Where To Retire in the U.S. on Social Security Alone

The media is full of scary stories about how the Baby Boomer generation will never be able to retire because they have not saved enough money to supplement their Social Security.  It is easy to panic and feel that you have fallen into an impossible situation.

However, in the Yahoo! article, "The 10 Best Places to Retire on Social Security Alone," the authors provide a list of places in the United States where you can retire comfortably on the average Social Security amount of $31,000 a year for a couple.  They made it clear that this would not be a luxurious retirement, only that it would be possible to get by.

In addition, the article was based on the assumption that the couple would either have a paid-off mortgage or they would be paying the typical rent for that community.  In other words, if you are still making large house payments, even these areas are likely to be too expensive for you, based on only receiving the average amount of Social Security.  Shown below is the list from the Yahoo article.

Yahoo's List of the Best Places to Retire on Social Security

Albuquerque, New Mexico
Austin, Texas
Buffalo, New York
Columbia, South Carolina
Grand Rapids, Michigan
Jacksonville, Florida
Pittsburgh, Pennsylvania
Spokane, Washington
St. Louis, Missouri
Tucson, Arizona

You can find a link to the Yahoo article at the end of the article if you want more details about why they believe these cities were especially affordable.  Basically, all ten of them have relatively low housing costs and they have amenities that are appealing to senior citizens, including sports teams, senior centers, and high quality medical facilities.

I want to add that you do not have to move to the inner city of St. Louis or Pittsburgh, for example, in order to get the benefits of an affordable lifestyle in those states.  Most cities also have suburbs and small outlying towns in the surrounding areas that are also quite affordable.

In addition, I was pleased that this list included cities in temperate climates, such as Tucson, Jacksonville, Columbia, Albuquerque and Austin.  There is no reason for a couple to feel stuck in a frigid climate that requires them to deal with ice and snow on a regular basis in the winter.  There are many affordable places within the United States that also offer desirable lifestyles for senior citizens.

More Ideas for Affordable Places to Retire

When I read the Yahoo article and looked over the list for myself, there were a few things I observed.

*  All of the states on the list have MANY communities where people can find affordable places to retire.  Not everyone wants to live in a big city, especially not a crime ridden one like St. Louis.   However, most of the states of Missouri, Pennsylvania, Texas and Florida offer affordable housing ... and even the surrounding states.  Be sure to cast a wide net when you are looking for places to live.

*  Crime is particularly worrisome if you will be renting a cheap apartment in a big city.  It might be preferable to find a charming rental in a small town outside of the cities on this list.  I grew up in Missouri and lived in Texas for decades and I know there are hundreds of affordable small towns that are charming, friendly and within a reasonable drive of the larger cities on this list.

*  It is also important for people to realize that most couples can increase their Social Security to above the average amount simply by working an extra couple of years.  Therefore, they may be able to live on their Social Security alone and even afford a few little extras from time to time, as long as they are willing to defer their retirement a little bit.  There is no rule that says you have to settle for the average amount of benefits.  Many people have also found they can supplement their Social Security with fun part-time jobs.

*  For those people who have large house payments when they reach retirement, they have a couple of options.  If paying off their current mortgage is not attainable, they may be able to take the equity in their current home and use it to pay cash for a smaller home or condo.  Even if they cannot pay cash, they may be able to get a small, affordable, manageable mortgage that they will be able to handle after retirement.

*  Another option for people who are having trouble finding affordable housing is to check out the senior apartment complexes in their area.  Most cities and many mid-size towns have apartment complexes that are designed especially for older people.  If money is tight, you may even qualify for a subsidized apartment.  Contact your local housing authority or Department of Social Services to see what subsidies might be available.  I know of both single and married retirees who are living on Social Security alone in expensive areas like Orange County, California, but only because they receive housing subsidies.

