Nearly 30% of Americans have $0 saved for retirement, and another 33% have less than $50,000 saved, according to recent data from GOBankingRates. For those approaching retirement age in this situation, it may be necessary to start preparing to live on a smaller budget post-retirement, says retirement expert Anne Lester. Relying on Social Security benefits may be necessary, but the average monthly benefit is only around $1,773, which may not cover all expenses.
A study by GOBankingRates analyzed the 100 biggest U.S. cities with a large population of residents over 65 to determine the best places to retire on little to no savings. The study considered factors such as average home values, annual grocery and health-care costs, and whether the state taxes Social Security benefits. The top five places identified were Foley, Alabama; Mountain Home, Arkansas; Hot Springs Village, Arkansas; The Villages, Florida; and Bella Vista, Arkansas.
If you find yourself approaching retirement age with little to no savings, tough decisions may need to be made. Delaying retirement to receive a higher Social Security benefit or picking up a part-time job to supplement income could be necessary steps, according to Lester. Choosing where to retire will also be an important decision, as factors such as cost of living, housing expenses, and personal preferences will all play a role in the decision-making process.
Three out of the top five places for retiring with little to no savings are in Arkansas, which offers advantages such as cheap cost of living and housing expenses. However, retirees may need to forgo certain perks in exchange for these lower expenses. Personal preferences outside of living costs will also play a role in deciding where to retire, and visiting potential retirement destinations ahead of time is recommended to get a feel for what it would be like to live there long term.
For individuals looking to make extra money outside of their day job, signing up for CNBC’s online course “How to Earn Passive Income Online” may be helpful. Additionally, signing up for CNBC Make It’s newsletter can provide tips and tricks for success in work, money management, and life. Ultimately, it’s important for individuals nearing retirement age with little to no savings to start planning and making informed decisions about their financial future.
