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18 Best Southern Cities to Retire on a Budget of $1,500 a Month

This article takes a look at the 18 best Southern cities to retire on a budget of $1,500 a month. If you wish to skip our detailed analysis on budgeted retirement living in Southern America, you may go to 5 Best Southern Cities to Retire on a Budget of $1,500 a Month.

A Grand and a Half in Retirement

Beaches, golf courses, volunteering in the community, taking up a new hobby, reconnecting with old friends and spending time with family – these are the answers that people give when asked about how they would like to spend their retirement years.

Now imagine this – you’re 70 years old, living on $1,500 a month with rent, utilities, medical bills, and groceries to take care of. For most places in the US, living on a grand and a half does not come easy, and unless spent smartly it doesn’t include a lot of beaches or golfing. In fact, findings by the Bureau of Labor Statistics state that the average expenditure of Americans aged 65 and over is $4,345 a month – a $2,800 disparity from the $1,500 a month that many Americans are tasked with surviving on.

Studies by the Center for Retirement Research found that the average retired American household goes through spending cuts of 1.5-1.6% per retirement year. It’s a common belief that people spend less when retired – they eat out less, don’t shop as much, and spend less on commute. So, if Americans really are decreasing their retirement spending, then where does over $4,000 a month go?

“While maintaining steady consumption may seem intuitive, little research has focused on longer periods of consumption in retirement . Most previous studies have looked at the change at retirement, finding a sharp post-retirement drop as retirees consume less than they did while working”

Anqi Chen, Assistant Director of Savings Research, Center for Retirement Research and Alicia Munnell, Director, Center for Retirement Research

Healthcare costs are a big culprit. Figures from Fidelity Investments’ Retiree Healthcare Cost Estimate state that America’s average retired couple will spend $315,000 on healthcare expenses over the course of their retirement. If this figure seems daunting, then the Centers for Medicare & Medicaid Services’ decision to raise Medicare Part B premiums by 6% in 2024 is another step in that direction. Couple this with increasing food costs – the Bureau of Labor Statistics’ Consumer Price Index report states that food costs saw a 2.7% increase over the December 2022 and December 2023 period – and it’s not hard to believe that retirees are forced to spend more than just a $1000 every month.

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The problem arises not when costs are high, but when they exceed what is in the bank. A study by Transamerica found that about 56% of Americans are retiring sooner than they had planned. While early retirement can lead to a fulfilling retirement period, that is the only the case when the decision to retire is voluntary, and for these 56%, it is not. So, why do people retire earlier than they would have liked?

One prominent reason is the US economy’s staggering layoffs. 2024 has already seen close to 30,000 job cuts – and counting – at companies such as eBay Inc. (NASDAQ:EBAY), Microsoft Corporation (NASDAQ:MSFT), SAP SE (NYSE:SAP), PayPal Holdings, Inc. (NASDAQ:PYPL), and Alphabet Inc. (NASDAQ:GOOG). The future is not favorable either. While companies such as Alphabet Inc. (NASDAQ: GOOG) may have already laid off hundreds of employees, this is not the end of the road.

Alphabet Inc. (NASDAQ: GOOG) CEO Sundar Pichai has hinted in an internal memo that employees should expect further job cuts.

“We have ambitious goals and will be investing in our big priorities this year. The reality is that to create the capacity for this investment, we have to make tough choices”

Sundar Pichai, CEO, Google

If companies such as SAP SE (NYSE: SAP), Microsoft Corporation (NASDAQ:MSFT), and eBay Inc. (NASDAQ:EBAY) follow suit, even more American retirees can be left without adequate retirement savings. Faced with these unpreventable circumstances, many Americans are planning to spend less during their retirement years, as low as $1,500 a month. While a difficult feat, this is not impossible – but it certainly does require smart spending. As a result, many US retirees opt for a retirement abroad as they venture to the most affordable places to retire in the world. However, some retirees prefer to stay close to home, and they simply make a move across states to search for cheap and beautiful places to retire in the US.

To know more about the best Southern cities to retire on a budget of $1,500 a month, read below.

18 Best Southern Cities to Retire on a Budget of $1,500 a Month

18 Best Southern Cities to Retire on a Budget of $1,500 a Month

Photo by Joshua J. Cotten on Unsplash

Methodology

To compile this list of the 18 best Southern cities to retire on a budget of $1,500 a month, we consulted several sources including our lists of Best Southern Cities to live in for Retirees, 25 Cheap and Beautiful Places to Retire in the US, FinanceBuzz, Forbes, amongst others. Once a list of places was compiled using these sources, they were then further shortlisted by the cost of living index and livability scores to separate the cheaper cities from the rest – for this article, cost of living indexes were taken from Best Places and livability scores were taken from Area Vibes. Those cities with a cost of living index above 90 and a livability score of below 65 were removed from the list. A consensus approach was then used to finalize our 18 best Southern cities to retire on a budget of $1,500 a month.

Once finalized, the 18 selected cities were ranked according to their cost of living with the top spot going to the city with the lowest cost of living. For places with equal cost of living indexes, the livability score was used as a tie-breaker. We also researched figures for average monthly rent for a one bedroom apartment, taking figures from Zumper for each city. Additionally, we also included average figures for a single person’s monthly grocery, taking quotes from the Economic Policy Institute. The resulting list is presented in descending order, ranging from the highest cost of living to the lowest cost of living. It is important to remember that personal preference plays a big part. The best course of action is to visit the city you plan to move to, converse with locals, take advice from a financial consultant, and only then make your final decision.

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.

