The thought of retiring without a considerable amount of money in your savings account is no doubt a scary idea, but there are actually a handful of cities where you can retire even if you don’t have a lot of money saved up.
GoBankingRates.com has compiled a list of the 10 best places to retire in America with no savings by comparing U.S. cities that have a large population of adults over the age of 65. The list ranks the cities by home value and property tax rate, plus other factors important to retirees, like yearly healthcare and grocery costs.
The list also includes whether the city taxes Social Security benefits, which can make a big difference in deciding where to retire.
MORE: This chart shows how many years you need to work before you can retire
Coming in at No. 1 is the small city of Foley, Alabama, which is on the state’s Gulf Coast. With an average property tax of just 0.39%, annual healthcare costs around $8,000, and annual grocery costs around $4,300, these factors are among what makes Foley the number one place to retire in America if you’re short on savings.
If you choose to retire in Foley, you’ll be in good company, as more than 30% of the city’s population is over the age of 65. Perhaps most importantly when it comes to retirement, Alabama does not tax Social Security benefits.
If you’re not up for living in Alabama, the No. 2 and No. 3 best places to retire without savings according to their list are both in Arkansas. Mountain Home and Hot Springs Village have similar property tax and healthcare costs, but if you want company, the 65 and up population in Hot Springs Village is much bigger than Mountain Home’s, by more than double.
Last on the list of most affordable places to retire in America with no savings is Punta Gorda, Florida, where more than half of the population is over the age of 65. Average property taxes are around 0.91%, with costs like yearly healthcare pricing out around $7,000 and groceries costing around $5,000 annually.
Here’s the full list of BankRate’s top 10:
- 10. Punta Gorda, Florida
- 9. Fredericksburg, Texas
- 8. North Myrtle Beach, South Carolina
- 7. Green Valley, Arizona
- 6. Pinehurst, North Carolina
- 5. Bella Vista, Arkansas
- 4. The Villages, Florida
- 3. Hot Springs Village, Arkansas
- 2. Mountain Home, Arkansas
- 1. Foley, Alabama
If you want to compare states a bit more, BankRate.com created a similar list last year that chose Iowa as the best state to retire in, as 20% of the population is over the age of 65 and the state does not tax Social Security benefits.
MORE: More people are saving $1 million for retirement—here’s how you can too
Curious about the worst places to retire without savings? GoBankingRates figured that out as well, naming Malibu, California, No. 1 — thanks to the average home value being more than $3.8 million and the home health aide costs coming in at $73,000. Walnut Creek, California, and Melville, New York, round out the top three worst places at Nos. 2 and 3 respectively.
This story originally appeared on Don't Waste Your Money.
