6 Reasons It Costs You Less Than $50,000 a Year To Retire in Atlanta
When you are doing the arithmetic of where you can afford retirement real estate, where you live is just as important as how you live. Whether you are just starting your retirement savings journey, or are looking to stop working within the next few years, budgeting out your nest egg is an important step in money management.
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Finding a city where you can live for less than $50,000 a year might make figuring out your retirement finances a downright peachy endeavor.
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Quick Take: How Cheap Is It To Retire in Atlanta?
GOBankingRates recently conducted a study examining price breakdowns of the cost of living in the Atlanta area for retirees, including statistics for both before and after Social Security benefits are factored in. Here are some key takeaways:
Total population: 494,838
Population of people aged 65 and up: 59,457
Average home value: $452,015
Average monthly mortgage payments: $2,712
Average monthly costs of expenditures: $1,884
Average monthly costs after Social Security: $2,731
Total estimated annual cost of expenditures: $22,605
Total estimated annual cost of living after Social Security: $32,775
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Retirement in Georgia: You Can Live in Atlanta for Less Than $50,000 a Year
Retirement is a significant life stage that requires careful planning and financial foresight. If you are considering a move to Atlanta, the good news is that retiring in the vibrant downtown area or the greater metropolitan surrounding suburbs can be surprisingly affordable. Here are six reasons retirement in Atlanta can cost you less than $50,000 a year.
Atlanta Options for Affordable Housing
Atlanta offers a variety of affordable housing options, which helps keep what you spend on real estate more in check during retirement. Whether you’re looking for a modest single-family home, a condominium or an apartment, you can find something within your budget. The average home value is a bit high at around $452,015, whereas the average monthly mortgage payments come in just under $3,000 at $2,712.
Tax-Friendly Retirement
Compared with the national average, Georgia as a state has some of the lowest property taxes in the United States, and Atlanta is no exception. Though the Atlanta sales tax is on the higher end at 8.9%, retirees can typically benefit from various tax exemptions and reductions, particularly if they meet age and income requirements. This means more of your money stays in your pocket, making it easier to maintain your lifestyle without overspending.
Georgia is considered one of the most tax-friendly states for retirees. Social Security benefits are exempt from state taxes, and there are significant deductions available for other types of retirement income. This favorable tax environment means you can stretch your retirement savings further, making it easier to live comfortably on less than $50,000 a year.
Easily Accessible Top-Tier Healthcare
Atlanta is home to some of the best healthcare facilities in the country, including Emory University Hospital and Piedmont Atlanta Hospital. The competition and variety of healthcare providers help keep costs reasonable.
Many healthcare services are conveniently located, reducing the need for expensive travel and making it easier to manage healthcare costs effectively. As 12% of the Atlanta population is at least age 65 and older, access to healthcare is imperative.
Cost-Effective Cost of Living
The overall cost of living in Atlanta is lower than in many other major cities. GOBankingRates found that the total estimated annual cost of expenditures is $22,605 and the total estimated annual cost of living after Social Security benefits are accounted for to be approximately $32,775.
Groceries, utilities, transportation and entertainment all come at reasonable prices. Retirees can enjoy a high quality of life without the financial burden associated with living in more expensive urban areas.
Cheap Public Transportation
Atlanta offers a robust public transportation system, including the Metropolitan Atlanta Rapid Transit Authority, or MARTA, which provides buses and trains that are both affordable and reliable transportation options. For those who prefer walking, many neighborhoods in Atlanta are pedestrian-friendly, reducing the need for owning and maintaining a car, thereby cutting transportation costs. With ever-rising gas prices, having options other than driving can be efficient and money-saving.
Rich Recreational Opportunities Without a Hefty Price Tag
One of the joys of retirement is having the time to explore new interests and hobbies, especially with like-minded people in similar age brackets. Atlanta boasts not only a rich cultural scene with numerous no or low-cost activities but also a large amount of 55-plus communities. The city’s numerous parks and outdoor spaces also provide many recreational options and activities, including everything from festivals and museums to parks and community events. There are endless opportunities to stay an active adult and engage in all Atlanta has to offer without spending a fortune.
Final Take To GO
The bottom line is that as a retirement destination, Atlanta offers you a blend of affordability, accessibility and an active lifestyle, making it an ideal place to enjoy not working instead of worrying about money. With careful planning and smart financial decisions, you can experience a comfortable retirement in one of the most dynamic cities in Georgia for less than $50,000 a year.
Methodology: For this study, GOBankingRates analyzed major U.S. cities to find the places where you can afford to retire on less than $50,000 a year. First, GOBankingRates found the most populated U.S. cities as sourced from the U.S. Census American Community Survey. For each city, a number of factors were found, including total population, population aged 65 and over both sourced from the U.S. Census American Community Survey, the average home value from April 2024 as sourced from Zillow Home Value Index, the average Social Security benefits as sourced from the Social Security Administration, the cost of living indexes as sourced from Sperling’s BestPlaces, and the livability index as sourced from AreaVibes. All cities with a livability of 75 or below were removed for this study, as they represent cities with a low quality of life. The average national expenditure costs for residents aged 65 and over was sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for residents aged 65 and over and used to calculated the average expenditure cost for each city. The average home value was used, and by assuming a 10% down payment and using the national 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage costs can be calculated. The mortgage and expenditures can be used to find the total cost of living for each city. Assuming a retired resident received Social Security benefits, the total cost of living after Social Security benefits was calculated. The cities with an annual cost of living above $50,000 were removed for this study. The top 100 cities by population with all correlating data were kept with the rest removed and the remaining cities were sorted by their total cost of living. All data was collected on and is up to date as of May 17, 2024.
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This article originally appeared on GOBankingRates.com: 6 Reasons It Costs You Less Than $50,000 a Year To Retire in Atlanta