April 18, 2024

[ad_1]

If you’ve got nothing saved for retirement, you’re not alone.

Nearly 30% of Americans have $0 saved for retirement, per recent data from personal finance website GOBankingRates. Another 33% have less than $50,000 saved.

If you fall into either category and you’re approaching retirement age, it may be time to start preparing to live on a smaller budget after you stop working, says Anne Lester, a retirement expert and author of “Your Best Financial Life: Save Smart Now for the Future You Want.”

“You’ll need to start thinking about how you can start paring back your standard of living and gradually get used to having less money to spend post-retirement,” she tells CNBC Make It.

If you don’t have much money saved up in a retirement account such as a 401(k) or a Roth IRA, you may need to rely on your Social Security benefit to cover your expenses — which may not go very far. The average monthly benefit is around $1,773 as of February, per the Social Security Administration.

With that in mind, GOBankingRates analyzed the 100 biggest U.S. cities with a large population of residents over 65 to determine the best place to retire on little to no savings. It ranked each city on a variety of metrics, including the city’s average home value, annual grocery costs, annual utilities costs and whether the state taxes Social Security benefits.

The study used data from a range of sources, including the U.S. Census Bureau’s 2021 American Community Survey, the Tax Foundation and the Bureau of Labor Statistics’ Consumer Expenditure Survey.

Here are the top five places in the U.S. to retire if you have little to no savings, according to GOBankingRates.

1. Foley, Alabama

  • Percentage of population 65 and older: 31%
  • Average 2023 home value: $296,232
  • Social Security benefits taxed: No
  • Average annual grocery costs: $4,326
  • Average annual health-care costs: $8,120

2. Mountain Home, Arkansas

  • Percentage of population 65 and older: 28%
  • Average 2023 home value: $199,388
  • Social Security benefits taxed: No
  • Average annual grocery costs: $4,277
  • Average annual health-care costs: $6,482

3. Hot Springs Village, Arkansas

  • Percentage of population 65 and older: 63%
  • Average 2023 home value: $289,418
  • Social Security benefits taxed: No
  • Average annual grocery costs: $4,407
  • Average annual health-care costs: $6,749

4. The Villages, Florida

  • Percentage of population 65 and older: 86%
  • Average 2023 home value: $418,926
  • Social Security benefits taxed: No
  • Average annual grocery costs: $4,591
  • Average annual health-care costs: $6,882

5. Bella Vista, Arkansas

  • Percentage of population 65 and older: 32%
  • Average 2023 home value: $322,770
  • Social Security benefits taxed: No
  • Average annual grocery costs: $4,385
  • Average annual health-care costs: $6,461

To that point, if you’re approaching retirement age and have little to nothing saved, you may need to make some tough decisions.

For instance, you may need to consider delaying your retirement in order to receive a higher Social Security benefit or picking up a part-time job to help supplement your post-work income, Lester says.

“It’s time to start getting serious about how much money you’ll have and how far that will go depending on where you’re living,” she says.

How to decide where to retire

Three out of the top five places for retiring with little to no savings are in Arkansas, which offers both advantages and disadvantages for retirees on a tight budget.

You could benefit from the state’s relatively cheap cost of living and housing expenses, which are around 8% and 22% lower than the national average, respectively, according to RentCafe.

However, in exchange for cheaper living expenses, you may need to forgo some perks, such as proximity to family or variety of things to do. While Arkansas offers scenic natural beauty in the form of hot springs, caves and forests, you’d need to travel a bit in order to relax on the beach, for example.

And remember, although lists like this can provide helpful context, where you choose to retire will depend on many personal preferences outside of living costs. If you’re thinking about relocating, a good rule of thumb is to visit your potential retirement destination ahead of time to get a feel for what it may be like to live there long term.

“If you think relocation is in your future and you’ve got the budget for it, check out some places to start seeing what’s possible,” Lester says.

Want to make extra money outside of your day job? Sign up for CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. Register today and save 50% with discount code EARLYBIRD.

Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life.

Don’t miss these stories from CNBC PRO:

We live on a sailboat & travel the world for $1,900/month — take a look inside

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Batman138 Bro138 Dolar138 Gas138 Gudang138 Hoki99 Ligaciputra Panen77 Zeus138 Kilat77 Planet88 Gaspol168 Sikat88 Rupiah138 Garuda138 Gacor77 Roma77 Sensa138 Panen138 Slot138 Gaco88 Elanggame Candy99 Cair77 Max7 Best188 Space77 Sky77 Luxury777 Maxwin138 Bosswin168 Cocol88 Slot5000 Babe138 Luxury138 Jet77 Bonanza138 Bos88 Aquaslot Taktik88 Lord88 Indobet Slot69 Paus138 Tiktok88 Panengg Bingo4d Stars77 77dragon Warung168 Receh88 Online138 Tambang88 Asia77 Klik4d Bdslot88 Gajah138 Bigwin138 Markas138 Yuk69 Emas168 Key4d Harta138  Gopek178 Imbaslot Imbajp Deluna4d Luxury333 Pentaslot Luxury111 Cair77 Gboslot Pandora188 Olxtoto Slotvip Eslot Kuy138 Imbagacor Bimabet