When choosing a place to retire on a fixed income, costs matter, sure. But they're not the whole story. Safety, livability and economic stability are equally important for retirees.
Using data on more than 200 metropolitan areas across the U.S., we found the places with the cheapest living costs, in particular for health care and housing. We also looked at how states tax retirees. And, in case you find that you want or need to go back to work to boost your income, we selected economically healthy areas.
Then, to trim them further, we cut out cities with above-average crime rates, and favored those where many seniors already live. Here are three of our 10 favorite affordable places where you'd actually want to retire.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Punta Gorda, Fla.
Florida is, of course, a classic retirement destination. Besides warm weather and great beaches, the state has no income tax, estate tax or inheritance tax, and it doesn't tax Social Security or retirement income.
Punta Gorda, on the Gulf Coast just north of Fort Myers, has extra merit: 35% of its population is 65 and older -- the greatest of all 223 places we considered. And those retirees have plenty to keep them busy. The city offers 18 miles of bike paths and pedestrian trails, as well as the charms of Fishermen's Village, home to a marina, shops, seafood restaurants and free concerts.
Roanoke, Va.
If you have a taste for mountains, whether hiking up them or just driving through, Roanoke, Virginia could be for you. The famed Appalachian Trail passes near this small city, which has attractive living expenses to go along with the beautiful scenery. Roanoke's cost of living for retirees is below average in every category. In fact, groceries are the most affordable of the top-10 cities on this list, at 8.3% below average. Health care and housing are also very reasonable.
Pittsburgh
Pittsburgh is the biggest city that made our cut, and let's be frank, the winters are brutal. But despite its Rust Belt reputation, it offers sophisticated seniors plenty of cultural attractions, including the Andy Warhol Museum, the Pittsburgh Ballet Theatre and a vibrant jazz scene.
The city is one of the safest among our top 10, and housing costs are particularly low. The median home value is $89,400 -- not even six figures. Plus, Pennsylvania's tax laws are easy on retirees; Social Security benefits and distributions from 401(k)s, IRAs, deferred-compensation plans and other eligible retirement accounts are all left alone.
If none of these retirement destinations suits your needs, see seven more of the cheapest places where you will want to retire to find a city that does.
-
What Does Medicare Not Cover? Seven Things You Should KnowHealthy Living on a Budget Medicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
13 Smart Estate Planning Movesretirement Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money.
-
Should You Rent in Retirement?Making Your Money Last Renting isn't right for all retirees, but it does offer flexibility and it frees up cash.
-
6 RMD Changes We Could See This YearMaking Your Money Last Congress is considering two bills that would make major changes to required minimum distributions. Could your RMDs be affected?
-
A Kiplinger-ATHENE Poll: Retirees Are Worried About MoneyMaking Your Money Last Concerns about recession, inflation and health care costs weigh on retirees and near retirees.
-
The Retiree's Guide to Going Back to WorkMaking Your Money Last Inflation and a bear market have prompted some retirees to change course.
-
Does an Annuity Belong in a 401(k)?Making Your Money Last Unlike pensions, 401(k)s place the risk of outliving savings squarely on the retiree's shoulders. Find out what's right for you.
-
Social Security: 8 Must-Know Facts About Your BenefitsMaking Your Money Last What you don't understand about Social Security could cost you. Here are key facts worth knowing.
