5 Awesome Places to Retire on $3,000 a Month or Less (2024)

The average Social Security benefit was just $1,503 per month in January 2020. However, for someone earning at least $137,700 (adjusted for inflation) over the course of her 35-year career and claiming benefits at age 66, the maximum payout is $3,011 a month. Plus, many of us have savings: The average retirement savings for someone ages 65 to 69 is $206,819.53, according to Federal Reserve SCF data. That means that even if you’re not one of those lucky few who have $1 million or more socked away, you can still retire well, so long as you keep your monthly budget under $3,000 a month.

When considering where to settle, Christopher Totaro, an agent at Warburg Realty in New York, suggests taking into account local costs such as taxes, health care, transportation and food. “It is very important to make sure that the city or town has the infrastructure to support your needs as you age,” he says. He also suggests considering the air quality index and the number of days with sunshine, as well as proximity to other retirees. Gerard Splendore, another agent at Warburg, adds that you should consider recreation and proximity to family.

Below, we round up five fabulous places to retire on $3,000 or less a month. Whether you love arts and culture or the outdoors, or you just want to be close to a transportation hub for your grandchildren, we have the place for you.

If You Want to Be Near the Beach: Gulfport, FL.

Gulfport, which is right near Tampa, is renowned for being welcoming not only to retirees, but also to artists, artisans and the LGBTQ community. The trees in Gulfport are draped in Spanish moss, and it’s not uncommon to see manatees and dolphins in the waters. Even better, the temperature typically stays between 56°F and 89°F, and there are 245 days of sun per year, on average. Imagine Key West, only more affordable. The median housing price in Gulfport is $245,756, and the cost of living is 7% lower than the national average. Even better: Florida has no state income tax. Just be aware that the area is hurricane prone.

If You Desire Access to Arts and Culture: Duluth, GA.

Located in Gwinnett County, part of suburban Atlanta, Duluth recently dedicated millions of dollars to creating multigenerational gathering places, including a new city hall and town green. With just under 30,000 people, the town is one of the most diverse in the Southeast—10% of residents are Korean American. Duluth also has a number of major music venues, including the Infinite Energy Center and the Red Clay Music Foundry, which attract talent ranging from Paul McCartney to James Taylor. Located within a half-hour drive are Atlanta cultural institutions such as the High Museum of Art and the National Center for Civil and Human Rights, as well as Emory University. Best of all, Duluth is affordable. The median home price is $289,950, health care costs are lower than the national average and the state does not tax Social Security benefits.

If You Want to Be Close to a Transportation Hub: Alton, IL.

Located on the banks of the Mississippi River, just 23 miles north of St. Louis, Mo.—which has an international airport—Alton is home to a plethora of rose gardens and outdoor biking trails, as well as a bustling Main Street. With a population of just over 28,000, the small city, with its surrounding bluffs and dense forests, is great for birding. Best of all, it’s extremely affordable. The median home price is just $93,000, the average cost of living in Alton is 24.8 points below the national average, and the Wellness Center at Senior Services Plus, a local agency for the city’s aging population, offers memberships for $100 a year. It’s a great place to consider if you want your grandchildren to visit frequently—and if you’d like to have a little something left over in your budget to help them with their education. Illinois does not tax retirement income, including Social Security and pensions.

If You Crave the Outdoors: Coeur d’Alene, ID.

Located 30 miles east of Spokane, Wash., Coeur d’Alene is a little like living in the Swiss Alps, only with a small-town-America feel. The city, which has just over 50,000 residents, is located on the banks of Lake Coeur d’Alene, an alpine lake more than 25 miles long and with 109 miles of shoreline. A plethora of outdoor activities are available, including fishing, hiking, boating and birding, as well as skiing and snowmobiling in the winter. The median home price is $390,108, and there are no state taxes on estates or Social Security, although Idaho does tax pensions. Though the cost of living is 6.2 points higher than the national average, according to Sperling’s BestPlaces, that is largely due to expensive housing along the lake. Move away from the shoreline to save.

If You Want to Live Someplace Totally Foreign: Malta

Located in the Mediterranean ocean between Sicily and the North African coast, Malta is an archipelago of five islands with roots dating back to the Roman empire. Because the country was ruled for 150 years by Great Britain, most residents speak English. The cost of living is affordable—a recent article in International Living said that expatriates can easily live on the islands for less than $2,600 a month. Malta also has affordable public transportation and one of the best health care systems in the world—a recent survey by Eurofound ranked Malta as the most trusted health care network in Europe. Malta also boasts something American cities can never compete with—historical sites dating to medieval times and earlier, all located within walking distance of the aquamarine ocean. Any foreign-sourced bases of income—including Social Security and retirement benefits—are taxed are taxed only if they are remitted to a Maltese bank account. The website Numbeo estimates that the cost of living in Malta is, on average, 10% cheaper than the cost of living in the United States.

Brienne Walsh is a writer based in Savannah, Ga. She contributes to Forbes, Rangefinder and MarketWatch, among other publications.

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