15 Worst Places to Retire If You Have No Savings

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This article takes a look at the worst places to retire if you have no savings. If you wish to skip our detailed analysis on retirement uncertainties, you may go to 5 Worst Places to Retire if You Have No Savings.

On Retirement Uncertainties

Americans aren’t feeling great about their financial futures. Everything from the pandemic, to the inflation, and market volatility, has significantly dampened their morale. According to a BlackRock, Inc. (NYSE:BLK) Read on Retirement Survey, only about half of workplace savers feel that they are on track to retire with the lifestyle they desire. This percentage was 68% back in 2021 but dropped to a mere 56% in 2023. So what is hampering retirement confidence for workers around the USA? BlackRock, Inc. (NYSE:BLK) highlights four key stressors. According to them, increased market volatility, high levels of inflation, recessionary fear, and a lack of retirement income are forcing individuals to delay their retirement plans. While these concerns weigh heavily on savers, the flip side of the coin doesn't yield contrasting findings. The BlackRock, Inc. (NYSE:BLK) Read on Retirement Report highlights that plan sponsors are just as worried, with 3 out of 4 revealing their concerns about inflation eroding their participants’ retirement savings.

Adding to the complexity are the myriad financial responsibilities, with retirees struggling with a financial vortex assumingly at play, notes The Goldman Sachs Group, Inc. (NYSE:GS). This financial vortex is inhibiting savers from adequately saving for their retirement years. Moreover, a survey from The Charles Schwab Corporation (NYSE:SCHW) reveals that Americans now believe they need at least $1.8 million in savings to retire comfortably anyway. Sadly, the median retirement savings for baby boomers stands at $202,000 only. The substantial disparity between retirement savings and the ideal retirement threshold, as highlighted by the The Charles Schwab Corporation (NYSE:SCHW) survey, is further eroded by the financial challenges identified as a vortex by The Goldman Sachs Group, Inc. (NYSE:GS). In essence, this points to a stark reality: retirees are inevitably faced with the need to scale down their lifestyles during retirement. This is what a majority of retirees are doing anyway, according to reports by U-Haul Holding Company (NYSE:UHAL) and Hire a Helper.

According to U-Haul Holding Company (NYSE:UHAL), the top growth states for 2023 were Texas, Florida, North Carolina, South Carolina, and Tennessee. These are the best places to retire with no money, considering the various financial advantages they bring to their residents.

“While one-way transactions in 2023 remained below the record-breaking levels we witnessed immediately following the pandemic, we continued to see many of the same geographical trends from U-Haul customers moving between states”.

- John “J.T.” Taylor, U-Haul Holding Company (NYSE:UHAL) International president.

For states like Texas and Florida, the advantages are pretty clear. These are one of the few states that don’t tax retirement income,  so all income to the residents goes tax-free at the state level. Add in the advantages of low cost of living and pleasant weather, and these states present themselves as ideal candidates for retirement. Since a majority of retirees largely depend on Social Security benefits only, they may choose to retire to any of the states that don’t tax Social Security benefits, depending on other factors such as proximity to family, healthcare, and other factors important to them. Rightly so, taxes shouldn’t be the only factor to consider for potential retirees making a move.

“Whether you're a retiree, a remote worker, or just looking for a change of scenery, the idea of pulling up stakes for purportedly greener pastures isn't that unusual these days. However, the tax implications can be profound, so it's smart to take a hard look before you break out the packing tape”.

-Hayden Adams, director of tax and financial planning at The Charles Schwab Corporation (NYSE: SCHW) Center for Financial Research.

In conclusion, it is safe to say that potential retirees are largely interested in retiring to places that can give them the best bang for their buck. We already have crafted a list of the best places to retire if you have no savings, here is a list of worst places to steer clear of.

15 Worst Places to Retire If You Have No Savings
15 Worst Places to Retire If You Have No Savings

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Methodology

To compile the list of worst places to retire if you have no savings, we began by listing out the worst states to retire on social security and the worst states to retire in 2024. Next, we picked out several retirement destinations that are ideal for retirees in terms of amenities, climate, and healthcare but have been getting expensive over the years. Next, we scored them on their cost of living, median home prices, and rents to come up with a final Insider Monkey score. Places were ranked in ascending order from the lowest to the highest scores. Median home prices mentioned are from Redfin Corporation (NASDAQ:RDFN) and Realtor, while rents are sourced from websites such as Zillow and Zumper.

