This article takes a look at the 30 best small towns to retire where $100k in savings will last you the longest.
Maximizing Retirement Savings: Top 30 Small Towns Where $100K Lasts Longest
How long does 100k last in retirement? Not that long, if you ask us. According to a 2024 US Retirement Survey, inflation is a major source of stress for individuals, and 89% believe it is eroding the purchasing power of their assets. No wonder participants of the Charles Schwab survey believe they need at least $1.8 million to live a comfortable retirement. Sadly, the median retirement savings for Baby Boomers, based on research from the TransAmerica Center for Retirement Studies, is $202,000 only.
A lack of preparation for retirement, together with rising inflation, longer life spans, and limited savings, are making retirement hard for seniors today. Fortunately, making simple money moves can help seniors retire a millionaire. Even if you’re 50 years old and have no retirement savings, things as simple as making catch-up contributions can get you on the fast track to saving up. On the downside, a potential financial vortex, or simply life, gets in the way of many individuals, keeping them from saving for a comfortable retirement nevertheless. This is the sad reality for thousands of Americans who save nowhere near $ 1 million in savings when they retire.
One economist, Andrew Biggs, says that retiring with a “lot less” is quite possible for retirees. Even as much as $50,000 to $100,000 in total savings can be sufficient to help one retire, notes Biggs. This brings us to the question: how can you live off of $100,000? And more importantly, is the figure enough to last you in your retirement years? Briggs backs up his theory by basing it on a federal Survey of Household Economics and Decision-making between 2019 and 2022, stating how 85% of respondents having $50,000 to $100,000 in savings were doing “just fine”.
Alicia Munnell, director of the Center for Retirement Research at Boston College, doesn’t quite agree and states that retirees are in fact, financially insecure. According to Munnell, many retirees are reluctant to share their financial problems in surveys, which is why we can’t depend on them. The bottom line is, that whether or not one needs a million dollars to retire depends largely on where you choose to live. While making do with a lot less is certainly possible, how much less depends on where you end up retiring to.
Building a Retirement Nest Egg
We all know that tax-advantaged saving accounts like 401(k)s and IRAs are a potential retiree’s best bets for building up a nest egg. Maximizing savings with employer matches and tax benefits can help one save for retirement in the best possible manner. However, another strategy for building up wealth is investing in stocks. When it comes to retirement, your age and date of retirement come to matter a lot. This is because both of these factors gravely impact your risk tolerance, investment horizon, and overall financial goals. That said, the best retirement stocks for retirees are those that have a history of increasing dividends, strong fundamentals, and consistent earnings growth. Aaron Brown, former head of financial market research at AQR Capital Management, states how diversified portfolios of stocks and bonds have been historically delivering a yield of around 4% over the long term, keeping pace with inflation.
As such, dividend growth stocks, in particular, are especially appealing to retirees owing to their steady income streams. Some notable dividend growers that retirees can consider for retirement are NextEra Energy, Inc. (NYSE:NEE), Chevron Corporation (NYSE:CVX), and NIKE, Inc. (NYSE:NKE). NextEra Energy, Inc. (NYSE:NEE) is an American Energy company that has maintained a consistent dividend payment record since 1986. NextEra Energy, Inc. (NYSE:NEE) has been increasing its dividends each year since 1995 and is thus a “dividend aristocrat”, a title given to companies that have increased their dividends each year since the past 29 years at least. The company announced a dividend of $0.515 per share, with the ex-dividend date 2024-06-03.
Next up, Chevron Corporation (NYSE:CVX) is another dividend aristocrat that has paid uninterrupted dividends to shareholders since 1984. It is an American multinational energy company mainly specializing in oil and gas. The company announced a dividend of $1.63 per share. This is payable on June 10, 2024, with the ex-dividend date set for May 16, 2024. Lastly, NIKE, Inc. (NYSE:NKE) is one of the largest athletic and footwear brands delivering innovative products, services, and experiences to its customers. NIKE, Inc. (NYSE:NKE) is also listed as a dividend aristocrat, paying dividends since 1986. To ensure sustainability of dividends, companies must have healthy growth metrics. Companies such as NIKE, Inc. (NYSE:NKE) and Chevron Corporation (NYSE:CVX) enjoy strong revenue models that suggest continued dividend sustainability and growth.
