Where is the cheapest place to retire in the southern US? Your Guide to Affordable Senior Living

According to a 2024 report by Investopedia, some cities in the Southeast offer monthly housing costs as low as $800, significantly below the national average. Planning for retirement is a major life decision, especially when factoring in your budget. If you're wondering where is the cheapest place to retire in the southern US, this guide provides a comprehensive overview of top affordable locations.

Quick Summary

Several southern cities and states, including parts of Mississippi, Alabama, and Arkansas, consistently rank among the most affordable due to low housing costs, favorable tax policies, and lower-than-average expenses on daily necessities, though it's important to consider factors beyond just the monthly budget when making a decision.

Key Points

• Shreveport, LA: Offers one of the lowest costs of living in the South, particularly for housing.

• No State Income Tax: States like Tennessee and Florida are attractive for retirees due to no state income tax on retirement income.

• Hot Springs, AR: Provides low housing costs and access to national parks and thermal springs.

• Hidden Costs: Be mindful of potentially high energy bills in very warm climates and increased insurance premiums in areas prone to natural disasters.

• Holistic Approach: Consider healthcare access, tax structures, and community feel in addition to overall cost when choosing a retirement location.

• Decatur, AL: Notable for having very low property tax rates, which can greatly benefit retirees on fixed incomes.

• On-the-Ground Research: Visiting potential retirement locations is essential to understand the true cost and lifestyle fit.

Finding Affordable Southern Retirement Destinations

Deciding where to spend your retirement is a significant choice, and for many, cost is a primary concern. The Southern U.S. has long been a popular retirement destination, thanks to its mild climate and friendly communities. While some areas are quite expensive, numerous hidden gems offer a low cost of living, allowing your savings to stretch further.

Top Contenders for Affordable Southern Retirement

Several cities across the South stand out for their budget-friendly lifestyle, balancing low costs with a good quality of life. These locations often feature affordable housing, lower taxes, and access to essential amenities. Here are some of the most frequently cited budget-friendly southern retirement cities:

• Shreveport, Louisiana: Mentioned by multiple sources as a highly affordable city, Shreveport offers a very low cost of living, especially for housing. Retirees can enjoy the city's unique Cajun culture, entertainment options, and access to regional healthcare facilities. While livability scores vary, the potential savings on living expenses are considerable.
• Maryville, Tennessee: Situated near the Great Smoky Mountains, Maryville provides a combination of natural beauty and financial benefits. Tennessee does not have a state income tax, which is a major draw for retirees. The city offers a calm atmosphere while still being close to the amenities of Knoxville.
• Hot Springs, Arkansas: Known for its national park and thermal baths, Hot Springs offers a picturesque and affordable retirement option. Housing costs are particularly low here, making it possible for retirees to own a home without a large mortgage. The state also has favorable tax policies for seniors, including not taxing Social Security benefits.
• Decatur, Alabama: This city consistently ranks for its low cost of living. Alabama is known for having some of the lowest property tax rates in the nation, which is a significant factor for retirees on a fixed income. This, combined with affordable housing, makes it a strong contender.
• Englewood, Florida: For those seeking a coastal lifestyle without the high price tag, Englewood is a viable option. Florida has no state income tax, and housing costs here are significantly lower than many other parts of the state, especially its more famous coastal counterparts.

Beyond the Price Tag: Key Factors to Consider

While low monthly expenses are appealing, a truly affordable retirement is about more than just the price of a home. Consider these critical factors before making your decision:

1. Taxes: Some states have no income tax (like Tennessee and Florida), while others offer significant exemptions on retirement income and Social Security. However, be mindful of sales tax and property tax rates, as these can add up. Some areas with low property taxes may have higher sales taxes, and vice-versa.
2. Healthcare: Access to quality, affordable healthcare is non-negotiable for retirees. Research the proximity of medical facilities, hospitals, and specialists in any potential location. Some very low-cost areas may have limited healthcare options, which could impact your well-being.
3. Hidden Costs: Be aware of potential hidden expenses. For instance, cities in warmer climates might have high energy bills from running air conditioning for extended periods. Similarly, some areas prone to natural disasters may have exorbitant home insurance premiums.
4. Community and Lifestyle: Think about what you want your retirement lifestyle to look like. Does the community have a vibrant social scene, cultural activities, and access to nature? Does it have a robust senior population? A cheap location that doesn't fit your desired lifestyle may not be a fulfilling long-term choice.

Comparison of Affordable Southern Retirement Cities

Feature	Shreveport, LA	Maryville, TN	Hot Springs, AR	Decatur, AL
Best For	Low housing costs, Cajun culture	No state income tax, mountain views	National park access, historic charm	Lowest property tax rates, quiet living
Cost of Living	Below National Average	Below National Average	Significantly Below Average	Significantly Below Average
State Tax Benefits	Partial retirement income tax	No state income tax	No tax on Social Security	No tax on Social Security
Potential Drawbacks	Varied livability scores	Not directly coastal	Less city amenities	Smaller, less diverse economy

Making Your Final Decision

Ultimately, the cheapest place to retire in the southern US depends on your individual priorities. If your primary concern is the absolute lowest housing costs, cities in Arkansas, Louisiana, or Mississippi may be the best fit. If a lack of state income tax is more important, consider Tennessee or Florida. If you prioritize lifestyle and amenities alongside affordability, you might look at smaller cities in Georgia or North Carolina, though costs may be slightly higher.

Before you commit to a location, a visit is highly recommended. Spend some time in the area to get a feel for the local atmosphere, explore the amenities, and assess the quality of life. This on-the-ground research is crucial for ensuring that your ideal low-cost retirement spot is also the right fit for your golden years.

For more in-depth data on cost of living, you can explore information compiled by the Council for Community and Economic Research on its website: https://www.c2er.org/.

Conclusion

Retiring in the southern US on a budget is highly achievable, but requires careful consideration of all financial and lifestyle factors. By researching key locations like Shreveport, Maryville, Hot Springs, Decatur, or Englewood and weighing their specific pros and cons, you can find a place that offers both financial freedom and a high quality of life. The most successful budget retirements are built on thorough research and a clear understanding of your personal needs and priorities.

Frequently Asked Questions

Which states have the cheapest cost of living in the Southern US for retirees?

States like Mississippi, Alabama, Arkansas, and West Virginia consistently rank among the cheapest for overall cost of living, largely due to lower housing costs.

Do any southern states not tax retirement income?

Yes, several southern states have favorable tax policies for retirees. Tennessee and Florida, for example, have no state income tax, which can be a significant financial benefit.

What are some hidden costs to watch out for when retiring cheaply in the South?

Hidden costs can include higher energy bills due to extensive air conditioning use, or expensive home and flood insurance premiums in areas vulnerable to hurricanes and other natural disasters.

How important is proximity to healthcare facilities for retirees?

Extremely important. While a location might be cheap, limited access to quality healthcare can become a serious issue as health needs change with age. Always research local hospitals and medical services.

Is it possible to find an affordable coastal retirement spot in the South?

Yes, but it requires careful research. Places like Englewood, Florida, offer a beachside lifestyle at a much lower cost than more famous coastal cities, especially if you look just outside the main city limits.

Besides cost, what other factors should influence my retirement location?

Beyond cost, consider lifestyle, community feel, access to amenities, cultural activities, and the availability of social networks. A balanced approach ensures both financial security and happiness in your golden years.

How can I compare the cost of living between different southern cities?

You can use cost of living indexes provided by sources like the Council for Community and Economic Research. These compare average costs for housing, groceries, utilities, and more against the national average.