Best Cities To Retire on a Budget of $1,500 a Month

Finding space in your budget to save and invest isn’t easy for everyone. In fact, a recent GOBankingRates survey found that 55% of Americans who don’t invest attribute it to not having the money. As such, plenty of Americans are facing down a retirement where their only source of income is a monthly check from the Social Security Administration.

Still, living on a fixed income doesn’t mean you have to miss out on a satisfying retirement. In the right place, you might discover that you can stretch your budget further and spend your golden years enjoying yourself. To help you find such a place, a GOBankingRates study identified American cities where you can realistically retire on a budget of $1,500 a month.

The study takes the cost-of-living index from Sperling’s Best Places and applies it to customer expenditure data from the Bureau of Labor Statistics to find the average cost of living in the given city. The average rent for a one-bedroom apartment in each city was also sourced from ApartmentList. Towns that fell below a certain livability score on AreaVibes or had a below-average portion of the population above 65 were eliminated, and the places offering the best combination of bills under $1,500 and strong livability for seniors were left.

So, take a look to see which American cities give you a chance to retire even if you’re not rich.

Last updated: Oct. 8, 2020

37. Rockwood, Michigan

• Total monthly expenditures: $1,485.93
• Livability score: 76

The rent for a one-bedroom apartment in Rockwood is on the relatively higher side at $692.33. However, the city does have a grocery and healthcare cost-of-living index below the national average, which would make room in other areas of your budget. You can just squeak by on $1,500 monthly.

36. Middletown, Ohio

• Total monthly expenditures: $1,482.33
• Livability score: 75

While residents in much of the country might look at a monthly rent payment under $700 as an absolute Godsend, the $683.50 paid by the average Middletown resident is actually among the highest rates of the cities included here.

35. St. Joseph, Michigan

• Total monthly expenditures: $1,481.88
• Livability score: 86

It’s not easy to find somewhere affordable on Michigan’s west coast, but St. Joseph sits right on the lake and still offers a chance to exist on less than $1,500 a month. Being able to enjoy a livability score of 86 while covering basic necessities on less than $20,000 annually is a rare treat, and many residents of St. Joseph are pretty lucky in that regard.

34. Taylor, Michigan

• Total monthly expenditures: $1,472.86
• Livability score: 68

Taylor is another place where rent is relatively high for this study, even if it’s still short of $700 a month. That said, the very low cost of groceries and healthcare helped keep the total monthly costs under the $1,500 threshold.

33. Temple, Texas

• Total monthly expenditures: $1,470.37
• Livability score: 82

Temple’s healthcare costs are relatively high compared to others on this list — though notably still lower than the national average. But the city also has a livability score among the highest on this list and an average rent of just over $600.

32. Frankfort, Kentucky

• Total monthly expenditures: $1,470.24
• Livability score: 74

If living around people from your generation matters a lot, know that just over 16% of the population in Frankfort is 65 or older — a relatively low rate for this list. However, the affordable costs of living should appeal to plenty of retirees.

Read: 50 Things Every 50-Something Should Know About Retirement

31. Trenton, Michigan

• Total monthly expenditures: $1,469.94
• Livability score: 88

Trenton’s livability score of 88 is the highest of any city listed here, even if it’s not the big winner on cost of living. Still, if money’s not your primary concern, Trenton is arguably as appealing if not more so than some of the locales higher on this list.

30. Duluth, Minnesota

• Total monthly expenditures: $1,466.93
• Livability score: 72

To be clear, if you’re not a fan of cold weather, you might need to adjust that livability score. However, if you’re a fan of living in a winter wonderland, Duluth’s attractive cost of living should help push this northern Minnesota enclave to the top of your list.

29. Decatur, Alabama

• Total monthly expenditures: $1,466.65
• Livability score: 74

The first city in this study to crack $600 for its average rent, you can expect to pay around $590 for a one-bedroom apartment in Decatur. Throw in some very attractive grocery costs and this could be a saver’s paradise.

28. Washington, Pennsylvania

• Total monthly expenditures: $1,464.15
• Livability score: 75

Just 15.6% of the population in Washington is age 65 or older, so it’s not exactly a retirement community. However, choosing to retire here could just make you a trendsetter.

27. Englewood, Florida

• Total monthly expenditures: $1,461.63
• Livability score: 76

If you’re looking for the sort of retirement village that’s geared toward seniors, look no further than Englewood. Over half of the city’s residents are 65 or older, easily the highest proportion of retirees in this study.

26. Troy, Ohio

• Total monthly expenditures: $1,453.53
• Livability score: 87

Troy’s livability score of 87 is tied for the second-highest on this list. So while there are a handful of other places with similar livability ratings and even lower costs, there are precious few places in America as inviting and affordable as Troy.

