This article takes a look at the 25 most affordable places to retire in the U.S. in 2024. If you wish to skip our detailed analysis of financial realities, you may go to the 10 Most Affordable Places to Retire in the U.S. in 2024.
An In-Depth Look at Financial Realities and Best Places to Retire in 2024
Is the United States still affordable for the average retiree? According to the Motley Fool, the median net worth among Americans aged 65 to 74 is $410,000. However, Americans are adamant about having at least $1.8 million for a comfortable retirement here in the US (according to a The Charles Schwab Corporation (NYSE:SCHW) study). While the gap between actual savings and the magic retirement number is rather large, savers have been slow to adopt solutions that can help them change this narrative. Evidently for them, embracing stress appears to be the more prudent choice.
A T. Rowe Price Group, Inc. (NASDAQ:TROW) Retirement Savings and Spending Survey confirms this notion, stating that 64% of baby boomers have moderate to high levels of stress concerning their retirement savings. To delve deeper into the retirement landscape, while a 3.2% Cost of Living Adjustment (COLA) may make this new year seem challenging, it pales in comparison to the anxiety some of us are experiencing as 2034 draws another year closer. For those asking why, this is the projected year for the depletion of Social Security funds. Unless things turn towards a new direction, beneficiaries will receive only 80% of their scheduled benefits from this date.
Returning to the present year, Medicare Part B standard premiums have increased by 6%, rebounding from a 3% decline in 2023. Additionally, annual deductibles for Part B have risen from $226 to $240. In other developments, a change implemented in 1983 regarding a gradual rise in Social Security’s Full Retirement Age (FRA) to 67 is nearly complete. By the latter half of 2024, this FRA will reach 66 years and 8 months.
For the average retiree, this means that retiring earlier than the FRA will make them ineligible to claim 100% of their social security benefits. While individuals can retire as early as the age of 62, they are susceptible to losing as much as 30% of their benefits in the process. On the other hand, waiting past the FRA can help seniors reap an extra 8% benefits each year until the age of 70. While individuals do hesitate to retire early, many times the situation becomes entirely impossible to avoid.
Corporate downsizing and health concerns are the top reasons individuals exit the workforce much earlier than they initially anticipated. So what must the average retiree do to spend a comfortable retirement here in the US? Surely, there must be some best places to retire that can help them spend their golden years without the stress of barely making ends meet.
While T. Rowe Price Group, Inc. (NASDAQ:TROW) and similar investment management firms strongly emphasize the role of financial wellness in achieving financial goals and attaining long-term retiree success, even small steps taken in the right direction can help retirees ease their retirement path. For instance, relocating to some of the most affordable states to retire can be a wise move. Some of the best states to retire on social security include Mississippi, Iowa, Wyoming, and Georgia. According to Redfin Corporation (NASDAQ:RDFN), the median price of a home in these states is $228,000, $221,400, $210,000, and $355,800, respectively.
Mississippi is hands down one of the most affordable states to retire in 2024, and median home prices in this state are up 1.9%, selling for a median price of $228,500 as per Redfin Corporation (NASDAQ:RDFN). It has one of the lowest cost of living requirements too, considering the state has a low cost of living and a tax-friendly environment to boast.
Nevertheless, Hayden Adams of Charles Schwab Corporation (NYSE:SCHW) Center for Financial Research asserts that taxes shouldn’t be the only consideration when deciding your retirement destination. Friends and family, climate, quality of healthcare, and other factors important to you should also be considered. One way to go about this is rounding up a list of destinations and assessing which one can prove to be best for you considering all factors involved.
“Whether you’re a retiree, a remote worker, or just looking for a change of scenery, the idea of pulling up stakes for purportedly greener pastures isn’t that unusual these days. However, the tax implications can be profound, so it’s smart to take a hard look before you break out the packing tape.”
-Hayden Adams, CPA, CFP®, director of tax and financial planning at the Charles Schwab Corporation (NYSE:SCHW) Center for Financial Research.
Rob Hainer/Shutterstock.com
Methodology
To compile the list of most affordable places to retire in the U.S. in 2024, we began by rounding up an extensive list of the most affordable places ranked by prominent websites such as CNBC, US News & World Report, PODS, Bankers Life, and Finance Buzz, to name a few. Our evaluation focused on key affordability factors, including the cost of living index and median home prices. After excluding locations with a livability score below 65, we assigned scores to each factor and aggregated them into our distinctive Insider Monkey Score. The final rankings present these retirement destinations in ascending order, ranging from the lowest to the highest scores. Livability scores have been sourced from Area Vibes, median home prices are extracted from Redfin Corporation (NASDAQ:RDFN), while cost of living index is our own.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here is our list of the most affordable places to retire in the U.S. in 2024:
25. Winston-Salem, North Carolina
Insider Money Score: 22
IM Cost of Living Index: 82.15
Median Home Price: $260,000
Livability Score: 66
Beyond its recognition as one of the most affordable places to retire in the US in 2024, Winston-Salem unveils a myriad of charms that extend far beyond its affordability. Home to beautiful parks and a thriving cultural scene, seniors get to enjoy galleries, museums, and theaters here. The nearby Blue Ridge Mountains give outdoor life a whole new meaning, while top-notch medical facilities ensure seniors live a high quality of life.
24. Fayetteville, Arkansas
Insider Money Score: 23
IM Cost of Living Index: 90.4
Median Home Price: $355,000
Livability Score: 79
Nestled in the scenic Ozarks, Fayetteville beckons seniors with its intellectually stimulating university-town atmosphere and just the right dash of southern hospitality. The thriving arts and culture scene, together with miles of biking and hiking trails, makes living here quite an experience.
