Indiana can’t match Florida’s year-round warm weather, South Carolina’s beaches or Arizona’s desert vistas. In terms of affordability, however, the Hoosier State makes a strong case as a retirement destination. A recent GOBankingRates study found numerous Indiana cities well within financial reach for most retiring couples, even if they plan to get by on Social Security alone.
The average Social Security check for a retired worker in 2026 is estimated to be around $2,071 per month, reflecting a 2.8% cost-of-living adjustment (COLA) from 2025. The study has determined the top seven Indiana cities with an average overall cost of living within that framework, including the consideration of factors such as monthly expenses and healthcare costs.
There are other reasons to consider retiring in Indiana, especially if you like four-season living and can handle hot summers and cold winters. Social Security benefits aren’t taxed in Indiana, though pensions and retirement savings are, which makes living in one of these seven cities all the more enticing.
1. Richmond
- Percentage of population at retirement age (65 or older): 18.3%
- Average monthly rent: $796
- Average monthly cost of living for necessities: $2,152
- Average monthly grocery bill: $375
- Average annual cost for healthcare: $7,639
- Average annual cost of utilities: $4,131
- Annual leftover savings from Social Security income for one: -$1,662
- Monthly Leftover Savings from Social Security income for married couples filing together: $818
Retired couples on a tight budget still wanting to live in more of a small city than a town may want to give Richmond a look. The average monthly rent is under $1,000, which is quite rare these days in any real estate market. Richmond also boasts a rich history and ample recreational opportunities to stay active in your golden years.
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2. Goshen
- Percentage of population at retirement age (65 or older): 18.1%
- Average monthly rent: $1,084
- Average monthly cost of living for necessities: $2,424
- Average monthly grocery bill: $388
- Average annual cost for healthcare: $7,409
- Average annual cost of utilities: $4,014
- Annual leftover savings from Social Security income for one: -$4,923
- Monthly Leftover Savings from Social Security income for married couples filing together: $546
Goshen is a northern Indiana city in the South Bend-Mishawaka-Elkhart area, with just under 35,000 residents. It’s known for cranking out auto parts and recreational vehicles. Locals and visitors enjoy a weekly farmers’ market and walking/biking along the Pumpkin Vine Nature Trail or the Maple City Greenway.
3. Fort Wayne
- Percentage of population at retirement age (65 or older): 14.9%
- Average monthly rent: $1,158
- Average monthly cost of living for necessities: $2,502
- Average monthly grocery bill: $377
- Average annual cost for healthcare: $7,671
- Average annual cost of utilities: $3,927
- Annual leftover savings from Social Security income for one: -$5,868
- Monthly Leftover Savings from Social Security income for married couples filing together: $468
Fort Wayne is a larger city (population 266,236) located in northeast Indiana. It has received an All-American City Award four times, and attractions include the Foellinger-Freimann Botanical Conservatory, the Fort Wayne Museum of Art, the Fort Wayne Children’s Zoo and the History Center at Old City Hall.
4. Muncie
- Percentage of population at retirement age (65 or older): 14.2%
- Average monthly rent: $1,076
- Average monthly cost of living for necessities: $2,394
- Average monthly grocery bill: $376
- Average annual cost for healthcare: $7,378
- Average annual cost of utilities: $3,932
- Annual leftover savings from Social Security income for one: -$4,568
- Monthly Leftover Savings from Social Security income for married couples filing together: $576
If you’re a couple trying to get by on $3,208 a month between you and your spouse, an average rent of just above $1,000 probably looks pretty good. Muncie has it, along with a respectable livability score of 81. Located about 60 miles northeast of Indianapolis, Muncie is home to about 65,000 residents, Ball State University, the David Owsley Museum of Art, the Minnetrista Museum and Gardens and the 60-mile Cardinal Greenway.
5. Logansport
- Percentage of population at retirement age (65 or older): 15.4%
- Average monthly rent: $899
- Average monthly cost of living for necessities: $2,232
- Average monthly grocery bill: $372
- Average annual cost for healthcare: $7,306
- Average annual cost of utilities: $4,235
- Annual leftover savings from Social Security income for one: -$2,630
- Monthly Leftover Savings from Social Security income for married couples filing together: $737
The good news is that retiring in Logansport, Indiana, offers a small-town feel with affordability, safety, and access to nature, featuring attractions like the historic Dentzel Carousel in Riverside Park and a community focused on connection. The great news is that if you file your taxes separately from your partner, the monthly leftover savings from your Social Security is about $1,794 on average.
6. Michigan City
- Percentage of population at retirement age (65 or older): 17.9%
- Average monthly rent: $1,210
- Average monthly cost of living for necessities: $2,504
- Average monthly grocery bill: $379
- Average annual cost for healthcare: $7,171
- Average annual cost of utilities: $3,810
- Annual leftover savings from Social Security income for one: -$5,889
- Monthly Leftover Savings from Social Security income for married couples filing together: $466
If you are thinking of retiring in Michigan City, you might be on to something, as it offers a blend of lakefront beauty, affordability and access to Lake Michigan beaches. You’ll also be close to Indiana Dunes National Park, Franciscan Health, senior centers and cultural spots like Blue Chip Casino, featuring lower housing costs and no tax on Social Security.
7. Jeffersonville
- Percentage of population at retirement age (65 or older): 16.8%
- Average monthly rent: $1,417
- Average monthly cost of living for necessities: $2,750
- Average monthly grocery bill: $388
- Average annual cost for healthcare: $7,163
- Average annual cost of utilities: $4,178
- Annual leftover savings from Social Security income for one: -$8,846
- Monthly Leftover Savings from Social Security income for married couples filing together: $219
Often referred to as simply “Jeff,” this southern Indiana city, with a population of just over 50,000, is located across the Ohio River from Louisville, Kentucky. Residents enjoy the NoCo Arts and Cultural District, the floating RiverStage event venue and multiple parks. Retired couples may appreciate Jeff’s average monthly expenditure costs of just $1,333.
Methodology: For this study, GOBankingRates analyzed cities in Indiana to find the best places to retire on just Social Security income. First, GOBankingRates isolated cities in Indiana, along with the total population, total households, population ages 65 and over, and median household income, all sourced from the U.S. Census 2023 5-year ACS. Social Security income for one person and for a married couple filing jointly was sourced from the Social Security Administration’s Monthly Statistical Snapshot for November 2025. The average rental cost was sourced from Zillow Observed Rental Index and places without data, or places with a size rank above 5,000, were removed for this study. The cost-of-living indices for groceries, healthcare and utilities were sourced from Sperlings BestPlaces. Using the national average expenditure costs for retired households, the average expenditure cost was calculated for each city. The average rental and expenditure costs were summed to find the total cost of living for necessities. The leftover savings after the Social Security income for a married couple filing jointly paid the cost of living for necessities was calculated and the negative amounts were removed since they are not capable of living on only Social Security income. The livability index was sourced from AreaVibes and all places below 70 were removed as they represent poor quality of life conditions. The livability was scored and weighted at 2.00. The cost of living for necessities was scored and weighted at 1.00. The scores were summed and sorted to show the best places in Indiana for a couple to live on only Social Security Income. All data was up to date as of December 22nd, 2025.
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This article originally appeared on GOBankingRates.com: 7 Best Places in Indiana for a Couple To Live on Only Social Security
