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10 Best (and Worst) Places To Retire If You Have No Savings

May 24, 2024

9 min Read

Written by Cameron Huddleston

Edited by Amber Barkley

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When it comes to saving for retirement, Americans are finding out more and more that they have a lot of catching up to do. A GOBankingRates survey found that 40% of adults have saved less than $300, which isn’t enough to live comfortably for even one year in retirement. Or is it?

If you have little to no savings and will likely have to rely on Social Security benefits, don’t assume that you won’t be able to have a comfortable retirement. There are places in the U.S. where you can get by without much in retirement savings.

To identify those places, GOBankingRates analyzed the 100 largest cities in the U.S. with a large population of adults ages 65 and older. These cities were then ranked based on the following factors:

Average 2023 home value and property tax, sourced from Zillow
Whether the state taxes Social Security benefits, sourced from the AARP
Annual homemaker service costs
Annual home health aide costs
Annual grocery costs
Annual healthcare costs
Annual utilities cost
Annual transportation costs
Annual necessity costs

From that list, we pulled the 10 best places to retire and the 10 worst places to retire. On the whole, the best places to retire with no savings tend to be more affordable and relatively safe, and they have larger populations of older adults. The worst places for retirement tend to have a more expensive cost of living or other strikes against them, such as high crime rates.s

Let’s dig in:

10 Best Places To Retire With No Savings

Affordability is the key reason these cities are the top 10 places to retire if you have no savings. Almost all have an average home price under $200,000. Plus, retirees can hang on to more of their income in these places because, except for two cities in West Virginia and one in New Mexico, Social Security income isn’t taxed.

10. Punta Gorda, Florida

Percentage of population 65 and older: 50.4%
Average 2023 home value: $432,973
Average 2023 property tax: 0.91%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $57,200
Annual home health aide costs: $57,200
Annual grocery costs: $4,861.26
Annual healthcare costs: $6,727.71
Annual utilities cost: $3,811.21
Annual transportation costs: $3,368.56
Annual necessity costs: $18,768.74

9. Fredericksburg, Texas

Percentage of population 65 and older: 31.7%
Average 2023 home value: $538,817
Average 2023 property tax: 1.66%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $54,912
Annual home health aide costs: $54,912
Annual grocery costs: $4,303.63
Annual healthcare costs: $7,191.69
Annual utilities cost: $3,987.66
Annual transportation costs: $2,593.10
Annual necessity costs: $18,076.07

8. North Myrtle Beach, South Carolina

Percentage of population 65 and older: 37.6%
Average 2023 home value: $493,070
Average 2023 property tax: 0.56%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $53,196
Annual home health aide costs: $53,768
Annual grocery costs: $4,550.96
Annual healthcare costs: $6,889.40
Annual utilities cost: $3,795.53
Annual transportation costs: $3,549.10
Annual necessity costs: $18,784.99

7. Green Valley, Arizona

Percentage of population 65 and older: 80%
Average 2023 home value: $315,908
Average 2023 property tax: 0.65%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $64,064
Annual home health aide costs: $65,208
Annual grocery costs: $4,317.12
Annual healthcare costs: $6,003.62
Annual utilities cost: $4,011.18
Annual transportation costs: $3,746.04
Annual necessity costs: $18,077.96

6. Pinehurst, North Carolina

Percentage of population 65 and older: 39.5%
Average 2023 home value: $499,175
Average 2023 property tax: 0.82%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $52,624
Annual home health aide costs: $52,624
Annual grocery costs: $4,537.47
Annual healthcare costs: $7,564.28
Annual utilities cost: $3,811.21
Annual transportation costs: $2,835.17
Annual necessity costs: $18,748.14

*Pictured Greensboro, North Carolina.

