25 Best Cities where You can Retire on $4000 a Month (2024)

This article takes a look at the 25 best cities where you can retire on $4000 a month. If you wish to skip our detailed analysis on retirement struggles, behaviors, and costs, you may go to 5Best Cities Where You Can Retire on $4000 A Month.

Retirement Realities: Struggles, Behaviors, and Costs

Caught in a financial vortex, many individuals find it hard to save for their retirement years. A Bank of America Corporation (NYSE:BAC) confirms this notion, stating that more and more Americans have been tapping into their 401(k) accounts because of troubling times. The number of individuals taking hardship withdrawals in the first three months of 2023 has witnessed a surge to 15,950, rising by 36% from the second quarter of 2022. Fidelity Investments notes that the primary reason these people are tapping into their savings is to cover housing and medical costs.

At the same time, Bank of America Corporation (NYSE:BAC) has also reported that 401(k) balances have increased by 9.6% to $7,250 in 2023. These statistics are rather conflicting, implying that individuals understand the need to save, yet struggle with it.

"The data from our report tells two stories — one of balance growth, optimism from younger employees, and maintaining contributions, contrasted with a trend of increased plan withdrawals. This year, more employees are understandably prioritizing short-term expenses over long-term saving."

- Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America Corporation (NYSE:BAC).

Fortunately, inflation appears to be moderating, which means individuals may not need to take hardship withdrawals as much as they needed to this year. Moreover, the Internal Revenue Service (IRS) has also announced new 2024 limits for employer-sponsored 401(k) accounts. According to the IRS, individuals can now save up to $23,000, up from $22,500, in their retirement accounts.

For individuals who have been having trouble saving for retirement, a new study by The Goldman Sachs Group, Inc. (NYSE:GS) suggests that your behavioral traits might be to blame. According to The Goldman Sachs Group, Inc. (NYSE:GS), a leading global investment bank, only 10% of workers have the “optimal” characteristics that help them save up for retirement. Their previous study has highlighted inflation and competing life priorities to be responsible for reducing retirement savings by 37%, but the new one suggests behavioral characteristics may also be playing a part.

These four traits include over-optimism, future orientation, financial literacy, and risk-vs-reward-based attitude. The study states that an overly optimistic individual is comfortable enough to take the steps needed to save and invest for their future. Those who are oriented towards the future are likely to spend smartly and save for tomorrow. Meanwhile, someone who is financially literate knows their way around investing and financial planning, helping them make sound financial decisions. Lastly, a risk vs reward mentality helps focus on either aggressively achieving goals or focusing on security and protection.

“We know that people struggle with saving, we know that people have day-to-day financial issues. We still wanted to know more about the why.”

-Chris Ceder, Senior retirement strategist at The Goldman Sachs Group, Inc. (NYSE:GS).

For retirees, the importance of having a stable and substantial income is critical, especially considering the rising costs of living and healthcare. The conflicting statistics, where 401(k) balances have increased while withdrawals have surged, indicate a complex financial landscape. According to the Bureau of Labor Statistics, even though Americans generally tend to have less than $100,000 saved in retirement, they still spend an average of $3,800 per month. This brings us to the question -- can a retired person live on $4,000 a month? The answer is yes, almost 1 in 3 retirees today are spending between $2,000 and $3,999 per month, implying that $4,000 is a good monthly income for a retiree.

25 Best Cities where You can Retire on $4000 a Month (1)

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To compile the list of best cities where you can retire on $4,000 a month, we have used several sources such as CNBC, Travel & Leisure, and Kiplinger, to name a few. We also used forums such as Reddit and Quora to gather information on the most recommended places. Next, we conducted a comprehensive evaluation of each location, assigning scores based on average monthly rent for a 1-bedroom apartment, climate, and median home prices. These figures have been sources from Redfin, Zumper, amongst others.

The individual scores were then averaged to generate a distinctive Insider Monkey Score for each place. The final rankings were determined by arranging the locations in ascending order, from the lowest to the highest scores. In cases where places had identical scores, livability scores were used as tiebreakers, ensuring that locations with higher livability scores secured a higher position on our list.

