50 cheapest places to retire in America

Retiring on a tight budget in retirement is, unfortunately, the norm — a recent GOBankingRates survey found that more than half of Americans have less than $10,000 saved for retirement. However, a small nest egg can be stretched further if you retire to a place with a low cost of living.

To pinpoint the cheapest places to retire, GOBankingRates used cost-of-living indices from Sperling’s Best Places to compare the cost of housing, groceries, transportation, utilities and health in 150 U.S. cities. We then used that data along with U.S. Bureau of Labor Statistics data on average annual expenditures for adults 65 and older to come up with a formula to predict annual expenditures in each city.

Click through to see if you already live in a cheap city for retirees or get inspiration to relocate to one of the best places for retirement.

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50 cheapest places to retire
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50 cheapest places to retire

50. Spokane, Wash.

  • Annual expenditures: $43,102
  • Annual amount spent on housing: $13,344
  • Annual amount spent on health: $6,414

Although Spokane has the highest annual expenditures among the most affordable places to retire, the cost of living here is still below the national average. In fact, it has the eighth lowest annual amount spent on utilities — $3,229. Plus, Spokane is in a state with no income tax, which means that retirees can hang on to more of their retirement income to cover living expenses.

(Solidago via Getty Images)

49. Tampa, Fla.

  • Annual expenditures: $43,056
  • Annual amount spent on housing: $13,662
  • Annual amount spent on health: $5,634

If you’re looking for cheap places to retire near the beach, consider Tampa. The cost of living is below the national average in this city, which is on the west coast of Florida near the Gulf of Mexico. Healthcare and utility costs are particularly low in Tampa. The annual amount spent on these two expenses is lower here than in more than half of the other cheapest places to retire.

However, Tampa has the second highest housing costs on our list. But retirees can hang on to more of their money because Florida has no income tax, making Tampa one of the best places to retire in an income tax-free state.

(Momo64 via Getty Images)

48. San Antonio, Texas

  • Annual expenditures: $42,645
  • Annual amount spent on housing: $15,092
  • Annual amount spent on health: $5,814

San Antonio has the highest housing costs among the cheapest places to retire. But the city’s overall low cost of living still makes it one of the best places to retire on a budget. San Antonio has the second lowest average annual amount spent on groceries — $3,014. And it has the fourth lowest annual utility costs on our list. That said, there are cheaper places to retire in Texas but all are smaller than San Antonio, which is the state’s second-largest city.

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47. Sioux Falls, S.D.

  • Annual expenditures: $42,279
  • Annual amount spent on housing: $13,027
  • Annual amount spent on health: $5,814

Sioux Falls is a good place for retirees looking to keep food and transportation expenses low. It has the fourth lowest annual amount spent on transportation — $6,133. And grocery costs here are lower than in most of the cheapest places to retire.

However, South Dakota’s largest city has the seventh highest housing costs on our list. And the annual amount spent on health and utilities in Sioux Falls is higher than in more than half of the most affordable places to retire.

Also See: Best and Worst Things to Do When Looking for a Place to Retire

(Getty Images/iStockphoto)

46. Lincoln, Neb.

  • Annual expenditures: $42,233
  • Annual amount spent on housing: $13,185
  • Annual amount spent on health: $5,814

The cost of living in the capital of Nebraska is 7.7 percent lower than the national average. However, Lincoln’s harsh climate — particularly in the winter — might be a turnoff to some. Plus, the annual amount spent on health here is higher than in more than half of the other cities on our list.

(RiverNorthPhotography)

45. Jacksonville, Fla.

  • Annual expenditures: $42,096
  • Annual amount spent on housing: $11,915
  • Annual amount spent on health: $5,275

Located in the northeast corner of Florida near the Atlantic Ocean, Jacksonville is a cheap place to retire near the beach. Although it’s Florida’s largest city, the cost of living is 8 percent below the national average. And the annual amount spent on health in Jacksonville is the fourth lowest on our list — leaving retirees with more money to spend on all the city has to offer, from golf and fishing to arts and culture to Jacksonville Jaguars football games.

