It's Possible to Retire on Social Security Alone in Knoxville. Here's How.

Knoxville retirement plans can look attractive because Tennessee has no state income tax and Social Security can stretch further than in many large metros. Housing costs have increased due to in-migration from higher-cost states, remote workers relocating after the pandemic, limited housing supply, and the economic pull of the University of Tennessee. The university anchors jobs, supports a large renter population, and helps sustain a stronger housing market than many retirees expect in East Tennessee. Retirement on Social Security alone remains possible, but it is usually limited to people who own their homes outright, bring equity from higher-cost markets, or choose more modest neighborhoods. After the 2.8% 2026 COLA, average monthly Social Security benefits are $2,071, with Medicare Part B and additional coverage reducing take-home income.

"Knoxville is no longer the ultra-cheap market people remember from fifteen years ago. A mix of in-migration from higher-cost states, remote workers relocating during and after the pandemic, limited housing supply, and the economic pull of the University of Tennessee has steadily pushed prices upward. The university anchors thousands of jobs, supports a large renter population, and helps sustain a stronger housing market than many retirees expect in East Tennessee."

"The result is a market where retirement on Social Security alone is still possible, but usually only for retirees who already own a home outright, arrive with equity from a more expensive market, or are willing to live modestly outside the hottest neighborhoods."

"After the 2.8% 2026 COLA, the SSA's estimated average monthly benefit for all retired workers lands at $2,071, or roughly $24,850 a year before Medicare comes out. An aged widow or widower alone averages $1,919. A worker claiming at full retirement age after earning the maximum taxable wage throughout their career can receive up to $4,152 per month, but that is not the typical claimant."

"Two deductions hit before the money is yours. The standard Medicare Part B premium is $202.90 in 2026, and most retirees layer on a Part D drug plan and either a Medigap policy or a Medicare Advantage plan. Budget roughly $400 a month all in for traditional Medicare plus Medigap coverage, though many retirees on Medicare Advantage plans pay materially less."

Read at 24/7 Wall St.