The bottom line is that there are many options that are available to people who are just living on Social Security alone.  Do not feel that you have to limit yourself to only the cities on the Yahoo list.  There are many options available to you, as long as you are willing to search for them.  Millions of people retire every year in the United States with Social Security as their only or primary source of income.  You can find a way to do it, too.

Source:

The 10 Best Places to Retire on Social Security Alone

For more retirement information, use the tabs at the top of this page to find links to hundreds of additional articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.morguefile.com

American Retirement Opportunities in Borneo Malaysia

Are you looking for an exotic, unique place to retire?  Consider the city of Kuching, Borneo in Malaysia if you are looking for a romantic island with beautiful beaches, remote jungle rain forests, and proboscis monkeys, along with gorgeous golf courses, shopping malls, theaters, restaurants, museums and other modern conveniences.

Retire to Kuching in Borneo Malaysia

Cat lovers will be charmed by the city of Kuching, whose name means "cat."    There is a cat museum and cat statues located throughout the community.  Architecture is varied, ranging from English Colonial to Chinese and ultra-modern.  The official language is English.

According to a Yahoo! Finance article entitled "The Most Interesting Retirement Spot You've Never Heard Of," a couple can live in Kuching for about $800 a month plus the cost of housing.  There are generous incentives for permanent residency for anyone with an income of at least $3,200 a month, which makes it possible for American ex-patriots to set up residency there and live very comfortably on their Social Security benefits or other income sources.  These incentives include a program called My Second Home (or MM2H) which makes it easier and more affordable to buy a home there, and allows immigrants to import a car, work part-time, and even start a business.  If you are not quite ready for Social Security, you'll be pleased to know there are no age restrictions on this Malaysian program for foreigners who want to live there long-term.  The program also protects your foreign income from Malaysian taxes.

One of the biggest fears that many American retirees have about retiring to another country is the quality of medical care.  In the case of Borneo, there is little reason to be concerned.  Kuching is a popular destination for medical tourism because the hospitals and other medical facilities are modern and well-equipped, as well as very affordable. The doctors and medical staff speak fluent English.  Malaysia does not have a medical school, so their physicians have been educated in Europe, the United States, Canada, New Zealand or Australia.

Safety in foreign countries is also a frequent concern for retirees.  However, Malayia is considered the 19th safest country in the world. Compare that to the United States, which is ranked 82nd.  Violent crime is quite rare.  You can comfortably enjoy living there, it is affordable, and you do not have to be rich or learn another language.

If you are interested, you may want to visit the country and explore your options for yourself.  At the very least, you will have a wonderful, exotic vacation.

If you are looking for other possible places to retire, use the tabs or pull down menu at the top of this article to find links to hundreds of other articles, including on where to retire overseas.

You may also be interested in reading:

Best Places to Retire Outside the United States
Why Retire in Puerto Rico, the US Virgin Islands or Guam
Retiring in Luxury to Hua Hin, Thailand

You are reading from the blog: http://www.baby-boomer-retirement.com

Photo of Malaysian temple courtesy of www.morguefile.com

Best Places to Retire on $40,000 a Year

With 10,000 Baby Boomers a day turning 65, there is a growing demand for affordable places to retire.  Many members of our generation will have very little retirement income other than their Social Security benefits.  However, this does not mean that Baby Boomers plan to spend their senior years living in poverty.  They do have options.

The good news is that many couples will have a total retirement income of around $40,000 a year, which is more than enough for a couple to live and enjoy life in any of the cities listed in this article.  In order to reach the goal of $40,000 a year, the primary breadwinner's Social Security benefits should amount to around $2200 a month, with their spouse receiving an additional $1100.

Single retirees who live together with a partner, friend or relative can also achieve a combined Social Security income of approximately $40,000 if each of them has a Social Security benefit of about $1670 a month.  This is not an unreasonable amount for people who have worked most of their lives, or widows who are receiving benefits based on the income of a deceased spouse.  At this income level, there are many affordable and pleasant places where retirees might choose to live.

