AARP Names Cheapest Places to Retire

October 10, 2013

For retirees who only have $30,000 a year for retirement, they can make their money stretch if they choose where to live wisely. For many, they may need to.

Many baby boomers have not saved enough for retirement and are nearly half a million dollars short when it comes to how much they likely will need to live on versus how much they actually have saved, according to a survey conducted last year by TD Ameritrade. 

Many retirees say they’ll rely on Social Security checks to get by. The average couple in retirement receives about $2,048 a month in Social Security benefits, or the equivalent of $24,500 a year. 

AARP The Magazine recently published a list of cities where retirees could live cheaply and make $30,000 a year go far. In compiling the list, the editors factored in median home prices, property taxes, and lifestyle items, such as inexpensive restaurants. 

Here are the cities that topped AARP’s list: 

  1. Daytona/Deltona/Ormond Beach, Fla.
    Median home price: $108,900
  2. Pocatello, Idaho
    Median home price: $127,500
  3. Bangor, Maine
    Median home price: $110,400
  4. Greenville, S.C.
    Median home price: $127,600
  5. Grand Rapids, Mich.
    Median home price: $114,200

Source: “AARP’s Top 5 Cities for Retiring on the Cheap,” USA Today (Oct. 9, 2013)

Read more:

Planning for Retirement
Baby Boomers Turn to Cities for Retirement
How Much Should You Save for Retirement?