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GOBankingRates

Caitlyn Moorhead

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

Social Security GOBankingRates United States

Retirement planning can feel overwhelming, especially when you are trying to combat the skyrocketing cost of living with little to no savings in the bank. Does that mean a comfortable retirement is out of reach? Not necessarily.

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If you’ll be relying primarily on Social Security benefits, choosing the right location is key. Some U.S. cities offer affordable housing and senior-friendly amenities, making them ideal for retirees with limited funds. Others, however, can drain your budget quickly due to high expenses or poor safety ratings. If you’re curious about which is where, GOBankingRates has rounded up a list.

Here’s a look at the best and worst places to retire with no savings, so you can make smarter decisions for your future.

7 Best Places To Retire Comfortably With No Savings

If you have been trying to figure out the best places to retire with no savings, keep in mind that affordability is key when planning retirement on a tight budget, and these cities make it possible. Plus, retirees can hang on to more of their income in these places because Social Security income isn’t taxed in any of these locations.

1. Mountain Home, Arkansas

Percentage of retirement-aged people (65 and older): 29.9%
Average home value: $237,393
Property tax: 0.53%
Annual grocery costs: $4,729.32
Annual healthcare costs: $7,400.89
Annual cost of utility bills: $4,164.87
Annual transportation costs: $3,151.82
Total annual cost of necessary expenditures: $19,446.91

2. Hot Springs Village, Arkansas

Percentage of retirement-aged people (65 and older): 59.9%
Average home value: $303,006
Property tax: 0.53%
Annual grocery costs: $4,873.54
Annual healthcare costs: $7,705.92
Annual cost of utility bills: $4,113.19
Annual transportation costs: $4,421.17
Total annual cost of necessary expenditures: $21,113.82

3. Bella Vista, Arkansas

Percentage of retirement-aged people (65 and older): 31.9%
Average home value: $354,350
Property tax: 0.53%
Annual grocery costs: $4,848.68
Annual healthcare costs: $7,376.81
Annual cost of utility bills: $4,078.73
Annual transportation costs: $4,670.25
Total annual cost of necessary expenditures: $20,974.47

4. The Villages, Florida

Percentage of retirement-aged people (65 and older): 85.2%
Average home value: $404,820
Property tax: 0.74%
Annual grocery costs: $5,077.43
Annual healthcare costs: $7,858.43
Annual cost of utility bills: $4,530.96
Annual transportation costs: $4,033.18
Total annual cost of necessary expenditures: $21,500.01

5. Green Valley, Arizona

Percentage of retirement-aged people (65 and older): 79.8%
Average home value: $316,970
Property tax: 0.44%
Annual grocery costs: $4,774.08
Annual healthcare costs: $6,855.06
Annual cost of utility bills: $4,406.06
Annual transportation costs: $4,373.27
Total annual cost of necessary expenditures: $20,408.47

6. Foley, Alabama

Percentage of retirement-aged people (65 and older): 32.5%
Average home value: $315,409
Property tax: 0.36%
Annual grocery costs: $4,784.03
Annual healthcare costs: $9,271.19
Annual cost of utility bills: $4,238.09
Annual transportation costs: $3,367.37
Total annual cost of necessary expenditures: $21,660.67

7. Punta Gorda, Florida

Percentage of retirement-aged people (65 and older): 53.5%
Average home value: $390,656
Property tax: 0.74%
Annual grocery costs: $5,375.81
Annual healthcare costs: $7,681.84
Annual cost of utility bills: $4,186.40
Annual transportation costs: $3,932.59
Total annual cost of necessary expenditures: $21,176.65

7 Worst Places To Retire With No Savings

Now comes the time to analyze a list of places to avoid, even if they happen to be popular retirement destinations. Because of this popularity, you’ll find much higher prices in the housing market as well as the cost of living in general, which is not ideal if you don’t have any savings. While none of these cities 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.

1. Burr Ridge, Illinois

Percentage of retirement-aged people (65 and older): 35.8%
Average home value: $905,478
Property tax: 1.83%
Annual grocery costs: $5,022.73
Annual healthcare costs: $7,577.49
Annual cost of utility bills: $4,216.55
Annual transportation costs: $5,939.60
Total annual cost of necessary expenditures: $22,756.37

2. Sonoma, California

Percentage of retirement-aged people (65 and older): 32.6%
Average home value: $1,021,522
Property tax: 0.70%
Annual grocery costs: $5,520.03
Annual healthcare costs: $8,942.08
Annual cost of utility bills: $4,457.75
Annual transportation costs: $5,201.94
Total annual cost of necessary expenditures: $24,121.79

3. Ocean City, New Jersey

Percentage of retirement-aged people (65 and older): 34.2%
Average home value: $1,428,637
Property tax: 1.77%
Annual grocery costs: $5,679.17
Annual healthcare costs: $7,818.30
Annual cost of utility bills: $4,815.23
Annual transportation costs: $4,675.04
Total annual cost of necessary expenditures: $22,987.73

4. Paradise Valley, Arizona

Percentage of retirement-aged people (65 and older): 30.9%
Average home value: $3,282,164
Property tax: 0.44%
Annual grocery costs: $5,679.17
Annual healthcare costs: $7,424.98
Annual cost of utility bills: $4,367.30
Annual transportation costs: $5,340.85
Total annual cost of necessary expenditures: $22,812.29

5. Ridge, New York

Percentage of retirement-aged people (65 and older): 34.5%
Average home value: $561,406
Property tax: 1.26%
Annual grocery costs: $5,191.81
Annual healthcare costs: $10,049.80
Annual cost of utility bills: $5,357.91
Annual transportation costs: $5,331.27
Total annual cost of necessary expenditures: $25,930.79

6. Pacific Grove, California

Percentage of retirement-aged people (65 and older): 28.9%
Average home value: $1,407,180
Property tax: 0.70%
Annual grocery costs: $5,564.79
Annual healthcare costs: $11,534.80
Annual cost of utility bills: $3,738.48
Annual transportation costs: $4,732.52
Total annual cost of necessary expenditures: $25,570.58

7. Walnut Creek, California

Percentage of retirement-aged people (65 and older): 29%
Average home value: $1,375,704
Property tax: 0.70%
Annual grocery costs: $5,569.76
Annual healthcare costs: $9,720.70
Annual cost of utility bills: $4,418.98
Annual transportation costs: $6,107.25
Total annual cost of necessary expenditures: $25,816.69

Methodology: For this piece, GOBankingRates first found the 100 towns or cities with the (1) highest percentage of the population aged 65 years and older, as sourced from the U.S. Census Bureau 2023 American Community Survey. GOBankingRates analyzed those 100 cities across the following factors: (2) property tax as sourced from Tax Foundation 2024 data; (3) the average 2025 home value for a single-family residence as sourced from Zillow’s September 2025 data. GOBankingRates then took the Bureau of Labor Statistics Consumer Expenditure Survey’s 2023 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 November 5, 2025.

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This article originally appeared on GOBankingRates.com: 7 Best (and Worst) Places To Retire If You Have No Savings

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