A key component of retirement financial planning is where to retire and taking care that it will be as good a financial fit as it is a lifestyle fit. AARP found 10 cities to retire on $30,000.
A key component of retirement financial planning is where to retire and taking care that it will be as good a financial fit as it is a lifestyle fit.
Among affluent investors, not having saved enough for retirement is the biggest financial regret, according to Spectrem’s Millionaire Corner research, while the biggest fear is outliving one’s retirement savings. The 2013 Retirement Confidence Survey conducted by the Employee Benefit Research Institute found that only one-fourth of respondents are “very confident” that they will have enough money to take care of basic expenses during their retirement. Only 17 percent said they were doing or had done a good job of retirement financial planning.
In a Millionaire Corner survey conducted last summer, cost of living ranked as the primary factor impacting retirement financial planning decisions on where to retire among 61 percent of respondents (rounding out the five top factors were proximity to friends and family, weather, access to healthcare and taxes).
While they may not be the retirement hot spots, there are cities that offer a retirement that is both frugal and fulfilling, according to AARP The Magazine, which recently published a list of retirement destinations where one can live on $30,000 a year or less.
Among the retirement financial planning factors considered include median home price, mortgage payment and property tax as well as lifestyle considerations such as free events and inexpensive recreational and cultural amenities.
Five representative cities are:
Bangor, Maine; The winters may be cold, but Bangor boasts a median home price of $110,400 and an active arts scene that includes the annual Northern Writes Festival of New Works
Daytona/Deltona/Ormond Beach: Cited as “Florida’s Best Kept Secrets,” these cities do not have a state tax on Social Security and pensions. For sports fans, Jackie Robinson Ballpark is home to the Class A Daytona Cubs.
Erie, PA: As breathtaking as a median mortgage payment of $407 is Presque State Park.
Grand Rapids, MI: The largest city on the list has a median home price of $114,200 and a median property tax of $1,830. Lures include the popular brew pub HopCat, the Grand Rapids Griffins ice hockey team and the international ArtPrize competition.
Greenville, S.C.: The median property tax is $753 a year and the median mortgage payment $487. “Favorite freebies” include trolley rides, downtown Wi-Fi and admission to the Greenville County Museum of Art.
Visit here to see the entire list.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.