The average retirement income in America is under $28,000, according to the U.S. Census Bureau’s American Community Survey. That does not allow for a very rich retirement — under $2,500 per month. But there are cities where you can enjoy a nice quality of life in your senior years.
Check Out: The Money You Need To Save Monthly To Retire Comfortably in Every State
Learn More: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
GOBankingRates found the best cities to retire on a monthly budget of $2,500 or less. This pool was determined by finding the 750 largest cities in America and then narrowing down to the ones where monthly rent was $1,300 or less. All cities have livability scores of 70 or higher.
See where the best cities to retire on $2,500 are.
Davenport, Iowa
Monthly expenditures: $2,288
Livability: 77
Find Out: How Long $2 Million in Retirement Will Last in Every State
See More: How Much Money Is Needed To Be Considered Middle Class in Every State?
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
Terre Haute, Indiana
Monthly expenditures: $2,331
Livability: 74
Explore More: America’s 50 Most Expensive Retirement Towns
Muncie, Indiana
Monthly expenditures: $2,352
Livability: 81
Erie, Pennsylvania
Monthly expenditures: $2,371
Livability: 82
Green Bay, Wisconsin
Monthly expenditures: $2,395
Livability: 71
Also See: America’s 30 Safest and Wealthiest Retirement Towns
Canton, Ohio
Monthly expenditures: $2,414
Livability: 70
Jackson, Michigan
Monthly expenditures: $2,434
Livability: 74
Akron, Ohio
Monthly expenditures: $2,438
Livability: 81
Lansing, Michigan
Monthly expenditures: $2,464
Livability: 79
Find More: How Far $500,000 in Retirement Savings Plus Social Security Goes in Every State
Fargo, North Dakota
Monthly expenditures: $2,481
Livability: 84
Pharr, Texas
Monthly expenditures: $2,497
Livability: 72
Springfield, Illinois
Monthly expenditures: $2,499
Livability: 81
Methodology: GOBankingRates used Zillow April 2025 data to find every city in the U.S. (limited to the 750 largest) that had monthly rent of $1,300 or less. GOBankingRates then used Sperling’s BestPlaces to find the cost-of-living index for every city on the list. Next, GOBankingRates used data from the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey to find the annual expenditure amount for grocery, healthcare and utilities costs for people aged 65 and older in order to find how much a person 65 and over would spend on those things in each city on a monthly basis. GOBankingRates then added monthly housing, grocery, healthcare and utilities costs together to find where a person 65 and older could survive on $2,500 or less. In order for a city to be qualified for the study, it had to have a livability score of 70 or higher (as sourced from AreaVibes). All data was collected on and is up to date as of June 4, 2025.
More From GOBankingRates
I’m a Realtor: This Is Why No One Wants To See Your Home
3 Things Retirees Should Stop Buying To Save Money Amid Tariffs
How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
7 Wealth-Building Shortcuts Proven To Add $1K to Your Wallet This Month
This article originally appeared on GOBankingRates.com: The Best Cities To Retire on $2,500 a Month
