Yahoo Finance Retirement in New Orleans: 4 Reasons It Costs You Less Than $50,000 a Year
Just because it’s the Big Easy doesn’t make retirement planning necessarily simple in New Orleans. From live music performances in the French Quarter to an abundant supply of affordable amenities, retirees can enjoy a rich cultural life without spending a fortune.
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What you put into your retirement savings now could go further in New Orleans when you retire. After all, just because you like eating po’boys doesn’t mean you want to be one.
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Quick Take: How Cheap To Retire in New Orleans?
GOBankingRates recently conducted a study to examine price breakdowns of the cost of living in New Orleans for retirees. Some of the estimates and averages found may surprise you.
Total population: 380,408
Population of people aged 65 and up: 60,419
Average home value: $242,351
Average monthly mortgage payments: $1,454.06
Average monthly costs of expenditures: $1,816.12
Average monthly costs after Social Security: $1,405.66
Total estimated annual cost of expenditures: $21,793.50
Total estimated annual cost of living after Social Security: $16,867.96
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Retirement in Louisiana: Live in New Orleans for Less Than $50,000 a Year
New Orleans has Affordable Housing Options
It would seem that Southern hospitality has influenced the housing market of even major metropolitan areas. Housing costs in New Orleans are relatively low compared to many other major cities. The average home value comes in under $300,000 at about $242,351, and the average monthly mortgage payment is under $2,000 at around $1,454.
Louisiana also offers property tax exemptions for many seniors, which can significantly reduce the cost of owning a home. These exemptions, coupled with generally low property tax rates, make homeownership in New Orleans more affordable for retirees.
The Cost of Living Is Competitively Cheap
Living in New Orleans helps keep your monthly budget on a fixed income on track. The usually mild climate means lower heating bills, while an affordable and efficient system of public transportation helps you save on car maintenance and gas prices.
All those details and more lead to your total expenses totaling less than $50,000 annually. Social Security benefits also shave thousands off your total estimated annual expenditure cost of roughly $21,793 (which falls to nearly $16,867 after factoring it in).
Lower Food Costs
The average monthly cost of expenditures is estimated to be just over $1,800 which gets knocked down to about $1,400 after Social Security.
Paying for food, both when grocery shopping and dining out, is often one of the biggest budgetary percentages. Luckily, New Orleans tends to come in cheaper for food costs when compared to some other big cities.
Many farmers’ markets and local produce stands provide fresh, affordable options, helping you maintain a healthy diet without overspending. New Orleans is also renowned for its cuisine, and you don’t have to spend a lot to enjoy it. The city is filled with affordable dining options, from casual eateries and food trucks to happy hour specials at upscale restaurants which retirees can enjoy at their leisure.
Social Security Goes Further in Nola
Social Security benefits aren’t necessarily the most reliable form of income in your retirement. However, if you are expecting to have these checks subsidize your retirement income, New Orleans might be a great location to stretch your funds further.
These benefits shave off nearly $400 a month, and $5,000 a year, in your expected cost of living.
Final Take To GO
The bottom line is that retiring in New Orleans offers a unique blend of affordability and vibrant living. With a lower cost of living, and cheaper housing in general, retirees can have an enriching retirement for less than $50,000 a year.
Embrace the charm and spirit of this historic city while keeping your budget in check, and all that jazz.
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: Retirement in New Orleans: 4 Reasons It Costs You Less Than $50,000 a Year