25. Charlotte, Michigan

• Total monthly expenditures: $1,441.87
• Livability score: 72

Charlotte’s another city that has average rents creeping up closer to $700 than most other cities on this list, but it makes up for a lot of that with healthcare costs that come in nearly 20% under the national average.

24. Hamilton, Ohio

• Total monthly expenditures: $1,438.96
• Livability score: 76

The cost of healthcare in Hamilton is about 15% below the national average, making it an appealing potential stop for retirees on a fixed income. That said, grocery costs are just a hair below the national average — which is a bit high for this area.

Related: 30 Reasons It’s Hard To Retire at 65

23. Jefferson City, Missouri

• Total monthly expenditures: $1,436.02
• Livability score: 73

Jefferson City residents should expect to pay over 10% above the national average when it comes to healthcare costs. But, you’re that much more likely to be able to cover it when the average one-bedroom apartment rents for under $500 a month.

22. Watervliet, Michigan

• Total monthly expenditures: $1,434.32
• Livability score: 72

You should expect to save nearly 10 cents on the dollar in Watervliet when it comes to groceries compared to the rest of the country. Add to that an average rent for a one-bedroom apartment of just over $600 and it should be clear why the town’s on this list.

21. Euclid, Ohio

• Total monthly expenditures: $1,433.51
• Livability score: 72

Euclid’s healthcare costs are nearly 20% lower than the national average. So, while paying more than $650 a month for a one-bedroom apartment is relatively high for these cities, it’s also going to be easier to cover than it would in many other locales.

20. Cassopolis, Michigan

• Total monthly expenditures: $1,431.90
• Livability score: 72

Residents of Cassopolis have average grocery costs about 10% lower than the national average, meaning you’ll be spending less on your basics. Add to that an average rent of just over $600 and this could be just the place to live if you’re hoping to cut overhead to a minimum.

19. Newark, Ohio

• Total monthly expenditures: $1,422.87
• Livability score: 79

While clearly the less-famous Newark, this Ohio city should maybe have a bigger reputation than it does. Not being across the river from one of the most expensive cities in the country helps this town keep the cost of living low enough that you can live comfortably and save up while earning $2,000 a month.

18. Burton, Michigan

• Total monthly expenditures: $1,417.36
• Livability score: 70

Burton’s population is 15.8% senior citizens, putting it on the low end of cities in this study. However, that could change if more of America’s retirees find out about this town where you can save 15% over the average American on healthcare and nearly 10% on groceries.

17. Wyandotte, Michigan

• Total monthly expenditures: $1,409.51
• Livability score: 87

In terms of the highest livability score in this study, Wyandotte is locked in a four-way tie for second place. Yes, $1,400 a month for basic necessities is already a steal compared to most places, but it’s that much more impressive for a town as appealing as Wyandotte.

16. Franklin, Michigan

• Total monthly expenditures: $1,408.69
• Livability score: 77

Franklin has one of the smaller populations of retirees in this study with just 15.6% of the population age 65 or older. That could be surprising, given its low cost of living, but Michigan winters also make living more difficult for the elderly.

15. Bismarck, North Dakota

• Total monthly expenditures: $1,406.68
• Livability score: 80

Bismarck’s average grocery costs are actually a hair higher than the national average and the second-highest in this study. Clearly, that’s counterbalanced by lower costs in other categories — healthcare costs come in almost 15% less than the national average — but it’s something to consider.

14. Apache Junction, Arizona

• Total monthly expenditures: $1,402.92
• Livability score: 77

Not only are almost a third of Apache Junction’s residents 65 or older, but retirees planning to downsize their lives and move somewhere warm could also be looking at the ideal option. The average one-bedroom apartment rents for just $482.17, so you’ll have a lot more budget flexibility even after covering housing costs.

13. Carnegie, Pennsylvania

• Total monthly expenditures: $1,402.58
• Livability score: 84

Famed industrialist, philanthropist and anti-labor activist Andrew Carnegie is likely pleased with the town that bears his name. Carnegie comes with a high livability score and costs that barely exceed $1,400 a month. And affluent residents will have plenty of room in their budget for supporting causes that are important to them.

See: Want To Retire Early in Your State? Aim To Save This Much

12. Bedford, Ohio

• Total monthly expenditures: $1,400.47
• Livability score: 84

Bedford’s another town where basic necessities will run you about $1,400 a month and the livability score of 84 indicates a city that’s easy to get around and enjoy for most people. Additionally, healthcare costs run about 15% lower than the nation as a whole.

