Can you live on $1,406.91 a month? According to the Social Security Administration, that was the average monthly benefit for a retired worker in January 2018. And nearly half of families in the U.S., even those approaching retirement, have no retirement savings at all, according to the Economic Policy Institute. Finding a cheap place to live in retirement is going to be crucial for many Americans.
GOBankingRates crunched the numbers from 150 U.S. cities, using cost-of-living indexes from Sperling's Best Places to compare the cost of housing, transportation, groceries, utilities and healthcare. They used that data, along with U.S. Bureau of Labor Statistics data on average annual expenditures for adults 65 and older, to come up with a formula to predict annual expenditures in each city. We added median home prices in each city, from Zillow.
If you want to retire more comfortably, you might need to live in a place with a lower cost of living. Here are the cheapest places in the U.S. to retire.
Annual expenses: $33,219
Median home price: $65,100
Birmingham, Alabama's biggest city, topped the list of inexpensive places for retirees.
Annual expenses: $33,356
Median home price: $44,500
Michigan's biggest city, affordable Detroit, is also the birthplace of Motown Records. Above, Comerica Park, home of baseball's Detroit Tigers.
Annual expenses: $33,676
Median home price: N/A
The median home price in the state of Mississippi is $120,400. Above, the historic Mynelle Gardens arboretum in Jackson.
Annual expenses: $33,859
Median home price: $82,600
Retirees who enjoy music and nightlife might like Memphis. Above, neon signs light up the blues clubs on Beale Street.
Annual expenses: $35,095
Median home price: $63,300
Above, downtown Toledo seen from across the Maumee river.
Annual expenses: $35,461
Median home price: $89,200
Above, Brownsville celebrates the Charro Days Fiesta, a shared heritage celebration between the border cities of Brownsville and the Mexican town of Matamoros, Tamaulipas.
Photo: Roberto Galan/Shutterstock
Annual expenses: $35,781
Median home price: $128,500 (according to Trulia)
Augusta, located on the Savannah River, has about 200,000 people and enjoys a mild climate.
Annual expenses: $36,056
Median home price: $61,600
Above, people relax in Cleveland's center public square.
Annual expenses: $36,147
Median home price: $68,100
Above, Blue Hen Falls in nearby Cuyahoga Valley National Park, located between Akron and Cleveland.
Annual expenses: $36,971
Median home price: N/A.
The median rent in Montgomery, the home of Hank Williams, is $850.
Fort Wayne, Ind.
Annual expenses: $37,154
Median home price: $103,700
Above, a family canoes down the St. Mary's River near downtown Fort Wayne.
Annual expenses: $37,245
Median home price: $136,900
Affordable Knoxville, Tennessee's third largest city, is home to the University of Tennessee.
Annual expenses: $37,291
Median home price: $88,700
This historical city dates back to the Civil War, and is home to Columbus State University.
Annual expenses: $37,611
Median home price: $85,300
Rochester sits on the southern shore of Lake Ontario in western New York and has a population of over 210,000. Above, the Charlotte Genesee Lighthouse, built in 1822 on Lake Ontario.
Annual expenses: $37,749
Median home price: $154,100
Above, spectators line the street during the Krewe of Centaur Mardi Gras Parade in Shreveport.Photo: Jim Noetzel/Shreveport-Bossier Convention & Visitors Bureau
Des Moines, Iowa
Annual expenses: $37,840
Median home price: $130,800
Above, the Iowa Women of Achievement Bridge over the Des Moines River.
Photo: Nagel Photography/Shutterstock.com
Annual expenses: $38,115
Median home price: $118,700
Amarillo, in the Texas Panhandle, is a gateway to the vast, trail-lined Palo Duro Canyon State Park. Above, the Big Texan Steak Ranch, a famous steakhouse restaurant and motel located in Amarillo on Route 66.
Photo: T photography/Shutterstock
El Paso, Texas
Annual expenses: $38,252
Median home price: $115,700
El Paso sits on the border of Mexico, looking toward Juarez.
Photo: Joseph Sohm/Shutterstock
Annual expenses: $38,298
Median home price: $80,100
Above, Buffalo's revitalized Canalside district includes outdoor sports and a naval museum.
Photo: Spiroview Inc/Shutterstock
Annual expenses: $38,389
Median home price: $112,000
Mobile is the social and economic hub of the Gulf Coast. Above, Mobile's historic downtown.
Annual expenses: $38,435
Median home price: $128,200
Winston-Salem has a population of more than 242,000 and is home to Wake Forest University and Winston-Salem State University. Above, diners on Fourth Street.
Photo: Visit Winston-Salem/J. Sinclair
Annual expenses: $38,481
Median home price: $112,200
Located on Lake Michigan's western shore, Michigan's most populous city (about 600,000) is famous for breweries and baseball.
Annual expenses: $38,481
Median home price: $123,000
Above, the windmills at the American Wind Power Center, a 28-acre city park east of downtown Lubbock. The museum exhibits more than 160 American-style windmills.
Photo: T photography/Shutterstock
Annual expenses: $38,572
Median home price: $139,700
Columbus' historic Ohio Theatre is a national landmark offering a variety of Broadway productions.
Corpus Christi, Texas
Annual expenses: $38,664
Median home price: $200,000.
The median rent in Corpus Christi is $1,500. Shown, Corpus Christi's bayfront harbor and marina.
Annual expenses: $38,755
Median home price: $131,600
Laredo has several historic districts and dates as far back as 1755. In 1840 it was part of the Republic of the Rio Grande.
Photo: Barna Tanko/Shutterstock
Annual expenses: $38,801
Median home price: $115,800
Above, people enjoy a day in a park at the Philbrook Museum of Art in Tulsa.
Photo: Val Lawless/Shutterstock
St. Louis, Mo.
Annual expenses: $38,984
Median home price: $128,600
The greater St. Louis area is home to nearly 3 million people. The city sits on the western bank of the Mississippi River, on the border with Illinois. Above, the Lantern Festival at the Missouri Botanical Garden.
Photo: Semmick Photo/Shutterstock
Annual expenses: $39,304
Median home price: $129,600
Crowds gather in front of Music Hall, an iconic classical music performance hall in Cincinnati's Over-The-Rhine neighborhood.
Photo: Cory Woodruff/Shutterstock
Kansas City, Mo.
Annual expenses: $39,808
Median home price:$127,600
Located on the Missouri River on the border with Kansas, the city is known for its barbecue and jazz. It is home to the University of Missouri.