This article takes a look at the 15 best East Coast cities to retire on a budget of $1,200 a month. If you wish to skip our detailed analysis on the intricacies of retirement living in America’s East Coast, you may go to 5 Best East Coast Cities to Retire on a Budget of $1,200 a Month.
Navigating Retirement when the Bank Balance is Low
Retirement has always been a glorified period of life in the American household. It is a time when the kids have left home, work life is done and dusted, and all that’s left are long relaxing days spent at the golf course followed by evenings filled with gatherings and decadent food. In 2024, the average American retiree’s reality is very different - and not in a good way.
A study byThe Charles Schwab Corporation (NYSE:SCHW) reveals that Americans think they need a minimum of $1.8 million to maintain a comfortable retirement lifestyle. This is coupled with social media personalities such as Tori Dunlap and Steph and Den talking about how they’ll be retiring early with millions in the bank, far overtaking the figure quoted by this study by The Charles Schwab Corporation (NYSE:SCHW) - and how other people can do so too. However, the average American household is a lifetime away from these millions.
“Through a tax-advantaged retirement account, like a 401(k) or IRA. Open an account, put money in, and then choose your investments. It doesn’t have to be much, even $20 a month is a good start” Tori Dunlap, Founder, Her First $100K
While it sounds simple enough, the problem is having money to invest. The Federal Reserve Board’s most recent Survey of Consumer Finances found that about 54% of all American households were without any retirement savings, makingThe Charles Schwab Corporation (NYSE:SCHW) study estimate of $1.8 million figure seem rather impossible. This lack of retirement funds is due to several factors, the first among which is an organizational shift away from providing employees with defined benefit plans. USA Facts notes that in 1989 half of all working households with members in the 50 to 60 age bracket had a defined benefit plan - by 2022, only a quarter did.
While some companies continue to provide retirement support for their employees - such as Eastman Kodak Company (NYSE:KODK) and Macy's, Inc. (NYSE:M)- in the form of defined benefit plans, the same cannot be said for all companies. Even for those employed at companies such as Eastman Kodak Company (NYSE:KODK) and Macy's, Inc. (NYSE:M), the future is unstable keeping in mind America’s ever-changing economic landscape. Within the first 20 days of 2024,Macy's, Inc. (NYSE:M) has already announced job cuts of over 2,000, with unplanned unemployment also being a factor that deters retirement planning.
Another is the newfound trend of parents financially supporting their adult children. Findings from the Pew Research Center’s American Trends Panel state that 55% of young adults are not financially independent from their parents. When parents are financially supporting their children well into their 30s, the former’s retirement savings take a hit - understandably so - and this leads to an unstable retirement period. So, the question then arises: how does America’s retiring class survive? Many Americans leave the States and move abroad to find affordable places to retire in the world. Others venture to find the cheapest places across America where they can retire.
Choosing an East Coast Retirement
For those who take the latter pick, moving to the American East Coast is a popular option. Rich history, stunning nature offerings, and lively culture make it an ideal retirement spot. Add its range of affordable cities, and the East Coast is one of the best places to retire on a budget in the US.
Not only that but there are plenty of other advantages of an East Coast retirement. The area experiences all four seasons, and offers skiing in Vermont, beaches in Miami, Disney World in Orlando, and of course, thin-crust pizza! So even if you’re living in one of the cheaper East Coast cities where a small monthly salary is considered rich, you’ll have lots near you to keep yourself entertained. After all, there’s nothing like a post-retirement trip to Disney World!
To know more about the best East Coast cities to retire on a budget of $1,200 a month, read below.
Methodology
To compile this list of the 15 best East Coast cities to retire on a budget of $1,200 a month, we consulted several sources including our list of 30 Cheapest Places Across America Where You Will Want to Retire, and Nasdaq, GOBankingRates, Kiplinger, Moneywise, Trulia, and RentCafe. 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 15 best East Coast cities to retire on a budget of $1,200 a month.
Once finalized, the 15 selected cities were ranked according to their cost of living with the top spot going to the city with the lowest cost of living. We also researched figures for monthly rent, taking figures from Zumper for the lowest rent tier 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 15 best East Coast cities to retire on a budget of $1,200 a month:
15. Blacksburg, Virginia
Cost of Living Index: 89.6
Livability Score: 87
Average Monthly Rent (Lower Tier): $1,044
Average Monthly Groceries (per Person): $352
First on our list of best East Coast cities to retire on a budget of $1,200 a month is Blacksburg. Located in Montgomery County, Virginia, Blacksburg enjoys a cost of living that is almost 11% lower than the national average. With a large variety of grocery options such as Kroger and Dollar Tree, it is even possible for Blacksburg residents to survive with as little as $1000 a month.
