Places To Retire on $1,500 Per Month

By Eric Rosenberg

UPDATED July 02
|
8 MINUTE READ

According to the Social Security Administration, the average monthly Social Security benefit for early 2024 was $1,907.¹ But if that's the average, it means many households bring in far less. And considering that many Americans have little or no retirement savings, a large number of Americans need to get by on a budget of $1,500 or less per month.²

While getting by on $1,500 per month in retirement in an expensive area like New York City or the California coast may be tough, plenty of places offer more affordable housing and total living expenses. Here's a look at five top destinations to retire with a budget of $1,500 per month.

The Best Places To Retire on $1,500 Per Month

• Best for Outdoor Recreation: Waterloo, Iowa
• Best for a Little Culture: Fort Wayne, Indiana
• Best for Waterfront Access: Erie, Pennsylvania
• Best for a Temperate Climate: Macon County, Georgia
• Best for a European Adventure: Peniche, Portugal

1. For Outdoor Recreation: Waterloo, Iowa

• Cost of living: 14% below national average³
• Median home price: $361,632³
• Median monthly rent: $1,100³
• Metro population: 167,889⁴
• State taxes: Most retirement income is not taxable⁵

Why retire in Waterloo?

The Waterloo-Cedar Falls metro area offers a balance of affordable real estate and plenty of access to the outdoors. Located about 270 miles from Chicago, Waterloo is home to dozens of shops and restaurants, plus the John Deere Tractor & Engine Museum. Residents have easy access to more than 52 hiking and biking trails and other outdoor attractions.

The cost of living in Waterloo is 14% lower than the national average, and the median listing price on a home is $361,632.³ Iowa doesn't tax most retirement income, including Social Security, which can help stretch your dollars further than in many other states.⁵Depending on your desired lifestyle, Waterloo may offer the perfect combination of affordability and outdoor access.

2. For a Little Culture: Fort Wayne, Indiana

• Cost of living: 11% below national average⁶
• Median home price: $319,246⁶
• Median monthly rent: $971⁶
• Metro population: 426,076⁴
• State taxes: Social Security income is not taxable⁷

Why retire in Fort Wayne?

Fort Wayne is Indiana's second-l argest city. The area is home to the Fort Wayne Museum of Art, the History Center and the Embassy Theatre. The city also features extraordinary examples of 19th-centu ry stained glass at the Cathedral of the Immaculate Conception. For those concerned about keeping grandkids busy, there's the Fort Wayne Children's Zoo and the Foellinger-Freimann Botanical Conservatory.

The average cost of living is 11% below the national average, and the median home price is $319,246.⁶ Social Security benefits are typically exempt from state income tax unless you have a high income, but other income is taxable at a low flat rate.⁷ Fort Wayne is family-friendly, and there are plenty of seasonal events to keep you busy. The city has plenty to offer for residents of all ages.

3. For Waterfront Access: Erie, Pennsylvania

• Cost of living: 10% below national average⁸
• Median home price: $298,053⁸
• Median monthly rent: $906⁸
• Metro population: 267,689⁴
• State taxes: Most retirement income is not taxable⁹

Why retire in Erie?

Located on the southern shore of Lake Erie, the town has the feel of a seaside town—only for much less money than you'll pay in most oceanfront cities. Presque Isle State Park, one of Pennsylvania's natural wonders, is a 3,200-acre peninsula that stretches into the lake, offering a beautiful coastline, opportunities for swimming and fishing and plenty of migrating birds. The city has a historic downtown that features many museums and galleries. More than 80 murals by local artists can be found around Erie and surrounding towns.

The average monthly cost of living is 10% below the national average, and the median home price is less than $300,000. Rents are also affordable, with an average below $1,000 per month.⁸ Pennsylvania does not tax Social Security or other retirement income, including 401(k) distributions. It also exempts retired people from paying state tax on pensions.⁹ That package of tax benefits makes Pennsylvania particularly attractive to retirees.

