How To Cut Your Second Biggest Expense In Retirement

After housing, transportation is the second-biggest expense for Individuals age 65 and older.

This demographic spent a imply of $7,160 on transportation in 2021, in accordance with the U.S. Bureau of Labor Statistics. That’s about $600 per thirty days.

Remember that 2021 was a pandemic yr. Individuals weren’t driving almost as a lot as they’d have usually.

A Cultural Shift

Automobile tradition and American tradition have lengthy been intertwined.

The US is without doubt one of the most car-dependent nations on this planet, with one of many highest numbers of motor autos per 1,000 individuals at 831.

For older Individuals specifically, vehicles are important to day by day life. An estimated 70% of Individuals over 50 reside in suburban or rural areas the place public transportation is proscribed or simply doesn’t exist.

It may be onerous to image a life-style that doesn’t contain driving day by day, however in lots of fascinating places all over the world, that’s the norm. Individuals both stroll from A to B or depend on environment friendly and user-friendly public transportation techniques.

By relocating to a kind of locations, you’ll be able to lower down in your second-biggest expense in retirement. I’ve recognized three high locations the place you’ll be able to reside car-free and given you a snapshot of how a lot you’ll be able to count on to save lots of per thirty days on transportation alone in every.

Notice that these are all locations the place long-term retirement residing is feasible for the typical American. You received’t see Singapore, Hong Kong, or different cities which can be world-renowned for his or her transport techniques however unimaginable to maneuver to from a residency perspective on this listing.

Madrid, Spain

Spain is extraordinarily effectively related when it comes to public transport. After China, it has the second-most intensive high-speed rail community on this planet.

Its capital metropolis, Madrid, is a spot the place you by no means must get behind the wheel once more. In reality, there are limits on driving in Madrid Central. All however electrical and hybrid vehicles are banned.

Madrid is a geographically massive, spread-out metropolis, but it surely’s extraordinarily walkable, with clean paving and extensive sidewalks all through.

Public transportation in Madrid consists of the Metro (a speedy transit system), Cercanías Madrid (a commuter rail service), Metro Ligero (a lightweight rail system), and bus companies.

Utilizing a mix of those choices will get you wherever you could go inexpensively. A single journey on the bus or Metro prices 1.50 euros, or about $1.62; a typical 30-day cross prices 21.80 euros, or $23.55.

That’s 95% lower than what the typical American over 65 paid in 2021.

When you’re a senior citizen (65 or older) and maintain a private Public Transport Card, all the Metro transport community is free to you. You may lower your transport invoice to zero per thirty days just by shifting to Madrid.

Even should you determine to make use of some personal transportation (taxis, Uber
UBER
, Cabify, and so on.), you would save lots of of {dollars} per thirty days.

Medellin, Colombia

Medellin is your best option in Latin America for car-free residing.

It’s the one metropolis in Colombia with a commuter rail. The Medellin Metro is the delight of the town, utilized by over half one million individuals per day. It contains the Metrocable, a gondola system that serves the town’s previously hard-to-reach hillside neighborhoods.

The Metro’s customary fare is 2,880 Colombian pesos, which is 65 cents. For seniors, it’s barely much less, at 2,660 pesos, or about 60 cents.

Relying solely on the Metro to get round and driving it two or 3 times a day, your month-to-month transport invoice would come to about $45. That’s 92% lower than what the typical American 65 and older pays per thirty days.

When you incorporate different types of public transport into your month-to-month routine, you’ll select from the Metroplús, a bus transit service, the Ayacucho Tram system, in addition to taxis, Cabify, and Uber. Unofficial transport choices in Medellin embody colectivos (shared taxis that journey when the automotive is filled with passengers) and mototaxis (bike taxis).

Expats report spending about $95 per thirty days utilizing a mixture of these choices—nonetheless a cut price in comparison with transportation prices again residence.

It’s also possible to get round Medellin on foot in some neighborhoods and by bicycle. It’s an eco-conscious metropolis, so it has invested in bike lanes and supplied free public bikes.

Bangkok, Thailand

Having a automotive in Bangkok is completely pointless because of its well-connected public transport community. In reality, a automotive would hinder you greater than it could serve you on this metropolis that’s infamous for site visitors jams and unimaginable parking.

4 speedy transit techniques serve Bangkok, together with the BTS Skytrain (an elevated speedy transit system), the MRT (metro), the SRT Crimson Strains (a commuter rail system), and the Airport Rail Hyperlink (an specific rail line that connects the town middle with Suvarnabhumi Airport).

Different methods of getting round embody an intensive bus community that features minibus vans and track thaeo (transformed pick-up vans with passenger benches within the cargo mattress). There are additionally taxis, tuk-tuks, bike taxis, and ride-hailing apps, like Seize and Bolt.

Bangkok sits on the Chao Phraya River, and boats have lengthy been part of its public transport community. Water buses and long-tail boats serve tens of hundreds of commuters day by day and are reasonably priced transport choices.

This isn’t a lot of a strolling metropolis, but it surely offers myriad choices for getting round. Expats report spending about $120 on transport in Bangkok per thirty days utilizing a mix of them, which is 80% lower than the typical American 65 and older.

Different Advantages Of Going Automobile-Free

Some cities, notably within the Outdated World, had been designed for strolling. They proceed to be finest navigated on foot. Different cities have been retrofitted with bike lanes.

Utilizing your physique to get round as an alternative of driving has well being advantages. It burns energy, builds stamina, and makes your coronary heart more healthy. Strolling has psychological well being advantages, growing psychological alertness and enhancing temper.

Shifting away from automotive use additionally has a optimistic impression on the atmosphere, lowering emissions of carbon dioxide and different pollution. Strolling, biking, and utilizing public transportation are additionally a lot safer than driving a automotive.