Yahoo Finance Retirement in Omaha, Nebraska: 6 Reasons It Costs You Less Than $50,000 a Year
If you look at retirement planning like building a home, then the floor plans would include saving for and creating a budget that will last you the rest of your life when you are officially done working. Though California or Florida retirement options might get the most attention, thanks to supply and demand, that usually means they are some of the most expensive places to do so. When it comes to hidden gems like Omaha, Nebraska, you don’t have to sacrifice city living or creature comforts to retire there for less than $50,000 a year.
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GOBankingRates recently conducted a study to find places where people can retire for less than $50,000 annually and Omaha was found to be a very viable option. It has a large retirement-age population so many of the city’s cost-of-living statistics align with retirees’ budgetary constraints.
Here are some key takeaways:
Total population: 489,201
Population of people ages 65 and up: 67,693
Average home value: $283,135
Average monthly mortgage payments: $1,699
Average monthly costs of expenditures: $2,053
Average monthly costs after Social Security: $1,887
Total estimated annual cost of expenditures: $24,632
Total estimated annual cost of living after Social Security: $22,643
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Retiring in Nebraska: Live in Omaha for Less Than $50,000 a Year
When it comes to planning for retirement, finding a city that offers a high quality of life at a low cost is crucial. Omaha may be somewhat overlooked in favor of larger cities but remains an ideal destination for retirees looking to stretch their savings without sacrificing comfort. Here are six reasons why retiring in Omaha can cost you less than $50,000 a year.
1. An Affordable Housing Market
Where you live and what you live in is one of the biggest factors in your retirement budget. Residents of Omaha can breathe a little easier than many other big cities as the average mortgage payment is estimated to be about $1,699 a month. Average home values are just over $283,000.
Whether you choose to buy or rent, you’ll find plenty of affordable options. Additionally, property taxes in Nebraska are relatively low, further reducing your annual expenses.
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2. Omaha Is Tax-Friendly for Retirees
Nebraska is known for its favorable tax environment for retirees. Social Security benefits are not taxed at the state level, and there are several exemptions and deductions available for other types of retirement income. GOBankingRates found the total estimated annual cost of living after Social Security to be about $22,643.
Sales tax in Omaha is also reasonable, and there are no local taxes, making your overall tax burden much lighter compared to other states. The state sales tax is 5.5% and the minimum combined 2024 sales tax rate for Omaha is 7%.
3. Affordable Healthcare for Seniors
Healthcare is another major concern for retirees who find themselves now needing to procure the most affordable insurance and medical assistance. Omaha boasts a robust healthcare system with numerous hospitals and clinics offering high-quality care at lower costs than many other cities. This makes sense as 13.8% of the population is retirement age, which is considered those 65 and up.
Medicare and supplemental insurance plans are widely accepted, and the average cost of healthcare services is lower than the national average, ensuring that you can receive the care you need without breaking the bank.
4. You Don’t Get Stuck With Expensive Utility Bills
Omaha enjoys moderate utility costs, thanks to the region’s affordable energy rates and efficient infrastructure. The cost of electricity, natural gas, water and other utilities is below the national average, helping you save money on essential services. Your costs of expenditures are estimated to be around $2,053 a month all in.
5. You Can Afford To Eat
Eating out and grocery shopping in Omaha won’t drain your retirement funds. The city boasts a wide variety of restaurants offering everything from local favorites to international cuisine at reasonable prices. Grocery costs in Omaha are also lower than the national average, and the abundance of farmers’ markets and local produce ensures you can eat healthy on a budget.
6. You Can Cut Your Cost of Living, Not Corners
Generally, the cost of living in Omaha is lower than in many major metropolitan areas. GOBankingRates found the total estimated annual cost of living after Social Security to be about $22,643. Cost of living is the recipe but the ingredients can vary from transportation to recreational activities.
Transportation
Getting around Omaha is both easy and affordable. The city’s public transportation system, Metro Transit, offers senior discounts and provides reliable service throughout the city. If you prefer to drive, you’ll find that gas prices in Omaha are generally lower than the national average, and the city’s layout makes for minimal traffic congestion, saving you time and money on your daily commutes.
Senior Services
Omaha provides a range of services tailored to seniors, including community centers, fitness programs and educational classes, many of which are free or low-cost. The city’s strong sense of community and numerous volunteer opportunities also allow retirees to stay active and engaged without spending a lot of money.
Leisure and Entertainment
The city is home to numerous parks, museums and cultural events that are either free or have a low admission fee. The Henry Doorly Zoo and Aquarium, one of the top-ranked zoos in the world, offers senior discounts, making it an affordable way to spend a day. Additionally, Omaha’s vibrant arts scene, including the Omaha Community Playhouse and the Joslyn Art Museum, provides plenty of entertainment options at a fraction of the cost you’d find in larger cities.
Final Take To GO
The bottom line is that retiring in Omaha offers a combination of being comfortable in your retirement and knowing your retirement savings will last. By choosing Omaha, you can enjoy the perks of city living while also enjoying a fulfilling retirement without the financial stress that often accompanies this stage of life. With its low cost of living and abundance of amenities, Omaha is a hidden gem for retirees seeking a high quality of life on a budget under $50,000 a year.
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This article originally appeared on GOBankingRates.com: Retirement in Omaha, Nebraska: 6 Reasons It Costs You Less Than $50,000 a Year
