What are the 3 cheapest retirement cities in the US? Hint: None are in Florida

Updated: 15 Feb, 2025 • 0 • min read

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As the cost of living continues to increase across the US, there are still many cities where you can enjoy a high quality of life in retirement without breaking the bank.

A recent study from GoBankingRates ranked the top places to retire in the US, evaluating the cost of living, transportation, and healthcare options in the 100 largest cities in the country.

Below, we'll share the top 3 cities to spend your golden years, plus our tips on how to save for your retirement so that you can stretch your hard-earned dollars as far as possible.

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The top three most affordable cities to retire in.

3. Memphis, Tennessee

Livability score: 58

Retirees looking for a great place to spend their golden years should consider moving to Memphis. In addition to visiting Graceland and walking along Beale Street, the city's park system spans almost 7,000 acres, and residents can also catch Memphis Grizzlies basketball games. If you decide to make Memphis your home, you can expect to spend around $40,409.28 per year on living expenses and discover that 14.14% of the population is also comprised of fellow seniors.

2. Cleveland, Ohio

Livability score: 59

You'll spend just $37,697.94 per year to live along the southern shore of Lake Erie, where residents enjoy visiting the Rock & Roll Hall of Fame and the Cleveland Museum of Art. Weekend trips to Detroit and hopping over the border into Canada provide plenty of activities for the 14.98% of seniors living in Cleveland. According to GoBankingRates, residents in Cleveland spend $4,204.70 per year on groceries and $5,820.84 annually on healthcare, both of which are below the national average.

1. Toledo, Ohio

Livability score: 62

Toledo takes the top spot as GoBankingRate's number one recommendation for retirement, thanks to its cost of living being 27.8% lower than the national average. The city has a higher percentage of residents over 65, at 16.22% of the population, with average annual expenses of $37,645.80. Like Cleveland, Toledo offers the benefits of living near a lake, and is close to Detroit's attractions, with its own art museum, zoo, and botanical gardens to explore.

Secure more affordable insurance options

Preparing for a comfortable retirement anywhere in the United States

Regardless of where you decide to retire, you'll need a substantial amount of money set aside to cover your daily expenses. It's never too early or late to start saving, so here are a few strategies to help you make the most of your retirement fund contributions.

Invest with a forward-thinking approach

offers the advantages of a traditional Individual Retirement Account (IRA) combined with the inflation-resistant properties of gold.

And many consider it a safer place to invest their retirement savings.

If you're unsure about how to start saving for your retirement and investing, it's a good idea to seek guidance from a qualified financial advisor.

It enables you to browse through advisor profiles that are tailored to your needs and schedule a free consultation with your chosen matches.

Staying invested during retirement

If you're already retired and seeing your bank balances decrease, you can still grow your savings with clever investment options.

This is an app that helps you save and invest money. It does this by rounding up your daily purchases made with a credit or debit card to the nearest dollar and investing the extra change into a mix of different investments known as ETFs.

For those who want a balance between automation and control, Acorns offers a one-of-a-kind blend of both. It combines the convenience of automated, diversified portfolios with the option to get more involved by selecting individual stocks, allowing you to have the best of both worlds in managing your investments.

to get started with investing.

Real estate in retirement

No matter which place you choose to retire, your investment portfolio probably includes some investments in real estate. Even if you don't plan to sell your home to fund your retirement, you can take advantage of the hot housing market in your preferred major city by investing in residential properties in major U.S. cities.

This service enables you to invest in properties in cities such as Denver, Austin, Nashville, and Miami, without having to dip into your savings to pay a down payment on a home.

You can buy a share of the home's future value with Cityfunds, which means you get a stake in the home's increasing worth as it appreciates, just like the homeowner does.

If you're more interested in rental and vacation homes, Arrived enables you to invest in shares of these properties without having to manage them or become a homeowner.

You can browse a carefully chosen collection of homes, each reviewed for their potential for increasing in value and generating income.

Bulk up your savings

Savings CDs allow your money to grow at a higher interest rate over a specific time period. However, if you take the money out before the end of the term, you'll usually have to pay an early withdrawal penalty.

They offer a 4.10% Annual Percentage Yield (APY) for a 12-month term with no account fees. That's more than 10 times higher than the 0.46% national average for traditional savings accounts, according to the FDIC.

Discover's 12-month CD beats the national average by offering more than double the APY, which is currently 2.33%.

You can deposit an amount into a CD, and you can also lock in a fixed interest rate for a term of three months to 10 years.

to find some smart saving options that beat the national average interest rate of 0.4% APY—and make checking your bank balance a little more exciting.

Reduce your monthly expenses

Regardless of where you reside, rising expenses will inevitably erode the value of your retirement savings. Whether you're already retired or approaching retirement, you can discover ways to boost your fund by comparing rates for your home and auto insurance.

You can find the lowest rates on your home insurance without incurring any costs.

In under 2 minutes, you can input your info and browse for affordable offers in your area, from a list of over 200 trusted insurance companies.

You could potentially save up to $482 annually.

It quickly helps you compare the best car insurance policies from top providers in your area, including well-known companies like Progressive, GEICO, and Allstate. With rates as low as $29 per month, you can find coverage that meets your needs and potentially save hundreds of dollars per year.

Official Car Insurance will provide a list of the top insurance companies in your area. You're now closer than ever to maximizing your savings for retirement.

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