If you have significant retirement savings to provide for a comfortable retirement, you may have an above-average budget and plenty of choices for where to spend your golden years. And if youre interested in finding the best places to retire at $8,000 per month, you have countless options from coast to coast.
When you understand your ideal budget, climate and other lifestyle factors, you can make a short list of the best potential destinations for retirement. Weather, taxes and local amenities are important to enjoying your retirement lifestyle. Heres a look at some of the best places to retire with $8,000 per month or less.
Do you dream of your golden years and wonder if $8,000 a month will be enough to support your retirement lifestyle? You’re not the only one! Many people who are about to retire are planning their future and asking the same thing.
Yes, you can retire on $8,000 a month, and most of the time, you’ll be able to live quite well on that amount. In fact, you’d be living much better than most Americans who retire.
Let me break down everything you need to know about retiring with this budget and how to make the most of your retirement dollars
How $8,000 Monthly Income Compares to Average Retirement Spending
Before we dive into the details, let’s put $8,000 in perspective:
According to recent data from the Bureau of Labor Statistics, households led by someone 65 or older spent an average of $64,326 annually in 2023 – that’s about $5,360 per month.
With $8,000 monthly, you’d have nearly $2,640 more than the average retired household spends each month!
An even more telling survey from 2022 by the Employee Benefit Research Institute found that:
- 68% of retirees spend less than $4,000 per month
- Only 18% of retirees spend more than $4,000 monthly
- Just 3% spend $7,000 or more per month
So with $8,000 monthly, you’d be in the top tier of retirement income – well above what most retirees actually live on.
Where Does Retirement Income Typically Come From?
When planning your retirement, it’s important to understand your income sources. According to financial experts, retirement income typically comes from five main “buckets”:
- Social Security benefits
- Investment portfolios (401(k)s, IRAs, etc.)
- Annuities
- Part-time employment
- Pension plans (though these are becoming increasingly rare)
The average Social Security benefit for retired workers in late 2024 was about $1,975 monthly – that’s only $23,700 annually, far below what most people need for a comfortable retirement.
This highlights why having multiple income streams is so crucial. With $8,000 monthly from various sources, you’re in a strong position for retirement.
Can I Actually Live Well on $8,000 Monthly in Retirement?
Whether $8,000 monthly is enough depends on three key factors:
1. Your Lifestyle Expectations
Your spending habits are a big part of figuring out if $8,000 a month is enough. If you enjoy:
- Frequent international travel – This could consume a significant portion of your budget
- Dining out multiple times weekly – Restaurant costs add up quickly
- Expensive hobbies – Golf club memberships, boating, or collecting can be costly
- Supporting adult children or grandkids – This generosity impacts your bottom line
However, if you have more modest expectations and are willing to be strategic about your spending, $8,000 can provide a very comfortable lifestyle.
2. Your Location Choice
Where you live dramatically affects how far your money will stretch. Some places are simply more expensive than others.
According to Synchrony Bank’s research on retirement locations, here are some great options for $8,000 monthly budgets with their cost of living compared to the national average:
| Location | Cost of Living vs. National Average | Median Monthly Rent | Why It’s Great |
|---|---|---|---|
| Richmond, VA | 4% BELOW average | $1,276 | Perfect for history buffs, great amenities, affordable |
| Broomfield, CO | 18% ABOVE average | $2,196 | Year-round outdoor recreation, between Denver and Boulder |
| Portland, OR | 20% ABOVE average | $2,244 | Amazing food scene, outdoor activities, progressive culture |
| Miami, FL | 21% ABOVE average | $2,201 | Beautiful beaches, warm weather, no state income tax |
| San Diego, CA | 44% ABOVE average | $3,329 | Mild climate year-round, beaches, outdoor lifestyle |
Even in pricier locations like San Diego, an $8,000 budget could work if you’re willing to rent rather than buy and be thoughtful about your spending.
3. Your Healthcare Needs
Healthcare is often the wild card in retirement planning. Medicare will cover some expenses, but not all. Consider:
- Medicare premiums – These will take a bite out of your monthly budget
- Supplemental insurance – Many retirees purchase additional coverage
- Long-term care needs – This could be a major expense if needed
- Prescription costs – These vary widely depending on your health
With $8,000 monthly, you should be able to afford adequate healthcare coverage, but it’s important to research and plan for these costs.
How to Make $8,000 Monthly Work in Retirement
If you’re targeting an $8,000 monthly retirement income, here are my best tips to ensure it’s enough:
Create a Detailed Retirement Budget
I can’t stress this enough – you need to know exactly where your money will go! Break your expected expenses into categories:
- Housing (mortgage/rent, taxes, insurance, maintenance)
- Utilities (electric, water, internet, cell phone)
- Food (groceries and dining out)
- Healthcare (Medicare premiums, supplemental insurance, out-of-pocket costs)
- Transportation (car payment, insurance, gas, maintenance)
- Entertainment and travel
- Miscellaneous (gifts, clothing, etc.)
Consider Strategic Downsizing
Many retirees find their large family homes unnecessary after kids move out. Downsizing can:
- Reduce or eliminate mortgage payments
- Lower property taxes and insurance costs
- Decrease utility and maintenance expenses
- Potentially free up equity to invest
Relocate to a Tax-Friendly State
Some states are much kinder to retirees than others. Florida and several other states have:
- No state income tax
- No tax on Social Security benefits
- Various exemptions for retirement income
This can significantly stretch your $8,000 monthly budget!