(TraceRouda via Getty Images)

44. Lexington, Ky.

  • Annual expenditures: $42,050
  • Annual amount spent on housing: $13,344
  • Annual amount spent on health: $6,054

Known as the Horse Capital of the World, Lexington has more to offer than just beautiful horse farms. Kentucky’s second largest city is one of the best places to retire on a budget thanks to a cost of living that’s about 8 percent lower than the national average. Grocery, utility and transportation costs are especially low here. In fact, Lexington has the ninth lowest annual amount spent on groceries on our list, at $3,265.

(csfotoimages via Getty Images)

43. Huntsville, Ala.

  • Annual expenditures: $41,821
  • Annual amount spent on housing: $12,073
  • Annual amount spent on health: $5,934

You can live on less than $42,000 a year in this northern Alabama city, where the cost of living is 8.6 percent lower than the national average. Known as Rocket City, Huntsville is where the rockets that put man on the moon were developed and is home to the U.S. Space and Rocket Center.

The city’s temperate climate and abundance of outdoor activities might be a draw for retirees. However, the annual amount spent on health is higher in Huntsville than in many of the other cities on our list.

(traveler1116 via Getty Images)

42. Indianapolis

  • Annual expenditures: $41,363
  • Annual amount spent on housing: $11,756
  • Annual amount spent on health: $6,773

Your retirement nest egg can go a long way in Indiana’s largest city and capital. The cost of living is nearly 10 percent lower than the national average. Indianapolis has the sixth lowest annual amount spent on utilities, and grocery costs are lower than in more than half of the cheapest places to retire. However, it's among the states with the highest annual amount spent on health.

Pay Less: 21 Ways to Reduce Healthcare Costs

(Ronald Zeytoonian via Getty Images)

41. Baltimore

  • Annual expenditures: $41,180
  • Annual amount spent on housing: $10,008
  • Annual amount spent on health: $5,994

Baltimore is a bargain compared with nearby Washington, D.C. The cost of living here is 10 percent below the national average, while the cost of living in the nation’s capital just 40 miles away is 58 percent higher than the national average, according to Sperling’s Best Places.

However, Baltimore has the highest average annual spending on groceries — $4,017 — among the cheapest places to retire. The annual amount spent on transportation, utilities and health is also higher here than in most cities on our list.

(DenisTangneyJr via Getty Images)

40. Greensboro, N.C.

  • Annual expenditures: $40,997
  • Annual amount spent on housing: $10,644
  • Annual amount spent on health: $6,174

This city in central North Carolina is a more affordable alternative to the state’s two largest cities — Charlotte and Raleigh. However, Greensboro has the sixth highest annual amount spent on health, along with two other North Carolina cities on this list: Fayetteville and Winston-Salem. And it has the sixth highest annual amount spent on groceries — $3,589.

(Davel5957 via Getty Images)

39. Little Rock, Ark.

  • Annual expenditures: $40,631
  • Annual amount spent on housing: $11,120
  • Annual amount spent on health: $5,275

The cost of living in the capital and most populous city of Arkansas is about 12 percent lower than the national average — which makes it a good place to retire cheap. In fact, Little Rock has the fourth lowest annual amount spent on health, and the seventh lowest annual amount spent on transportation — $6,473. However, the annual amount spent on utilities is higher than in most other cities on our list.

(csfotoimages via Getty Images)

38. Pittsburgh

  • Annual expenditures: $40,265
  • Annual amount spent on housing: $9,690
  • Annual amount spent on health: $5,694

Once a steel town, Pittsburgh has undergone a revitalization that’s helped diversify its economy and boost its appeal, according to Sperling’s Best Places. Yet, the cost of living is 12 percent below the national average. Housing costs are especially low — less than $10,000 per year, on average.

