Yahoo Finance Retirement in Chicago: 5 Reasons It Costs You Less Than $50,000 a Year
Retiring in the city of Chicago might not be the first thought for you when considering a place to enjoy your golden years and make your retirement savings last. However, the Windy City has more to offer than just its stylized hot dogs and deep-dish pizza. Its midwestern charm mixed with big city amenities might just make Chicago your kind of town for retirement.
Also see Chicago’s average yearly cost of living.
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Quick Take: How Cheap Is It To Retire in Chicago?
GOBankingRates recently conducted a study to examine price breakdowns of the cost of living in Chicago for retirees. Here’s why retiring in Chicago can cost you less than $50,000 a year.
Total population: 2,721,914
Population of people aged 65 and up: 361,148
Average home value: $306,126
Average monthly mortgage payments: $1,837
Average monthly costs of expenditures: $1,911
Average monthly costs after Social Security: $1,883
Total estimated annual cost of expenditures: $22,929
Total estimated annual cost of living after Social Security: $22,595
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Retirement in Illinois: You Can Live in Chicago for Less Than $50,000 a Year
About 13% of Chicago’s population is over the age of 65 so it has a robust network of community centers and support programs for seniors. These programs offer everything from social activities to assistance with daily tasks, helping retirees maintain an active and fulfilling lifestyle at a low cost.
With over 8,800 acres of green space, Chicago offers plenty of opportunities for free outdoor activities. Seniors can enjoy walking, biking and picnicking in parks like Grant Park, Lincoln Park and the Chicago Riverwalk. These reasons and more are just a few of the ways that not only keep retiring in Chicago enjoyable but also under $50,000 a year.
Chicago’s Reasonable Housing Market
Contrary to popular belief, Chicago offers a range of affordable housing options. Areas like Beverly, Hyde Park and Jefferson Park can provide reasonable home prices and rental rates. Additionally, many retirement communities offer affordable living spaces that cater to your needs on a fixed income.
The average home value in Chicago is about $306,126, whereas the average monthly mortgage payments come in around $1,837. Knowing these general statistics can help you gauge what you’ll need in your nest egg.
Fun and Financially-Savvy Food Scene
Chicago’s dining scene is as diverse as its population. From deep-dish pizza to international cuisine, the city offers countless budget-friendly dining options. Seniors can take advantage of early bird specials and senior discounts at many local restaurants.
As eating is a necessity and one of your biggest budgetary concerns in retirement, it’s good to know you can do so without spending too many silver dollars. GOBankingRates found that the average monthly cost of expenditures, including groceries, is just over $1,900.
Extensive and Cost-Effective Public Transportation
In a city of over 2.7 million people, commuting around can get a little congested. However, Chicago boasts one of the most efficient public transportation systems in the country. The Chicago Transit Authority (CTA) has extensive bus and train networks, which make it easy to get around the city without the need for a car — significantly reducing transportation costs and what you’ll pay at the gas pump.
No- and Low-Cost Entertainment
The city’s cultural scene is rich and varied, offering numerous free and low-cost entertainment options. The Art Institute of Chicago, Millennium Park and the Lincoln Park Zoo are just a few attractions that provide free or discounted entry for seniors.
Chicago is a senior-friendly city with numerous businesses offering discounts to retirees. From grocery stores to movie theaters, seniors can save money on everyday expenses and entertainment.
Overall Affordable Cost of Living
Utility, transportation and food costs in Chicago are relatively low compared to other major U.S. cities. The total estimated annual cost of expenditures is $22,929, but this gets slightly reduced to around $22,595 when you factor in Social Security benefits. The cost of living will always fluctuate depending on your lifestyle preferences but being able to gauge where you can settle financially helps you better plan and achieve your long-term savings goals.
Retiring Comfortably in Chicago Is Possible
The bottom line is that retiring in Chicago doesn’t have to be expensive if you know how to live within or below your means. With its affordable housing, extensive public transportation, diverse dining options and abundant free entertainment, the Windy City offers a high quality of life for retirees at a cost well within reach. Your cost of living can be cost effective which is a great goal when retirement planning and all that jazz.
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This article originally appeared on GOBankingRates.com: Retirement in Chicago: 5 Reasons It Costs You Less Than $50,000 a Year