Best Affordable Retirement Cities

According to U.S. News, here are the best places to retire if you have a retirement income of $40,000 or less.  I have spent time in several of these cities, and have added my own comments about those locations.

Albuquerque, New Mexico -- We used to take our family to the mountains around Albuquerque and vacation in the surrounding towns of Pueblo, Red River and Angel Fire.  Although the area can get chilly in the winter, it is pleasant, although sometimes quite hot, in the summer.  Daytime highs in December and January range from the mid 40's to the mid 50's.  Highs in the summer tend to be in the 90's, although night temperatures drop to the 60's and 70's, making the summer evenings and mornings quite pleasant. Home prices and rentals are very affordable.

Augusta, Georgia -- This is a beautiful, charming Southern city.  It generally has a mild climate, with numerous golf courses and other amenities in the area.  At the same time, it is surprisingly affordable.

Columbia, South Carolina -- Another Southern City with a mild climate.  However, South Carolina also gets hot in the summer.  On the other hand, many retirees who are finding Florida a bit too hot for their taste are discovering that both South and North Carolina have milder weather and, in many cases, are more convenient to other family members who live in the Northeast.

Jackson, Mississippi -- A very affordable city in the deep south.  Mississippi is another popular warm weather location with mild winters.  Mississippi is an exceptionally inexpensive place to retire. 

Knoxville, Tennessee -- This is a thriving, modern city.  It is similar to Lousiville, Kentucky (mentioned below), but it is further south and has a somewhat milder climate. Tennessee, Arkansas and Kentucky are all beautiful states with many charming small towns.  Anyone who is considering one of these cities should also explore the surrounding towns.

Little Rock, Arkansas -- Arkansas is a beautiful and extremely affordable state.  Like Tennessee, Kentucky and Mississippi, Arkansas has a large number of very affordable residential areas.  If you find a home near activities that interest you ... such as lakes or golf courses ... you can have a very pleasant retirement at an affordable price.

Louisville, Kentucky -- One of our daughters lived in this lovely city for several years.  The citywide celebration that takes place during the period of time leading up to the Kentucky Derby is delightful, including a massive fireworks display at the riverfront.  The city has colleges, a beautiful riverfront, museums, theaters and plenty of activities for the entire family.  Rents are quite low.   U.S. News estimated that the average senior citizen pays about $600 in monthly rent in Louisville.  Our daughter rented a lovely two-story, three bedroom townhouse in a very nice part of the city for under $1000 a month.

Pittsburgh, Pennsylvania -- Another one of our daughters lives in rural Pennsylvania.  It gets quite cold in the winter, with a lot of snow.  However, it is a very affordable place to live, and there are many fun amenities in Pittsburgh including live theater, sports teams and an abundance of restaurants and bars.

St. Louis, Missouri -- I grew up in a suburb of St. Louis, and still have relatives who live there.  It is a very affordable city with a thriving nightlife, including riverboat casinos, restaurants, bars, and sports venues.  The Mississippi riverfront attracts tourists as well as local residents.  It received a lot of bad press in the past view years because of rioting in Ferguson.  However, those events did not affect the majority of people who live in the St. Louis area.

San Antonio, Texas -- This is one of my personal favorite retirement cities, especially if you prefer a warmer climate.  The Riverwalk area of San Antonio is across the street from the world famous Alamo mission.  It is a lovely location to take a walk, stop in a sidewalk cafe, and watch small boats cruise by.  There are 11,000 acres of parks in the city, and over 50 golf courses.  Homes are very affordable, and rents for retirees average about $800 a month.  San Antonio is also a city that has come up several times on the the top retirement lists of other organizations.

Remember, whether I have personally been to these cities or not, all of them were listed by U.S. News as great places to retire on an income of $40,000 a year.  Since this income is within the means of many Americans, even those living on Social Security alone, these are certainly locations that many Baby Boomers will want to consider.  Your final decision may be based on many factors including climate and proximity to your adult children or other family members.

