It's Possible To Retire on a $1,500 Monthly Budget
If you have a fixed income of $1,500 per month in retirement, certain cities and regions may be off-limits.
For those who wish to retire to safe havens that offer cheap living expenses, some of the cheapest and safest countries to retire to include Indonesia, Ghana, Romania, North Macedonia, and Vietnam.
While it's difficult to pinpoint an average retirement income, the most recent Census Bureau data indicates that people 65 and older have a median annual income of approximately $54,700 or nearly $4,560 per month. A financial advisor can help you create a retirement plan for the future. Speak with an advisor today.
Costa Rica
Once settled, most retiree couples can live well within the country for as little as $2,000 per month.
Medellín, Colombia
Couples can live there for less than $1,700 per month, enjoying the springlike climate, outdoor recreation and vibrant culture. Colombia provides the amenities and infrastructure of a high-cost-of-living country at a low cost.
According to the Social Security Administration, or SSA, the monthly retirement benefit for Social Security recipients is currently $1,783.55 in 2024 on average. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.
Retiring abroad on $1,000 per month doesn't mean sacrificing quality of life. Many countries offer excellent health care, infrastructure and amenities at a fraction of the cost compared to the U.S. The cheapest places to retire abroad include Panama, the Philippines, Portugal, Malaysia, Mexico, Thailand and Vietnam.
Thailand. Is it possible to retire in Thailand and keep the costs in check? Certainly! It's another top choice for digital nomads with an achievable $500 monthly budget, focusing on affordable accommodation.
Wisconsin, New Hampshire, and Tennessee are all highly ranked retirement destinations for health care needs due to low or no income taxes, access to quality health care facilities, and access to nature and recreational activities.
We've asked financial experts to weigh in and many have emphasized that with careful planning and well thought out strategies, it's entirely possible to live on this amount during retirement.
In 2023, housing expenses—mortgage payments, rent, property taxes, insurance, maintenance, and repair costs—averaged $21,445 (approximately $1,787 per month) for retiree households, accounting for over 36% of annual expenditures.
Starting in 2025, tax Social Security benefits in a manner similar to private pension income. Phase out the lower-income thresholds during 2025-2044. Memorandum containing this or a similar provision: Warshawsky 2008.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
Has your income declined or have you experienced a loss of financial resources? You may be able to get additional income through the Supplemental Security Income program, which helps seniors and the disabled who have limited income and financial resources.
My mother, sister and I all live off 1700 a month, normally, so I can guarantee you can do it if it's only two people living on that amount. Groceries would be fairly simple to take care of, so long as you both don't pig out, and anything else, if you have extra, is good so long as it doesn't break your budget.
While $1,500 might not be enough for non-housing retirement expenses for many people, it doesn't mean it's impossible to stick to this or other amounts, such as if you're already retired and don't have the ability to increase your budget.