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Planning for retirement can be overwhelming, especially when you’re trying to deal with the skyrocketing cost of living with little or no savings in the bank. Does this mean a comfortable retirement is out of reach? not necessarily.
10 Clever Ways Retirees Are Earning Up to $1K Per Month From Home
If you’ll be relying primarily on Social Security benefits, choosing the right location is important. Some American cities offer affordable housing and senior-friendly amenities, making them ideal for retirees with limited funds. Others, however, may drain your budget quickly due to high expenses or a poor security rating. If you’re curious about who’s where, GOBankingRates has put together a list.
Here’s a look at the best and worst places to retire without any savings, so you can make better decisions for your future.
7 Best Places to Retire Comfortably Without Any Savings
If you’re trying to figure out the best places to retire without any savings, keep in mind that affordability is key when planning for retirement on a limited budget, and these cities make it possible. Also, retirees can keep more of their income in these places because Social Security income is not taxed in any of these places.
1. Mountain Home, Arkansas
- Percentage of retirement-aged people (65 and over): 29.9%
- Average home price: $237,393
- Property Tax: 0.53%
- Annual grocery costs: $4,729.32
- Annual Health Care Costs: $7,400.89
- Annual Cost of Utility Bills: $4,164.87
- Annual Transportation Cost: $3,151.82
- Total annual cost of required expenditure: $19,446.91
2. Hot Springs Village, Arkansas
- Percentage of retirement-aged people (65 and over): 59.9%
- Average home price: $303,006
- Property Tax: 0.53%
- Annual grocery costs: $4,873.54
- Annual Health Care Costs: $7,705.92
- Annual Cost of Utility Bills: $4,113.19
- Annual Transportation Cost: $4,421.17
- Total annual cost of required expenditure: $21,113.82
3. Bella Vista, Arkansas
- Percentage of retirement-aged people (65 and over): 31.9%
- Average home price: $354,350
- Property Tax: 0.53%
- Annual grocery costs: $4,848.68
- Annual Health Care Costs: $7,376.81
- Annual Cost of Utility Bills: $4,078.73
- Annual Transportation Cost: $4,670.25
- Total annual cost of required expenditure: $20,974.47
4. The Villages, Florida
- Percentage of retirement-aged people (65 and over): 85.2%
- Average home price: $404,820
- Property Tax: 0.74%
- Annual grocery costs: $5,077.43
- Annual Health Care Costs: $7,858.43
- Annual Cost of Utility Bills: $4,530.96
- Annual Transportation Cost: $4,033.18
- Total annual cost of required expenditure: $21,500.01
5. Green Valley, Arizona
- Percentage of retirement-aged people (65 and over): 79.8%
- Average home price: $316,970
- Property Tax: 0.44%
- Annual grocery costs: $4,774.08
- Annual Health Care Costs: $6,855.06
- Annual Cost of Utility Bills: $4,406.06
- Annual Transportation Cost: $4,373.27
- Total annual cost of required expenditure: $20,408.47
6. Foley, Alabama
- Percentage of retirement-aged people (65 and over): 32.5%
- Average home price: $315,409
- Property Tax: 0.36%
- Annual grocery costs: $4,784.03
- Annual Health Care Costs: $9,271.19
- Annual Cost of Utility Bills: $4,238.09
- Annual Transportation Cost: $3,367.37
- Total annual cost of required expenditure: $21,660.67
7. Punta Gorda, Florida
- Percentage of retirement-aged people (65 and over): 53.5%
- Average home price: $390,656
- Property Tax: 0.74%
- Annual grocery costs: $5,375.81
- Annual Health Care Costs: $7,681.84
- Annual Cost of Utility Bills: $4,186.40
- Annual Transportation Cost: $3,932.59
- Total annual cost of required expenditure: $21,176.65
The 7 Worst Places to Retire Without Any Savings
Now it’s time to analyze the list of places that should be avoided, even if they are popular retirement destinations. Due to this popularity, you will find prices in the housing market as well as the cost of living in general to be very high, which is not ideal if you do not have any savings. Although none of these cities tax Social Security benefits, most of them do tax retirement income.
