Yahoo Finance Retirement in Baltimore: 3 Reasons It Costs You Less Than $50,000 a Year
Retirement is a time to take a permanent break from work and relax into a more leisurely lifestyle, as long as you can afford it. This is why it is crucial in retirement to find a place that aligns with your financial means. Baltimore, with its rich history and relatively low cost of living, emerges as an attractive option for retirees, especially when you can retire there for less than $50,000 a year.
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Quick Take: How Cheap Is It To Retire in Baltimore?
GOBankingRates recently conducted a study to examine price breakdowns of the cost of living in Baltimore for retirees. If you prefer a metropolitan area and don’t want to run out of retirement funds, living for less than $50,000 a year could help you stretch your savings and monthly budget.
Total population: 584,548
Population of people aged 65 and up: 86,395
Average home value: $186,037
Average monthly mortgage payments: $1,116
Average monthly costs of expenditures: $1,807
Average monthly costs after Social Security: $1,058
Total estimated annual cost of expenditures: $21,679
Total estimated annual cost of living after Social Security: $12,699
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Retirement in Maryland: You Can Live in Baltimore for Less Than $50,000 a Year
Baltimore boasts a rich cultural scene with numerous free or low-cost activities. The city’s museums, parks and historical sites often have discounts for seniors. Its location is ideal for those who want to enjoy the amenities of larger cities without the higher price tags. Washington, D.C.; Philadelphia, and New York City are all accessible via train or car, allowing for easy and more affordable day trips and excursions.
Slowing your daily grind doesn’t mean you have to stand still when you retire, and thanks to these three reasonable cost-of-living factors in Baltimore, you won’t have to.
1. Baltimore’s Affordable Housing
Housing is one of your biggest budgetary concerns when it comes to living off of your retirement savings. When compared to other booming metropolitan areas on the East Coast, the Baltimore housing market is friendlier to your funds. The average home value may be under $200,000 at about $186,037, but that helps the average monthly mortgage payments only come to around $1,116.
2. Lower Cost of Living
Baltimore’s cost of living is below the national average, making everyday expenses more manageable. Groceries, utilities and transportation costs are all relatively low, which can significantly reduce your annual spending. GOBankingRates found the average monthly costs of expenditures to be just over $1,800 or closer to $1,000 after Social Security, and the total estimated annual cost of expenditures is $21,679, but that is much less when you factor in Social Security benefits as it drops it closer to $12,699 a year.
3. Tax Benefits for Retirees
Maryland provides several tax benefits for retirees. Social Security income is not taxed, and there are exemptions on pension income. These tax advantages can significantly lower your annual expenses, keeping more money in your pocket. As nearly 15% of Baltimore residents are of retirement age, it bodes well that the city sees after its senior citizens.
Baltimore also has a robust network of community centers and support services tailored for the booming boomer population. These centers offer various programs, from fitness classes to social events, often at little to no cost. Staying engaged and active can be both enjoyable and economical.
Final Take To GO
Baltimore stands out as a city where retirees can enjoy a comfortable and fulfilling lifestyle without exceeding a $50,000 annual budget. With its affordable housing, low cost of living and more, Baltimore offers a balanced and economically viable retirement option. If you’re considering a move for your retirement, Baltimore’s blend of affordability and quality of life makes it a city worth exploring.
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This article originally appeared on GOBankingRates.com: Retirement in Baltimore: 3 Reasons It Costs You Less Than $50,000 a Year
