8 Affordable Places to Retire Even if You Have No Savings

The latest retirement statistics show alarming trends. Many Americans are not on track for retirement, and half of people over 50 worry they won't have enough money to live on in retirement. 

Additionally, in most of the United States, Social Security income will not be enough to cover retirement expenses, especially if seniors have significant expenses like high-interest debt or frequent medical issues.

Fortunately, some areas of the country are still affordable to live in. Those who want to retire soon and aren't sure whether they can afford it may want to explore moving to one of these low-cost-of-living areas. Here is more information on common retirement costs, along with some of the best retirement towns.

20% of Americans 50 and older have no retirement savings at all

According to AARP research, 20% of Americans aged 50 and older have no retirement savings. With the rising cost of living, inflation affecting gas and grocery prices, and health care expenses, many people cannot afford to retire where they currently live.

The costs to consider when deciding where to live in retirement

When choosing where to live in retirement, your cost of living should be a top priority. Start with housing — home values and property taxes can vary dramatically by location. From there, factor in everyday expenses like groceries, utilities, and transportation. It's also worth researching your state's tax policies: some states tax Social Security benefits while others don't, and many offer property tax relief programs specifically for seniors.

Fidelity estimates that people age 65 and older retiring in 2026 will spend over $185,000 on health care and medical expenses during retirement. So many people may need more money than they realize to afford retirement.

Other factors that will determine your ideal retirement location

When considering your ideal retirement location, here are a few other factors to keep in mind. First, the type of climate you enjoy is important. For example, you may enjoy having a garden and some land, or you may be tired of yard work and want to live in a condo or townhome.

If proximity to family is important, map out areas within driving distance of your loved ones. Finally, if you have a specific health condition that requires access to a specialist or certain types of rehabilitation facilities, make sure the locations you consider offer that as well.

The average Social Security benefit many retirees rely on

Though many seniors do not have retirement savings, many of them do have Social Security checks that can provide income to cover some basic necessities. However, the average Social Security benefit in 2026 is $2,095. With the 3.6% COLA in 2027, the standard benefit will increase to $2,170.

That will not cover most people's entire monthly expenses, which may include housing, food, home maintenance, utilities, health care, and other incidentals. However, there are some places in the United States where Social Security may come close to covering the bills.

Affordable retirement cities in the Midwest

The Midwest offers consistently affordable housing. For example, U.S. News ranks Decatur, Illinois, and Bay City, Michigan, as #2 and #3 for the Cheapest Places to Retire.

While many parts of the Midwest experience longer winters, those who enjoy four seasons and don't mind the cold can benefit from the affordable lifestyle many of these towns offer.

Affordable retirement cities in the South

If you prefer the warmer weather of the Southern United States, many affordable options are available there, too. U.S. News ranks Eagle Pass, Texas, as the #1 Cheapest Place to Retire. Fort Smith and Springdale, Arkansas, also made the list.

Florida also offers many affordable options for retirees, including Gainesville, Jacksonville, and Palm Coast, all with a cost of living below the national average, according to Empower data.

How to research the most affordable places to live in retirement

If you want to research other potential retirement locations, you can look at Zillow home values, the Bureau of Labor Statistics' consumer expenditure data for retirees, and even the Tax Foundation's property tax data. This information can help you narrow down the best retirement city for you.

In general, if you have a limited retirement income, it's best to steer clear of high-cost metro areas like New York City and San Francisco, which have elevated home values and utility costs. It's also good to weed out cities with high property taxes that don't offer tax benefits to seniors.

Bottom line

Ultimately, you can have a stress-free retirement, even if you don't have anything saved in a traditional retirement account. While Social Security checks may not provide significant income, there are still places in the United States where you can use your check to cover your basic expenses.

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