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(SeanPavonePhoto via Getty Images)

37. Omaha, Neb.

  • Annual expenditures: $40,265
  • Annual amount spent on housing: $12,073
  • Annual amount spent on health: $5,874

Although Omaha is Nebraska’s largest city, it’s actually a more affordable option than the state capital, Lincoln. The annual expenditures in Omaha are about $2,000 less than in Lincoln. That’s due, in large part, to lower housing costs in Omaha. The average amount spent on housing here is about $1,000 less than in Lincoln.

Plus, the annual amount spent on groceries and utilities is lower in Omaha than in more than half of the other cities on our list.

(sulligraph via Getty Images)

36. Fayetteville, N.C.

  • Annual expenditures: $40,220
  • Annual amount spent on housing: $9,373
  • Annual amount spent on health: $6,174

This city in southeastern North Carolina is home to one of the largest army installations in the U.S., Fort Bragg. Even if you haven’t served in the military, Fayetteville is a good place to retire thanks to its low housing costs and an overall low cost of living. However, it has the sixth highest annual amount spent on health, along two other North Carolina cities on this list: Greensboro and Winston-Salem.

35. Louisville, Ky.

  • Annual expenditures: $40,220
  • Annual amount spent on housing: $11,915
  • Annual amount spent on health: $5,395

Even though the cost of living is rising quickly in Louisville, it’s still one of the most affordable places to retire. It has the seventh lowest annual amount spent on health and on utilities on the list. And even though Louisville is larger than Lexington, annual expenses are about $2,000 lower here.

(traveler1116 via Getty Images)

34. Chattanooga, Tenn.

  • Annual expenditures: $40,037
  • Annual amount spent on housing: $10,644
  • Annual amount spent on health: $5,574

This city in southeastern Tennessee is one of the best places to retire on a budget thanks to a cost of living that’s 12.5 percent below the national average. Plus, for retirees who are outdoor enthusiasts, there’s plenty to do. Located on the Tennessee River and surrounded by the Appalachian Mountains, Chattanooga offers hiking, boating, whitewater rafting and more. What boosts its appeal are health costs that are lower than in most of the cheapest places to retire.

(jjneff via Getty Images)

33. Baton Rouge, La.

  • Annual expenditures: $39,991
  • Annual amount spent on housing: $11,279
  • Annual amount spent on health: $6,294

You can retire cheap in Louisiana’s capital. Annual expenditures in Baton Rouge are less than $40,000 a year. In fact, it has the third lowest annual amount spent on utilities and the sixth lowest annual amount spent on transportation. However, Baton Rouge has the fourth highest annual amount spent on health on our list.

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32. Grand Rapids, Mich.

  • Annual expenditures: $39,899
  • Annual amount spent on housing: $9,849
  • Annual amount spent on health: $5,455

Michigan is one of the best states to retire rich because of its low cost of living. And one of the most affordable cities in the state is Grand Rapids. Health and housing costs are particularly low there. In fact, the annual amount spent on health in Grand Rapids is lower than in most of the other cheapest places to retire. However, Grand Rapids has the third highest transportation costs on this list.

(Getty Images)

31. Oklahoma City

  • Annual expenditures: $39,899
  • Annual amount spent on housing: $11,120
  • Annual amount spent on health: $5,754

The cost of living in the capital of Oklahoma is nearly 13 percent lower than the national average. In fact, it’s the city where your $100,000 retirement nest egg will stretch furthest, a separate GOBankingRates study found. Oklahoma City has the fifth lowest annual amount spent on groceries — $3,175. And annual spending on utilities is lower here than in more than half of the cheapest places to retire.

(Getty Images/iStockphoto)

30. Kansas City, Mo.

  • Annual expenditures: $39,808
  • Annual amount spent on housing: $9,373
  • Annual amount spent on health: $5,754

Although Kansas City is the largest city in Missouri and sixth largest in the Midwest, it doesn’t have a big-city cost of living. In fact, annual expenditures are less than $40,000 here, and the amount spent on housing is lower than in more than half of the cheapest places to retire. However, the annual amount spent on utilities — $3,903 — is the third highest on our list.