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

Here are the worst places to retire if you have no savings:

15. Austin, Texas

Insider Monkey Score: 5      

IM Cost of Living Index: 119.1

Median Home Price: $639,000

Average Rent (1-bedroom): $1,718

The first pick for our list of worst places to retire if you have no savings is Austin, Texas. While Texas is a favorite state amongst retirees, not every destination is ideal for those on tight budgets. The cost of living in this city is 19% higher than the national average, while the average rent for a one-bedroom is a tad bit shy of the average Social Security amount retirees are getting this year.

14. Portland, Maine

Insider Monkey Score: 8      

IM Cost of Living Index: 116.8

Median Home Price: $720,000

Average Rent (1-bedroom): $2,025

Excellent infrastructure, magnificent surroundings, and good access to healthcare means many retirees find Portland well worth every penny. Unfortunately, its high cost of living also means it’s one of the worst places to retire if you have no savings. The median price of a home is $720,000, clearly out of reach of those on a fixed income. Moreover, the average rent of a one-bedroom apartment is $2,025.

13. Miami, Florida

Insider Monkey Score: 18    

IM Cost of Living Index: 119.9

Median Home Price: $675,000

Average Rent (1-bedroom): $2,499

The next expensive retirement destination on our list is a pick from the Sunshine State. Since everyone wants to retire to this state because of the climate, taxes, and cost of living, it is slowly getting overcrowded and expensive. In particular, Miami recently made it to our list of Florida cities that are getting too expensive for retirees. According to Redfin, home prices in the past five years have skyrocketed by a whopping 55.6%.

12. Ocean City, New Jersey

Insider Monkey Score: 18    

IM Cost of Living Index: 119.4        

Median Home Price: $916,000

Average Rent (1-bedroom): $2,200

Next up on our list of worst places to retire if you have no savings is Ocean City, New Jersey. The cost of living in this expensive city is 19.4% higher than the national average. The median home price is close to a million, while the rent is expensive enough that it easily exceeds the amount of an average Social Security check.

11. Seattle, Washington

Insider Monkey Score: 19

IM Cost of Living Index: 151.6        

Median Home Price: $845,000

Average Rent (1-bedroom): $2,017

Seniors who worship art and beauty will find Seattle to be a breathtaking retirement destination. However, the cost of living here is a whopping 51.6% higher than the national average. Home prices and rents are beyond the affordability of the average retiree, which is why those who have small or no nest eggs must steer clear of this destination.

10. Honolulu, Hawaii

Insider Monkey Score: 21    

IM Cost of Living Index: 174.9        

Median Home Price: $720,000

Average Rent (1-bedroom): $2,030

Hawaii may not tax your Social Security income, but that doesn't mean it's a retirement-friendly state. After all, the cost of living is way higher than what an average retiree can afford to pay. The city of Honolulu, in particular, has a cost of living that is 74.9% higher than the national average. The median home price and rent are also expensive for an average retiree. Only those who have fat nest eggs should consider retiring here, otherwise, it is one of the worst places to retire if you have no savings.

9. Washington, D.C.

Insider Monkey Score: 21    

IM Cost of Living Index: 149.5        

Median Home Price: $590,000

Average Rent (1-bedroom): $2,572

Everything from healthcare to housing, food and entertainment, and even rent, is expensive in Washington DC. While it may have all the modern amenities, culture, and healthcare services that a retiree would want in their ideal retirement destination, the price isn't quite affordable for everyone.

8. San Diego, California

Insider Monkey Score: 22    

IM Cost of Living Index: 148.5        

Median Home Price: $940,000

Average Rent (1-bedroom): $2,380

San Diego ranks eighth on our list of worst places to retire if you have no savings. Overall, the cost of living in this city is 48.5% higher than the national average. The median home price is shy of a million, and rents are outrageously high as well.

7. Boston, Massachusetts

Insider Monkey Score: 26    

IM Cost of Living Index: 149.4        

Median Home Price:  $735,000

Average Rent (1-bedroom): $2,971

Boston may be a good destination to retire, but it's going to quickly drain all your retirement savings considering the cost of living is almost 50% higher than the national average. Retirees can enjoy world-class healthcare, abundant outdoor spaces, and an extensive transportation network here, all at the cost of their life's worth of savings.

6. New York City, New York

Insider Monkey Score: 28    

IM Cost of Living Index: 149.3        

Median Home Price: $825,000

Average Rent (1-bedroom): $4,167

New York City may be a dream for many retirees, but it's probably best to keep it that way. Almost everyone knows how expensive living in NYC can be, let alone someone who is on a fixed income. According to our numbers, the cost of living here is 49.3% higher than the national average. Homes are expensive, while rents are outrageously high as well.

Click to continue reading and see the 5 Worst Places to Retire If You Have No Savings.

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Disclosure: none. 15 Worst Places to Retire If You Have No Savings originally published on Insider Monkey.

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