The average monthly Social Security benefit was just $1,907 in early 2024, far short of the cost of living of many retired households.1 Note that you could earn more depending on your income during your working years. The maximum benefit for 2024 is $4,873 per month.2 Many households will land somewhere in the middle.
If your retirement income is around $3,000 per month, including Social Security and investments in 401(k), IRA and other retirement accounts, you may wonder where you can retire and live a comfortable lifestyle at the $3,000 per month mark. Here's a look at some of the best places you may be able to retire with a $3,000 monthly fixed income.
The Best Places To Retire on $3,000 Per Month
- • Best for Outdoor Recreation: Boise, Idaho
- • Best for a Big City Lifestyle: San Antonio, Texas
- • Best for a Desert Climate: Phoenix, Arizona
- • Best for Coastal Access: Jacksonville, Florida
- • Best for a Warm Climate: San Jose, Costa Rica
1. For Outdoor Recreation: Boise, Idaho
- • Cost of living: 8% higher than the national average3
- • Median home price: $566,3473
- • Median monthly rent: $1,7223
- • Metro population: 811,3364
- • State taxes: No taxes on Social Security income5
Why retire in Boise?
Boise residents have easy access to Pacific Northwest and Rocky Mountain climates, making it one of the best places for year-round outdoor recreation. Whether you're into water sports, snow sports or hiking with majestic views, Boise and the surrounding areas have you covered.
In town, you'll find a mix of many of the best features of city living, including great restaurants and fun nightlife, partially thanks to several universities and colleges in and around the city. Boise experienced big property cost increases in recent years, partially due to the increase in remote work opportunities and the secret getting out that it's a great place to live. Still, it remains one of the more affordable cities in the United States when considering the all-in cost of living.
2. For a Big City Lifestyle: San Antonio, Texas
- • Cost of living: 8% lower than the national average6
- • Median home price: $360,2796
- • Median monthly rent: $1,0956
- • Metro population: 2,655,3424
- • State taxes: No state income tax5
Why retire in San Antonio?
San Antonio has a generally comfortable climate, with winter lows averaging around 40 degrees and summer highs typically in the mid-90s.7 With approximately 2.6 million residents,4 it offers everything you would want from a big city, including a major airport and extensive medical care.
Tourists love visiting the San Antonio River Walk downtown and the historic Alamo, but dining and recreation go far beyond those two famous attractions. You'll find several great museums, plenty of Tex-Mex and BBQ, a Six Flags theme park and many historic sites dotting the city and region. Census data shows it's the seventh largest city in the United States.8
3. For a Desert Climate: Phoenix, Arizona
- • Cost of living: 4% higher than the national average9
- • Median home price: $559,1329
- • Median monthly rent: $1,7009
- • Metro population: 5,015,6784
- • State taxes: No taxes on Social Security income5
Why retire in Phoenix?
Phoenix is the fifth largest city in the United States and a long-time popular destination for retirees.8 The dry, desert climate is excellent for many older Americans, though high summer temperatures can be a turnoff. Nonetheless, the sprawling city offers a wide range of neighborhoods, many of which are very affordable. Some of the biggest suburbs in the metro area include Chandler, Gilbert and Mesa. Scottsdale is home to Arizona State University.
Nearby recreation includes hiking and camping at some of the country's top national parks, including the Grand Canyon, which is just a few hours away. While Phoenix has several expensive areas, finding a bargain-priced home isn't too tough if you're willing to venture into the suburbs. The area has a large retiree population,10 so there's plenty for older residents to do. However, be aware that getting by on $3,000 per month in some Phoenix neighborhoods could be challenging.
MORE PLACES TO RETIRE FOR: $1,500, $4,000, $5,000, $6,000
4. For Coastal Access: Jacksonville, Florida
- • Cost of living: 6% below the national average11
- • Median home price: $425,21111
- • Median monthly rent: $1,29311
- • Metro population: 1,675,6684
- • State taxes: No state income tax5
Why retire in Jacksonville?
Jacksonville is located in the Sun Belt of the southeastern United States, offering desirable weather for many retirees. Winter lows typically dip to the mid-40s, while summer highs reach into the 90s.12 The city is home to 22 miles of beaches and 40 miles of the Intracoastal Waterway.
