Where Can I Retire on $3,000 Per Month? (2024)

Where Can I Retire on $3,000 Per Month? (1)

You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor since it’s both the largest component of retiree budgets and the household cost that varies most according to geography. Therefore, choosing from among the U.S. cities with the lowest housing cost is a sensible first step to finding a place to retire at $3,000 a month. Get help from a financial advisor in choosing the right retirement location that matches your budget.

Geographic Cost of Living Factors

Being able to retire on $3,000 a month is largely dependent on picking a place with modest housing prices. More than a third of the typical retirement-age person’s household budget goes to housing, according to the Social Security Administration’s “Expenditures of the Aged Chartbook, 2020.”

The 36.8% share of retiree budgets consumed by housing, in fact, was more than the combined share of the next two largest categories. Those included out-of-pocket healthcare expenses at 14% and, at 17.5%, a broad grab-bag “other” category including expenses ranging from alcohol and tobacco to reading and education.

The 2022 report on personal consumption expenditures by the Federal Bureau of Economic Analysis (BEA) compared real price parity (RPP) for all consumption goods and services including housing rents for states and metropolitan areas. “Areas with high/low RPPs typically correspond to areas with high/low price levels for rents,” the report noted.

Housing prices are also by far the most variable among major expenses. The least expensive housing city as ranked by the BEA, among nearly 400 cities, was Johnstown, Pennsylvania, with a housing index of 43.8. The most expensive was San Jose-Sunnyvale-Santa Clara in California, with a housing index more than five times higher at 241.1.

Cities With Lowest Housing Costs

With this in mind, when you’re looking for a city where you can retire for $3,000 a month, starting with the cities with the lowest housing costs is a promising strategy. Here are the 20 U.S. cities with the lowest housing costs, ranked least expensive to most expensive, according to the BEA analysis:

  1. Johnstown, PA
  2. Monroe, LA
  3. Springfield, OH
  4. Decatur, AL
  5. Florence-Muscle Shoals, AL
  6. Anniston-Oxford, AL
  7. Sumter, SC
  8. Gadsden, AL
  9. Carbondale-Marion, IL
  10. Enid, OK
  11. Rocky Mount, NC
  12. Wheeling, WV-OH
  13. Pine Bluff, AR
  14. Weirton-Steubenville, WV-OH
  15. Parkersburg-Vienna, WV
  16. Dothan, AL
  17. Lawton, OK
  18. Fort Smith, AR-OK
  19. Houma-Thibodaux, LA
  20. Owensboro, KY

Ranking Cities by All Costs

Where Can I Retire on $3,000 Per Month? (2)

While for a typical retiree, housing will be the biggest cost consideration, it’s only part of the entire budget for a household. For a broader look at a low cost of living, here are the cities with the lowest price index on all items measured by the BEA, including goods, utilities and other services. They are ranked from least expensive to most expensive.

  1. Anniston-Oxford, AL
  2. Gadsden, AL
  3. Morristown, TN
  4. Florence-Muscle Shoals, AL
  5. Jackson, TN
  6. Kingsport-Bristol, TN-VA
  7. Las Cruces, NM
  8. Dothan, AL
  9. Decatur, AL
  10. Monroe, LA
  11. Johnstown, PA
  12. Sumter, SC
  13. Carbondale-Marion, IL
  14. Springfield, OH
  15. Great Falls, MT
  16. Lewiston, ID-WA
  17. Jonesboro, AR
  18. Johnson City, TN
  19. Owensboro, KY
  20. Youngstown-Warren-Boardman, OH-PA

General City Cost Considerations

The low-cost locations tend to be in the South or Midwest and all are smaller metropolitan statistical areas. Major metropolises and cities in Hawaii, California and in the Northeast and Pacific Northwest tend to be the most expensive.

Non-metropolitan rural areas are not broken down into individual areas but, overall, they are less costly than the average city. These non-metropolitan areas have housing indexes averaging 59.9 and overall cost indexes averaging 89.

An Example $3,000 Retirement Budget

Here’s how your expenses might be allocated to a retirement budget of approximately $3,000 a month. The percentages are based on Social Security’s analysis of typical retirement-age household expenses.

CategoryPercentageDollar Amount
Housing36.8%$1,104
Other17.5%$525
Out-of-pocket healthcare14.0%$420
Transportation13.1%$393
Food12.0%$360
Entertainment4.8%$144
Apparel1.7%$51
Total100.00%$2,997.00

Bottom Line

Where Can I Retire on $3,000 Per Month? (3)

Picking a place to live on $3,000 a month in retirement income is largely a matter of picking a place with low housing costs. Housing is the largest and the most variable expense in the typical retiree’s household budget. Many smaller cities, often in the South and Midwest, have housing costs little more than half as high as the average and often a small fraction of the level in the most expensive cities.

Tips for Retirement

  • You shouldn’t have to plan for retirement alone. You can use the help of a financial advisor to help you properly prepare no matter what your budget looks like. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Use SmartAsset’s Cost of Living Calculator to compare living expenses in two cities you are considering for retirement.

Photo credit: ©iStock.com/Liubomyr Vorona, ©iStock.com/lucigerma, ©iStock.com/Ricardolmagen

Where Can I Retire on $3,000 Per Month? (2024)

FAQs

Where Can I Retire on $3,000 Per Month? ›

Malaysia is one of the best countries to retire on $3,000 a month, or even less. Kuala Lumpur, in particular, is an attractive choice for retirees due to its exotic lifestyle, modern amenities, and well-developed healthcare system.

