Yahoo Finance 5 Reasons It Costs You Less Than $50,000 a Year To Retire in El Paso
If you are hoping to retire in Texas and don’t come from old oil money, then you want to ensure that your retirement savings and investments will last you as long as you need them to. The Lone Star State is quite large and has many hidden gems like El Paso, Texas. Known for its sunny weather, friendly communities, and low cost of living, El Paso presents a compelling case for retirees.
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In a recent study, GOBankingRates recently conducted a study to find cities where you would be able to retire for less than $50,000 a year. Many of the places found were in Texas, and it wasn’t just small towns, in fact, other major cities such as Austin, San Antonio and Fort Worth were also listed, but El Paso still beat them out as one of the most affordable options.
El Paso has plenty of options for retirees based on everything from monthly mortgage payments to overall cost of living. Here are some key takeaways:
Total population: 677,181
Population of people aged 65 and up: 91,453
Average home value: $223,722
Average monthly mortgage payments: $1,342.29
Average monthly costs of expenditures: $1,715.88
Average monthly costs after Social Security: $1,193.65
Total estimated annual cost of expenditures: $20,590.53
Total estimated annual cost of living after Social Security: $14,323.75
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Retiring in Texas: Live In El Paso for Less Than $50,000 a Year
Looking ahead to what you’ll need to comfortably retire, often you won’t be able to count on as much from Social Security benefits as you once thought, so having a more affordable cost of living is important. El Paso is worth considering if you prefer a warmer climate with big-city amenities and small-town price tags. Here are five reasons you can retire in El Paso for less than $50,000 a year:
1. The El Paso Housing Market
One of the most significant expenses in retirement is housing, and El Paso shines in this regard, as you can definitely save a few pennies moving here. The average monthly mortgage payments for residents reasonably come in at just over $1,300. The housing market, as of 2024, shows the estimated average home value to be about $223,722.
If you don’t want to take the plunge of buying a home, but would rather just spend some time in El Paso, the city also offers a wide range of affordable apartments and houses for rent. Whether you choose to buy or rent, housing in El Paso is significantly cheaper than in many other parts of the country, or even other parts of Texas.
2. El Paso, Texas is Tax Friendly
Texas has no state income tax, which is already a huge plus for retirees. Additionally, property taxes in El Paso are relatively low compared to other major cities in Texas such as Austin, Dallas or Houston. This means that homeowners can enjoy substantial savings on their annual property tax bills, further reducing the overall cost of living.
3. Paying Less For Your Monthly Bills
The climate in El Paso contributes to lower utility bills. With its mild winters and warm/dry summers, heating and cooling costs are manageable. The city’s emphasis on energy efficiency and the availability of solar energy options also help to keep utility costs in check. As the average cost of monthly expenditures is approximately $1,700, saving a little bit here and there on utilities really adds up.
4. Low Food Costs
El Paso boasts a diverse food scene with a mix of affordable grocery options and dining establishments, which is good to note amongst rising food costs across the country. The cost of groceries in El Paso is generally lower than in other parts of the country, and eating out doesn’t have to be a luxury.
Many retirees are on a fixed income so grocery shopping and eating out without dipping too much into your savings is key to stretching out the retirement budget. GOBankingRates found the estimated annual cost of expenditures to be just over $20,000, which is far less than other big cities. When it comes to necessities such as eating, it helps to be able to plan to save enough to know you are comfortably covered.
5. Affordable Cost of Living
The total estimated annual cost of living after Social Security in El Paso is estimated to be around $14,324. Depending on how much you have saved across your retirement accounts and investments you’ll want to live in a place that comfortably suits your means. Whether that’s food costs, housing prices or just what you pay each month for utilities, every piece adds up to the cost of living puzzle, especially if you are hoping to live on less than $50,000 a year.
Final Take To GO: Retiring in El Paso
The bottom line is that El Paso stands out as an ideal retirement destination for those seeking an accommodating lifestyle with a price tag that rings up lower than the national average. With affordable housing, low property taxes, reasonable utility costs, inexpensive healthcare, and a low cost of groceries and dining out, retirees can enjoy a high quality of life for less than $50,000 a year.
Being on a budget doesn’t mean you can’t stay active. El Paso offers a wealth of recreational activities and entertainment options that are either free or offer a senior discount. The city’s numerous parks, such as the Franklin Mountains State Park or other hiking trails, and cultural events provide ample opportunities for staying active and engaged.
For the methodology for this study, GOBankingRates analyzed major US cities to find the places where you can afford to retire on less than $50,000 a year. First GOBankingRates found the most populated US Cities as sourced from the US Census American Community Survey. For each city, a number of factors were found including the total population, the population aged 65 and over both sourced from the US 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 aged 65 and over were sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for residents aged 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 17th, 2024.
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This article originally appeared on GOBankingRates.com: 5 Reasons It Costs You Less Than $50,000 a Year To Retire in El Paso
