To retire on $1,500 a month seems to be a more challenging purpose every day. Finding space in your budget to save and invest money isn’t easy for everyone. Given the latest analysis by the Bureau of Labor Statistics (BLS), the prospects don’t look too promising.
According to them, the average retiree spends an estimated $4,345 on monthly expenses. Meanwhile, figures from the Social Security Administration reveal that, as of August 2023, the average social security check is a mere $1,705.79.
In addition, a recent survey by GOBankingRates found that 55 percent of Americans who don’t invest attribute it to not having the money. As such, plenty of Americans are facing retirement where their only source of income is a monthly check from the Social Security Administration.
Guidelines to retire on $1,500 a month
It is possible to retire at $1,500 per month with careful planning and consideration of several factors.
Lifestyle
Living on $1,500 might require adjustments to your lifestyle compared to what you’re accustomed to while working. This might involve cooking meals at home more often, finding free or low-cost entertainment options, and being mindful of discretionary spending.
Additionally, distinguishing between needs and wants is essential for managing your budget effectively. Prioritize essential expenses like housing, food, and healthcare, and allocate remaining funds for discretionary spending like travel or entertainment.
Location
The biggest factor influencing your ability to live on $1,500 is the cost of living in your chosen location. Certain areas, particularly rural regions or cities with lower living costs, can make $1,500 stretch further. Researching different locations and comparing the costs of housing, healthcare, groceries, and other expenses is crucial.
Top 3 cities to retire on $1,500 in the US
- Odessa, Texas. Odessa is known for oil rigs, Friday night football, and Shakespeare’s Globe Theatre, offering retirees the lowest average monthly rent of $487 and providing some extra funds for entertainment.
- Total monthly expenditures: $1,385.63
- Livability score: 67
- Fort Wayne, Indiana. Fort Wayne offers affordable housing for retirees, with 14% of the population aged 65 or older, and the second-lowest healthcare cost in the study.
- Total monthly expenditures: $1,397.29
- Livability score: 80
- St. Cloud, Minnesota. St. Cloud has the lowest monthly healthcare costs at an average of $444.71, while its grocery costs are the highest at $328.43.
- Total monthly expenditures: $1,404.64
- Livability score: 68
Retire on $1,500 a month abroad
Retirees can choose to enjoy a comfortable retirement in Thailand, Spain, Colombia, the Dominican Republic, the United Kingdom, Mexico, Japan, and Canada, among other popular international retirement destinations.
Some even guarantee foreigners a simple $1,000 monthly income threshold. To maximize your retirement savings without sacrificing your quality of life, check out some of these fantastic locations to retire at $1,000 per month. These are 5 possible retirement cities that provide distinctive cultural experiences and reasonably priced housing for $1,500 per month:
- Cuenca, Ecuador: Cuenca, an Andean city with a charming historic center, pleasant climate, and lower living costs, offers cultural attractions like museums, churches, and colonial architecture.
- Medellin, Colombia: Medellin, once troubled, has transformed into a popular expat destination with modern infrastructure, a spring-like climate, lower living costs, and a vibrant cultural scene.
- Da Nang, Vietnam: Da Nang, a coastal city in central Vietnam, offers beautiful beaches, delicious food, and a rich cultural heritage, making it an attractive option for retirees.
- Kuala Lumpur, Malaysia: Kuala Lumpur, a vibrant city with a blend of Malay, Chinese, Indian, and European influences, offers cultural attractions, world-class shopping, and affordable living.
- Chiang Mai, Thailand: Chiang Mai, a charming northern Thailand city, is renowned for its beautiful temples, traditional markets, and affordable living, making it a popular retirement destination.