23. Jacksonville, Florida
Insider Money Score: 23
IM Cost of Living Index: 94.9
Median Home Price: $305,000
Livability Score: 80
As evident by the numbers, Jacksonville is another one of the most affordable places to retire in the US in 2024. The cost of living here is 5.1% lower than the national average, while home prices are below the national median too. Jacksonville is the first of the two Sunshine State cities making it to our list, boasting an attractive climate, gorgeous sun-kissed beaches, and bountiful outdoor fun at affordable prices.
22. Lexington, Kentucky
Insider Money Score: 25
IM Cost of Living Index: 92.4
Median Home Price: $310,000
Livability Score: 86
For the love of all things equestrian, Lexington enthralls seniors with its exciting horse events, horse farms, renowned Thoroughbred racing facilities, and the Kentucky Horse Park. It is no surprise that the city is one of the best places to retire for active adults. The picturesque landscapes, world-class facilities, and affordable living make it one of the most affordable places to retire in the South as well.
21. Savannah, Georgia
Insider Money Score: 26
IM Cost of Living Index: 90.1
Median Home Price: $335,000
Livability Score: 79
The secret’s out, and Savannah is no longer our best-kept secret place to retire in the US. Nevertheless, it is still affordable and boasts all the amenities that a senior would desire for an ideal retirement.
20. Hickory, North Carolina
Insider Money Score: 29
IM Cost of Living Index: 91.5
Median Home Price: $295,000
Livability Score: 69
If you’re still wondering which one of the most affordable places to retire in the U.S. in 2024 you should go for, consider Hickory in North Carolina. This beautiful mountain town nestled in the foothills of the Blue Ridge Mountains has the perfect mild weather to boast, along with a rich cultural scene and reputable health facilities.
19. Lakeland, Florida
Insider Money Score: 29
IM Cost of Living Index: 91.3
Median Home Price: $302,000
Livability Score: 76
Famous for its many lakes, Lakeland is more than just beauty that meets the eye. This city is one of the most affordable places to retire on the East Coast. Warm weather, a historic downtown district, and a thriving small-city vibe make this city full of lakes a senior living dream.
18. Midland, Michigan
Insider Money Score: 39
IM Cost of Living Index: 88.9
Median Home Price: $269,000
Livability Score: 82
This Michigan city is not only one of the most affordable places to retire in the U.S. in 2024 but also one of the most happening retirement towns out there. Home to more than 80 parks, lots of churches, and plenty of restaurants and shops to explore, there isn’t a dull day for a senior who lives here.
17. Fort Wayne, Indiana
Insider Money Score: 40
IM Cost of Living Index: 86
Median Home Price: $280,000
Livability Score: 83
Acclaimed as one of the cheapest places across America where you will want to retire, Fort Wayne has been in the Insider Monkey spotlight plenty of times.. Its low cost of living, affordable housing and rent, and high livability score mean it’s the perfect place to retire on social security.
16. Lafayette, Louisiana
Insider Money Score: 41
IM Cost of Living Index: 89.1
Median Home Price: $245,000
Livability Score: 71
The only Louisiana city to make it to our list, Lafayette can be a vibrant city to retire to, boasting great food, a lively music scene, and also a mild climate. The cost of living here is 10.9% lower than the national average, and home prices are also well below the national median.
15. Conway, Arkansas
Insider Money Score: 50
IM Cost of Living Index: 84.5
Median Home Price: $236,000
Livability Score: 67
Retirees in Conway get to experience abundant natural beauty, perfect for seniors who love some outdoor fun. Seniors can enjoy activities such as kayaking, boating, swimming, hunting, and even fishing in nearby Lake Conway, Cadron Creek, and even Brewer Lake.
14. Biloxi, Mississippi
Insider Money Score: 51
IM Cost of Living Index: 86.3
Median Home Price: $221,000
Livability Score: 72
The next city we stumbled upon when searching for the most affordable places to retire in the US in 2024 is Biloxi, Mississippi. Deemed one of the cheapest beach towns as per our previous study, Biloxi attracts seniors with its beautiful sandy beaches, delectable seafood, and lots of casinos.
13. Mobile, Alabama
Insider Money Score: 54
IM Cost of Living Index: 84
Median Home Price: $229,000
Livability Score: 68
Residents in Mobile have a secret – they don’t want us talking about it. Seems our mentions keep attracting more seniors to their affordable haven. With budget-friendly homes, low living costs, and an awesome livability score, Mobile’s the place to be in your golden years.
12. Des Moines, Iowa
Insider Money Score: 56
IM Cost of Living Index: 86.3
Median Home Price: $191,000
Livability Score: 81
Des Moines is a true star city considering it has made it to our list of best places to retire in the US in 2024. Home to excellent healthcare facilities, a vibrant cultural scene, and ample opportunities for outdoor fun, Des Moines is a compelling choice for retirees seeking a well-rounded and fulfilling retirement experience.
11. McAllen, Texas
Insider Money Score: 56
IM Cost of Living Index: 78.3
Median Home Price: $286,000
Livability Score: 74
Once more, this Texan gem is making waves across countless websites highlighting the cheapest and safest places to retire in the US. Home to year-round sunshine, affordable living expenses, and a safe environment, McAllen is the place to be for those who wish to take their retirement dollars further.
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Disclosure: none. 25 Most Affordable Places to Retire in the U.S. in 2024 is originally published on Insider Monkey.