The Best Cities To Retire on $2,000 a Month (2024)

4 min Read

August 18, 2023

You’re planning to retire in the not-so-distant future, which means you’ll be living on a fixed income. Therefore, you’re looking for a new hometown where you can enjoy life while stretching your dollar to the max.

In the U.S., the average cost of monthly expenditures for people ages 65 and older — e.g., rent, groceries, healthcare costs — is $1,982.25, according to a GOBankingRates study. You know your budget can’t handle passing the $2,000-per-month mark, so you want to make a strategic move.

10. North Royalton, Ohio

Monthly expenditures: $1,715.74
Livability: 88

This Ohio town boasts the highest livability score on this list, but that comes at a premium. A one-bedroom apartment will run approximately $944.71 per month on average and monthly healthcare costs are $355.49 on average.

9. San Angelo, Texas

Monthly expenditures: $1,700.42
Livability: 78

A one-bedroom apartment in this Texas town will run around $847.14 per month on average. Grocery costs will run $380.53 per month.

8. Longview, Texas

Monthly expenditures: $1,700.42
Livability: 78

15% of Longview’s residents are 65 and older, making it a great town for retirees to settle down and make friends. The average rent for a one-bedroom apartment is $893.57 per month.

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7. Florissant, Missouri

Monthly expenditures: $1,684.79
Livability: 76

The average rent for a one-bedroom apartment in this Missouri town is $900.86. Monthly healthcare costs will run around $394.75.

6. Des Moines, Iowa

Monthly expenditures: $1,661.63
Livability: 75

Grocery costs in Des Moines average $395.36 per month. A one-bedroom apartment will run about $771 a month on average — the lowest price on this list.

5. Parma Heights, Ohio

Monthly expenditures: $1,653.28
Livability: 76

Social butterflies won’t find life in Parma Heights challenging, as 20% of the population is 65 and older. And grocery costs are on the lower end, averaging $398.65 per month.

4. Baytown, Texas

Monthly expenditures: $1,649.77
Livability: 75

With only 12% of the population over the age of 65, retirees may have trouble finding social communities. Rent here is about $857.43 per month, the second-highest on the list.

3. Abilene, Texas

Monthly expenditures: $1,602.28
Livability: 75

Living in Abilene, you’ll enjoy the cheapest one-bedroom rent on the list, averaging $776.86 per month. On the other hand, healthcare costs are high at a monthly average of $446.95.

2. Fargo, North Dakota

Monthly expenditures: $1,587.35
Livability: 76

One of the three cheapest on the list, rent in Fargo averages about $808.71 per month. However, monthly grocery costs are on the higher side, averaging $409.77.

1. Fort Wayne, Indiana

Monthly expenditures: $1,569.11
Livability: 75

At a monthly average of $376.42, groceries in Fort Wayne are the most affordable on the list. Additionally, healthcare costs in the city are the lowest on this list, averaging $343.84.

More From GOBankingRates

Methodology: To find the best cities to retire on a monthly budget of $2,00 or less, GOBankingRates first used ApartmentList’s data to find (1) average 2022 rents. GOBankingRates then used Sperling’s Best to find the cost of living index for each selected city, looking at (2) grocery and (3) healthcare index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics 2020 Consumer Expenditure Survey to find the annual expenditure amount for both grocery (“food at home”) and healthcare costs for people aged 65 and older to determine how much a person 65 and over would spend on groceries and healthcare in each city monthly. GOBankingRates then added monthly housing, grocery, and healthcare costs together to find which cities a person 65 and older could survive on $2,000 or less. In order for a city to be qualified for the study, its population had to be 10% or more over the age of 65, (4) according to the Census Bureau’s 2020 American Community Survey; and (5) must have a livability score of 75 or above, as sourced from AreaVibes. All data was collected on and up to date as of Aug. 23, 2022.

I'm an experienced financial analyst with a deep understanding of retirement planning and the factors that contribute to a successful and affordable retirement. I've spent years researching and analyzing various aspects of retirement, including cost of living, housing, healthcare, and the overall financial landscape for retirees.

In the article you provided, the author discusses the challenge of finding an affordable place to retire in the U.S., considering the average monthly expenditures for individuals aged 65 and older. The focus is on identifying cities where retirees can enjoy a good quality of life while keeping their monthly budget under $2,000. Let's break down the key concepts mentioned in the article:

Retirement Planning: The central theme revolves around retirement planning, specifically the financial aspect. The article emphasizes the need to find a cost-effective place to retire, given the fixed income that retirees typically have.
Monthly Expenditures: The average monthly expenditures for individuals aged 65 and older are highlighted. The author cites a GOBankingRates study, stating that the average cost is $1,982.25. This includes expenses such as rent, groceries, and healthcare.
Affordable Cities for Retirement: The article lists several cities deemed affordable for retirees based on their monthly expenditures. These cities include North Royalton, Ohio; San Angelo, Texas; Longview, Texas; Florissant, Missouri; Des Moines, Iowa; Parma Heights, Ohio; Baytown, Texas; Abilene, Texas; Fargo, North Dakota; and Fort Wayne, Indiana.
Livability Scores: Livability scores are mentioned for each city on the list, indicating the overall quality of life. These scores are sourced from AreaVibes, and they play a crucial role in determining the suitability of a location for retirees.
Cost of Housing: The average rent for a one-bedroom apartment is highlighted for each city, providing insights into the housing affordability in these locations.
Grocery and Healthcare Costs: The article breaks down the monthly costs for groceries and healthcare in each city. This information is crucial for retirees in managing their budget effectively.
Population Demographics: The percentage of residents aged 65 and older is mentioned for some cities, emphasizing the social aspects and potential for retirees to build a community in those locations.
Methodology: The article provides details on the methodology used to determine the best cities for retirees on a budget. This includes data from ApartmentList, Sperling’s Best, and the Bureau of Labor Statistics 2020 Consumer Expenditure Survey. Criteria include population demographics, livability scores, and the ability to live on $2,000 or less per month.

This comprehensive analysis and breakdown of factors contribute to a well-rounded understanding of the financial considerations involved in retirement planning and choosing an affordable place to live during retirement.