Where in the world can I live on $3 000 a month? ›

Malaysia is one of the best countries to retire on $3,000 a month, or even less. Kuala Lumpur, in particular, is an attractive choice for retirees due to its exotic lifestyle, modern amenities, and well-developed healthcare system.

Can you live off $3,000 a month? ›

You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor since it's both the largest component of retiree budgets and the household cost that varies most according to geography.

Where can I retire on $4,000 a month? ›

Here is the list of 25 Best Cities Where You Can Retire on $4000 a Month:
  • Denver, Colorado. Insider Monkey Score: 4. ...
  • Coeur d'Alene, Idaho. Insider Monkey Score: 5. ...
  • Sarasota, Florida. Insider Monkey Score: 6. ...
  • Cape Coral, Florida. ...
  • Beaufort, South Carolina. ...
  • San Marcos, Texas. ...
  • Williamsburg, Virginia. ...
  • Charleston, South Carolina.
Nov 29, 2023

What is a reasonable monthly retirement income? ›

The average retirement income for U.S. adults 65 and older is $75,020. The median income for that age group is $50,290, according to data from the Census Bureau and Bureau of Labor Statistics. On a monthly basis, the average income for U.S. adults 65 and older is $6,252. The median monthly income is $4,191.

Where is the cheapest place to live on social security? ›

1. Iowa. Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the monthly cost of living-rent, groceries, healthcare, utilities, transportation, and any miscellaneous expenses-comes to just under $3,000.

What is the cheapest and safest country to retire in? ›

7 of the most-affordable places to retire abroad
  • Malaysia.
  • Mexico.
  • Panama.
  • Philippines.
  • Portugal.
  • Thailand.
  • Vietnam.
Mar 1, 2024

How much does the average retired person live on per month? ›

According to the Bureau of Labor Statistics (BLS), the average income of someone 65 and older in 2021 was $55,335, and the average expenses were $52,141, or $4,345 per month.

Can I live off Social Security alone? ›

Surviving on your Social Security check is a lot easier if you're not paying off a mortgage, car, or credit card. Living on Social Security alone in 2024 is possible -- after all, millions of Americans do it. But it's not ideal, and Social Security wasn't designed to be the sole source of retirement income.

How many retirees live on Social Security alone? ›

Roughly one in seven Social Security recipients ages 65 and older depend on their benefits for nearly all their income, according to an AARP analysis.

What is the average Social Security check? ›

Social Security offers a monthly benefit check to many kinds of recipients. As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.

Where do the happiest retirees live? ›

Top 20 Happiest Cities to Retire
  1. Barnstable, MA. Coming in at the top of the happiest cities to retire in the U.S. list is Barnstable. ...
  2. Naples, FL. Those who want to live by the water and enjoy warmer weather can head south to Naples. ...
  3. Ann Arbor, MI. ...
  4. Durham, NC. ...
  5. Boulder, CO. ...
  6. North Port, FL. ...
  7. Olympia, WA. ...
  8. San Jose, CA.
Jan 8, 2024

Where is the cheapest warm place to retire? ›

Methodology
  • Corozal, Belize. ...
  • Panama City, Panama. ...
  • San Miguel de Allende, Mexico. ...
  • Santiago, Dominican Republic. ...
  • Lake Chapala, Mexico. ...
  • La Serena, Chile. Average Monthly Cost of Living: $1,640. ...
  • Cuenca, Ecuador. Average Monthly Cost of Living: $1,500. ...
  • Da Nang, Vietnam. Average Monthly Cost of Living: $1,500.
Nov 16, 2023

What is the average Social Security check at age 62? ›

According to recently released data from the SSA's Office of the Actuary, just over 590,000 retired-worker beneficiaries were receiving $1,298.26 per month at age 62, as of December 2023. That compares to about 2.11 million aged 66 retired-worker beneficiaries who were taking home $1,739.92 per month.

What is the highest Social Security payment? ›

The maximum Social Security benefit at full retirement age is $3,822 per month in 2024. It's $4,873 per month in 2024 if retiring at age 70 and $2,710 if retiring at age 62. A person's Social Security benefit amount depends on earnings, full retirement age and when they take benefits.

How much money does the average person retire with? ›

The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.

What is the absolute cheapest country to live in? ›

The cheapest countries in the world are Pakistan, Egypt, and Bhutan. To live comfortably in one of these states, a person needs under $400 per month. These countries, however, are unconventional choices for expats and digital nomads because of their low levels of safety and quality of life.

Where in the world can I retire on $2000 a month? ›

Popular expat retiree destinations include Costa Rica, Portugal and Panama. If you're willing to go further, though, Chiang Mai is an excellent choice. It is a bustling, vibrant city with some of the best food in the world and an apartment will cost between $150 and $500 per month, depending on your needs.

What country has the lowest cost of living? ›

The cheapest countries in the world are generally located in Asia, Africa, and South America, with a few exceptions in Europe. Pakistan tops the list of the cheapest countries in the world, with a cost of living index of $294.

Can I live in Belize for $1000 a month? ›

A couple coming from North America can probably survive on US$1,000 per month (assuming you have your own home). However, US$1,500 would be more reasonable. Compared to the USA, the cost of living in Belize is at least 50% cheaper according to testimonials from my ex-pats friends and clients who have moved to Belize.

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