29 US Cities Where You Can Retire on $2000 a Month

Published on March 10, 2024 at 7:27 am by Ghazal Ahmed in Lists, News, Retirement

This article takes a look at the 29 US cities where you can retire on $2000 a month. If you wish to skip our detailed analysis of social security realities and financial strategies, you may go to 10 US Cities Where You Can Retire on $2000 a Month.

Social Security Realities and Financial Strategies in 2024

What does $1,907 buy in a month? Considering this is the amount on average that a retiree gets from Social Security in 2024, chances are not much. The Bureau of Labor Statistics crunched out the exact figures, stating that the average spending for those aged 65 or older was $4,345 monthly as of 2021. For 44% of these seniors, food costs were the fastest-growing expense for the year, and only 48% of those surveyed managed to keep their overall expenses under $2,000. While numerous retirees aim to minimize their expenses in anticipation of unforeseen costs in the future, for a substantial portion of retirees, this is not a matter of choice. Data from the Federal Reserve further sheds light on this, quoting that 43% of those aged 55- to 64 had no retirement savings at all as of 2022. Their only hope? Social Security retirement benefits.

However, saving money for retirement isn’t everyone’s cup of tea . Many get caught up in a “financial vortex”, as revealed by Goldman Sachs Asset Management of The Goldman Sachs Group, Inc. (NYSE:GS).

“Only 36% of US workers have three months of income or more saved for emergencies. Unplanned and often unpredictable financial challenges push too many of us off track, and catching up may be difficult. Saving for retirement must remain a top priority”.

– Chris Ceder, Senior Retirement Strategist at Goldman Sachs Asset Management, The Goldman Sachs Group, Inc. (NYSE:GS).

While saving for retirement is an absolute must, there are three key risks associated with these savings. The Goldman Sachs Group, Inc. (NYSE:GS) notes that savers are faced with a “complex financial backdrop” when saving up money for retirement. More so, there are risks associated with these savings. These are inflation, longevity, and market decline. There is always the risk of rising inflation that will eventually erode the value of your nest egg, the risk that you’ll outlive your savings, and even the danger of a downturn that could eventually compromise long-term savings.

So Social Security benefits are the only reliable money that is going to be there for you. Sadly, they are not enough. More importantly, they are all set to be depleted by 2034, leaving potential retirees wondering whether these benefits are even going to be there for them or not. According to the Social Security Administration, even if trust funds do get depleted, some benefits could still be paid. This is because even in the scenario of complete reserve depletion, the anticipated annual income from the trust funds is expected to cover approximately 79% of the program’s total cost.

“What I tell clients is, ‘It will be there for you—but there may be some changes. That could mean later retirement dates for future recipients, reduced benefits for retirees who can afford it, or increases to the Social Security payroll tax in order to raise more money”.

– Robert Aruldoss, a senior financial planning analyst at the Schwab Center for Financial Research, The Charles Schwab Corporation (NYSE:SCHW)

Further, this is what Mike Townsend from The Charles Schwab Corporation (NYSE:SCHW) has to say about the future of Social Security:

“From a beneficiary’s perspective, any proposed solution likely would be phased in over many years—and people approaching or already in retirement would almost certainly be exempt. After all, many Americans have been planning their retirement with certain assumptions around Social Security in mind, and it would be unfair to upend those assumptions without adequate time to adjust”.

-Mike Townsend, managing director of legislative and regulatory affairs at Schwab from The Charles Schwab Corporation (NYSE:SCHW)

Considering the above financial landscape for retirees, it’s only wise for them to learn how to live comfortably on as little as they can. This figure, considering rent, groceries, and utilities are accounted for, comes down to approximately $2,000 a month. So for those wondering is $2,000 a month good for retirement? The answer largely depends on where you end up retiring to.

29 US Cities Where You Can Retire on $2000 a Month

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Methodology

To compile our list of 29 US cities where you can retire on $2000 a month, we updated our previous list on 25 US cities where you can retire on $2000 a month. Next, we added new cities to the list and scored them on their cost of living index, average rent for 1-bedroom apartment, and their livability scores. Individual scores were summed up and places were ranked in an ascending order from the lowest to highest scores. Cost of living has been sourced from Best Places, Livability scores are from Area Vibes, while rents are from Zumper, Zillow, etc.

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

Let’s check out all the US Cities Where You Can Retire on $2,000 a Month:

29. Knoxville, Tennessee

Insider Monkey Score: 19

Cost of Living Index: 91.8

Average Rent (1-bedroom): $1,246

Livability Score: 72

The first US city where you can retire on $2000 a month is Knoxville. This mid-sized city is a popular place to live in Tennessee because of its beautiful downtown, Southern food, and affordable living.

28. Baytown, Texas

Insider Monkey Score: 20

Cost of Living Index: 96.9

Average Rent (1-bedroom): $1,053

Livability Score: 69

Acclaimed as one of the best places to retire in Texas, retirees in Baytown can easily retire on $2,000 a month. Its location along the Gulf Coast region of Texas means seniors can enjoy many water-based activities such as boating, fishing, and simply enjoying the waterfront.

27. Clute, Texas

Insider Monkey Score: 23

Cost of Living Index: 99.7

Average Rent (1-bedroom): $929

Livability Score: 62

Retirees love Clute because they get to explore local wildlife, historical attractions, and numerous festivals throughout the year. Rents are pretty affordable, and the livability score proves that it’s a decent place to live.

