For most of us, Social Security benefits aren’t enough to cover our living expenses. According to the Social Security Administration, the average monthly benefit for retired workers is $1,688.69 as of January 2023. That’s $20,264 yearly, well below the median income even in lower-income areas.
Thus, retirees will have to take steps to ensure they can adequately cover their expenses in retirement. Typically, that means tapping a 401(k), pension, or some other retirement account to make up the difference. But maybe you don’t have a 401(k), or maybe you simply want to make your money stretch further in retirement.
Whatever the case, another way to maintain financial security in retirement is by living in a cheaper city. Yes, that means you won’t be living in Lower Manhattan or Beverly Hills. Still, there are plenty of cities that are not only affordable but also very livable.
Livability is defined as having a high average score in the following categories: amenities, crime, cost of living, weather and education. Some of the cities on this list have very high scores overall.
To determine the best cities where you can retire on $2,000 a month, GOBankingRates gathered data from ApartmentList, Sperling’s Best and the Bureau of Labor Statistics 2021 Consumer Expenditure Survey to get the lay of the land on essential expenses such as rent, groceries and healthcare. To qualify, the city also had to have a population that was 10% or more over the age of 65 and a livability score of 65 or higher from AreaVibes.
Here’s a closer look at these affordable cities to retire.
28. Lincoln, Nebraska
- Monthly Expenditures: $1,880.92
- 2022 Average 1 bedroom Rent: $843.44
- % of Population 65 and older: 13%
- Livability: 78
- Monthly Grocery Cost: $426.86
- Monthly Healthcare Cost: $610.62
27. Omaha, Nebraska
- Monthly Expenditures: $1,850.77
- 2022 Average 1 bedroom Rent: $907.67
- % of Population 65 and older: 13%
- Livability: 72
- Monthly Grocery Cost: $423.35
- Monthly Healthcare Cost: $519.76
26. Sherman, Texas
- Monthly Expenditures: $1,840.40
- 2022 Average 1 bedroom Rent: $908.33
- % of Population 65 and older: 15%
- Livability: 67
- Monthly Grocery Cost: $414.58
- Monthly Healthcare Cost: $517.49
25. Bellevue, Nebraska
- Monthly Expenditures: $1,830.31
- 2022 Average 1 bedroom Rent: $886.78
- % of Population 65 and older: 14%
- Livability: 84
- Monthly Grocery Cost: $424.23
- Monthly Healthcare Cost: $519.30
24. San Angelo, Texas
- Monthly Expenditures: $1,806.59
- 2022 Average 1 bedroom Rent: $851.44
- % of Population 65 and older: 16%
- Livability: 78
- Monthly Grocery Cost: $404.94
- Monthly Healthcare Cost: $550.20
23. Victoria, Texas
- Monthly Expenditures: $1,779.17
- 2022 Average 1 bedroom Rent: $870.33
- % of Population 65 and older: 15%
- Livability: 69
- Monthly Grocery Cost: $416.34
- Monthly Healthcare Cost: $492.50
22. Oklahoma City, Oklahoma
- Monthly Expenditures: $1,774.30
- 2022 Average 1 bedroom Rent: $876.78
- % of Population 65 and older: 13%
- Livability: 69
- Monthly Grocery Cost: $415.02
- Monthly Healthcare Cost: $482.50
21. Sioux Falls, South Dakota
- Monthly Expenditures: $1,765.49
- 2022 Average 1 bedroom Rent: $861.11
- % of Population 65 and older: 13%
- Livability: 70
- Monthly Grocery Cost: $438.69
- Monthly Healthcare Cost: $465.69
20. Indianapolis, Indiana
- Monthly Expenditures: $1,765.45
- 2022 Average 1 bedroom Rent: $899.56
- % of Population 65 and older: 12%
- Livability: 65
- Monthly Grocery Cost: $410.20
- Monthly Healthcare Cost: $455.70
19. Independence, Missouri
- Monthly Expenditures: $1,753.79
- 2022 Average 1 bedroom Rent: $872.67
- % of Population 65 and older: 18%
- Livability: 71
- Monthly Grocery Cost: $416.34
- Monthly Healthcare Cost: $464.78
18. Bossier City, Louisiana
- Monthly Expenditures: $1,749.33
- 2022 Average 1 bedroom Rent: $885.44
- % of Population 65 and older: 15%
- Livability: 70
- Monthly Grocery Cost: $415.46
- Monthly Healthcare Cost: $448.43
17. Longview, Texas
- Monthly Expenditures: $1,746.85
- 2022 Average 1 bedroom Rent: $904.78
- % of Population 65 and older: 15%
- Livability: 78
- Monthly Grocery Cost: $403.19
- Monthly Healthcare Cost: $438.89
16. Pasadena, Texas