Here is the list of 25 Best Cities Where You Can Retire on $4000 a Month:

25. Denver, Colorado

Insider Monkey Score: 4

Livability Score: 71

Average Monthly Rent: $2,000

Median Home Price: $599,900

Nestled at the base of the majestic Rocky Mountains, Denver serves as an ideal haven for active living, offering enthusiasts the perfect opportunity to indulge in skiing, biking, hiking, and similar outdoor pursuits. As much as it is outdoorsy, the city also provides retirees with all the modern amenities they need to live a life of convenience.

24. Coeur d'Alene, Idaho

Insider Monkey Score: 5

Livability Score: 82

Average Monthly Rent: $1,895

Median Home Price: $639,900

Coeur d'Alene, a beautiful city on Lake Coeur d'Alene, is one of the best cities where you can retire on $4,000 a month. It is revered for its serene lakeside setting, excellent healthcare, and close-knit community.

23. Sarasota, Florida

Insider Monkey Score: 6

Livability Score: 79

Average Monthly Rent: $1,905

Median Home Price: $550,000

Sarasota, one of the best cities to retire in Florida, is home to beautiful beaches, pleasant weather, and plentiful recreational and cultural amenities. Florida itself is a tax-friendly state, attracting seniors from all over the country.

22. Cape Coral, Florida

Insider Monkey Score: 9

Livability Score: 77

Average Monthly Rent: $2,090

Median Home Price: $480,000

Cape Coral earns top marks for its sunny climate and sun-soaked allure. The city appeals to seniors with its extensive canal system, while offering them a waterfront lifestyle. It also extends them a tranquil retreat, surrounded by its sunny, sandy beaches and a wealth of entertainment opportunities.

21. Beaufort, South Carolina

Insider Monkey Score: 15

Livability Score: 70

Average Monthly Rent: $1,669

Median Home Price: $499,000

Ranking high in livability, climate, and historic charm, Beaufort is one of the best cities where you can retire on $4,000 a month. The cost of living is 4.3% higher than the US average, with modest rent and housing costs.

20. San Marcos, Texas

Insider Monkey Score: 17

Livability Score: 78

Average Monthly Rent: $1,730

Median Home Price: $432,000

Known as a beautiful country retirement town, San Marcos scores high for its riverfront locale, friendly community, and educational opportunities. Beautiful landscape views offer the perfect backdrop, while fun activities keep seniors busy.

19. Williamsburg, Virginia

Insider Monkey Score: 18

Livability Score: 75

Average Monthly Rent: $1,670

Median Home Price: $452,000

Embraced by lush greenery, Williamsburg is appreciated for its small-town vibe, friendly residents, and access to quality healthcare. Community events keep retirees busy, and there are plenty of retirement communities and independent living options to choose from.

18. Charleston, South Carolina

Insider Monkey Score: 21

Livability Score: 75

Average Monthly Rent: $1,700

Median Home Price: $347,300

Charleston in South Carolina is the perfect destination to retire to in terms of taxes, affordability, and climate. The allure of its waterfront lifestyle, accompanied by refreshing ocean breezes, is captivating. Plus, the availability of modern amenities serves as the cherry on top.

17. Port Charlotte, Florida

Insider Monkey Score: 23

Livability Score: 62

Average Monthly Rent: $1,862

Median Home Price: $315,000

Home to a mature demographic, Port Charlotte boasts a waterfront lifestyle amidst a warm climate. The city also features affordable housing options, and it is fairly easy to retire on $4,000 a month.

16. Panama City Beach, Florida

Insider Monkey Score: 24

Livability Score: 69

Average Monthly Rent: $1,475

Median Home Price: $495,000

Famous for its beaches and coastal lifestyle, Panama City Beach is a visually stunning retirement destination in the USA. Retirees have ample access to healthcare here. They also have abundant recreational opportunities to participate in, such as water sports, fishing, and golfing. Moreover, the city is appreciated by retirees for its reasonable cost of living, compared to places like Naples and Miami.

15. Charlotte, North Carolina

Insider Monkey Score: 24

Livability Score: 79

Average Monthly Rent: $1,574

Median Home Price: $420,000

Revered for its mild climate, friendly community, and high-quality healthcare, Charlotte is a nice place for retirees to call home. The cost of living in the city is only 2.5% higher than the national average.