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29. Cincinnati

  • Annual expenditures: $39,304
  • Annual amount spent on housing: $9,690
  • Annual amount spent on health: $6,114

The cost of living is about 14 percent below the national average in this city on the banks of the Ohio River. Cincinnati has the eighth lowest annual amount spent on utilities among the most affordable places to retire. And the annual amount spent on housing is lower here than in half of the other cities on our list.

Along with an affordable cost of living, Cincinnati offers an abundance of big-city amenities — including award-winning restaurants, professional sports teams, several orchestras and theaters, an opera and a ballet.

(Davel5957 via Getty Images)

28. St. Louis

  • Annual expenditures: $38,984
  • Annual amount spent on housing: $9,373
  • Annual amount spent on health: $5,994

For a city its size, St. Louis offers an affordable cost of living that’s almost 15 percent below the national average. That leaves retirees with more money to enjoy the city’s attractions — including the opera, symphony, museums, theaters and major league sports teams. It also has several top-ranked medical facilities. But the annual amount spent on health in St. Louis is higher than in more than half of the other cheapest places to retire.

(Byron Jorjorian via Getty Images)

27. Tulsa, Okla.

  • Annual expenditures: $38,801
  • Annual amount spent on housing: $9,055
  • Annual amount spent on health: $5,814

Retirees looking for affordable housing can find it in Oklahoma’s second largest city. The annual amount spent on housing in Tulsa is lower than in more than half of the most affordable places to retire. In fact, a separate GOBankingRates study found that Tulsa is one of the cheapest cities to rent. And Tulsa has the seventh lowest annual amount spent on groceries — $3,210.

(chrisp0 via Getty Images)

26. Laredo, Texas

  • Annual expenditures: $38,755
  • Annual amount spent on housing: $10,008
  • Annual amount spent on health: $5,754

The costs of groceries and utilities are especially low in this city on the U.S.-Mexico border. Plus, the annual amount spent on health in Laredo is lower than in more than half of the cities on our list. Overall, the cost of living here is about 15 percent below the national average.

(Photo by Carol M. Highsmith/Buyenlarge/Getty Images)

25. Corpus Christi, Texas

  • Annual expenditures: $38,664
  • Annual amount spent on housing: $13,503
  • Annual amount spent on health: $5,455

Corpus Christi is one of the cheap places to retire near the beach. The cost of living in this south Texas city is 15.5 percent lower than the national average. It has the lowest annual amount spent on groceries — $2,893. And it has the seventh lowest annual amount spent on health.

Because of its location on the Gulf of Mexico, though, it is at risk of hurricanes. Corpus Christi was one of the cities impacted when Hurricane Harvey hit Texas in August 2017.

(RoschetzkyIstockPhoto via Getty Images)

24. Columbus, Ohio

  • Annual expenditures: $38,572
  • Annual amount spent on housing: $10,326
  • Annual amount spent on health: $5,934

Although it’s the capital and largest city in Ohio, Columbus offers retirees an affordable cost of living. In fact, annual expenditures are $732 lower here than in Cincinnati, Ohio’s third largest city. But annual housing costs are about $600 higher in Columbus.

(JodiJacobson via Getty Images)

23. Lubbock, Texas

  • Annual expenditures: $38,481
  • Annual amount spent on housing: $9,690
  • Annual amount spent on health: $5,814

The cost of living in this city in northwestern Texas is about 16 percent lower than the national average. Among the cheapest places to retire, Lubbock has the lowest annual utility costs, at $2,590, and the third lowest annual amount spent on groceries. Housing costs are lower here than in more than half of the other cities on our list.

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(DenisTangneyJr via Getty Images)

22. Milwaukee

  • Annual expenditures: $38,481
  • Annual amount spent on housing: $8,261
  • Annual amount spent on health: $6,773

Retirees who can handle cold winters will be rewarded with an affordable cost of living and ample amenities in Wisconsin’s largest city. Located on Lake Michigan, Milwaukee is home to 12 colleges and universities, 17 museums, 25 theaters and 30 seasonal festivals. It has 15 golf courses, more than 130 miles of bike trails and more than 150 state and county parks.