In addition to these cities, you may also want to explore some of the small towns in the same states.  Often, the small towns are even less expensive than the cities and can be quite charming.

If you are interested in learning about other places to retire or other retirement information, use the tabs or pull down menu at the top of this page to find links to hundreds of additional articles.

You may also be interested in reading:

The Best Sunny Places to Retire
Best Places to Retire Outside the US
Cheap Places to Retire
Finding the Best Places to Retire

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo collage of Albuquerque is courtesy of www.en.wikipedia.com/commons

Best Places to Retire in the United States on $100 a Day

Whenever I find a high quality list of good places to retire, I try to pass that information on for my readers to review.  In 2012, AARP Magazine and AARP.com released their 2012 list of great places to live on $100 a day.  This amounts to $36,500 a year, which they estimate would result in an after tax income of $27,375 a year or $2281 a month. (Note:  Due to inflation, I suggest you add 3% to the home prices and cost of living for every year you read this after 2012.  In other words, if you are reading this in 2015, add 9% to the financial figures you see here.  The principle still remains, however, that these locations are affordable and could be good retirement locals for people who will be retiring on Social Security alone.)

This level of income is well within the reach of many retirees, especially couples.  If one spouse has Social Security benefits of $2000 a month and their spouse will receive $1000 a month, they could afford to retire in one of these communities. 

One of the requirements that AARP had in determining the best places to live on $100 a day was that they had to have "affordable luxuries".  They defined this as cities with cultural attractions like museums or symphony orchestras, sports teams, great places to eat, and homes that sell for about $192,000 or less.  In those instances in which I have spent time in a city, I have added my own comments to the AARP list.

2012 List of Best Places to Live on $100 a Day (Prices May be 5 to 10 Percent Higher, Now)

San Antonio, Texas:  San Antonio is a charming town that is sunny 263 days a year.  The median home price is $135,000.  There are plenty of libraries, museums, golf courses and other affordable luxuries in this city.  As a former resident of Texas, we have visited this city several times during the months of July and August and it is important to disclose that San Antonio gets HOT in the summer.  However, one delightful way to cool off is to take a stroll along the famous Riverwalk (pictured above) and perhaps have a cool beverage in one of the numerous sidewalk cafes.  It's right across the street from the Alamo.

Roanoke, Virginia: Roanoke is in the Blue Ridge Mountains of Virginia.  It is sunny 217 days a year and has a median home price of $151,500.  The city hosts half a dozen festivals every year, and the downtown area has a planetarium, theater and museums.  One of our daughters went to college in nearby Lexington, Virginia and you should know that this town is about a four hour drive from Washington, DC, in a very rural part of Virginia.  However, it is also in an absolutely gorgeous part of the United States, and is a lovely location for enjoying fall foliage.

Las Cruces, New Mexico:  Las Cruces is in the high desert of New Mexico, which means you can expect very hot summers.  We have stayed in this town while driving across the country and love the desert landscapes.  However, the scenery may not appeal to everyone.  There are 287 sunny days a year, and the median home price is $148,000.

I have not stayed in the remaining towns on the list, so I will only list the main statistics here.  To read more, you can see the full descriptions at Best Places 2012.  I just wanted to make sure that I brought these great cities to your attention, so you could add them to the locations you are considering for retirement.

Spokane, Washington:  Spokane has 176 sunny days a year, with a median home price of $145,000.  It's a great city for people who love outdoor sports, whether it is fishing or skiing.  As most people realize, Spokane is much rainier than many other popular retirement locations.  However, we have friends who retired in this area, and they love it!

Eau Claire, Wisconsin:  Eau Claire is another location that is popular with people who enjoy outdoor sports, especially in the winter.  It has 200 sunny days a year and a median home price of only $121,100.  It is also home to a branch of the University of Wisconsin which provides lots of cultural, entertainment and adult education possibilities.

