Nearly 30% of Americans have $0 saved for retirement, and another 33% have less than $50,000 saved. Retirement expert Anne Lester advises those approaching retirement age with little savings to start preparing to live on a smaller budget after they stop working. Depending on Social Security benefits alone may not be sufficient, as the average monthly benefit is around $1,773. To help determine the best places to retire with little to no savings, GOBankingRates analyzed the 100 biggest U.S. cities with a large population of residents over 65.
The study ranked cities based on metrics such as average home value, annual grocery costs, annual utilities costs, and whether the state taxes Social Security benefits. The top five places identified were Foley, Alabama; Mountain Home, Arkansas; Hot Springs Village, Arkansas; The Villages, Florida; and Bella Vista, Arkansas. These areas offer relatively low costs of living and housing expenses, making them attractive options for retirees on a tight budget. However, retirees may need to forgo some perks in exchange for these lower costs, such as proximity to family or a variety of activities.
If approaching retirement age with little to no savings, individuals may need to make tough decisions such as delaying retirement to receive a higher Social Security benefit or taking on a part-time job to supplement income. The decision of where to retire will depend on personal preferences beyond just living costs, and prospective retirees are advised to visit potential retirement destinations ahead of time to get a sense of what living there long-term may be like. While Arkansas may offer cheaper living expenses, retirees must consider trade-offs such as proximity to family and available activities.
Lists like the one created by GOBankingRates can provide helpful context for retirees looking to relocate, but it is important to consider factors beyond just living costs when deciding on a retirement destination. Making informed decisions about retirement finances and potential relocation can help ensure a comfortable retirement with the resources available. Additionally, exploring options for additional income streams, such as a part-time job or passive income sources, can help supplement retirement savings and provide financial stability in retirement.
