This vibrant community for retirees is much less expensive than you'd think
New Report: This Is the Best Place to Retire in the U.S. If You’re Short on Cash
Published on Apr. 29, 2025
Deciding on the best place to retire is a personal decision that depends on many factors—how close you’d like to live to your family, the type of climate you prefer and how much you can afford.
The median retirement savings for people ages 65 to 73 was $200,000, according to the most recent data from the Federal Reserve. However, a 2024 AARP survey found that 20% of adults ages 50 and over have no retirement savings, and 61% are worried they won’t have enough money to support them in retirement. Finding an affordable place to live in your retirement years is key, especially if you fall into the group of folks with little to no savings.
Luckily, there are many wonderful places in the United States to live—even if your retirement savings are slim. Here are the best places to retire to when you’re short on cash, according to a new study by GoBankingRates.
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How was the best city for retirees who are short on cash determined?
To determine the best city for retirees with little savings, GOBankingRates used U.S. Census data to identify the 100 towns or cities in the U.S. with the highest percentage of population aged 65 years and older. It ranked those cities after analyzing various financial factors, including the average home value and the cost of property taxes. It then looked at the annual cost of living in each location, such as health-care costs (including home health aides). It also took into account whether those cities are located in one of the nine states that taxes Social Security benefits.
Which city is the best to retire in for those with low savings?
Hot Springs Village, Arkansas, took the top spot in the survey. As the largest gated community in North America, Hot Springs Village is known for being a bustling retirement community for older adults who enjoy the great outdoors and all of the activities it offers. Situated on 26,000 acres, the community features 11 recreational lakes, nine championship golf courses, 13 tennis courts, 14 pickleball courts and 30 miles of walking trails.
Why is Hot Springs Village the best option for retirement if you don’t have a lot of savings?
Hot Springs Village isn’t only a vibrant retirement community with beautiful scenery and many outdoor activities—it’s also very affordable for retirees, especially if they don’t have much money in the bank. Here are some of the main reasons that this area is ideal for those who want to make the most out of their retirement while maintaining a low annual cost of living.
High percentage of residents 65 and older
A whopping 61% of residents in Hot Springs Village are over the age of 65. This is a major benefit to living there that goes beyond the financial, says Andy LaPointe a financial coach and former registered investment advisor.
“Residing in a community with a considerable senior population facilitates locating leisure activities, health-care support and social activities,” he explains. “When discounts and incentives have a senior twist, or when there is public transportation that is more age-friendly, these communities make seniors feel as though they are valued as people.” And that’s something you can’t put a price on.
Tax benefits for seniors
Hot Springs Village is in Arkansas, which does not tax Social Security benefits. (According to Bank of America, you could owe income taxes on as much as 85% of your Social Security if you live in a state that taxes your benefits.) Arkansas also provides an additional income boost for seniors—a deduction of $6,000 for other types of retirement income, such as pensions or an IRA.
Homes that cost less than national average
According to Zillow, the average single-family home in Hot Springs Village is $243,956, which is about $40,000 less than the national average. When retirees transition to a less expensive home, it not only lowers their mortgage or rent, but it also typically equates to lower monthly upkeep costs, on tasks such as yard care and cleaning. “This gives the retiree back time and money when they do not have to worry about maintaining an expensive home and paying property taxes,” LaPointe explains.
Low cost for annual necessities
The average cost of expenses for necessities, including groceries, gas and utilities, in Hot Springs Village is $1,760 per month, or $21,114 per year, making it one of the most affordable places to retire in the nation. To put that into perspective, the average Social Security benefit nationwide for January 2025 was $1,976, or $23,712 per year. This means that retirees could have an extra $2,600 per year to spend, based on their Social Security benefits alone.
What other cities rounded out the top 10?
The other cities in the top 10 cheapest places to retire included locations across the southeastern United States, with Florida claiming four of the 10 spots. (This comes as little surprise, since Naples, Florida, was named the best place to retire in 2025, according to another study.) Below are the top 10 towns for retirees with little savings, along with the cost of annual necessities:
1. Hot Springs Village, Arkansas: $21,114
2. Foley, Alabama: $21,661
3. The Villages, Florida: $21,500
4. Bella Vista, Arkansas: $20,974
5. Rotonda West, Florida: $20,950
6. Pinehurst, North Carolina: $21,151
7. Fredericksburg, Texas: $20,378
8. Murrells Inlet, South Carolina: $20,855
9. Punta Gorda, Florida: $21,177
10. Port Charlotte, Florida: $20,700
RELATED:
- Here’s How Much You Need in Your Savings Account to Retire in Every State
- 36 Senior Discounts You Can Score Starting at Age 55
- New Study: This Is the No. 1 State to Live In
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Sources:
- Federal Reserve: “Survey of Consumer Finances, 1989–2022”
- AARP: “New AARP Survey: 1 in 5 Americans Ages 50+ Have No Retirement Savings and Over Half Worry They Will Not Have Enough to Last in Retirement”
- GoBankingRates: “10 Best (and Worst) Places to Retire If You Have No Savings”
- Hot Springs Village: “Explore the Village”
- Andy LaPointe, financial coach at CryptoWisdom.com and former registered investment advisor
- Bank of America: “Will my Social Security benefits be taxed?”
- SmartAssest: “Arkansas Retirement Tax Friendliness”
- Zillow: “Hot Springs Village, Arkansas”
- Social Security Administration: “What is the average monthly benefit for a retired worker?”