4. For a Temperate Climate: Macon County, Georgia

• Cost of living: 11% below national average¹⁰
• Median home price: $103,974¹¹
• Median monthly rent: $1,125¹²
• Metro population: 233,916⁴
• State taxes: No state tax on Social Security; tax breaks for seniors¹³

Why retire in Macon County?

Macon County is the leading peach-producing county in Georgia, making it a major agricultural hub. With less than 12,000 residents, you can enjoy plenty of open space and the best of what a rural lifestyle has to offer.¹⁴ The region is classified as humid subtropical, so you'll have temperate weather year-round. Nearby towns, including Oglethorpe, offer restaurants and shopping, among other amenities.

The cost of living is 11% lower than the national average,¹⁰ and the median home price is just over $100,000,¹¹ making homeownership more viable than in most big cities. Depending on the size of your nest egg, you could own a sizable property. Georgia has friendly tax policies for retirees, including exempting Social Security payments and other retirement income from state taxes. The state also has no estate or inheritance taxes.¹³

MORE PLACES TO RETIRE FOR: $3,000, $4,000, $5,000, $6,000

5. For a European Adventure: Peniche, Portugal

• Cost of living: 39% below national average (consumer prices and rent)¹⁵
• Median home price: €2,198/square meter ($220/square foot)¹⁶
• Median monthly rent: $600¹⁷
• Metro population: 26,429¹⁸
• Taxes: 25% for nonresident income; 13.25% to 48% for residents¹⁹

Why retire in Peniche?

Have you ever dreamed of living in a small European town, shopping daily from local vendors and experiencing centuries of history all around you? Peniche, Portugal, might be the place for you. Just an hour and a half north of Lisbon by car, Peniche is located on a peninsula on Portugal's Silver Coast, which is known for its gorgeous beaches and medieval towns. The climate is attractive, with temperatures in the 80s in the summer and rarely dipping below the 60s in the winter.²⁰

Portugal has the lowest cost of living in Western Europe, and the country's healthcare is some of the best in the world.²¹ As an expat, you'll have access to Portugal's public healthcare system as well as the low-cost private system. While Portugal taxes all forms of retirement income, the climate, lifestyle and affordability make it a standout choice for your golden years.

It's Possible To Retire on a $1,500 Monthly Budget

If you have a fixed income of $1,500 per month in retirement, certain cities and regions may be off-limits. But with a little creativity and flexibility, you may find a new home with everything you want, including a good climate, welcoming community and affordable lifestyle. Depending on exactly what you're looking for, any of these five options could be the perfect match.

For those looking to cast a wider net, check out these top destinations to retire on $3,000 per month.

Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. He is an expert in banking, credit cards, investing, cryptocurrency, insurance, real estate, business finance and financial fraud and security. His work has appeared in many online publications, including Time, USA Today, Forbes, Business Insider, NerdWallet, Investopedia and U.S. News & World Report. Connect with him and learn more at EricRosenberg.com.

Sources/references

1. https://faq.ssa.gov/en-us/Topic/article/KA-01903

2. https://www.census.gov/library/stories/2022/01/women-more-likely-than-men-to-have-no-retirement-savings.html

3.https://www.payscale.com/cost-of-living-calculator/Iowa-Waterloo

4. https://www2.census.gov/programs-surveys/popest/datasets/2020-2022/metro/totals/cbsa-est2022.csv

5. https://tax.iowa.gov/retirement-income-tax-guidance

6. https://www.payscale.com/cost-of-living-calculator/Indiana-Fort-Wayne

7. https://states.aarp.org/indiana/state-taxes-guide

8. https://www.payscale.com/cost-of-living-calculator/Pennsylvania-Erie

9. https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Documents/rev-581.pdf

10. https://www.salary.com/research/cost-of-living/macon-ga

11. https://www.zillow.com/home-values/619/macon-county-ga/