Are you thinking about retirement? Or do you have retired family members? If either answer is yes, then affordable housing and a low cost-of-living are important issues.

GoBankingRates.com recently analyzed cost-of-living indexes and consumer expenditure data to rank America’s cheapest cities to retire. Here are the five most affordable cities, in descending order:
5. Mobile, Alabama

Annual expenditures: $39,566
Annual amount spent on rent: $6,816
Annual amount spent on groceries: $3,031

Known for its southern hospitality and the America’s oldest Mardi Gras, this Gulf Coast city draws many retirees. You’ll also have to put up with rain, as Mobile is the rainiest city in the United States!  



4. Tucson, Arizona

Annual expenditures: $39,402
Annual amount spent on rent: $6,755
Annual amount spent on groceries: $3,052
Located an hour north of the Mexican border in the Sonoran Desert, Tucson receives an astounding 310 days of annual sunshine and is surrounded by five mountain ranges. It offers retirees a blend of Native American, Spanish, Mexican and Anglo-American influences mixed with outdoor-friendly activities.

3. Oklahoma City, Oklahoma

Annual expenditures: $39,248
Annual amount spent on rent: $7,282
Annual amount spent on groceries: $3,109

Home to one of America’s lowest costs-of-living, Oklahoma City provides a relaxed lifestyle, low traffic, and a range of lakes and golf courses. The state of Oklahoma also exempts Social Security from taxation and provides a $10,000 deduction for other types of retirement income, such as pensions or 401(k).


2. San Antonio, Texas

Annual expenditures: $38,210
Annual amount spent on rent: $7,729
Annual amount spent on groceries: $2,873

San Antonio is big. In fact, it’s the seventh largest city in the United States. San Antonio offers retirees a friendly and historical setting combined with mild winters. The state of Texas also has no state tax on Social Security benefits or other retirement income.

1. Athens, Georgia

Annual expenditures: $36,999
Annual amount spent on rent: $6,781
Annual amount spent on groceries: $2,633

America’s most affordable city to retire in is Athens, Georgia. Located an hour east of Atlanta, Athens is a blend of southern hospitality, the University of Georgia, and historic neighborhoods. It consistently ranks high in “best places to retire” lists and combines an affordable setting with mild winters. The state of Georgia doesn’t tax Social Security benefits and provides a deduction of $65,000 per person on retirement income for anyone over 64.