Here are the 18 best Southern cities to retire on a budget of $1,500 a month:

18. Ocala, Florida

Cost of Living Index: 87

Livability Score: 67

Average Monthly Rent: $1,190

Average Monthly Groceries (per Person): $349

With plenty of tennis and golf, Ocala, Florida serves as an ideal retirement spot for senior citizens looking to stay active during their post-work years. Known as the horse capital of the world and home to the World Equestrian Center, Ocala retirees can immerse in nature while enjoying a quiet yet fulfilling lifestyle.

17. Memphis, Tennessee

Cost of Living Index: 85.8

Livability Score: 69

Average Monthly Rent: $950

Average Monthly Groceries (per Person): $351

Memphis is known for its hearty southern cuisine. Retirees can spend their golden years indulging in authentic soul food including catfish, fried pickles, Nashville hot chicken, and of course, the legendary Memphis barbecue. After the food, there’s the rich rock ‘n’ roll history to take in – after all, Memphis is the place where the likes of Elvis Presley and Johnny Cash recorded some of their most iconic albums.

16. Oklahoma City, Oklahoma

Cost of Living Index: 85.5

Livability Score: 79

Average Monthly Rent: $825

Average Monthly Groceries (per Person): $346

The capital of Oklahoma, Oklahoma City is famous for its cowboy culture. Retirees can visit the Oklahoma City National Memorial and Museum, walk through the National Cowboy and Western Heritage Museum, or visit the Orr Family Farm for a dose of nature.

15. Tulsa, Oklahoma

Cost of Living Index: 85.3

Livability Score: 73

Average Monthly Rent: $982

Average Monthly Groceries (per Person): $347

Next up on our list of best Southern cities to retire on a budget of $1,500 a month is Tulsa. With a high livability score of 73, Tulsa is renowned for its Art Deco architecture style. Retirees can entertain themselves with the Tulsa Art Walk, visit the Van Gogh Immersive Experience, or spend a day at the Tulsa Zoo.

14. Odessa, Texas

Cost of Living Index: 84.5

Livability Score: 73

Average Monthly Rent: $979

Average Monthly Groceries (per Person): $299

Our first Texas pick, Odessa is famous for its jackrabbit art. The city boasts an eight foot tall jackrabbit statue affectionately known as Jack Ben Rabbit. Residents can also visit the Presidential Archives and Leadership Library and the Odessa Meteor Crater.

13. Winston-Salem, North Carolina

Cost of Living Index: 84.3

Livability Score: 66

Average Monthly Rent: $850

Average Monthly Groceries (per Person): $346

With average rent at $850 a month, Winston-Salem residents can enjoy affordable living without missing out on a pleasant retirement. Full of historic attractions, museums, and outdoor activities, it’s the perfect retirement pick.

12. Greensboro, North Carolina

Cost of Living Index: 84.2

Livability Score: 82

Average Monthly Rent: $950

Average Monthly Groceries (per Person): $344

With a cost of living almost 16% lower than the national average, Greensboro proves to be an affordable choice for retirees opting for an out-of-state retirement. Home to many nature offerings such as red pandas and sharks, Greensboro also offers extensive displays on the American Revolution.

11. Lake Charles, Louisiana

Cost of Living Index: 84.1

Livability Score: 68

Average Monthly Rent: $750

Average Monthly Groceries (per Person): $331

Located in Southwest Louisiana, Lake Charles is home to the Mardi Gras Museum and the Historic City Hall Arts & Cultural Center. Complete with centuries old Oak trees and multiple casinos, Lake Charles offers a fulfilling retirement lifestyle while being affordable.

10. New Bern, North Carolina

Cost of Living Index: 83.6

Livability Score: 67

Average Monthly Rent: $1,192

Average Monthly Groceries (per Person): $346 

Claiming the number 10 spot on our list is New Bern in North Carolina. While slightly higher on average rent, retirees can easily find a place for less – all that’s required is some thorough searching of the housing market. With the right budgeting, senior citizens can adequately live on $1,500 a month in New Bern.

9. Corpus Christi, Texas

Cost of Living Index: 83.5

Livability Score: 78

Average Monthly Rent: $941

Average Monthly Groceries (per Person): $302

The second Texas city on our list, Corpus Christi is located on the Gulf of Mexico. Perfect for nature lovers, Corpus Christi boasts beaches, rivers, and parks along with affordable rent and groceries – a retirement win.

8. Decatur, Alabama

Cost of Living Index: 83.1

Livability Score: 71

Average Monthly Rent: $795

Average Monthly Groceries (per Person): $335

The largest city in Morgan County, Decatur is known as the River City. It offers a moderate climate with increasing options for dining and entertainment, perfect for retirees that want an active retirement period.

7. Biloxi, Mississippi

Cost of Living Index: 82.6

Livability Score: 72

Average Monthly Rent: $950

Average Monthly Groceries (per Person): $338

With casinos and beaches, Biloxi in Mississippi offers something for every type of retiree. Add it’s varied entertainment to it’s low cost of living, and Biloxi proves to be a great choice for retirees that may have less to show for their retirement savings.

6. El Paso, Texas

Cost of Living Index: 81.9

Livability Score: 80

Average Monthly Rent: $800

Average Monthly Groceries (per Person): $308

Consistently named as one of the safest places in the US, El Paso in Texas is one of the safest and most affordable places to retire. Retirees can enjoy peace of mind as they take a walk through the Franklin Mountains State Park, visit the Hueco Tanks State Historic Site, or visit the Plaza Theater.

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Disclosure: none. 18 Best Southern Cities to Retire on a Budget of $1,500 a Month is originally published on Insider Monkey.

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