Key Takeaways
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Living comfortably in retirement often requires making cutbacks, and one way to do that is by moving somewhere cheaper.
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Several cities across the U.S. stand out for affordability while offering excellent amenities and livability, including Fort Wayne, Indiana; Lexington, Kentucky; Augusta, Georgia; Midland, Michigan; and Des Moines, Iowa.
If you’re looking to make your retirement dollars go further, a good option could be moving to a place that is more affordable. Several areas across the U.S. offer plenty of desirable qualities while costing significantly less to live than the national average. Here are five cities that are considered both extremely affordable and livable.
How These 5 Cities Were Chosen
Below, we explore five cities across the U.S. where your retirement savings can stretch further without sacrificing quality of life. Our selection criteria include the following:
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Affordability: Low cost of living and housing costs significantly below national averages
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Quality health care: Access to hospitals, specialists, and primary care physicians
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Things to do: Cultural amenities, outdoor recreation, and programs tailored to retirees
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Safety and livability: Low crime rates, walkable areas, and a welcoming community spirit
Fort Wayne, Indiana
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Fort Wayne, Indiana, offers retirees waterfront views, miles of trails, and a cost of living well below the national average.
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Why: Arts and culture, water activities, light traffic, miles of parks, hiking and biking trails, and close to several major cities.
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Median home price: $236,000 (compared with $360,000 nationally)
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Cost of living compared with the U.S. overall: -10%
Named after American Revolutionary War General “Mad” Anthony Wayne and the fort he helped build in 1794, this city, the second-largest in Indiana, is safe, friendly, easy to navigate, and has plenty for retirees to do.
Heavy investment in the downtown area has literally paved the way for new and revitalized museums, parks, gardens, restaurants, festivals, markets, and art events. Fort Wayne is also building a new hospital. The city sits at the confluence of three rivers, offering 100 miles of hiking and biking trails, and has dedicated programs tailored to older adults. It is known for its friendly community spirit and is relatively close to major cities like Chicago, Detroit, and Indianapolis.
Lexington, Kentucky
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Lexington, Kentucky, pairs affordable living with rolling hills, bourbon trails, and free university classes for residents 65 and older.
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Why: Horses, bourbon, golf, nature, music, theaters, and free university courses.
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Median home price: $320,000
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Cost of living compared with the U.S. overall: -3%
Life in Lexington is known for its horses, bourbon, and great music scene. Surrounded by rolling hills and rivers, there is plenty for outdoor enthusiasts to enjoy here, including exploring the nearby Red River Gorge and Appalachian Mountains.
Lexington is also appreciated for its galleries, theaters, opera house, ballets, musicals, and comedy shows. For just $50 a year, the University of Kentucky Osher Lifelong Learning Institute offers individuals over 50 access to various courses, trips, and events. Additionally, the Donovan Fellowship provides Kentucky residents aged 65 and older with the opportunity to take free university classes.
Augusta, GA
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Augusta, Georgia, offers retirees Southern charm, top health care, generous tax breaks, and a revitalized downtown—all within a few hours of the ocean and mountains.
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Why: Southern charm, golf, tax-friendly, walkable downtown with plenty of amenities, excellent health care, close to the water and mountains.
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Median home price: $174,000
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Cost of living compared with the U.S. overall: -13%
Efforts to revitalize Augusta have yet to be reflected in its home prices. New restaurants, museums, galleries, and other venues continue to emerge in this city, which is perhaps best known for hosting the annual Masters golf tournament.
Other perks include excellent healthcare, generous tax breaks for older adults, a river that’s great for kayaking, walking, biking, or running alongside, free classes for Georgia residents aged 62 and older at Augusta University. It is only a 2.5-hour drive from the ocean, and the Blue Ridge Mountains also offer numerous attractions nearby.
Midland, Michigan
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The Tridge spans the confluence of two rivers in Midland, Michigan—a city where walkability, low crime, and cheap housing converge.
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Why: Low-cost housing, low crime, excellent health care facilities, pleasant walking spots, and close to one of the Great Lakes.
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Median home price: $229,000
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Cost of living compared with the U.S. overall: -20%
If you don’t mind cold winters, Midland, which was recently named U.S. News & World Report‘s best place to retire for 2026, might be worth considering. The city often receives top marks for quality of life, affordability, taxes, safety, walkability, and great cultural and leisure activities.
Nature lovers will appreciate the Chippewa Nature Center, a 1,500-acre preserve with 19 miles of trails through woodlands, wetlands, and riverfront. Lake Huron’s Saginaw Bay is about 30 minutes away for beach days, boating, and excellent bird watching.
Other perks include the Midland Center for the Arts, Dow Gardens and its canopy walkway at Whiting Forest, minor league baseball at Dow Diamond, and fitness programs and classes specifically for retirees.
Des Moines, Iowa
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A pedestrian bridge spans the Des Moines River in Iowa’s capital—a city that feels like a small town but punches above its weight in amenities.
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Why: Nationally ranked farmers’ market, free world-class art museum, 800+ miles of trails, quality healthcare, and programs specifically for retirees.
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Median home price: $206,000
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Cost of living compared with the U.S. overall: -7%
The capital of Iowa is a solid choice for an affordable retirement destination, given its quality healthcare facilities, high ratio of primary care physicians per capita, and having lots going on while still feeling like a small town.
Local attractions include the free Des Moines Art Center, featuring works by Georgia O’Keeffe and Grant Wood, the Pappajohn Sculpture Park, and the Downtown Farmers’ Market, which is ranked among the best in the country and draws about 25,000 visitors each Saturday from May through October. Gray’s Lake Park offers a scenic two-mile loop trail with views of the city skyline, while the Greater Des Moines Botanical Garden offers 12 acres of indoor and outdoor gardens downtown.
Retirees benefit from dedicated programs through the city’s Parks and Recreation department and nearby senior centers, which offer fitness classes, art workshops, day trips, and daily social activities. Like the rest of the Midwest, Des Moines is appealing if you don’t mind cold winters and enjoy experiencing all four seasons.
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