The average home price is around $425,000, and there's no state income tax in Florida, which can stretch your dollars further. The city offers good access to healthcare and plenty of culture to keep you busy when you're not out enjoying the waterfront. However, be ready to board up and evacuate if a major hurricane comes your way, and be aware of rising home insurance costs.13 Otherwise, the weather is generally very good, and it's an affordable place to call home.
5. For a Warm Climate: San Jose, Costa Rica
- • Cost of living: 38% below than the national average (Costa Rica consumer prices including rent)14
- • Median home price: $180,00015
- • Median monthly rent: $1,11516
- • Metro population: 1,482,00017
- • Taxes: Foreign income is tax-free18
Why retire in San Jose?
The most affordable city on this list takes you well past the southern border to beautiful Costa Rica. While we're focused on San Jose here, the largest city in the country, you'll find plenty of affordable and wonderful places to live across the country, from the Caribbean to the Pacific Ocean. San Jose lies at the center of Costa Rica and offers relatively easy access to other cities and ecotourism destinations.
San Jose offers big city amenities, including malls, an outdoor shopping district, a large selection of restaurants and plenty of outdoor recreation. While a few areas are not as good for American expats, particularly at night, the city is generally very safe. The U.S. State Department ranks it at the second tier for safety, suggesting visitors should exercise caution but should be able to safely travel within Costa Rica.19 In some situations, you'll need Spanish skills (or a translation app on your phone), but you can often get by in English, too.
Can You Really Retire on $3,000 Per Month?
The ability to retire on a fixed income of $3,000 per month varies by household. To retire at the same standard of living you enjoyed during your working years, experts recommend saving at least 15% of your income in tax-advantaged retirement accounts each year, in addition to Social Security.20
But if you're past that phase of your life, setting realistic retirement expectations and moving to an affordable home can put you on track to a nice lifestyle while keeping your living costs below $3,000 each month.
Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. He is an expert in banking, credit cards, investing, cryptocurrency, insurance, real estate, business finance and financial fraud and security. His work has appeared in many online publications, including Time, USA Today, Forbes, Business Insider, NerdWallet, Investopedia and U.S. News & World Report. Connect with him and learn more at EricRosenberg.com.
READ MORE: 10 Questions to Help Accurately Calculate Your Retirement Numbers
Sources/references
1. https://faq.ssa.gov/en-us/Topic/article/KA-01903
2. https://faq.ssa.gov/en-us/Topic/article/KA-01897
3. https://www.payscale.com/cost-of-living-calculator/Idaho-Boise
4. https://www2.census.gov/programs-surveys/popest/datasets/2020-2022/metro/totals/cbsa-est2022.csv
5. https://www.kiplinger.com/retirement/602202/taxes-in-retirement-how-all-50-states-tax-retirees
6. https://www.payscale.com/cost-of-living-calculator/Texas-San-Antonio
7. https://www.weather.gov/media/ewx/climate/SATmonthlynormals.pdf
8. https://www.census.gov/popclock/embed.php?component=populous
9. https://www.payscale.com/cost-of-living-calculator/Arizona-Phoenix
10. https://azmag.gov/Portals/0/Documents/MagContent/Jan20-9am-Overview-St-Peter.pdf
11. https://www.payscale.com/cost-of-living-calculator/Florida-Jacksonville
12. https://www.usclimatedata.com/climate/jacksonville/florida/united-states/usfl0663
13. https://www.news-press.com/story/news/2024/04/01/florida-homeowners-insurance-rates-highest-rising-how-much-cost/73104723007/
14. https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+States&country2=Costa+Rica
15. https://www.remax-costa-rica.com/what-is-the-average-cost-of-a-house-in-costa-rica/
16. https://www.expatistan.com/cost-of-living/san-jose-costa-rica?currency=USD
17. https://www.macrotrends.net/global-metrics/cities/20861/san-jose/population
18. https://brighttax.com/blog/retire-in-costa-rica
19. https://travel.state.gov/content/travel/en/international-travel/International-Travel-Country-Information-Pages/CostaRica.html
20. https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save
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