Although the cost of living in Milwaukee is 16 percent below the national average, the average annual amount spent on health is the highest of any city — aside from Indianapolis — on our list.

(ImagesbyK via Getty Images)

21. Winston-Salem, N.C.

  • Annual expenditures: $38,435
  • Annual amount spent on housing: $9,849
  • Annual amount spent on health: $6,234

Winston-Salem is one of the best places to retire on a budget thanks to a cost of living that’s 16 percent below the national average. In fact, this city in central North Carolina has the second lowest annual transportation spending among cities on our list. However, it has the fifth highest annual amount spent on health.

Plan Ahead: 30 Things You Need to Do Before You Retire

(Bryan Pollard via Getty Images)

20. Mobile, Ala.

  • Annual expenditures: $38,389
  • Annual amount spent on housing: $9,214
  • Annual amount spent on health: $5,155

Located on Alabama’s Gulf Coast, Mobile is a cheap place to retire near the beach. It has the second lowest annual amount spent on health, the fifth lowest annual amount spent on transportation and housing costs that are lower than in more than half of the cities on our list.

This major seaport has a warm climate that retirees might enjoy, but frequent rain showers make it the wettest city in the U.S., according to Sperling’s Best Places.

(SeanPavonePhoto via Getty Images)

19. Buffalo, N.Y.

  • Annual expenditures: $38,298
  • Annual amount spent on housing: $10,008
  • Annual amount spent on health: $5,275

The cost of living in New York’s second-largest city is more than 16 percent lower than the national average. Health costs are especially low, considering that Buffalo has the fourth lowest annual amount spent on health on our list. However, you need to be able to handle cold, snowy winters if you want to retire in this affordable city on Lake Erie.

(benedek via Getty Images)

18. El Paso, Texas

  • Annual expenditures: $38,252
  • Annual amount spent on housing: $9,690
  • Annual amount spent on health: $5,335

This city on the U.S.-Mexico border is one of the cheapest places to live in the U.S., which is what makes it a good place to retire cheap. The costs of health, utilities and transportation are especially low in El Paso. And the annual amount spent on housing here is lower than in more than half of the other cheapest places to retire.

(Photo by John Moore/Getty Images)

17. Amarillo, Texas

  • Annual expenditures: $38,115
  • Annual amount spent on housing: $9,690
  • Annual amount spent on health: $5,694

Although it’s across the state from El Paso, Amarillo is an equally affordable city for retirees. In fact, the annual amount spent on housing in this city in the Texas panhandle is the same as in El Paso. However, grocery and utility costs are lower in Amarillo.

(Tiago_Fernandez via Getty Images)

16. Des Moines, Iowa

  • Annual expenditures: $37,840
  • Annual amount spent on housing: $10,167
  • Annual amount spent on health: $5,215

The cost of living is about 17 percent below the national average in Des Moines — you can even retire in Des Moines for under $1,000 a month. In fact, it has the third lowest annual spending on health among the cheapest places to retire. And as Iowa’s capital and largest city, Des Moines offers an abundance of things to keep retirees busy — including 15 public golf courses, free festivals throughout the year, museums, galleries, concerts and more.

15. Shreveport, La.

  • Annual expenditures: $37,749
  • Annual amount spent on housing: $8,261
  • Annual amount spent on health: $5,574

Louisiana’s third largest city is even more affordable than its capital, Baton Rouge. In fact, the annual amount spent on housing in Shreveport is nearly $3,000 less than in Baton Rouge. Yet, this city still has plenty to offer — including a revitalized downtown with a new riverfront entertainment district, cultural amenities and plenty of outdoor activities, according to Sperling’s Best Places.

(SeanPavonePhoto via Getty Images)

14. Rochester, N.Y.

  • Annual expenditures: $37,611
  • Annual amount spent on housing: $5,719
  • Annual amount spent on health: $6,174

The cost of living is almost 18 percent below the national average in this western New York city on Lake Ontario. Housing costs are especially low here. In fact, Rochester has the sixth lowest annual amount spent on housing among cities on our list. A separate GOBankingRates study found that it’s one of the great places to retire where rent is under $1,000 a month.