5. Bella Vista, Arkansas

Percentage of population 65 and older: 31.7%
Average 2023 home value: $322,770
Average 2023 property tax: 0.64%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $50,222
Annual home health aide costs: $50,336
Annual grocery costs: $4,384.58
Annual healthcare costs: $6,460.57
Annual utilities cost: $3,713.19
Annual transportation costs: $4,000.43
Annual necessity costs: $18,558.76

4. The Villages, Florida

Percentage of population 65 and older: 85.7%
Average 2023 home value: $418,926
Average 2023 property tax: 0.91%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $57,200
Annual home health aide costs: $57,200
Annual grocery costs: $4,591.44
Annual healthcare costs: $6,882.37
Annual utilities cost: $4,124.89
Annual transportation costs: $3,454.73
Annual necessity costs: $19,053.43

3. Hot Springs Village, Arkansas

Percentage of population 65 and older: 63.3%
Average 2023 home value: $289,418
Average 2023 property tax: 0.64%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $50,222
Annual home health aide costs: $50,336
Annual grocery costs: $4,407.06
Annual healthcare costs: $6,748.80
Annual utilities cost: $3,744.56
Annual transportation costs: $3,787.07
Annual necessity costs: $18,687.48

2. Mountain Home, Arkansas

Percentage of population 65 and older: 28.3%
Average 2023 home value: $199,388
Average 2023 property tax: 0.64%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $50,222
Annual home health aide costs: $50,336
Annual grocery costs: $4,276.65
Annual healthcare costs: $6,481.66
Annual utilities cost: $3,791.61
Annual transportation costs: $2,699.77
Annual necessity costs: $17,249.69

1. Foley, Alabama

Percentage of population 65 and older: 30.7%
Average 2023 home value: $296,232
Average 2023 property tax: 0.39%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $45,760
Annual home health aide costs: $46,218
Annual grocery costs: $4,326.11
Annual healthcare costs: $8,119.65
Annual utilities cost: $3,858.26
Annual transportation costs: $2,884.41
Annual necessity costs: $19,188.44

10 Worst Places To Retire With No Savings

These 10 places are not such great cities to retire if you have no savings. Most of these cities have home prices that range from $450,000 on the low side to almost $4,000,000 on the high end. While many of these cities do not tax Social Security benefits, most of them do tax retirement income.

Additionally, the safety in these cities varies wildly, and the annual costs of services and expenditures remain on the high end.

10. Seal Beach, California

Percentage of population 65 and older: 41.6%
Average 2023 home value: $1,449,290
Average 2023 property tax: 0.73%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $73,216
Annual home health aide costs: $73,216
Annual grocery costs: $4,807.29
Annual healthcare costs: $6,566.02
Annual utilities cost: $3,826.90
Annual transportation costs: $4,989.25
Annual necessity costs: $20,189.46

9. Palm Springs, California

Percentage of population 65 and older: 32.4%
Average 2023 home value: $1,055,350
Average 2023 property tax: 0.73%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $73,216
Annual home health aide costs: $73,216
Annual grocery costs: $4,501.50
Annual healthcare costs: $6,137.19
Annual utilities cost: $4,466.02
Annual transportation costs: $5,338.00
Annual necessity costs: $20,442.71

8. Sonoma, California

Percentage of population 65 and older: 32.6%
Average 2023 home value: $1,017,937
Average 2023 property tax: 0.73%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $73,216
Annual home health aide costs: $73,216
Annual grocery costs: $4,991.67
Annual healthcare costs: $7,831.42
Annual utilities cost: $4,058.24
Annual transportation costs: $4,455.86
Annual necessity costs: $21,337.18

7. Ocean City, New Jersey

Percentage of population 65 and older: 34.2%
Average 2023 home value: $1,193,688
Average 2023 property tax: 2.21%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $66,352
Annual home health aide costs: $68,526
Annual grocery costs: $5,135.57
Annual healthcare costs: $6,847.22
Annual utilities cost: $4,383.68
Annual transportation costs: $4,004.53
Annual necessity costs: $20,371.00