Optimize Your Social Security Strategy
When you claim Social Security makes a huge difference. For each year you delay claiming beyond full retirement age (up to age 70), your benefit increases by about 8%.
If you can live on your savings for a few years before claiming, you could lock in a much higher guaranteed lifetime benefit.
Real Talk: Is $8,000 Monthly Enough for YOUR Retirement?
While $8,000 monthly is above what most retirees live on, only you can decide if it’s enough for your personal situation. Here’s my honest assessment:
For most retirees: $8,000 monthly provides a comfortable, even luxurious retirement in many parts of the country, especially if you:
- Have paid off your mortgage
- Don’t have expensive health issues
- Choose a moderate cost-of-living area
- Have reasonable lifestyle expectations
When it might not be enough:
- If you live in very high-cost areas (Manhattan, San Francisco, etc.)
- If you have significant ongoing medical expenses
- If you have dependent family members to support
- If you plan extensive luxury travel or have expensive hobbies
My Final Thoughts
From analyzing the data and speaking with many retirees, I can confidently say that $8,000 monthly puts you in an excellent position for retirement – better than the vast majority of Americans.
The key is being intentional about your lifestyle choices and location. With proper planning and realistic expectations, $8,000 monthly can provide not just financial security but a genuinely enjoyable retirement lifestyle.
What matters most isn’t just the dollar amount but how well you align your spending with what truly brings you happiness. Some of the most satisfied retirees I know focus on experiences, relationships, and pursuits they find meaningful – which often don’t require massive budgets.
So yes, you can absolutely retire on $8,000 a month. The question now is: what kind of retirement will you create with it?
The Best Places To Retire on $8,000 Per Month
- Best for Year-Round Outdoor Recreation: Boulder, Colorado
- Best for Ocean Access: Miami, Florida
- Best for a Mild Climate: San Diego, California
- Best for Exploring Your City: Portland, Oregon
- Best for History Buffs: Richmond, Virginia
Why retire in Miami?
Miami is in one of the warmest and sunniest parts of the United States. Residents can quickly get to many beaches, such as South Beach, Bal Harbour, and the city’s own title beach, Miami Beach. The city also has a port of call on the long Intracoastal Waterway, which is great for boating and other water-based activities.
Florida has no state income tax, so Social Security income and retirement plan withdrawals wont be subject to state taxes. 3 Living costs are 21% above the national average,4 but with a $8,000 monthly budget, retirees should be able to enjoy the Southern Florida lifestyle comfortably. There are plenty of weekend getaways nearby and enough going on locally to keep boredom at bay.
RETIRE on $8,000 Per MONTH?
FAQ
What is a good monthly retirement income?
A good monthly retirement income can be different for everyone, but many financial experts say you should aim for 70% to 80% of your pre-retirement income or a specific amount like $4,000 to $10,000 per month, depending on your lifestyle and where you live.
Can you retire on $7000 a month?
$7,000 a month can be a good retirement income, especially for a single person. But whether it’s enough depends on your health, lifestyle, and how much money you made before you retired. It’s more than the average retirement income for one person, which is between $3,900 and $5,000 per month, but less than the average for a couple, which can be over $8,000 per month.
How much is $8,000 a month annually?
How much do most retirees live on a month?
Key Takeaways. The average retired household spends around $5,000 per month, with housing, healthcare, and food being the largest expense categories. With a median 401(k) balance of $210,724, retirees relying on the 4% withdrawal rule and Social Security benefits often face a shortfall in covering monthly costs.
How much money do you need to retire a year?
Based on the 80% principle, you can expect to need around $ 96,000 in annual income after retirement, which is $ 8,000 a month. How much does the average person retire with?
Where to retire on $8,000 a month?
Retirees can embrace an upscale lifestyle living in West Palm Beach, Florida. 16% of the population in the region comprises seniors, making it an ideal place to spend retirement years. Boasting a year-round pleasant climate, diverse neighborhoods, and plentiful entertainment options, Los Angeles is another ideal place to retire on $8,000 a month.
Should you retire on 80% of your annual income?
You’ll no longer have to save for retirement (obviously). You might spend less on commuting expenses and other costs related to going to work. You may have paid off your mortgage by the time you retire. You may not need life insurance if you no longer have dependents. But retiring on 80% of your annual income isn’t perfect for everyone.
What is a good monthly retirement?
A good monthly retirement can potentially be spending $8,000 a month for these individuals, or even $10,000 a month. This amount is more than enough to help them live a luxurious lifestyle. However, not everyone has this much saved for their retirement. The good news is, there are many , or even less.
Can you retire with $800000 in the bank?
It is certainly possible to retire by age 50 with $800,000 in the bank. As the above table shows, $800,000 in savings can last between 20 and 30+ years, depending on how much you spend each year.
Can I retire on $800K?
As we have established, retiring on $800k is entirely feasible. With the addition of Social Security benefits, this becomes even more possible. Adding in the current average annual Social Security benefit of approximately $22,800 ($1,900 per month) increases your stable retirement income streams.