- Monthly Expenditures: $1,743.66
- 2022 Average 1 bedroom Rent: $826.22
- % of Population 65 and older: 12%
- Livability: 76
- Monthly Grocery Cost: $428.17
- Monthly Healthcare Cost: $482.50
15. Norman, Oklahoma
- Monthly Expenditures: $1,736.89
- 2022 Average 1 bedroom Rent: $826.22
- % of Population 65 and older: 12%
- Livability: 76
- Monthly Grocery Cost: $428.17
- Monthly Healthcare Cost: $482.50
14. Baytown, Texas
- Monthly Expenditures: $1,719.93
- 2022 Average 1 bedroom Rent: $868.89
- % of Population 65 and older: 12%
- Livability: 75
- Monthly Grocery Cost: $418.97
- Monthly Healthcare Cost: $432.07
13. Parma Heights, Ohio
- Monthly Expenditures: $1,706.19
- 2022 Average 1 bedroom Rent: $905.78
- % of Population 65 and older: 20%
- Livability: 76
- Monthly Grocery Cost: $424.23
- Monthly Healthcare Cost: $376.19
12. Fort Wayne, Indiana
- Monthly Expenditures: $1,700.12
- 2022 Average 1 bedroom Rent: $860.22
- % of Population 65 and older: 14%
- Livability: 75
- Monthly Grocery Cost: $400.56
- Monthly Healthcare Cost: $439.34
11. Greeley, Colorado
- Monthly Expenditures: $1,699.89
- 2022 Average 1 bedroom Rent: $874.22
- % of Population 65 and older: 12%
- Livability: 72
- Monthly Grocery Cost: $429.49
- Monthly Healthcare Cost: $396.18
10. Abilene, Texas
- Monthly Expenditures: $1,692.28
- 2022 Average 1 bedroom Rent: $759.78
- % of Population 65 and older: 13%
- Livability: 75
- Monthly Grocery Cost: $402.75
- Monthly Healthcare Cost: $529.75
9. Clute, Texas
- Monthly Expenditures: $1,688.09
- 2022 Average 1 bedroom Rent: $847.11
- % of Population 65 and older: 10%
- Livability: 72
- Monthly Grocery Cost: $420.72
- Monthly Healthcare Cost: $420.26
8. Fargo, North Dakota
- Monthly Expenditures: $1,680.68
- 2022 Average 1 bedroom Rent: $813.00
- % of Population 65 and older: 13%
- Livability: 76
- Monthly Grocery Cost: $436.06
- Monthly Healthcare Cost: $431.62
7. Des Moines, Iowa
- Monthly Expenditures: $1,661.62
- 2022 Average 1 bedroom Rent: $775.67
- % of Population 65 and older: 12%
- Livability: 75
- Monthly Grocery Cost: $420.72
- Monthly Healthcare Cost: $465.24
6. Midland, Texas
- Monthly Expenditures: $1,660.82
- 2022 Average 1 bedroom Rent: $736.89
- % of Population 65 and older: 10%
- Livability: 72
- Monthly Grocery Cost: $425.98
- Monthly Healthcare Cost: $497.95
5. Jeffersonville, Indiana
- Monthly Expenditures: $1,657.34
- 2022 Average 1 bedroom Rent: $835.56
- % of Population 65 and older: 16%
- Livability: 75
- Monthly Grocery Cost: $411.52
- Monthly Healthcare Cost: $410.26
4. Shreveport, Louisiana
- Monthly Expenditures: $1,637.09
- 2022 Average 1 bedroom Rent: $801.67
- % of Population 65 and older: 17%
- Livability: 65
- Monthly Grocery Cost: $398.81
- Monthly Healthcare Cost: $436.61
3. Cincinnati, Ohio
- Monthly Expenditures: $1,629.13
- 2022 Average 1 bedroom Rent: $795.22
- % of Population 65 and older: 13%
- Livability: 68
- Monthly Grocery Cost: $427.73
- Monthly Healthcare Cost: $406.17
2. Lansing, Michigan
- Monthly Expenditures: $1,610.05
- 2022 Average 1 bedroom Rent: $811.44
- % of Population 65 and older: 12%
- Livability: 66
- Monthly Grocery Cost: $399.25
- Monthly Healthcare Cost: $399.36
1. Lake Charles, Louisiana
- Monthly Expenditures: $1,566.43
- 2022 Average 1 bedroom Rent: $696.33
- % of Population 65 and older: 16%
- Livability: 70
- Monthly Grocery Cost: $407.13
- Monthly Healthcare Cost: $462.97
More From GOBankingRates
Bob Haegele contributed to the reporting for this article.
Methodology: To find the best cities to retire on $2,000 per month, GOBankingRates first used ApartmentList data to find (1) average 2022 one-bedroom 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 2021 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 retired person might spend on groceries and healthcare in each city monthly. GOBankingRates then added monthly housing, grocery, and healthcare costs together to find the places to retire in for $2,000 or less. In order for a place 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 65 or above, as sourced from AreaVibes. All data was collected on and up to date as of April 3, 2024.
Disclaimer: Photos are for representational use only.