One of the major reasons why Americans hustle at their jobs every day is to save money for retirement. They spend most of their adult lives saving money and crafting plans to ensure a trouble-free retired life. At the same time, there is no denying the fact that retirement is more expensive than ever.

The dwindling pensions and reduced social security benefits mean that future retirees will resort to their savings in order to get by. Add to this the fact that only 3.1 percent of the senior population lives in nursing homes. This mandates the need for appropriate planning so retirees can find an affordable home in a place they love.

When it comes to retirement, it is necessary to settle in a location that speaks to your heart and brings you contentment at this age of your life. Hence, we have rounded up seven of the most affordable cities where you can settle down to spend your retirement age.

1. Charlottesville, Virginia

Average Monthly Rate for a One-Bedroom Apartment: $1086
Average Mortgage Cost: 15-year fixed for 2.52 percent and 30-year fixed for 3.09 percent

If you are looking for a safe haven away from a fast-moving city, Charlottesville is the place for you. Home to the University of Virginia, it’s a college town that presents several activities for retirees, along with bookstores and cultural shows that will awaken your intellectual curiosity.

Apart from the activities, Charlottesville offers lower state tax rates along with tax exemptions on Social Security benefits and income deductions of up to $12,000 if you are aged 65 years or older. Moreover, you don’t have to pay additional taxes on prescription and non-prescription drugs here.

The medical care in Charlottesville is exemplary as it has two major award-winning hospitals accredited by the Joint Commission. It is also worth mentioning that Charlottesville houses several family-owned estates as well as middle-class communities with single houses.

2. Rochester, New York

Average Monthly Rate for a One-Bedroom Apartment: $1017
Average Mortgage Cost: 4.4 percent for 30 years fixed and 3.76 percent for 15-years fixed

Rochester is one of the best places to retire in New York as it has more economical housing rates and lower living costs than New York City. If you plan to settle here, you will be left with plenty of room in your budget to explore the city and indulge in its offerings, such as the local vineyards.

With low crime rates, moderate climate change, and affordable home prices, Rochester might be the retirement spot that you are looking for.

3. Phoenix, Arizona

Average Monthly Rate for a One-Bedroom Apartment: $1186
Average Mortgage Cost: 3.07 percent for 30-year fixed and 2.5 percent for 15-year fixed

While Phoenix is a tax-friendly city exempting tax on social security benefits, it does impose a tax on retirement income. Moreover, the property tax in Arizona is considerably lower than the national average.

Even the living costs in Phoenix are impressively low, which makes it a retirement haven for those living off a fixed income. Combined with its warm climate, attractions like the Grand Canyon and Musical Instrument Museum, and its gorgeous flora, you’ll be tempted to settle here.

It is also interesting to note that about 18 percent of the locals are 65 years or older. So, you’ll be able to meet plenty of people your ago.

4. Austin, Texas

Average Monthly Rate for a One-Bedroom Apartment: $1306
Average Mortgage Cost: 3.1 percent for 30-year fixed and 2.84 percent for 15-year fixed

Austin, Texas, is considered one of the best places to retire in the United States of America.

Although Austin has a high cost of living, its tax regulations are relatively favorable for the retirees. If you decide to settle here, you won’t have to pay any personal or income tax. Moreover, Austin doesn’t tax retirement income, which means that you can certainly stretch your budget further.

You can also apply for Medicare in Austin. If you or your spouse is eligible, you get to enjoy the best medical plans that align with your requirements.

5. Salt Lake City, Utah

Average Monthly Rate for a One-Bedroom Apartment: $1116
Average Mortgage Cost: 3.05 percent for 30-year fixed and 2.57 percent for 15-year fixed

Salt Lake City is the scenic retiree haven that you have always dreamt of. The city is not only blessed with an attractive outdoors, but there’s also a buzzing metropolis that offers activities for all tastes and inclinations.

The local health care industry is flourishing, as you will find three of America’s best hospitals here. The cost of living is a little higher than the U.S. average, plus the city taxes social security benefits. However, Utah has the third-lowest poverty rate in those aged 65 years and above.

All in all, you’ll love retiring here if you have a comfy nest egg saved up.

6. Birmingham, Alabama

Average Monthly Rate for a One-Bedroom Apartment: $1001
Average Mortgage Cost: 3.21 percent for 30 years fixed and 2.79 percent for 15 years fixed

In affordability, Birmingham takes the lead, especially in the south. The most crucial factor here is the lower than average cost of living; even the health and house costs are much lower than the national average.

In addition to these perks, Birmingham exempts social security benefits and retirement pensions from taxation, so you can save money and enjoy your retired life. It also boasts of several high-quality medical facilities that offer all kinds of healthcare services.

7. Columbia, South Carolina

Average Monthly Rate for a One-Bedroom Apartment: $917
Average Mortgage Cost: 3.07 percent for 30-year fixed and 2.61 percent for 15-year fixed

As the capital city of South Carolina, Columbia offers all the big city perks that you can imagine.

If you are naturally attracted to the countryside and sun-lit vistas, Columbia is the best place to retire to. The beautiful lakes and open green spaces here can be the perfect backdrop for your serene and peaceful life.

Additionally, South Carolina is a tax-friendly state, meaning it does not collect taxes on social security benefits. However, it deducts a certain amount from your retirement income. Also, the cost of living in South Carolina is a lot lower than the national average.