10 Most Affordable Cities for Working Adults and Retirees: This One Is Best for Both

Location, location, location! Its importance cannot be overstated. Where you live can boost or weaken the strength of your dollar. 

You may be wondering which city is the best for your financial situation. A new study by Empower lends insight by determining which are the most affordable cities in the U.S. for working adults and retirees, respectively. (Though there is one city that appears on both lists.)

Let’s dig in — and learn not only about cost of living in these locations, but which job sectors rule them. 

Des Moines, Iowa  

The Empower study found Des Moines to be the fifth-most affordable city for working adults. Cost of living in this city is 7% lower than the national average, according to RentCafe. It’s particularly affordable in the area of transportation and housing, which each cost 14% less than the national average. Top industries in Des Moines include advanced manufacturing, agricultural innovation and data centers.

Virginia Beach came in fourth in affordability for working adults. Key industries in Virginia Beach include advanced manufacturing, bio and life sciences and defense. This is an interesting find, as the cost of living here is 13.2% higher than the national average, according to Salary.com. However, food is pretty affordable here at 28.1% less than the national average. 

The third-most affordable city for working adults is Wichita, where industries including high-tech manufacturing and medical services. The cost of living in this city is 9% lower than the national average, per PayScale, and housing is very affordable at 29% lower.  

Springfield is the second-most affordable for working adults. Here, the cost of living is 8% lower than the national average, according to RentCafe. Food is 2% lower than the national average, and goods and services are 6% lower. Key industries in this city are distribution and logistics and advanced manufacturing.

Per Empower’s research, Sioux Falls, South Dakota, is the most affordable city for working adults. In this city the cost of living is 8% lower than the national average, according to PayScale. Utilities are very affordable here: 16% lower than the national average. Top industries in Sioux Falls are healthcare, education and food processing.  

Philadelphia, Pennsylvania 

Those looking to retire, or who have already left the workforce, may want to check out Philadelphia, which Empower ranks as the fifth-most affordable city for retirees. This is fairly surprising given that the cost of living here is 5% higher than the national average, according to PayScale. But healthcare is a bit cheaper: 3% lower than the national average. Key industries in this city include life sciences and financial services.

Detroit, a leader in the automotive industry, is not particularly cheap; in fact, cost of living here is 4% higher than the national average, according to PayScale. It does boast slightly more affordable utility bills — 2% lower than the national average. 

Sioux Falls is not only the No. 1 most affordable city for working adults, it’s also the third-most affordable city for retirees!  

Another Pennsylvania city, Pittsburgh, made the list of most affordable cities for retirees, landing at No. 2. This city is on par with the national average in terms of cost of living, per PayScale, but it’s cheaper in terms of housing, which is 7% below the national average. Pittsburgh has a strong presence in the following industries: climate tech and decarbonization, cybersecurity, energy and life sciences and healthcare. 

Las Vegas isn’t just a city for partying and eloping; it’s also a great spot for retirees, coming in at No. 1 on Empower’s list of most affordable cities for that age group. Cost of living here is actually 1% higher than the national average, according to PayScale. That said, the state of Nevada is renowned for its tax-friendly policies.