How to Choose the Best City or State for Retirement: What You Need to Know

A recent survey by the Nationwide Retirement Institute revealed that more than 40% of non-retired investors plan to move to a different city once they stop working. It’s also no surprise that two of the top reasons — lower living costs (44%) and lower taxes (34%) — indicate it’s often a matter of economics. 

But that’s not the whole story.  

In addition to the size of your retirement nest egg, it often comes down to the type of lifestyle you want to enjoy during your golden years. For some it’s big city amenities, for others small town charm. In the end, it comes down to what’s the best fit for you. Let’s look at some things worth considering. 

Affordability 

If you want your retirement savings to go farther, Mississippi, Arkansas and West Virginia have lower costs for housing, healthcare, and other expenses as compared to the national average. It’s also probably safe to assume that a small, rural town will be more affordable than a big city. However, you may find it’s a tradeoff between saving money at the “cost” of less convenience.  

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming don’t have income tax; however, don’t automatically assume you’ll be saving money. When you do the math, things like property taxes, cost of living, home insurance and even estate taxes could mean that the difference might not be as big as you’d expect. Tip: For a small fee, The Council for Community and Economic Research has a very handy Cost of Living Index ideal for making city by city comparisons. 

Culture and Recreation 

Ask yourself what makes life enjoyable. You might be a golfer, play tennis or kayak. Or a culture vulture who lives for theatre, concert, charity events and art museums. Create a list of must-haves that would make you happy and research locations that offer choices that suit your tastes. 

Healthcare 

According to U.S. News and World Report, the top three states for affordable healthcare are Hawaii, Vermont and Massachusetts. It’s also important to know that if you have Medicare Advantage and you move out of your current service area, you can reset your Medicare coverage for additional insurance.  

The Great Outdoors 

If you love nature, consider places near lakes, hiking trails and state and national parks. Cities such as Lake Tahoe, Bend, Oregon and Asheville, North Carolina. Portland and Seattle have mild weather and scenery plus a wealth of outdoor activities. And if you don’t find the great outdoors so “great,” you might be happier in an attractive, still affordable city like Pittsburgh, Pennsylvania.  

Walkability 

Do you mind having to drive to buy groceries and eat dinner at a restaurant? Or would you prefer to have everything just a few blocks away? At this stage of your life, you may well be looking for a city or town with a good public transportation system (which also can make aging in place more practical). Tip: Many real estate sites now have “walkability scores” for specific neighborhoods you may be considering. 

Weather 

Do you want sunshine or changing seasons? Places like Florida, Arizona and Nevada enjoy plenty of sunshine and warm weather most of the year. Parts of Texas, New Mexico and Southern California have consistently mild and pleasant temperatures. Or if you’re someone who enjoys the changing seasons, the New England and mid-Atlantic states may be ideal for you. Also be sure to do some research on the average temperature and weather risks like hurricanes for any place you’re considering. Tip: Climate.gov has up-to-date info on extreme weather patterns and conditions by state.  

If you haven’t decided on the perfect place for your golden years, use our state guides and city guides to see the pros and cons of living in different areas around the country.   

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