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If you see retirement planning like building a house, then the floor plans would include saving and creating a budget that will last you the rest of your life when you are officially done working. Although California or Florida retirement options may get the most attention, thanks to supply and demand, that usually means they are some of the most expensive places to do so. When it comes to hidden gems like Omaha, Nebraska, you don’t have to sacrifice city living or amenities to retire there for less than $50,000 a year.
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GOBankingRates recently conducted a study to find places where people can retire for less than $50,000 a year and Omaha was found to be a very viable option. It has a large retirement-age population, so many of the city’s cost of living statistics align with retiree budget constraints.
Here are some key takeaways:
Total population: 489,201
Population of people aged 65 and over: 67,693
Average home value: $283,135
Average monthly mortgage payments: $1,699
Average monthly expense costs: $2,053
Average monthly costs after Social Security: $1,887
Estimated total annual cost of expenses: $24,632
Estimated total annual cost of living after Social Security: $22,643
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Retire in Nebraska: Live in Omaha for less than $50,000 a year
When it comes to retirement planning, it’s essential to find a city that offers a high quality of life at a low cost. Omaha may be overlooked in favor of larger cities, but it’s still an ideal destination for retirees looking to tap into their savings without sacrificing convenience. Here are six reasons why retiring in Omaha can cost you less than $50,000 a year.
1. An affordable real estate market
Where you live and what you live in is one of the most important factors in your retirement budget. Omaha residents can breathe a little easier than many other big cities, as the average mortgage payment is estimated to be about $1,699 a month. The median home value is just over $283,000.
Whether you choose to buy or rent, you’ll find many affordable options. Additionally, property taxes in Nebraska are relatively low, further reducing your annual expenses.
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2. Omaha is a tax-advantaged city for retirees
Nebraska is known for its retiree-friendly tax environment. Social Security benefits are not taxed at the state level, and there are several exemptions and deductions available for other types of retirement income. GOBankingRates found that the estimated total annual cost of living after Social Security is about $22,643.
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The sales tax in Omaha is also reasonable and there are no local taxes, making your overall tax burden much lighter compared to other states. The state sales tax is 5.5% and the 2024 minimum combined sales tax rate for Omaha is 7%.
3. Affordable healthcare for seniors
Healthcare is another major concern for retirees who now need to purchase the most affordable healthcare and insurance. Omaha has a strong healthcare system with numerous hospitals and clinics that offer high-quality care at lower costs than many other cities. This makes sense since 13.8% of the population is of retirement age, that is, those 65 years of age and older.
Medicare and supplemental insurance plans are widely accepted, and the average cost of healthcare services is lower than the national average, ensuring you can get the care you need without breaking the bank.
4. You won’t be stuck with expensive utility bills
Omaha enjoys moderate utility costs, thanks to the region’s affordable energy rates and efficient infrastructure. The cost of electricity, natural gas, water and other utilities is below the national average, helping you save money on essential services. Their spending costs are estimated to be around $2,053 per month in total.
5. You can afford to eat
Eating out and shopping in Omaha won’t deplete your retirement funds. The city has a wide variety of restaurants offering everything from local favorites to international cuisine at reasonable prices. Grocery costs in Omaha are also lower than the national average, and the abundance of farmers markets and local produce ensures you can eat healthily on a budget.
6. You can cut the cost of living, not the corners
Generally, the cost of living in Omaha is lower than many major metropolitan areas. GOBankingRates found that the estimated total annual cost of living after Social Security is about $22,643. The cost of living is the recipe, but the ingredients can vary from transportation to recreational activities.
Transport
Getting around Omaha is easy and affordable. The city’s public transportation system, Metro Transit, offers senior discounts and provides reliable service throughout the city. If you prefer to drive, you’ll find that gas prices in Omaha are generally lower than the national average and the city’s layout allows for minimal traffic congestion, saving you time and money on your daily commute.
Senior Services
Omaha offers a variety of senior-friendly services, including community centers, fitness programs, and educational classes, many of which are free or low-cost. The city’s strong sense of community and numerous volunteer opportunities also allow retirees to stay active and engaged without spending a lot of money.
Leisure and entertainment
The city is home to numerous parks, museums, and cultural events that are free or have a low entrance fee. One of the top-ranked zoos in the world, Henry Doorly Zoo and Aquarium offers senior discounts, making it an affordable way to spend a day. Additionally, Omaha’s vibrant arts scene, including the Omaha Community Playhouse and Joslyn Art Museum, offers many entertainment options at a fraction of the cost you’d find in larger cities.
Final take to go
Ultimately, retiring in Omaha offers a combination of convenience and the certainty that your retirement savings will last. By choosing Omaha, you can enjoy the benefits of city living while enjoying a fulfilling retirement without the financial stress that often accompanies this stage of life. With its low cost of living and abundance of amenities, Omaha is a hidden gem for retirees looking for a high quality of life on a budget under $50,000 a year.
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This article originally appeared in GOBankingRates.com: Retirement in Omaha, Nebraska: 6 Reasons It Costs You Less Than $50,000 a Year
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