5 Awesome Places to Retire on $4,000 a Month or Less (2024)

Retiring on $4,000 a month will give the average American plenty of options for a fulfilling retirement—and leave some room to splurge on the grandkids and travel.

So how do you pick a spot? “After determining your budget and establishing the monthly cost of housing, including taxes … list your most important requirements of retirement living,” suggests Gerard Splendore of Warburg Realty. For example, do you want to be near a beach, be close to the grandkids, see live music? He suggests renting an apartment in a few different places to figure out what the community is like, what amenities are offered and how close you are to friends and family, before settling down in your retirement paradise. Think of it as “retirement dress rehearsal,” he says.

Below, we round up the top five places to retire for $4,000 a month or less.

If You Want Your Money to Go a Long Way: El Paso, Texas

Consistently listed as one of the best places to retire in national rankings, El Paso has moderate winters, beautiful mountain vistas, a dry climate and a thriving, walkable downtown with art galleries, restaurants and live music venues. The Texas city is also one of the safest large cities in America. The cost of living is 18.6% below the national average, and the median home costs $130,700, which will leave retirees with plenty of financial wiggle room for recreational activities and regular meals out in the city’s myriad restaurants. According to the latest Census data, 12.5% of people in El Paso county are retirement age, and health care costs are lower than the national average. Plus, Texas in general has beneficial tax policies for retirees—there is no state income tax, which means that Social Security benefits and other sources of retirement income are tax-free.

If You Enjoy an Outdoorsy Lifestyle: Albuquerque, New Mexico

Do you dream of floating down the gentle waters of the Rio Grande river in a kayak, watching a mesa rise before you? Or of hiking through the mountains, striking volcanic terrain or national forests? Then Albuquerque, New Mexico, is the place for you. Recently ranked the ninth most affordable city in the United States (the average cost of living in the city is just $1,500 a month), Albuquerque has a wide range of cultural and outdoor activities to keep you busy in your retirement, including a hot air balloon festival that takes place every fall. Along with boasting 310 days of sunshine a year, Albuquerque also has mild, dry weather. The median home price is $203,500, and the cost of living is 8.9% lower than the United States average. Health care costs are also lower than average, though New Mexico does tax all forms of retirement income at a rate of 5.6%. However, the state offers deductions for up to $8,000 of income a year for those over the age of 65.

If You Want to Be Near the Beach: Sarasota, Florida

Ranked the top place to retire in 2020 by the U.S. News & World Report, Sarasota, Florida, is 60 miles south of Tampa. Best known as the headquarters of the Ringling Brothers Circus in the 1920s, the city is now home to the John and Mable Ringling Museum of Art, which is located on the former estate of John Ringling, and is the official art museum of Florida. Along with boasting miles of white sand beaches, the city also offers plenty of shopping, golf courses and farmers markets. Unlike cities like Miami, which will flood in coming years due to climate change, and Jacksonville, which is vulnerable to major hurricanes, Sarasota has generally been spared direct hits by mega-storms due to the shape of Florida’s landmass. Though the cost of living in Sarasota is 2.7% higher than the national average, and the median price of a home is $264,500, health care costs are 1.5% below the national average and Florida has no state income tax.

If You Crave Quality Arts and Culture: Colorado Springs, Colorado

Even if you’re moving from a big city, you won’t get bored in Colorado Springs, which is located at an elevation of 6,000 feet at the eastern foot of the Rocky Mountains. Along with 9,000 acres of parkland and 160 miles of park trails, Colorado Springs also has 50 pieces of public art scattered around the city, along with a plethora of museums, art galleries and cultural institutions. Summers are mild, with temperatures reaching above 90 degrees only 15 days on average. Though the cost of living in Colorado Springs is 4.5% higher than the national average, and the median housing price is $287,900, there are plenty of neighborhoods where house prices range from $100,000 to $200,000, including Palmer Park and Cimmaron Hills. Health care costs are 3% lower than the national average, and the local hospital specializes in strokes. While Social Security and other types of retirement income are taxable in Colorado, the state offers an exemption of up to $24,000 for persons aged 65 and up.

If You Love All Four Seasons: Brevard, North Carolina

Similar in feel to Asheville, but a lot less expensive, Brevard, North Carolina, is known as the “land of the waterfalls.” Located at the entrance to the Pisgah National Forest in the Appalachian Mountains, Brevard is also renowned for white squirrels, which are frequently spotted by residents. Summers are warm, and there is snow in the winters. Along with a host of cultural and outdoor activities, Brevard boasts living costs that are 7.5% lower than the national average. The median home price is $217,700. Health care costs are 10% above average, but North Carolina does not tax Social Security income. It does, however, tax other forms of retirement income at a flat 5.25% for those aged 65 and up.

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

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