14. Rochester, New York
Cost of Living Index: 88.6
Livability Score: 75
Average Monthly Rent (Lower Tier): $785
Average Monthly Groceries (per Person): $361
A cheaper option in the otherwise expensive New York, Rochester residents can enjoy rich history and living all while managing their budget. With multiple museums to visit - such as the Strong National Museum of Play and the George Eastman Museum - and famous eateries such as La Luna Restaurant, retirees can make the most of their retirement.
13. Clemson, South Carolina
Cost of Living Index: 88.2
Livability Score: 82
Average Monthly Rent (Lower Tier): $732
Average Monthly Groceries (per Person): $251
A university town, Clemson residents can partake in community living with a warm sense of gathering. And with the cost of living being almost 12% lower than the national average, retirees without years of savings can also consider it as a post-retirement option.
12. Hampton, Virginia
Cost of Living Index: 87.9
Livability Score: 73
Average Monthly Rent (Lower Tier): $1,016
Average Monthly Groceries (per Person): $339
Virginia’s 7th most populous city and with an Air & Space Science Center, Hampton is perfect for retirees who are looking for an active retirement. With lots to do in the city - think National Parks, a beach, and a museum - senior citizens can keep themselves busy and achieve an affordable retirement at the same time.
11. Anderson, South Carolina
Cost of Living Index: 87.7
Livability Score: 66
Average Monthly Rent (Lower Tier): $924
Average Monthly Groceries (per Person): $320
Anderson, South Carolina makes an East Coast retirement within reach for those without millions in retirement savings. A decent cost of living and livability score promise a favorable retirement - both for the soul and the bank.
10. Athens, Georgia
Cost of Living Index: 87.6
Livability Score: 78
Average Monthly Rent (Lower Tier): $930
Average Monthly Groceries (per Person): $360
Number ten on our list of best East Coast cities to retire on a budget of $1,200 a month is a Georgia pick. Famous for antebellum architecture, Athens boasts a rich, extensive history - a perfect backdrop for a peaceful retirement.
9. Columbia, South Carolina
Cost of Living Index: 87.4
Livability Score: 76
Average Monthly Rent (Lower Tier): $824
Average Monthly Groceries (per Person): $344
Another South Carolina pick, Columbia is a large capital city - perfect for senior citizens that are looking for a bustling city-life retirement. Visit the Botanical Gardens, and the Georgia Museum of Art, or grab a bite in the city - all in a day’s work.
8. Jacksonville, North Carolina
Cost of Living Index: 86.3
Livability Score: 70
Average Monthly Rent (Lower Tier): $862
Average Monthly Groceries (per Person): $337
Located in Onslow County, Jacksonville has a cost of living that is almost 14% lower than the national average. Affordable housing and groceries mean that retirees can be more flexible with their budgets - letting them spend on the things that matter.
7. Aiken, South Carolina
Cost of Living Index: 84.6
Livability Score: 67
Average Monthly Rent (Lower Tier): $867
Average Monthly Groceries (per Person): $328
The last South Carolina pick on our list, Aiken is famous for its many nature offerings and deep history. Retirees can visit the Hopelands Gardens, the Aiken Center for the Arts, or the Thoroughbred Racing Hall of Fame & Museum.
6. Harrisonburg, Virginia
Cost of Living Index: 84.5
Livability Score: 83
Average Monthly Rent (Lower Tier): $652
Average Monthly Groceries (per Person): $326
Next up on our list is Harrisonburg in Virginia. Not only does this city boast a high livability score of 83 - retirees can expect lots of good things to look forward to - but also a low cost of living. It’s a win-win situation.
Click to continue reading and see the 5 Best East Coast Cities to Retire on a Budget of $1,200 a Month.
Suggested Articles:
20 Big Hotels Where AARP Members Can Get Discounted Rates
15 Least Tax-Friendly States For Middle Class Families
15 Most Popular States to Retire to in the U.S.
Disclosure: none. 15 Best East Coast Cities to Retire on a Budget of $1,200 a Month is originally published on Insider Monkey.
