5 Reasons It Costs You Less Than $50,000 a Year To Retire in Minneapolis

Your retirement plan is as unique to you as your lifestyle, and the finances you have set aside should reflect that. If you currently live in Minneapolis or are just exploring other Minnesota state options, it’s good to know what moving to one of the Twin Cities could cost you — or even save you.

When it comes to applying your retirement benefits to the cost of living in Minneapolis, your funds might be more flexible than you think.

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Quick Take: How Cheap Is It To Retire in Minneapolis?

GOBankingRates recently conducted a study to examine price breakdowns and determine if you could retire in Minneapolis, Minnesota for less than $50,000 a year. Here are some key takeaways:

• Total population: 426,877
• Population of people aged 65 and up: 45,680
• Average home value: $342,444
• Average monthly mortgage payments: $2,055
• Average monthly costs of expenditures: $1,895
• Average monthly costs after Social Security: $2,085
• Total estimated annual cost of expenditures: $22,745
• Total estimated annual cost of living after Social Security: $25,026

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Retirement in Minnesota: Why You Can Live in Minneapolis for Less Than $50,000 a Year

Retirement is a significant life milestone that brings with it the freedom to explore new hobbies, spend time with loved ones and enjoy a slower pace of life. Finding a location that balances affordability, quality of life, easy access to amenities and even property taxes is vital to the health and longevity of your pension plan.

Minneapolis, often overlooked in favor of warmer destinations, offers a compelling case for a retirement destination that won’t bust your budget . Here are five reasons it’s possible to retire comfortably in Minneapolis for less than $50,000 a year.

Minneapolis Housing Market Costs

Typically, where you rent or buy your home takes the biggest chunk out of your bank account each month.  However, Minneapolis provides various affordable options, especially when compared to the national average or many other major metropolitan areas.

GOBankingRates found that the average home value in Minneapolis is $342,444 and the average monthly mortgage payments are around $2,055. For those who prefer owning a home, downsizing to a smaller property or considering condos can significantly reduce monthly mortgage payments.

Providing More Cost-Effective Healthcare

Access to quality healthcare is paramount in retirement, and Minneapolis excels in this area. Considering nearly 11% of the population is 65 or older, it’s good that the city is home to several top-tier hospitals and medical centers, including the renowned Mayo Clinic in nearby Rochester.

If you are of retirement age, Medicare covers most healthcare costs. On average, out-of-pocket healthcare expenses in Minneapolis are generally affordable as far as medical bills go, considering Medicare premiums, deductibles and co-pays.

You Can Have Both a Balanced Budget and Meal

After housing, food is one of the biggest expenses to factor into your retirement planning. Whether it’s eating in or dining out, you can find affordable options. It’s always best to live within or beneath your means, but you won’t suffer for options in Minneapolis.

When you are allocating your retirement funds for the month, you can expect to pay around $1,895 on average for monthly expenses and $2,085 in monthly costs after Social Security benefits have been deducted from the total.

An Affordably Active Retirement Community

One of the greatest advantages of retiring in Minneapolis is the wealth of recreational activities and cultural amenities available. The city is known for its parks, lakes and green spaces, offering ample opportunities for outdoor activities such as walking, biking and boating. The Minneapolis Park and Recreation Board provides many free or low-cost programs for seniors.

Cultural attractions like the Minneapolis Institute of Art, Walker Art Center and Guthrie Theater offer senior discounts and free admission days. Annual entertainment and recreation expenses can comfortably fit within your budget — and allow you to stay active while living your best retirement life.

Not an Overly Costly Cost of Living

Expenses in Minneapolis are relatively affordable overall, considering the average monthly cost for utilities, housing, groceries and more. Minneapolis boasts an efficient public transportation system, which can help you save on transportation and gas prices.

In general, the total estimated annual cost of expenditures is $22,745, whereas the total estimated annual cost of living, after Social Security has been applied, is $25,026.

Final Take To GO

The bottom line is that retiring in Minneapolis is an affordable option that doesn’t require you to sacrifice your quality of life. With everything from performing arts to sporting events, Minneapolis presents an attractive option for retirees looking to live out their golden years in style without a hefty price tag attached.

By managing expenses wisely, retirees can enjoy all that this vibrant city offers while maintaining financial security. So, if you’re considering a place to spend your golden years, don’t overlook the hidden gem of the Midwest — Minneapolis, where a fulfilling retirement can indeed cost you less than $50,000 a year.

Methodology: For this study, GOBankingRates analyzed major U.S. cities to find the places where you can afford to retire on less than $50,000 a year. First, GOBankingRates found the most populated U.S. cities as sourced from the U.S. 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 U.S. Census  American Community Survey; the average home value from April 2024 as sourced from the 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% down payment 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 17, 2024.

This article originally appeared on GOBankingRates.com : 5 Reasons It Costs You Less Than $50,000 a Year To Retire in Minneapolis