However, it has the third highest annual amount spent on transportation among the most affordable places to retire.

(DenisTangneyJr via Getty Images)

13. Columbus, Ga.

  • Annual expenditures: $37,291
  • Annual amount spent on housing: $7,784
  • Annual amount spent on health: $5,814

Located on the Chattahoochee River, Columbus is Georgia’s second largest city. The cost of living here is 18.5 percent below the national average. The annual amount spent on housing in Columbus is lower than in most of the cheapest places to retire. And the city’s annual transportation costs are the seventh lowest on our list.

(SeanPavonePhoto via Getty Images)

12. Knoxville, Tenn.

  • Annual expenditures: $37,245
  • Annual amount spent on housing: $10,008
  • Annual amount spent on health: $5,634

Home to the University of Tennessee, this college town in eastern Tennessee offers an affordable cost of living along with plenty of amenities. Its location near the Great Smoky Mountains provides plenty of outdoor activities.

However, it’s more expensive to retire here than the other Tennessee city on our list, Memphis. Annual expenses in Knoxville are $3,386 higher than in Memphis — largely because of higher housing costs.

(csfotoimages via Getty Images)

11. Fort Wayne, Ind.

  • Annual expenditures: $37,154
  • Annual amount spent on housing: $8,261
  • Annual amount spent on health: $5,814

Fort Wayne’s low cost of living makes it one of the best places to live on only a Social Security check. This city in northeastern Indiana has a cost of living that’s about 19 percent below the national average. The annual amount spent on housing is lower in Fort Wayne than in most of the cities on our list. Plus, it has the second lowest utility costs among the cheapest places to retire.

(Getty Images/Flickr RF)

10. Montgomery, Ala.

  • Annual expenditures: $36,971
  • Annual amount spent on housing: $7,149
  • Annual amount spent on health: $5,335

The capital of Alabama is one of the best places to retire on a budget. The cost of living in Montgomery is about 19 percent lower than the national average. It has the fifth lowest annual amount spent on health and the 10th lowest annual amount spent on housing. And retirees might appreciate the mild winters here.

(DenisTangneyJr via Getty Images)

9. Akron, Ohio

  • Annual expenditures: $36,147
  • Annual amount spent on housing: $5,401
  • Annual amount spent on health: $5,514

The cost of living is 21 percent below the national average in this city in northeastern Ohio. Akron has the fifth lowest annual amount spent on housing on our list. However, it has the fourth highest grocery costs and third highest transportation costs.

(benkrut via Getty Images)

8. Cleveland

  • Annual expenditures: $36,056
  • Annual amount spent on housing: $4,448
  • Annual amount spent on health: $6,474

Although larger than nearby Akron, Cleveland is a cheaper place to retire — but only slightly. It has the second lowest annual amount spent on housing — which helps it claim the No. 8 spot on our list. But Cleveland has the second highest annual amount spent on health among the most affordable places to retire.

Cleveland is known as an industrial city but has undergone a revitalization, according to Sperling’s Best Places. It has nationally recognized health facilities, a world-renowned orchestra, three professional sports teams and the Rock and Roll Hall of Fame.

(PapaBear via Getty Images)

7. Augusta, Ga.

  • Annual expenditures: $35,781
  • Annual amount spent on housing: $6,672
  • Annual amount spent on health: $5,574

Augusta is best known for hosting the Masters Golf Tournament. But it’s also one of the best places to retire on a budget. The cost of living in Augusta is about 22 percent lower than the national average. It has the ninth lowest annual amount spent on housing. And the annual amount spent on health in this city on the Georgia-South Carolina border is lower than in most of the cheapest cities to retire.

Another financial benefit to retiring in Augusta is the cost of senior care services, which is lower in Georgia than the national median.