11. Lorain, Ohio

• Total monthly expenditures: $1,396.57
• Livability score: 73

The first city where your basic costs will come in under $1,400 on average, Lorain gets there with very low costs for both groceries and healthcare on top of rent payments of about $600 a month on a one-bedroom apartment.

10. Wausau, Wisconsin

• Total monthly expenditures: $1,367.90
• Livability score: 83

Any city with a livability score over 80 and costs under $1,400 a month is in pretty rarified company, even in the context of this study. Just 6 of the 37 options here could meet those standards, and Wausau is one of them.

9. Kokomo, Indiana

• Total monthly expenditures: $1,341.30
• Livability score: 72

While many would argue that the more famous Kokomo is the better place to live, that might also be because they haven’t compared the costs of that Caribbean paradise to its Indiana counterpoint. Kokomo, Indiana, gives you a chance to get by on just $1,500 a month while still having a little left over for luxuries or to save away.

8. Midland, Michigan

• Total monthly expenditures: $1,313.71
• Livability score: 83

Low rent played a huge role in keeping costs down, so it shouldn’t be too surprising that all of the top eight cities in the ranking had average rental payments on a one-bedroom of under $500 a month. That also means that spots one through eight represent 8 of the 11 total towns in this study with rents below that level.

7. Davison, Michigan

• Total monthly expenditures: $1,276.43
• Livability score: 77

Davison’s livability score is a bit lower than some of the other cities ranked this high, but that also means it’s making up for it with costs. Your monthly bills there should come in under $1,300, including healthcare costs 15% under the national average.

Don’t Miss: States Where Your Retirement Will Cost Less Than $45,000 a Year

6. Flushing, Michigan

• Total monthly expenditures: $1,275.61
• Livability score: 87

Another of the cities tied for second in the study in terms of livability, Flushing is the second-cheapest of the four options. You can still save about $225 a month on an after-tax income of $1,500 a month if you’re especially frugal.

5. Grand Ledge, Michigan

• Total monthly expenditures: $1,264.47
• Livability score: 78

The ledges aren’t the only thing that’s grand about this burg. The Michigan city boasts incredibly low costs of living, including rent under $500 for a one-bedroom apartment and healthcare costs approaching 20% below the national average.

4. St. Johns, Michigan

• Total monthly expenditures: $1,260.18
• Livability score: 79

The glorious natural setting of Michigan clearly makes for a great place to live if you’re earning less. The Great Lake State has 14 of the 37 cities on this list. And Michiganders will be especially happy to note that the number represents five more than Ohio.

3. Vandalia, Ohio

• Total monthly expenditures: $1,246.80
• Livability score: 86

If you’re shopping for a one-bedroom apartment in Vandalia on a budget of $450 a month, your primary limitation might be one of vacancy rather than finding spots in your budget range — average rent on such a pad runs just $446.50. What’s more, healthcare costs are approximately 15% lower than the national average.

2. Turtle Creek, Pennsylvania

• Total monthly expenditures: $1,240.89
• Livability score: 82

About 1 in 5 residents of Turtle Creek is 65 or older, which is about average for the cities in this study. However, the average rental payment of about $440 is way below average for this study and the country.

1. Tallmadge, Ohio

• Total monthly expenditures: $1,237.67
• Livability score: 87

The last of the four cities with a livability score of 87, Tallmadge also has the lowest average monthly expenses. And that’s with grocery costs that are just about in line with national averages — something that speaks to just how low an average rent of $440 really is.

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Methodology: For this study, GOBankingRates found the best cities to retire on a budget of $1,500 dollars or less. GOBankingRates used June 2020 data from ApartmentList to find every city in the U.S. that has an (1) average 2020 monthly rent of $700 dollars or less for a one-bedroom apartment. GOBankingRates then used Sperling’s Best Places to find the cost-of-living index for every city on the list, looking at (2) grocery and (3) healthcare index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics’ July 2018 to June 2019 Consumer Expenditure Survey to find the annual expenditure amount for both grocery (“food at home”) and healthcare costs for people age 65 and older in order to find how much a person 65 and over would spend on groceries and healthcare in each city on a monthly basis. GOBankingRates then added monthly housing, grocery and healthcare costs together to find where a person 65 and older could survive on $1,500 or less. In order for a city to qualify for the study, it had to have a livability score of 65 or higher as sourced from AreaVibes, and its population had to be 15% or more over the age of 65. All data was collected on and up to date as of June 30, 2020.

About the Author

Joel Anderson

Joel Anderson is a business and finance writer with over a decade of experience writing about the wide world of finance. Based in Los Angeles, he specializes in writing about the financial markets, stocks, macroeconomic concepts and focuses on helping make complex financial concepts digestible for the retail investor.

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