Salary Needed to Live in Montgomery as a Retiree
A retired individual (65+) needs approximately $47,126/year to live comfortably in Montgomery, AL, including 5% savings.
Direct Answer
A retiree needs about $47,126/year to live comfortably in Montgomery, AL. The bare-minimum salary is $43,984/year, but the comfortable figure includes a 5% savings target and a monthly after-tax budget of $2,904.
The minimum scenario leaves about $2,749/mo after tax and no planned savings. The comfortable scenario uses $3,927/mo gross pay to cover expenses, taxes, and a savings buffer.
Hybrid salary estimateBLS, HUD, ACS inputsLast verified May 2026
Comfortable Salary
$47,126
with 5% savings
Bare Minimum
$43,984
$3,665/mo gross, no savings buffer
Monthly Expenses
$2,749
26% below national avg
Detailed Monthly Budget for a Retiree in Montgomery
| Expense | Montgomery | Nat'l Avg | Diff |
|---|---|---|---|
| 1-2BR Senior-Friendly Rent | $817 | $1,448 | -44% |
| Groceries | $208 | $189 | +10% |
| Utilities | $133 | $183 | -27% |
| Transportation | $167 | $211 | -21% |
| Car Insurance | $143 | $223 | -36% |
| Health Insurance | $634 | $672 | -6% |
| Medicare Supplement | $168 | $200 | -16% |
| Prescription Drugs | $126 | $150 | -16% |
| Internet + Phone | $101 | $120 | -16% |
| Recreation & Social | $168 | $200 | -16% |
| Home Maintenance | $84 | $100 | -16% |
| Total Monthly | $2,749 | $3,696 | -26% |
How We Calculated the Salary
Monthly expenses:$2,749
Target savings (5%):$155/mo
Monthly after-tax needed:$2,904
Effective tax rate:25%
Gross annual salary needed:$47,126
What Drives the Salary Number?
Housing
$817
1-2BR Senior-Friendly rent is 30% of this monthly budget.
Taxes
25%
Estimated federal plus AL state tax reserve used to convert take-home needs into gross salary.
Savings target
5%
$155/mo is reserved for savings so the salary is not just break-even.
Local index
84/100
Montgomery is below the national baseline; the model adjusts baseline spending by local rent and cost data.
Compare Salary Needed in Nearby south Cities
Salary Planning Checklist
- Keep 1-2br senior-friendly housing near $817/mo or adjust the salary target upward.
- Budget $647/mo for persona-specific costs such as Medicare Supplement and Prescription Drugs.
- Use $43,984/year as the survival floor and $47,126/year as the healthier negotiation target.
Other Household Types in Montgomery
Related Pages
FAQ
What salary does a retiree need in Montgomery?
A retiree needs approximately $47,126/year ($3,927/month gross) to live comfortably in Montgomery with a 5% savings rate.
How much is rent for a retiree in Montgomery?
A 1-2br senior-friendly in Montgomery costs approximately $817/month, which is the largest single expense at 30% of the total budget.
Is Montgomery affordable for a retiree?
Yes, Montgomery is 26% more affordable than the national average for a retiree.