close
close
Mon. Jul 22nd, 2024

Retirement in Baltimore: 3 Reasons It’ll Cost You Less Than $50,000 a Year

By meerna Jul11,2024
Retirement in Baltimore: 3 Reasons It’ll Cost You Less Than ,000 a Year

View of the Baltimore skyline and Inner Harbor from Federal Hill at dusk, Maryland.

sborisov / Getty Images/iStockphoto

Retirement is a time to take a permanent break from work and relax into a more relaxed lifestyle, if you can afford it. That’s why it’s so important to find a retirement destination that fits your budget. Baltimore, with its rich history and relatively low cost of living, is an attractive option for retirees, especially when you can retire there on less than $50,000 a year.

Quick Review: How Cheap Is Retirement Living in Baltimore?

GOBankingRates recently conducted a study to examine the price breakdowns of Baltimore’s cost of living for retirees. If you prefer a metropolitan area and don’t want to exhaust your retirement funds, living on less than $50,000 per year can help you stretch your savings and monthly budget.

  • General population: 584,548
  • Population aged 65 and over: 86 395
  • Average home value: $186,037
  • Average monthly mortgage payments: 1116 dollars
  • Average monthly expense costs: 1807 dollars
  • Average monthly costs after social security: 1058 dollars
  • Total estimated annual cost of expenses: $21,679
  • Total estimated annual cost of living after social security contributions: $12,699

Retirement in Maryland: You Can Live in Baltimore for Less Than $50,000 a Year

Baltimore boasts a vibrant cultural scene with many free and low-cost activities. The city’s museums, parks and historic sites often offer senior discounts. Its location is ideal for those who want to enjoy the amenities of larger cities without the higher prices. Washington, D.C., Philadelphia and New York City are all accessible by train or car, making day trips and excursions easy and affordable.

Slowing down doesn’t mean you have to stay put after retirement. Thanks to three smart factors that affect the cost of living in Baltimore, you won’t have to.

1. Affordable Housing in Baltimore

Housing is one of the biggest budget concerns when it comes to living off retirement savings. Compared to other growing metropolitan areas on the East Coast, Baltimore’s real estate market is more budget-friendly. The median home value can be under $200,000 at around $186,037, but that helps keep average monthly mortgage payments to only around $1,116.

2. Lower cost of living

The cost of living in Baltimore is lower than the national average, which makes everyday expenses more manageable. Grocery, utility, and transportation costs are all relatively low, which can significantly reduce your annual expenses. GOBankingRates found that the average monthly expense cost is just over $1,800, or closer to $1,000 after Social Security, and the total estimated annual expense cost is $21,679, but that’s significantly less when you factor in Social Security benefits, as that drops to $12,699 per year.

3. Tax relief for retirees

Maryland offers a number of tax breaks for retirees. Social Security income is not taxed, and retirement income is exempt. These tax breaks can significantly reduce your annual expenses, leaving more money in your pocket. With nearly 15% of Baltimore residents of retirement age, it’s a good sign that the city is taking care of its seniors.

Baltimore also has a robust network of community centers and support services tailored to the growing boomer population. These centers offer a variety of programs, from fitness classes to social events, often for little or no fee. Staying engaged and active can be both enjoyable and economical.

Final shot for GO

Baltimore stands out as a city where retirees can enjoy a comfortable and fulfilling lifestyle without breaking the $50,000 annual budget. With affordable housing, low living costs, and more, Baltimore offers a sustainable and economically viable retirement option. If you’re considering moving for retirement, Baltimore’s combination of affordability and quality of life makes it a city worth exploring.

More from GOBankingRates

By meerna

Related Post