Methodology
To compile the list of best small towns to retire where $100k in savings will last you the longest, we used our previous lists as well as employed a consensus approach based on forums to develop a list of small towns with a population under 10,000. Next, we ranked the towns on their total cost of living expenses, with the best small town being the one where $100k lasted the longest, together with a modest Social Security check. Towns were also filtered out based on their livability scores so that only the best small towns to retire made our list.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
30. Blowing Rock, North Carolina
Total Population: 1,377
Annual Cost of Living Expenses: 36,288
Number of Years $100k will Last: 5.5
Livability Score: 66
This scenic mountain town, with a population of less than 1,500, is ideal for seniors looking for some peace amidst the Appalachian Mountains. Together with a meager Social Security check, $100k will last you around 5.5 years.
29. Taos, New Mexico
Total Population: 6,442
Annual Cost of Living Expenses: 34,560
Number of Years $100k will Last: 6
Livability Score: 65
Revered for its stunning natural beauty, Taos can be a dream come true for active retirees. This town is also famous for its bona side Art colonies, snowboarding, and world-class skiing.
28. Fallon, Nevada
Total Population: 9,445
Annual Cost of Living Expenses: 34,344
Number of Years $100k will Last: 6.1
Livability Score: 70
Fallon is one of the best small towns to retire where $100k in savings will last you the longest, largely because of its stunning landscapes and good quality of life.
27. Orange Beach, Alabama
Total Population: 8,447
Annual Cost of Living Expenses: 34,020
Number of Years $100k will Last: 6.2
Livability Score: 74
This farming village-turned-beach resort is a gleaming retirement destination with its beach-side condos, emerald waters, and fishing charters.
26. Ferrum, Virginia
Total Population: 1,717
Annual Cost of Living Expenses: 33,876
Number of Years $100k will Last: 6.3
Livability Score: 65
Ferrum gives off the vibes of a small town while offering modern conveniences, and a $100k will last you a little more than 6 years here.
25. Goliad, Texas
Total Population: 1,683
Annual Cost of Living Expenses: 33,444
Number of Years $100k will Last: 6.5
Livability Score: 70
Boasting a rich history, Goliad retirees can have their $100k savings last them 6.5 years, together with Social Security of course.
24. Petoskey, Michigan
Total Population: 5,865
Annual Cost of Living Expenses: 32,940
Number of Years $100k will Last: 6.7
Livability Score: 82
Next on our list of best small towns to retire where $100 in savings will last you the longest is Petoskey. A nature lover’s delight, Petoskey offers majestic views of Lake Michigan, warm summers, and a charming downtown area.
23. Travelers Rest, South Carolina
Total Population: 8,486
Annual Cost of Living Expenses: 32,868
Number of Years $100k will Last: 6.7
Livability Score: 74
Nested in the foothills of the Blue Ridge Mountains, Travelers Rest promises small-town living, friendly people, and cool outdoor activities in proximity.
22. Alamo Heights, Texas
Total Population: 7,530
Annual Cost of Living Expenses: 32,868
Number of Years $100k will Last: 6.7
Livability Score: 80
The eclectic town of Alamo Heights is just a few miles from San Antonio, brimming with upscale eateries, many boutiques, and enjoyable attractions.
21. Windcrest, Texas
Total Population: 5,799
Annual Cost of Living Expenses: 32,868
Number of Years $100k will Last: 6.7
Livability Score: 68
Next on our list of best small towns to retire where $100k in savings will last you the longest is Windcrest, Texas. Situated in Bexar County, it is a nice and peaceful place to retire for seniors.
20. Eureka, Nevada
Total Population: 315
Annual Cost of Living Expenses: 32,256
Number of Years $100k will Last: 7
Livability Score: 75
Eureka makes it to our list of best small towns to retire where $100k in savings will last you the longest at the 20th position. Your savings, together with a less-than-average Social Security check, will last you about 7 years here.
19. Strasburg, Virginia
Total Population: 7,219
Annual Cost of Living Expenses: 32,112
Number of Years $100k will Last: 7.1
Livability Score: 72
Brimming with vintage shops and farm-fresh eateries, Strasburg is a vibrant town to settle to where $100k in savings will last you seven years.
18. Yellow Springs, Ohio
Total Population: 3,724
Annual Cost of Living Expenses: 31,644
Number of Years $100k will Last: 7.3
Livability Score: 74
Another one of the best small towns to retire on a budget is Yellow Springs, Ohio. This charming town has an organic grocery, many eateries and cafes, galleries, boutiques, and a lot to do.