Additionally, security varies wildly in these cities, and annual costs and expenses for services remain high.
1. Burr Ridge, Illinois
- Percentage of retirement-aged people (65 and over): 35.8%
- Average home price: $905,478
- Property Tax: 1.83%
- Annual grocery costs: $5,022.73
- Annual Health Care Costs: $7,577.49
- Annual Cost of Utility Bills: $4,216.55
- Annual Transportation Cost: $5,939.60
- Total annual cost of required expenditure: $22,756.37
2. Sonoma, California
- Percentage of retirement-aged people (65 and over): 32.6%
- Average home price: $1,021,522
- Property Tax: 0.70%
- Annual grocery costs: $5,520.03
- Annual Health Care Costs: $8,942.08
- Annual Cost of Utility Bills: $4,457.75
- Annual Transportation Cost: $5,201.94
- Total annual cost of required expenditure: $24,121.79
3. Ocean City, New Jersey
- Percentage of retirement-aged people (65 and over): 34.2%
- Average home price: $1,428,637
- Property Tax: 1.77%
- Annual grocery costs: $5,679.17
- Annual Health Care Costs: $7,818.30
- Annual Cost of Utility Bills: $4,815.23
- Annual Transportation Cost: $4,675.04
- Total annual cost of required expenditure: $22,987.73
4. Paradise Valley, Arizona
- Percentage of retirement-aged people (65 and over): 30.9%
- Average home price: $3,282,164
- Property Tax: 0.44%
- Annual grocery costs: $5,679.17
- Annual Health Care Costs: $7,424.98
- Annual Cost of Utility Bills: $4,367.30
- Annual Transportation Cost: $5,340.85
- Total annual cost of required expenditure: $22,812.29
5. The Ridge, New York
- Percentage of retirement-aged people (65 and over): 34.5%
- Average home price: $561,406
- Property Tax: 1.26%
- Annual grocery costs: $5,191.81
- Annual Health Care Costs: $10,049.80
- Annual Cost of Utility Bills: $5,357.91
- Annual Transportation Cost: $5,331.27
- Total annual cost of required expenditure: $25,930.79
6. Pacific Grove, California
- Percentage of retirement-aged people (65 and over): 28.9%
- Average home price: $1,407,180
- Property Tax: 0.70%
- Annual grocery costs: $5,564.79
- Annual Health Care Costs: $11,534.80
- Annual Cost of Utility Bills: $3,738.48
- Annual Transportation Cost: $4,732.52
- Total annual cost of required expenditure: $25,570.58
7. Walnut Creek, California
- Percentage of retirement-aged people (65 and over): 29%
- Average home price: $1,375,704
- Property Tax: 0.70%
- Annual grocery costs: $5,569.76
- Annual Health Care Costs: $9,720.70
- Annual Cost of Utility Bills: $4,418.98
- Annual Transportation Cost: $6,107.25
- Total annual cost of required expenditure: $25,816.69
Methodology: For this piece, GOBankingRates first found the 100 towns or cities that had (1) the highest percentage of the population age 65 and older, as derived from the U.S. Census Bureau’s 2023 American Community Survey. GOBankingRates analyzed those 100 cities based on the following factors: (2) property taxes derived from Tax Foundation 2024 data; (3) Median 2025 home value for a single-family residence obtained from Zillow’s September 2025 data. GOBankingRates then took the Bureau of Labor Statistics Consumer Expenditures Survey’s 2023 annual expenditures for groceries (“food at home”), healthcare, utilities (“utilities, fuels, and public services”), and transportation (“gas, other fuels and motor oils” + “other vehicle expenditures”) for consumers age 65 and older. These annual expenditures were then combined for each city using Sperling’s Best Places Cost of Living Indices (4) total annual cost of living for each city; (6) annual cost of an adult day health care service, and (8) annual cost of home care at the state level. These eight factors were then compiled and scored, with the lower score being given 2x weighting in the final calculation. and taxes on Social Security given a 0.5x weighting, all research conducted and updated as of November 5, 2025.