The Best Cities To Retire on $2,500 a Month

The average retirement income in America is under $28,000, according to the U.S. Census Bureau’s American Community Survey. That does not allow for a very rich retirement — under $2,500 per month. But there are cities where you can enjoy a nice quality of life in your senior years.

GOBankingRates found the best cities to retire on a monthly budget of $2,500 or less. This pool was determined by finding the 750 largest cities in America and then narrowing down to the ones where monthly rent was $1,300 or less. All cities have livability scores of 70 or higher.

See where the best cities to retire on $2,500 are.

• Monthly expenditures: $2,288
• Livability: 77

• Monthly expenditures: $2,331
• Livability: 74

• Monthly expenditures: $2,352
• Livability: 81

• Monthly expenditures: $2,371
• Livability: 82

• Monthly expenditures: $2,395
• Livability: 71

• Monthly expenditures: $2,414
• Livability: 70

• Monthly expenditures: $2,434
• Livability: 74

• Monthly expenditures: $2,438
• Livability: 81

• Monthly expenditures: $2,464
• Livability: 79

• Monthly expenditures: $2,481
• Livability: 84

• Monthly expenditures: $2,497
• Livability: 72

• Monthly expenditures: $2,499
• Livability: 81

Methodology: GOBankingRates used Zillow April 2025 data to find every city in the U.S. (limited to the 750 largest) that had monthly rent of $1,300 or less. GOBankingRates then used Sperling’s BestPlaces to find the cost-of-living index for every city on the list. Next, GOBankingRates used data from the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey to find the annual expenditure amount for grocery, healthcare and utilities costs for people aged 65 and older in order to find how much a person 65 and over would spend on those things in each city on a monthly basis. GOBankingRates then added monthly housing, grocery, healthcare and utilities costs together to find where a person 65 and older could survive on $2,500 or less. In order for a city to be qualified for the study, it had to have a livability score of 70 or higher (as sourced from AreaVibes). All data was collected on and is up to date as of June 4, 2025.