As we approach 2025, many seniors are facing the reality of living on a fixed income during retirement. According to a recent report issued by the U.S. government, more than one in ten retirees aged 65 and older rely on Social Security to cover 90% of their income needs.
The data reveals that 12% of men and a staggering 15% of women have minimal sources of additional income beyond their Social Security benefits.
Meanwhile, approximately 40% of retirees receive over half of their retirement income from Social Security, highlighting its critical role in their financial stability.
Initially designed to supplement other retirement savings, Social Security was intended to cover around 40% of a person’s prior earnings. However, with increasing financial pressures, it has become a primary source of income for many older Americans.
In fact, a recent study conducted by AARP indicates that even more people might rely heavily on Social Security in the coming years. Alarmingly, 20% of Americans aged 50 and older have reported having no retirement savings at all.
Given that housing expenses account for a significant portion of the average household budget — typically around 30% or more of total income — the choice of where to live in retirement can dramatically impact one’s cost of living. This makes selecting an affordable, yet comfortable, suburb a vital consideration for those looking to stretch their Social Security dollars.
To assist retirees in making informed decisions, GOBankingRates consulted with real estate professionals across the United States to identify the best suburbs where retirees can comfortably live on Social Security in 2025.
While many of these suburbs are located in the Midwest, exploring other regions may also reveal hidden gems with an appealing combination of affordability and amenities.
1. Erlanger, Kentucky
In northern Kentucky, Erlanger is ideally situated just an hour and a half north of Louisville and a quick 15-minute drive south of Cincinnati. With a cost of living that’s 12% below the national average, residents enjoy significant savings in housing (31% lower), groceries (13% lower), and healthcare (5% lower), according to Payscale.com. This suburb is also conveniently located near the University of Cincinnati Medical Center, which provides top-tier healthcare just across the state border.
Real estate expert Ariel Sizemore of Keller Williams Realty Services highlights Erlanger as a fantastic option for retirees. “Northern Kentucky offers several affordable cities to consider, and Erlanger stands out due to its central location with easy access to shopping, dining, and healthcare,” Sizemore explains. For those expecting out-of-state visitors, Erlanger is just 10 minutes away from Cincinnati/Northern Kentucky International Airport. Sizemore notes that the median home price in Erlanger is under $235,000, while average rent is below $1,500 per month, making it a viable choice for retirees on a tight budget.
2. St. Bernard, Ohio
St. Bernard, a quaint suburb located within Greater Cincinnati, is another excellent option for retirees. This independent village is close to city amenities while offering a median home price below $200,000, making it a budget-friendly choice. For seniors who may eventually require assisted living services, the area boasts 11 continuing care retirement communities within a 10-mile radius.
According to Sizemore, St. Bernard’s proximity to the University of Cincinnati’s prestigious academic medical center, which has been ranked among the world’s best hospitals for three consecutive years, is a significant draw. “St. Bernard offers the charm of a small community while being only 10 minutes away from world-class healthcare,” Sizemore emphasizes.
3. Kentwood, Michigan
Located just outside Grand Rapids, Kentwood offers a cost of living approximately 5% lower than the national average, as reported by the Economic Research Institute. This suburb strikes a balance between affordability and quality of life, providing easy access to city amenities without the higher costs associated with living directly in Grand Rapids.
Elyse Sarnecky, marketing director at Marketplace Homes, describes Kentwood as having a pleasant suburban vibe with ample parks, green spaces, and local businesses to explore. “Housing is reasonably priced, and retirees can benefit from a robust network of community services designed to help seniors stretch their budgets,” she says. Kentwood is also known for its active senior center, which offers numerous activities and support programs aimed at enriching retirees’ lives.
4. Pendleton, Indiana
Pendleton, Indiana, is a charming small town situated about 35 miles northeast of Indianapolis. Indiana, in general, is a retiree-friendly state, offering property and income tax breaks for seniors, as well as no state taxes on Social Security benefits or inheritance taxes.
According to Jennifer McCoy, a realtor with McCoy and Company Real Estate and Design at eXp Realty, Pendleton boasts a strong sense of community. “It’s a town where people know each other and come together for events and activities,” McCoy explains. Though it maintains a small-town atmosphere, Pendleton is close to large medical facilities, ensuring that retirees have access to necessary healthcare services. The town strikes a perfect balance, catering to families, young professionals, and retirees alike.
5. McMinnville, Tennessee
Expanding our list beyond the Midwest, McMinnville, Tennessee, offers a cost-effective lifestyle in a scenic setting. Located roughly halfway between Nashville and Chattanooga, McMinnville has a cost of living that’s nearly 10% below the national average. The town’s affordable housing market, combined with Tennessee’s lack of state income tax, makes it a prime spot for retirees looking to stretch their Social Security checks.
6. Anderson, South Carolina
Anderson is a picturesque town in the foothills of the Blue Ridge Mountains, offering retirees a peaceful yet vibrant lifestyle. With a median home price of under $180,000 and a favorable tax climate, this town is an excellent choice for those on a fixed income. Anderson also boasts a network of senior centers, healthcare facilities, and community events designed to keep retirees engaged.
7. Edmond, Oklahoma
For those willing to consider the central U.S., Edmond provides a mix of affordability and modern amenities. Just outside Oklahoma City, Edmond has a cost of living 9% below the national average and offers affordable housing options. The town is known for its excellent healthcare services, senior-friendly recreational centers, and a strong sense of community.
8. Port Orange, Florida
Finally, Port Orange, Florida, rounds out our list as a coastal option for those seeking a warmer climate. While Florida’s popularity often drives up prices, Port Orange manages to offer reasonably priced homes and low property taxes, particularly appealing to retirees who prioritize good weather and beach access. Additionally, the city has a well-developed healthcare infrastructure, ensuring that seniors have access to quality care.
By exploring these suburbs, retirees can find affordable yet enriching places to settle down, making their Social Security income go further without compromising on quality of life.