About half of households headed by someone aged 55 and older don’t have retirement savings, according to the U.S. Government Accountability Office. That means that many will need to rely on Social Security payments—which, in 2021, averages $1,544 a month.
That’s not a lot, but don’t worry. There are plenty of places in the United States—and abroad—where you can live comfortably on $1,500 a month or less. Below, we outline five to consider if you’re working with a tight budget.
For Outdoor Wonders: Waterloo, Iowa
Population: 67,328
Share of Population 65+: 16%
Median monthly homeowner costs, with mortgage: $1,047
Median rent: $765
Located just 50 miles northwest of Cedar Rapids and about 280 miles west of Chicago, Waterloo is a small, charming city in Iowa with a picturesque Main Street. Not only does the town boast more than 80 shops and boutiques, as well as 70 locally owned restaurants and the John Deere Tractor & Engine Museum, but it’s also a great place to live if you love the outdoors. Situated along a system of 110 miles of hiking and biking trails, major attractions include the 40-acre Cedar Valley Arboretum and Botanic Gardens and Lost Island Waterpark.
The cost of living in Waterloo is 25.5% lower than the national average, and the median listing price on a home is $105,100. According to the U.S. Census Bureau, if you own a home without a mortgage, you can expect to pay just $439 a month on housing costs. Plus, your Social Security benefits are tax-free, and the state also provides deductions for other forms of retirement income, which means that if you’re relying on Social Security to live, you’ll be in good shape in Waterloo.
For a Little Culture: Fort Wayne, Indiana
Population: 270,402
Share of Population 65+: 14%
Median monthly homeowner costs, with mortgage: $990
Median rent: $764
Fort Wayne, which is Indiana’s second-largest city, is a hidden cultural jewel just 160 miles southeast of Chicago. Home to the Fort Wayne Museum of Art, the city also features extraordinary examples of 19th-century stained glass at the Cathedral of the Immaculate Conception. For those concerned about keeping grandkids busy, there’s the Fort Wayne Children’s Zoo, as well as the Foellinger-Freimann Botanical Conservatory.
The cost of living in Fort Wayne is 21.1% lower than the national average, and the median home price is $132,000. If you can buy your home outright, you can expect to pay $377 a month in owner costs, according to the U.S. Census data. Plus, health care costs are 19.5% lower than the national average and Social Security benefits are exempt from state income tax, although income from pensions and retirement savings is not.
For a Seaside Vibe: Erie, Pennsylvania
Population: 95,508
Share of Population 65+: 14.3%
Median monthly homeowner costs, with mortgage: $1,007
Median rent: $710
Located on the southern shore of Lake Erie, the town has the feel of a seaside town—only for much less money. Presque Isle State Park, one of Pennsylvania’s natural wonders, is a 3,200-acre peninsula that stretches into the lake, offering a beautiful coastline, opportunities for swimming and fishing and plenty of migrating birds. The city itself has a historic downtown that features a plethora of museums and galleries. More than 80 murals by local artists can be found around Erie and surrounding towns.
The cost of living in Erie is 25.4% lower than the national average, and the median home price is $108,600. Health care is affordable too—at 9.1% less than the national average—and Pennsylvania does not tax Social Security or any other form of retirement income, including 401(k) distributions. It also exempts people 60 and older from paying taxes on pensions.
For a Temperate, Peachy Life: Oglethorpe (Macon County), Georgia
Population (Macon County): 12,947
Share of Population 65+: 18.1%
Median monthly homeowner costs, with mortgage: $973
Median rent: $592
Located about an hour southwest of Macon, Oglethorpe is full of rolling hills and peach groves—in fact, Macon County is the leading peach producing county in the state. The region is classified as a humid subtropical, so you’ll have temperate weather year-round. Enjoy the allure of gentle country living or venture into town, which is full of restaurants and shops, or to Atlanta, which is just a two-and-a-half-hour drive north.
The cost of living in Macon County is 28.2% lower than the national average, and the median listing price for a home is $97,300. Health care costs are 9.3% lower than the national average, and Georgia has friendly tax policies for retirees, including exempting Social Security payments from state taxes, and the state has no estate or inheritance taxes.
For a Magical European Adventure: Peniche, Portugal
Have you ever dreamed of living in a small European town, shopping every day at local vendors and experiencing centuries of history in everyday churches and public buildings? Then Peniche, Portugal, might very well be the place for you. Just an hour and a half north of Lisbon by car, Peniche is located on a peninsula on Portugal’s “silver coast,” which is known for its wild beaches and medieval towns. The climate is mild, with temperatures in the eighties in the summer and rarely dipping below the sixties in the winter.
Portugal has the lowest cost of living in Western Europe, and the cost of living is 27% lower than in the U.S. You can rent a two-bedroom apartment near the beach for just $500 a month in Peniche and can buy one for roughly $82,000. For the first five years of living in Portugal, you will need to pay for private health insurance—which costs as little as 4 euros a month. After five years, the Portuguese state will provide free health care. While Portugal taxes all forms of retirement income, it offers Non-Habitual Residence (NHR) status for expatriates, which grants favorable tax status to qualifying persons.
Brienne Walsh is a writer based in Savannah, Ga. She contributes to Forbes, Rangefinder and MarketWatch, among other publications.
LEARN MORE: 5 Awesome Places to Retire for $3000 a Month or Less