14. Atlanta, Georgia

Insider Monkey Score: 24

Livability Score: 81

Average Monthly Rent: $1,581

Median Home Price: $418,000

Seniors can enjoy a great quality of life for $4,000 a month in Atlanta, Georgia. Apart from being a cultural hub, the city features world-class healthcare facilities, diverse neighborhoods, and a well-founded transportation infrastructure. Atlanta is also particularly known for its Southern Hospitality.

13. Traverse City, Michigan

Insider Monkey Score: 24

Livability Score: 89

Average Monthly Rent: $1,500

Median Home Price: $485,000

From its scenic lakeside setting to excellent medical facilities and abundant recreation, Traverse City is an ideal retirement destination to live on for $4,000 a month. A significant 40% of the population is aged 45 or older, offering an inviting environment for retirees who appreciate socializing and connecting.

12. Eugene, Oregon

Insider Monkey Score: 25

Livability Score: 78

Average Monthly Rent: $1,344

Median Home Price: $525,000

One of the best places to retire in Oregon is Eugene. From its lush-green city landscape to its laid-back atmosphere and ample outdoor opportunities, the city is no less than a heavenly abode for retirees. It is located in proximity to Portland, Central Oregon, the White Mountains, as well as the Willamette river.

11. Ann Arbor, Michigan

Insider Monkey Score: 26

Livability Score: 88

Average Monthly Rent: $1,515

Median Home Price: $433,000

The college town of Ann Arbor is one of the best places to retire in Michigan, known for its safe neighborhoods, cultural amenities, and beautiful parks. The university town ambiance and intellectual vibrancy make it particularly appealing to learned retirees. It is also revered for its excellent healthcare and plentiful recreational opportunities.

10. Wilmington, Delaware

Insider Monkey Score: 27

Livability Score: 60

Average Monthly Rent: $1,700

Median Home Price: $305,000

Located along the Delaware River, Wilmington is an ideal retirement destination known for its historical sites, a wide array of amenities, and historic waterfront. There are many parks and gardens in the city, reputable healthcare facilities, as well as educational opportunities for lifelong learning.

9. Palm Bay, Florida

Insider Monkey Score: 31

Livability Score: 71

Average Monthly Rent: $1,540

Median Home Price: $329,000

Palm Bay is not only an affordable retirement destination but is also a nice place to enjoy a sunny climate and a relaxed pace of life. Fishing and boating are some of the most popular pastimes for seniors. Nature lovers can spend time exploring the several hiking trails and nature reserves here. The cultural scene is equally vibrant, as it is in proximity to several museums, art galleries, and theaters.

8. Myrtle Beach, South Carolina

Insider Monkey Score: 32

Livability Score: 63

Average Monthly Rent: $1,556

Median Home Price: $310,000

One of the most popular places to retire in the USA is Myrtle Beach, South Carolina. This city is an all-rounder when it comes to climate, recreation, and amenities. Experiencing mild temperatures year-round, Myrtle Beach boasts a coastal lifestyle with plenty of entertainment opportunities. Golf enthusiasts would be thrilled to learn that it has some of the best golf courses in the world.

7. Knoxville, Tennessee

Insider Monkey Score: 34

Livability Score: 72

Average Monthly Rent: $1,370

Median Home Price: $339,691

Knoxville is considered an all-rounder in terms of affordability, climate, air quality, and healthcare. Many sources such as Forbes cite it as one of America's best cities, celebrated for its abundant natural beauty and a plethora of outdoor activities. Seniors love to explore the city's thriving arts scene, such as museums, galleries, and theaters. There are excellent hospitals and medical centers in the city as well.

6. Lancaster, Pennsylvania

Insider Monkey Score: 36

Livability Score: 80

Average Monthly Rent: $1,549

Median Home Price: $275,000

Lancaster, Pennsylvania is one of the best places to retire because it boasts all four seasons, high-quality medical care, as well as proximity to major cities. Steeped in history, the city also features charming architecture and cobblestone streets for retirees to explore.

Click to continue reading and see the 5 Best Cities Where You Can Retire On $4000 A Month.

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Disclosure: none. 25 Best Cities Where You Can Retire On $4000 A Month is originally published on Insider Monkey.

25 Best Cities where You can Retire on $4000 a Month (2024)


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