5 Spots Where Retirees Can Live for Less Than $40,000

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Happy couple in retirement on the beach
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Here’s some good news for seniors: According to AARP, you can “live the good life” in retirement for less than $40,000 a year. But it’s all about location.

AARP The Magazine just released its new list of 10 cities where retirees can enjoy their golden years for less.

Mary C. Hickey, editor-in-chief of the AARP media content team, tells the Abilene Reporter-News that AARP worked with a research firm to compile its list of affordable retirement towns. It considered a variety of factors, including a town’s:

  • Cost of living
  • Tax rate
  • Housing cost
  • Access to health care
  • Recreational and cultural opportunities

Hickey says that living on $40,000 a year is a “reasonable retirement income.”

“It’s a figure that is a comfortable, middle-class retirement that a lot of our readers in our demographic have,” she explains.

According to AARP, these are five towns where retirees can live large on less:

  • Fort Walton Beach, Florida: Located in Florida’s Panhandle, AARP says Fort Walton Beach is growing, but it’s still an affordable retirement beach town with a “laid-back island spirit.”
  • Sioux Falls, South Dakota: “The city ranks high on happiness measures, with abundant outdoor activity, a strong sense of community and a friendly spirit,” says AARP.
  • Cleveland: Baby boomers make up about one-quarter of Cleveland’s population, notes AARP. The city offers retirees a flourishing downtown scene, a plethora of recreational opportunities, a world-class orchestra and renowned medical facilities.
  • Cheyenne, Wyoming: The Old West is alive and well in Cheyenne. AARP says the cowboy town not only offers great steaks, but it also has lots of affordable housing, which was primarily built to “woo downsizing baby boomers.”
  • Rochester, New York: Recognized for its impressive health care offerings and beautiful lakeside setting, this upstate New York town also has plenty of culture and recreational activities to keep retirees busy.

Click here to see all 10 towns that made AARP’s list.

What do you think of the towns that AARP included in its list of affordable retirement places? Share your thoughts below or on our Facebook page.

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