Before you retire, you probably want to figure out how much money you’re going to need to live comfortably. It’s a common question, and many seniors delay retiring because they worry about the cost. Fortunately, Austin is one of the best places to retire in Texas because the cost of living tends to be lower. In fact, it’s about three percent lower than the national average. If you consider that Texas residents don’t pay an income tax and homeowners 65 or older could get a $10,000 property tax exemption, Austin seems just about perfect for retirement.
Austin is much less expensive than cities like New York, Miami, and even Anchorage but let’s look at some of the costs you can expect when you settle here during retirement.
If you decide that you don’t want to keep your home and would rather live in a senior living community or assisted living facility, you can expect to pay around $54,915 per year. This cost can include meals, housing, utilities, and things like housekeeping.
Right now, the Austin housing market is seeing its biggest increase in years. The average cost of a single-family home is around $279,990 which is an increase of about 10%. You can find affordable suburbs in Austin and real estate sites like Movoto list places like Wimberley, Smithville, and Luling as some of the best places for retirees to live. These findings not only consider how much it costs to live there but the quality of life for seniors as well.
Renting is also an option, an average rent in Austin is about $1,419. One-bedroom places cost about $1,245 and two-bedroom places cost about $1,562 which is reasonable.
Medicare costs in Austin are far below average for both Texas and national averages. In 2014, Austin County paid about $8,313 per beneficiary which is lower than the Texas cost of $10,572 per person and the national average of $9,500 per person.
Even though health care costs are cheaper in Austin, you still need to budget wisely for your medical expenses. Even if your care provider accepts Medicare, you will still have to pay for deductibles and co-pays. Some providers also choose not to use Medicare at the fee-for-rate service which means you will need to pay the difference between the reimbursement and the allowed charge.
While gas might not be expensive in Austin, your insurance rates could be at a premium. Nerdwallet estimates that in Texas you can pay anywhere from $1,207 to $7,259 per month for your insurance. Shop around and search for the best rates in your area and if you have a history of safe driving, you might be able to get discounts on the cost. There are also a few companies that offer insurance rates based on the number of miles you drive, so if you don’t use your car that often, those policies might be a better option.
There is also always public transportation and in Austin that includes buses, trains, ride shares, and transportation for those with disabilities. Seniors that are 65 and older or those with Medicare can get a discounted rate on fares and passes for Metro services.
There are plenty of things to do for free in Austin. The Governor’s Mansion offers free guided tours on a first come first serve basis, and every Thursday the Blanton Museum of Art is free. The Harry Ransom Center has a free exhibit, and the peacocks and Mayfield Park are always open to the public.
Find assisted living in Austin near you.