Morgantown, West Virginia:  Morgantown is a small college town in the center of Appalachia.  It boasts an excellent healthcare system.  There are 185 sunny days a year, and a median home price of $168,900.

Pittsburgh, Pennsylvania:  Pittsburgh is no longer a city that is defined solely by the steel industry.  With a wonderful symphony orchestra and a beautiful waterfront, it has become popular with retirees.  The 194 sunny days and median home price of $106,500 is very appealing, too.

Omaha, Nebraska:  Omaha is a Midwestern city that has become popular with high-tech companies in recent years.  It has a symphony and the largest community theater in the United States.  Omaha has 193 sunny days a year, and a median home price of $123,500.

Grand Junction, Colorado:  Grand Junction is a lovely town only a few hours away from the gorgeous ski slopes of Vail and Aspen.  It also has 214 sunny days a year, and a median home price of $159,800.

Gainesville, Florida:  Gainesville is home to the University of Florida, as well as the Florida Museum of Natural History.  It has 205 sunny days a year, and a median home price of $125,000.  Florida has long been considered a retirement mecca because of low home prices and low taxes.  It does get very hot in the summer.

Here is information about other wonderful places you may want to put on your retirement list:

The Best Sunny Places to Retire
Cheap Places to Retire
Best Places to Retire Outside the US
Finding Niche Retirement Communities

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo of the San Antonio Riverwalk courtesy of www.wikipedia.com/commons

Living on Social Security in the US

Beautiful meadows and charming towns
are available near retirement communities!

Are there places in the United States where a couple can live a middle class lifestyle on their Social Security, alone?  According to U.S. News, there are actually a number of communities scattered throughout this country where couples can afford a home and live comfortably on the average amount of Social Security. 

In order for U.S. News to come up with their list, they based their income assumption on an average Social Security Benefit of $1,179 per retired person in the United States as of March, 2011.  For two people, this comes to a household income of $28,296 a year.  (Since 2011, Social Security benefits have increased by a few percent and the average retiree is actually earning a little over $1,200 per month.  The communities on this list continue to be affordable for those retirees, on an inflation adjusted basis).

The researchers looked for communities in the United States where the median household income was lower than $28,000.  The cost of living in these communities has increased a few percent over the past few years, but so have Social Security benefits. 

Below is their list of towns from coast to coast that would be affordable for the average couple living on Social Security alone.

Where to Retire on Social Security Alone

Auburn, Alabama (median household income of $21,630)
Blacksburg, Virginia (median household income of $26,792)
Boone, North Carolina
Cheney, Washington
Mt. Pleasant, Michigan ($27,621)
Murray, Kentucky ($27,842)
State College, Pennsylvania ($23,800)
Sunland Park, New Mexico ($23,225)
Syracuse, New York ($27,475)
West Lafayette, Indiana ($26,000)

I listed the median household income for these communities, when it was included in the article. Several of these communities are college towns, including charming Blacksburg, Virgina, which is the home of Virginia Tech. They are also dispersed throughout the United States, so it is possible you could find one that is not too far from your friends and other members of your family.  If you expect to be living on the typical amount of Social Security, and you are worried about where you can afford to buy real estate and retire, you may want to do more research on some of these communities and select one that is best for you.

In addition, you may want to read  "Finding the Best Places to Retire" http://baby-boomer-retirement.blogspot.com/2011/09/finding-best-places-to-retire.html, "Cheap Places to Retire" http://baby-boomer-retirement.blogspot.com/2011/09/cheap-places-to-retire.html, or any of the other articles listed in the archive section in the sidebar, or under Popular Posts at the bottom of the page.

If you are interested in more retirement ideas, use the tabs or pull down menu at the top of this article to find links to hundreds of additional articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

(Photo of meadows taken by Author, Deborah-Diane, near Laguna Woods Village, California)