Planning for retirement can be quite intimidating. Many individuals contemplating retirement often wonder if they have sufficient funds to sustain their lifestyle for the remainder of their lives. In an ideal scenario, you would have a significant amount saved.
However, there are instances when life just doesn’t go as planned. Nevertheless, it’s alright as there are locations where you can relocate during retirement without any savings and still enjoy a good quality of life.
Based on a survey by GoBankingRates, around 33% of Americans have savings of $500 or less, indicating that they may depend on Social Security benefits during retirement. However, according to the website, this is sufficient in certain places.
GoBankingRates compiled a list of top and bottom retirement destinations for individuals without savings to aid in decision-making. It started by examining the 100 biggest cities in the U.S. with a high number of adults aged 65 and above to reach its conclusion.
The cities were ranked based on several factors such as the average 2023 home value, property tax rate, annual home health aide cost, cost of groceries and utilities. Information on state taxes on Social Security benefits was also considered. Upon analyzing all the information, Foley, Alabama was determined to be the top choice for retirement among individuals with limited savings.
Also Read: Listing 10 U.S. Cities with the Best Quality of Life
GoBankingRates reports that the city, located just 30 minutes from the Gulf Coast beaches, is a great place to live. With over 30 percent of the population being 65 or older, the annual cost of a home health aide is $46,218, and groceries cost around $4,326.11 per year. One key point to note is that Alabama does not impose taxes on Social Security benefits. Utilities cost $3,858.26 annually, which is quite affordable.
Foley is ranked in the top 10, with Mountain Home, Arkansas, in second place, Hot Springs Village, Arkansas, in third, The Villages, Florida, in fourth, and Bella Vista, Arkansas, at No. 5. In the top 10 are Pinehurst, North Carolina; Green Valley, Arizona; North Myrtle Beach, South Carolina; Fredericksburg, Texas; and Punta Gorda, Florida.
Malibu, California was named the worst place to retire by GoBankingRates due to its high cost of living. According to the website, the average home value in 2023 exceeded $3.8 million, with annual home health aide costs in Malibu averaging $73,216. In Alabama, the annual grocery cost is much lower at $5,315.45. On the bright side, California does not tax Social Security benefits, which is a relief.
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