17. Fruitland, Idaho
Total Population: 6,742
Annual Cost of Living Expenses: 31,644
Number of Years $100k will Last: 7.3
Livability Score: 67
Lying along the Snake and Payette rivers, Fruitland boasts a rich history, a newly renovated downtown, and a strong sense of community.
16. Crystal River, Florida
Total Population: 3,485
Annual Cost of Living Expenses: 31,608
Number of Years $100k will Last: 7.3
Livability Score: 65
A Florida pick, Crystal River makes it to the 16th place on our list of best small towns to retire where $100k in savings will last you the longest. Retirees can enjoy river cruises, scrumptious Southern cuisine, and natural beauty in this town.
15. Reeds Spring, Missouri
Total Population: 1,226
Annual Cost of Living Expenses: 30,600
Number of Years $100k will Last: 7.9
Livability Score: 67
Situated in Stone County, Reeds Spring is a good place to retire to because of its affordable cost of living, small-town atmosphere, and proximity to outdoor activities.
14. Kimberling City, Missouri
Total Population: 2,388
Annual Cost of Living Expenses: 30,600
Number of Years $100k will Last: 7.9
Livability Score: 68
Another Stone County pick, Kimberling City makes it to 14th place on our list of best small towns to retire where $100k in savings will last you the longest. Home to the man-made lake called Table Rock, residents can enjoy abundant recreational activities here.
13. Cedar Key, Florida
Total Population: 720
Annual Cost of Living Expenses: 30,168
Number of Years $100k will Last: 8.2
Livability Score: 73
Besides its low cost of living, Cedar Key is known for its laid-back vibe, seafood restaurants, and historic yet lively downtown. It is one of the best small towns to retire in the Sunshine State.
12. Pierre Part, Louisiana
Total Population: 2,447
Annual Cost of Living Expenses: 30,168
Number of Years $100k will Last: 8.2
Livability Score: 67
Pierre Part is known to be a quaint, clean little town with a population of less than 3,000 people. Its proximity to Lake Verret offers opportunities for fishing and water sports.
11. Bryson City, North Carolina
Total Population: 1,525
Annual Cost of Living Expenses: 29,592
Number of Years $100k will Last: 8.6
Livability Score: 65
Nicknamed the “Outdoor Adventure Capital of the Great Smoky Mountains”, Bryson City boasts a historic downtown, breweries, boutiques, and abundant outdoor activities.
10. Hermann, Missouri
Total Population: 2,194
Annual Cost of Living Expenses: 29,556
Number of Years $100k will Last: 8.7
Livability Score: 72
Known for its wineries, Hermann is a small town sitting on the Missouri River that will have your $100k in savings last about 8.7 years.
9. Patagonia, Arizona
Total Population: 796
Annual Cost of Living Expenses: 29,376
Number of Years $100k will Last: 8.8
Livability Score: 68
Both a tourist destination and a retirement community, Patagonia also happens to be a world-class birding site attracting more than 200 species of birds for nature enthusiasts.
8. Galena, Illinois
Total Population: 3,254
Annual Cost of Living Expenses: 29,196
Number of Years $100k will Last: 8.9
Livability Score: 78
An Illinois favorite, Galena is a picturesque town offering abundant fun activities for seniors. There are bars, galleries, restaurants, and much more.
7. Peninsula, Ohio
Total Population: 522
Annual Cost of Living Expenses: 29,088
Number of Years $100k will Last: 9
Livability Score: 71
Next on our list of best small towns to retire where $100k in savings will last you the longest is the charming and beautiful Peninsula. The town, embraced by the Cuyahoga Valley National Park, offers retirees plenty of nature and outdoor activities.
6. Bedford, Pennsylvania
Total Population: 2,844
Annual Cost of Living Expenses: 29,016
Number of Years $100k will Last: 9.1
Livability Score: 81
Retirees who would love a slow-paced life can retire to Bedford Pennsylvania. A $100k in savings will last you around 9 years in this town.
5. Iron Mountain, Michigan
Total Population: 7,495
Annual Cost of Living Expenses: 28,656
Number of Years $100k will Last: 9.4
Livability Score: 75
Home to abundant wilderness, lakes, and rivers, Iron Mountain is the perfect small town to enjoy the great outdoors.
