×

The cheapest places to retire

  • Using criteria such as groceries, housing, utilities, transportation and health care, GoBankingRates found the cheapest places to retire.
  • Retirees short on savings would be better off in Birmingham, Detroit or Memphis.
Birmingham, Alabama.
Sean Pavorie | Getty Images
Birmingham, Alabama.

If, like most Americans, your retirement savings are falling short, pack your bags. You'll be better off living in Birmingham, Alabama, Memphis, Tennessee, or Detroit.

Using criteria such as groceries, housing, utilities, transportation and health care, GoBankingRates found the cheapest places to retire in the country's 150 biggest cities.

At the foothills of the Appalachian Mountains, Birmingham was the least expensive place to live out your golden years, the personal finance website said, thanks to low health-care and transportation costs in addition to affordable housing.

Overall, Americans are increasingly optimistic about their financial future, according to a separate report by Allianz Life.

Nearly three-quarters of boomers said they feel financially prepared for retirement, the study said.

Still, boomers have a median retirement savings of just $175,000 while only a third have more than $250,000, Allianz said. (Even a quarter-million would only last a little over six years in Alabama or Michigan, according to GoBankingRates.)

To make matters worse, 63 percent of Americans fear running out of money in retirement more than death.