Yahoo Finance Retirement in Tampa: Why It Costs You Less Than $50,000 a Year
The state of Florida is often synonymous with retirement goals, and of its many metro areas, you may be surprised to find that Tampa ranks as one of the most affordable options. This holds especially true when you run all of the figures and expenditures through your cost of living calculator.
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Retirement in the United States is a significant life milestone, and choosing the right place to enjoy your golden years is crucial. Tampa seems to offer a blend of affordability, pleasant weather and a vibrant community complete with everything from Hyde Park to Busch Gardens. Here’s a look at why retirement is more affordable here.
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Retirement in Tampa, Florida: Quick Take
GOBankingRates researched to determine the large cities in America where it is still possible to retire for less than $50,000 a year based on the average cost of living. Tampa, which is a city with a population of 388,768 people (50,420 of whom are 65 and over), made it to the list built on the following data:
Average monthly costs of expenditures: $1,892
Average annual costs of expenditures: $22,702
Average home value: $400,592
Average monthly mortgage payments: $2,403
Total Average Monthly Cost After Social Security: $2,431
Total Average Annual Cost After Social Security: $29,1670
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5 Reasons You Should Consider Retiring In Tampa
Tampa boasts a relatively low cost of living compared to other major metropolitan areas. Expenses such as groceries, transportation costs, real estate and healthcare are more affordable, contributing to a lower overall monthly expenditure.
This lower cost of living allows retirees to maintain a high quality of life without breaking the bank. Here are five reasons why you can retire in Tampa for less than $50,000 a year.
1. Affordable Housing Options
One of the most significant expenses in retirement is housing. Tampa offers a variety of affordable housing options, from condos to single-family homes and the average monthly mortgage payment comes in at around $2,403.
The average home value in Tampa is $400,592, which is higher than the national average, but still in a reasonable real estate ballpark. Additionally, many senior communities provide a range of amenities at a reasonable cost, further enhancing the value.
2. No State Income Tax
Florida is one of the few states that does not have a state income tax. This means your retirement income, whether it comes from Social Security, pensions or other sources, will not be subject to state taxes. This can lead to significant savings over the years, allowing you to stretch your retirement funds further.
3. Discounts and Benefits for Seniors
Florida offers various discounts and benefits specifically for seniors, which makes sense in cities such as Tampa where 13% of the population are 65 and older. From reduced public transportation fares to discounts at restaurants and attractions, these perks can add up to significant savings. Tampa, in particular, has a strong network of senior services and programs that provide support and cost-saving opportunities.
4. Reasonable Healthcare Costs
Healthcare is a critical concern for retirees. Tampa is home to several top-rated hospitals and healthcare facilities that offer excellent care at competitive prices. The presence of numerous healthcare providers helps keep costs down due to competition. Additionally, Florida’s large retiree population means that many healthcare services are geared toward the needs of older adults, often resulting in better value and service.
5. An Affordable and Active Retirement
The presence of active retirement communities in Tampa offers an affordable and enriching lifestyle for both your financial and social outlook. These communities often include amenities such as swimming pools, fitness centers and social clubs at a fraction of the cost of maintaining such facilities independently. You should be able to afford to be active in Tampa as the average expenditures are estimated to be about $1,892 per month.
Tampa’s climate allows for year-round outdoor activities, many of which are free or very low-cost. Beautiful parks, beaches and nature reserves provide ample opportunities for walking, biking and enjoying nature. These recreational activities not only contribute to a healthy lifestyle but also help retirees save money by reducing the need for costly entertainment.
Final Take To GO
The bottom line is that retiring in Tampa offers a unique combination of affordability, quality healthcare and a vibrant lifestyle, making it possible to enjoy a fulfilling retirement for less than $50,000 a year. Florida is often a dream destination, but knowing that certain cities are as affordable as Tampa on a fixed income makes it all the more achievable.
For the 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 the total population, the population ages 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 Sperlings BestPlaces, and the livability index as sourced from AreaVibes. All cities with a livability of 75 or below were removed from this study as they represent cities with a low quality of life. The average national expenditure costs for residents ages 65 and over were sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for residents ages 65 and over and used to calculate the average expenditure cost for each city. The average home value was used, and by assuming a 10% downpayment 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: Retirement in Tampa: Why It Costs You Less Than $50,000 a Year