6. Key Largo, Florida

Percentage of population 65 and older: 27.5%
Average 2023 home value: $1,014,239
Average 2023 property tax: 0.91%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $57,200
Annual home health aide costs: $57,200
Annual grocery costs: $5,131.08
Annual healthcare costs: $11,416.72
Annual utilities cost: $3,811.21
Annual transportation costs: $3,733.73
Annual necessity costs: $24,092.74

5. Paradise Valley, Arizona

Percentage of population 65 and older: 30%
Average 2023 home value: $3,020,040
Average 2023 property tax: 0.65%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $64,064
Annual home health aide costs: $65,208
Annual grocery costs: $5,135.57
Annual healthcare costs: $6,502.75
Annual utilities cost: $3,975.89
Annual transportation costs: $4,574.85
Annual necessity costs: $20,189.06

4. Ridge, New York

Percentage of population 65 and older: 30.3%
Average 2023 home value: $452,066
Average 2023 property tax: 1.38%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $64,064
Annual home health aide costs: $66,352
Annual grocery costs: $4,694.87
Annual healthcare costs: $8,801.56
Annual utilities cost: $4,916.93
Annual transportation costs: $4,566.64
Annual necessity costs: $22,980.00

*Long Island, N.Y., pictured.

3. Melville, New York

Percentage of population 65 and older: 27.9%
Average 2023 home value: $767,494
Average 2023 property tax: 1.38%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $64,064
Annual home health aide costs: $66,352
Annual grocery costs: $4,883.75
Annual healthcare costs: $8,801.56
Annual utilities cost: $4,916.93
Annual transportation costs: $4,640.49
Annual necessity costs: $23,242.73

*Farmingdale, N.Y., pictured.

2. Walnut Creek, California

Percentage of population 65 and older: 29.6%
Average 2023 home value: $1,435,836
Average 2023 property tax: 0.73%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $73,216
Annual home health aide costs: $73,216
Annual grocery costs: $5,036.64
Annual healthcare costs: $8,513.33
Annual utilities cost: $4,022.95
Annual transportation costs: $5,231.33
Annual necessity costs: $22,804.24

1. Malibu, California

Percentage of population 65 and older: 28.9%
Average 2023 home value: $3,835,224
Average 2023 property tax: 0.73%
Whether the state taxes Social Security benefits: No
Annual homemaker services costs: $73,216
Annual home health aide costs: $73,216
Annual grocery costs: $5,315.45
Annual healthcare costs: $6,341.06
Annual utilities cost: $4,015.10
Annual transportation costs: $6,868.42
Annual necessity costs: $22,540.04

Julian Barazza contributed to this article.

Methodology: For this piece, GOBankingRates first found the 100 towns or cities with the (1) highest percentage of its population aged 65 years and older, as sourced from the U.S. Census Bureau 2021 American Community Survey. GOBankingRates analyzed those 100 cities across the following factors: (2) property tax as sourced from Tax Foundation; (3) the average 2023 home value for a single-family residence as sourced from Zillow’s May 2023 data. GOBankingRates then took the Bureau of Labor Statistics Consumer Expenditure Survey‘s 2021 annual expenditures for consumers 65 years and older for Groceries (“food at home”), Healthcare, Utilities (“utilities, fuels and public services”), and Transportation (gas, other fuels & motor oils” + ” other vehicle expenses”). These annual expenditures were then factored out for each city using Sperling’s Best Places Cost of Living Indices and combined to give a (4) total annual Cost of Living Expenditure for each city; (5) taxes on Social Security benefits; and (6) The annual cost of an adult day health care service on the state level, (7) the annual cost of homemaker services on the state level, and (8) the annual cost of a home health aide on the state level were all sourced from Genworth’s annual Cost of Care Survey. These eight factors were then compiled and scored, with a lower score being better. In final calculations annual expenditure scores were weighted 3x, home value scores were weighted 2x, and taxes on Social Security were weighted 0.5x. All research was conducted and up to date on May 23, 2024.

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