: $4,192
Monthly average rent: $720
Position twenty features Leon, a municipality situated in the state of Iowa, which boasts a mere one thousand inhabitants. It is a lovely city with picturesque settings, abundant opportunities for outdoor recreation, and a warm community. In this small municipality, the minimum monthly rent is $720, with the maximum monthly expenditures amounting to $4,213 only. Leon outperforms himself in every metric we examined. The city is secure, has a pleasant climate, and a robust economy. Additionally, it offers exceptional healthcare; however, it is noteworthy that the cost is marginally greater than the average for the entire nation.
19. Bella Vista, Arkansas
Monthly living budget: $4,143
Monthly average rent: $1,050
Bella Vista, Arkansas, provides an abundance of enjoyable outdoor pursuits, including golfing, biking, hiking, kayaking on Beaver Lake, and more than 56 forest trails and riverside areas. Bella Vista, situated on the Springfield Plateau of the Ozark Mountains, is approximately 30,000 inhabitants strong.
In addition, the extremely low rates of property and violent crime in Bella Vista make it a secure haven for its inhabitants. Additionally, both the healthcare and economic conditions in Bella Vista are believable. Bella Vista, Arkansas, is among the most cost-effective retirement communities in the United States.
18. College Station, Texas
Monthly living budget: $4,112
Monthly average rent: $1,060
For outdoor enthusiasts, College Station, Texas is an idyllic setting, where they can do everything from kayaking on Lake Bryan to hiking along picturesque trails in natural parks. It is situated in the county of Brazos, the administrative center of taxes.
Similar to the majority of Texas cities, College Station experiences intense heat and humidity. The average summer temperature exceeds 90 degrees Fahrenheit, whereas winter temperatures rarely fall below freezing. Although it is pleasant and moderately secure, it is a reasonably priced city for retirees to live comfortably on a budget of $5000.
17. Temple, Texas
Monthly living budget: $4,102
Monthly average rent: $1,050
Temple, situated in Bell County, Texas, is a thriving municipality that accommodates an estimated population of 80,793 individuals. Although the rate of property crime is elevated, the rate of violent crime is comparatively low, affording the residents a moderate level of security. Despite its average weather index score, this location remains a favorable choice for retirees seeking a comfortable and cost-effective setting.
In Temple, Texas, a comfortable monthly living budget is approximately $4,102, with the average cost of a two-bedroom apartment being $1,050 per month. In addition, retirees may wish to consider relocating here due to the superior and more affordable healthcare facilities in comparison to the national average.
16. Clarksburg, West Virginia
Monthly living budget: $4,070
Monthly average rent: $550
Clarksburg, West Virginia is an affordable and laid-back option for retirees due to its cost of living, which is below the national average. Although the healthcare facilities in Clarksburg are satisfactory, retirees seeking specialized services may want to consider hospitals in the vicinity. Despite encountering obstacles, the community remains committed to continuous improvement in the local economy. Clarksburg does have a small crime rate, but overall, it is a relatively secure city to reside in. Having a smaller population and a strong sense of community, the city is an excellent choice for retirees in search of a tranquil and welcoming environment.
Employers Offer Student Debt Matching to Boost Retirement Contributions
15. Norman, Oklahoma
Monthly living budget: $4,038
Monthly average rent: $1,020
Norman, the third most populous city in Oklahoma, has 125,745 residents and a 52 livability index score. This destination has a mean monthly cost of living of $4,038 and a two-bedroom apartment for $1,020, making it 11.6% cheaper than the national average.
Norman is on our list for its lively atmosphere and variety of fun activities, as well as its low cost. Norman has several beautiful parks and museums, including Lions Park, Lake Thunderbird State Park, and the Sam Noble Oklahoma Museum of Natural History.
Individuals with a penchant for the arts and culture, nature, and the great outdoors should strongly consider Norman, Oklahoma. It should be noted that the cost of healthcare is marginally higher than the national average, albeit of satisfactory quality.
14. Roanoke, Virginia
Monthly living budget: $4,024
Monthly average rent: $960
Retirees are drawn to Roanoke, Virginia due to its combination of picturesque scenery, affordable housing, and cultural attractions. With a monthly budget of $4,024, the cost of living is reasonable, allowing retirees to maximize their retirement income.
The healthcare system in this municipality is deemed to be of average quality, albeit marginally costly. Moreover, Roanoke is economically diverse and offers possible part-time employment opportunities. In addition to Boone’s agreeable climate, the Blue Ridge Mountains offer scenic vistas from the area.
In terms of the economy, healthcare, and climate, Roanoke, thankfully, achieves high marks in each of these areas. Although it is marginally hazardous, inhabitants are encouraged to take necessary precautions. In summary, Roanoke offers a medley of lifestyle conveniences, enrichment opportunities, and cost-effective medical care to retirees in search of a gratifying existence.
13. Parma Heights, Ohio
Monthly living budget: $3,978
Monthly average rent: $1,070
The Ohio city of Parma Heights, which has excellent healthcare facilities and a low crime rate, provides retirees with a comfortable environment. Parma Heights experiences all four seasons, providing retirees with the opportunity to appreciate a variety of climates throughout the year.
Stable as the local economy is, Parma Heights is renowned for its welcoming community. Despite its more tranquil suburban environment, the neighboring city of Parma Heights provides cultural and recreational opportunities.
12. Robstown, Texas
Monthly living budget: $3,974
Monthly average rent: $1,060
Texas’ twelfth-ranked Robstown has a less favorable climate than many other cities. Robstown is a good choice for budget-friendly retirement.
A two-bedroom apartment costs $1,060 per month in this city, while a comfortable lifestyle costs $3,974.
Robstown has excellent healthcare facilities, an abundance of local healthcare providers, and a thriving economy, despite its small size.
1. Baytown, Texas
Monthly living budget: $3,952
Monthly average rent: $1,160
Carbon black, chemicals, rubber, and oil refining are produced in Baytown, Texas, a dynamic and industrialized city in the southeast. Baytown, Texas, has 82,543 residents and ranks eleventh in monthly budget requirement with a 46 livability score.
The overall climate is unfavorable, with extended periods of clear skies and year-round oppressive humidity. Although Baytown’s cost of living is 3.1% lower than the national average, the violent and property theft crime rates are both higher than the national average, rendering the area a moderately hazardous place to reside. One positive aspect is that the region boasts well-maintained healthcare facilities and a stable economy.
Who Qualifies for $1907 Social Security Payments for Retirees and Disabled Individuals?
