Retirement should be exciting, but concerns about cost can make it stressful as well. Seniors need to consider all costs as they start saving for retirement and the cost of living in each place can be different. Luckily, Omaha’s cost of living is about 12% lower than the national average which makes it an easier place to retire. Seniors can also enjoy advantages like tax breaks and exemptions through the Nebraska homestead exemption. The housing market and other factors also make it a cheaper place to live than places like San Francisco, Miami, or New York.
There are a few big expenses you’ll encounter in retirement, so let’s see how Omaha stacks up.
What you pay for housing will depend largely on what type of home or environment you want. Many seniors want someone else to take care of their household chores, so they move to a senior living community. If that’s what you want, you can expect to pay around $48,000 per year. Keep in mind that cost often includes things like your meals, utilities, and other amenities so it could save you money.
If you would prefer to live in your own house, the average cost of a single-family home in Omaha is $141,600. Home appreciation has also been on the rise for the past 12 months at about 3.8%. Even better news for residents, U.S News Real Estate recently ranked Omaha as one of the best places to live. They looked at things like cost of living, average salaries, and housing to determine rankings and Omaha landed at number 25.
Renting is also an option for seniors and the average rent is around $922 per month. This puts one-bedroom apartments at $784 and two-bedroom apartments at $1,022.
After housing, health care is one of the number one cost concerns in retirement. Medicare spending shows that the average cost per beneficiary in Omaha is around $8,371 which is a little less than the national average of $9,500.
While you might spend a little less, you will still have to pay for some health costs. Things like deductibles and coinsurance come out of your pocket, so make sure to budget for them. Even if you do use a Medicare-approved facility, they might not use fee-for-service rates which means you’re on the hook for the cost between the reimbursement and allowed charge.
You’ll need to get around, and if you decide to use your car, you need to budget for gas and insurance. Gas might be relatively cheap, but insurance rates can be a bit pricey if you don’t shop around. The average cost is $1,374, and the range can go from $1,212 to $1,543. When you’re looking around, ask about safe driver discounts and consider using a pay per mile model if you don’t drive a lot.
If you would prefer someone else to do the driving, then look no further than Omaha Metro. Public transportation can be cost effective especially if you’re a senior or Medicare card holder. These groups can get a reduced fare and use the paratransit system for those with disabilities.
Not everything comes with a price tag in Omaha, and you can explore for free in many places. Get outside and enjoy places like the Gene Leahy Pedestrian Mall, First National’s Spirit of Nebraska’s Wilderness and Pioneer Park, or the Heartland of America Park. Visit the Lewis & Clark Landing or stop at the Joslyn Art Museum.
Find assisted living in Omaha near you.