(SeanPavonePhoto via Getty Images)

6. Brownsville, Texas

  • Annual expenditures: $35,461
  • Annual amount spent on housing: $6,513
  • Annual amount spent on health: $5,694

Brownsville is one of the cheapest places to retire thanks to low housing, grocery and health costs. The annual amount spent on housing in this city located at the southernmost tip of Texas is the eighth lowest on our list. Plus, it’s close to beaches and the climate is warm.

(Witold Skrypczak via Getty Images)

5. Toledo, Ohio

  • Annual expenditures: $35,095
  • Annual amount spent on housing: $4,925
  • Annual amount spent on health: $6,174

Toledo is the cheapest of the five Ohio cities on our list of most affordable places to retire. It has a cost of living that’s about 23 percent lower than the national average, and ties with Jackson, Miss., for the third lowest housing costs on our list. It’s an industrial city, but its location on Lake Erie offers access to plenty of water and outdoor recreation.

(Mshake via Getty Images)

4. Memphis, Tenn.

  • Annual expenditures: $33,859
  • Annual amount spent on housing: $6,354
  • Annual amount spent on health: $5,694

The cost of living in this city in the southwest corner of Tennessee is 26 percent lower than the national average. Memphis has the fourth lowest annual amount spent on transportation, fourth lowest utility costs and seventh lowest annual amount spent on housing. Retirees might also enjoy the mild winters and highly ranked healthcare facilities in Memphis.

(csfotoimages via Getty Images)

3. Jackson, Miss.

  • Annual expenditures: $33,676
  • Annual amount spent on housing: $4,925
  • Annual amount spent on health: $5,514

Mississippi’s capital is one of the cheapest places to retire thanks to a cost of living that’s 26.4 percent below the national average. Jackson ties with Toledo for the third lowest annual amount spent on housing and has the fourth lowest grocery costs and seventh lowest annual amount spent on health.

In addition to a low cost of living, this southern city has four seasons, museums, festivals and a strong network of health facilities.

(SeanPavonePhoto via Getty Images)

2. Detroit

  • Annual expenditures: $33,356
  • Annual amount spent on housing: $3,177
  • Annual amount spent on health: $5,994

Although Detroit is the largest city to file for bankruptcy, it’s reinventing itself as “America’s Great Comeback City.” The city is creating a 50-block sports and entertainment district. You can get around without a car by using Detroit’s new streetcar or bike-sharing system. New restaurants, galleries, markets and community gardens are popping up, and vacant buildings are being redeveloped.

What makes this city appealing for retirees on a budget is its incredibly low cost of living. The annual amount spent on housing in Detroit is the lowest of any city on this list. Overall, the cost of living here is 27 percent lower than the national average.

(Pawel Gaul via Getty Images)

1. Birmingham, Ala.

  • Annual expenditures: $33,219
  • Annual amount spent on housing: $5,242
  • Annual amount spent on health: $4,915

Alabama’s largest city is the cheapest place to retire. The cost of living in Birmingham is 27.4 percent lower than the national average. The annual amount spent on health here is the lowest of any city on our list. And Birmingham has the third lowest transportation costs and fourth lowest annual amount spent on housing.

Plus, the city has plenty to keep retirees busy. Its local parks give Birmingham more green space per capita than any other U.S. city. It has 15 golf courses, several nearby lakes that offer some of the best fishing in the South, a variety of festivals and events throughout the year, and schools such as University of Alabama at Birmingham and Samford University that provide an abundance of concerts and arts programming.

Up Next: This is How Much Money You Need to Live Comfortably in the 50 Biggest Cities in America

Methodology: GOBankingRates examined six cost of living factors for 150 U.S. cities from Sperling's Best Places on Aug. 28, 2017: 1) overall cost of living index; 2) housing index, which includes mortgage payments and rent costs; 3) grocery index; 4) transportation index; 5) health index; and 6) utilities index.

Then, GOBankingRates compared each city's index to the average annual expenditures from Americans aged 65 and over from the U.S. Bureau of Labor Statistics Consumer Expenditure Survey 2015 to come up with a formula to predict annual expenses in each city.

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