26. Midland, Texas

Insider Monkey Score: 25

Cost of Living Index: 92.2

Average Rent (1-bedroom): $1,195

Livability Score: 78

Midland makes it to our list due to its affordable cost of living, pleasant weather, and robust healthcare options. Retirees can enjoy cultural experiences at the Museum of the Southwest, explore the Sibley Nature Center, and engage in outdoor activities at the I-20 Wildlife Preserve.

25. Parma Heights, Ohio

Insider Monkey Score: 26

Cost of Living Index: 83

Average Rent (1-bedroom): $1,072

Livability Score: 65

Parma Heights is one of the best places to live in Ohio because of its affordable housing, friendly people, and relaxed pace of life. There are many restaurants and stores in the city as well.

24. Augusta, Georgia

Insider Monkey Score: 32

Cost of Living Index: 80

Average Rent (1-bedroom): $1,152

Livability Score: 63

Famously known as a “Great Small City for Retiring in Good Health,” Augusta is home to the prestigious Augusta University Health System. The beautiful city also offers a warm climate, affordable costs of living, and plenty of amenities.

23. Lake Charles, Louisiana

Insider Monkey Score: 33

Cost of Living Index: 84.1

Average Rent (1-bedroom): $1,006

Livability Score: 68

Famous for its stunning lakes such as the Calcasieu Lake and Prien Lake, Lake Charles is another place worth considering to retire on $2000 a month. There is an impressive arts and cultural scene, numerous golf courses, and many festivals that keep retirees busy.

22. Cincinnati, Ohio

Insider Monkey Score: 33

Cost of Living Index: 88.3

Average Rent (1-bedroom): $1,153

Livability Score: 80

For retirees who don’t mind cold weather, Cincinnati can be a good option to explore. There are world-class restaurants, museums, zoos, theaters, and walkable neighborhoods near the river.

21. North Royalton, Ohio

Insider Monkey Score: 35

Cost of Living Index: 83

Average Rent (1-bedroom): $1,188

Livability Score: 76

Another Ohio pick, North Royalton is known for its quiet suburban atmosphere, access to trails, and affordability. There are well-maintained parks, a variety of housing options, and plenty of recreational opportunities.

20. Bossier City, Louisiana

Insider Monkey Score: 36

Cost of Living Index: 84.9

Average Rent (1-bedroom): $965

Livability Score: 70

Louisiana is one of the best states to live in after retirement, and Bossier City, with its warm climate, vibrant culture, and relatively affordable cost of living, is an appealing choice within this state.

19. Laredo, Texas

Insider Monkey Score: 37

Cost of Living Index: 82.2

Average Rent (1-bedroom): $1,111

Livability Score: 73

Deemed as one of the best Southern cities to retire on a budget, Laredo enjoys a warm climate, a unique cultural blend influenced by its proximity to the Mexico border, and natural beauty.

18. Bellevue, Nebraska

Insider Monkey Score: 42

Cost of Living Index: 95.2

Average Rent (1-bedroom): $1,030

Livability Score: 86

Bellevue is a nice place to live in Nebraska because of its affordability, safety, and quality healthcare. The vibrant city offers much to do and explore in the city, such as the Strategic Air Command and Aerospace Museum, popular restaurants, and more.

17. Montgomery, Alabama

Insider Monkey Score: 42

Cost of Living Index: 79

Average Rent (1-bedroom): $1,006

Livability Score: 65

Montgomery offers retirees rich historical sites to explore, such as the Civil Rights Memorial and Old Alabama Town, providing a culturally vibrant environment for a fulfilling retirement.

16. Lansing, Michigan

Insider Monkey Score: 44

Cost of Living Index: 83.6

Average Rent (1-bedroom): $1,027

Livability Score: 78

This college town called Lansing has a lot going for seniors. They can enjoy active lifestyles with numerous parks, trails, and waterways, making it an ideal place for those seeking a balance between relaxation and outdoor activities.

15. Independence, Missouri

Insider Monkey Score: 46

Cost of Living Index: 88.4

Average Rent (1-bedroom): $962

Livability Score: 81

The charming city of Independence is our pick from the state of Missouri. Blessed with natural beauty, Independence offers plenty of museums and historical attractions for retirees to explore.

14. Dothan, Alabama

Insider Monkey Score: 48

Cost of Living Index: 80.4

Average Rent (1-bedroom): $956

Livability Score: 69

One of the new US cities where you can retire on $2000 a month on our list is Dothan, Alabama. This big “little city” is revered for its arts and music scene, affordable housing, and “extremely” friendly people. Seniors can explore the scenic Dothan Area Botanical Gardens, attend cultural events at the Dothan Civic Center, and even participate in social gatherings at the Westgate Recreation Center.

13. Wichita, Kansas

Insider Monkey Score: 49

Cost of Living Index: 82.8

Average Rent (1-bedroom): $871

Livability Score: 66

Affordable living, quality healthcare, and a strong sense of community make Wichita a great place to retire in Kansas. The city is a nice place to live in Kansas for those who wish to stretch their dollar incomes a little further.

12. Fort Wayne, Indiana

Insider Monkey Score: 51

Cost of Living Index: 82

Average Rent (1-bedroom): $1,106

Livability Score: 84

Fort Wayne makes it to our list of US cities where you can retire on $2,000 a month because of its beautiful parks, quality healthcare, cultural venues, and plentiful volunteering opportunities.

11. Des Moines, Iowa

Insider Monkey Score: 51

Cost of Living Index: 86.6

Average Rent (1-bedroom): $937

Livability Score: 81

Des Moines also stands out amongst places to live below $2,000 a month owing to its reputable healthcare facilities, four seasons, and friendly community. The city is also famous for its arts, culture, and activities.

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