Best Places to Retire in the USA: 12 Places Worth Considering

Where is the best place to retire in the USA?

Ask that question to 10 different retirees and you will probably get 10 different answers. One person wants sunshine and a golf course. Another wants mountains and four seasons. Someone else wants to live near their grandchildren. And for another retiree, the biggest priority might simply be finding a place where $60,000 a year goes a lot further.

There is no single best retirement destination for everyone. In fact, current retirement studies produce very different lists because they use different criteria and assign different weights to things like housing costs, healthcare, taxes, weather and quality of life.

That is actually good news.

It means you don't have to find the city that wins somebody else's ranking. You need to find the place that fits your retirement.

Here are 12 places in the United States worth putting on your retirement shortlist.

What Makes a Great Retirement Destination?

Before looking at specific cities and regions, it helps to understand what you are actually comparing.

The obvious factors are cost of living and weather. But there is quite a bit more to it.

• Housing costs
• Property taxes and state taxes
• Healthcare access
• Home and auto insurance costs
• Climate and severe weather
• Outdoor recreation
• Restaurants, entertainment and cultural activities
• Walkability and transportation
• Proximity to family and friends
• Airport access
• Availability of age-friendly communities
• How well the location fits your retirement budget

Fidelity makes a similar point in its retirement-location guidance: moving somewhere with lower income taxes does not necessarily mean your overall retirement costs will be lower. Housing, healthcare, insurance and other expenses can change the calculation significantly.

1. Sarasota, Florida

Sarasota is one of the classic Florida retirement destinations, and it is easy to understand why.

You get warm weather, beaches, golf, restaurants, arts and plenty of activities for an active retirement. The area also has a large population of retirees, which means there is no shortage of communities and services geared toward older adults.

Florida also has no individual state income tax, which can be attractive for retirees with substantial retirement income.

But Florida is not automatically cheap. Home insurance, property insurance and housing costs can be significant, and hurricane risk is part of life in the state.

Sarasota can make sense for someone who wants a warm, active retirement and is comfortable paying for the lifestyle.

2. The Villages, Florida

If you want a retirement community rather than simply a city where a lot of retirees happen to live, The Villages is hard to ignore.

The community is built specifically around retirement living, with golf, recreation, clubs, entertainment and a large network of residents.

One of the interesting things about The Villages is the sheer number of ways to stay busy. If you enjoy organized activities and meeting new people, there are plenty of opportunities.

The tradeoff is that this lifestyle is not for everyone. Someone who wants a quiet mountain town, a traditional downtown or four distinct seasons may prefer somewhere else.

3. Naples, Florida

Naples is another popular choice for retirees who want a warmer, more upscale Florida lifestyle.

Beaches, golf, restaurants and shopping are major attractions, and the Gulf Coast location provides a very different feel from Florida's Atlantic coast.

The major consideration is cost.

Naples can be considerably more expensive than some of the other retirement destinations on this list. If you are considering the area, run the numbers on housing, insurance and property taxes rather than assuming that Florida's lack of a state income tax makes the location inexpensive.

4. Tucson, Arizona

Not everyone wants humidity.

Tucson offers a completely different retirement experience, with a dry desert climate, mountain scenery and abundant sunshine.

Outdoor enthusiasts can take advantage of hiking, cycling and other activities, while the University of Arizona contributes to the area's cultural and educational opportunities.

Tucson can also offer a different price point from some of the more expensive retirement destinations in Arizona.

The obvious downside is the summer heat. If you love warm weather but do not enjoy extremely hot summers, you may want to spend some time in Tucson during the hottest part of the year before making a permanent move.

5. Green Valley, Arizona

About 30 miles south of Tucson, Green Valley is a smaller community with a strong retirement focus.

It offers desert scenery, mountain views, golf and a slower pace of life. Its smaller size can appeal to retirees who don't want to live in a major metropolitan area.

Green Valley has also appeared in recent national retirement research because of its combination of housing costs, taxes, crime and quality-of-life factors.

The same desert climate that attracts many residents can also be the biggest drawback. Summer temperatures are serious, and the area's car-oriented layout may not appeal to someone looking for a highly walkable retirement.

6. Knoxville, Tennessee

Knoxville is an interesting alternative for retirees who want four seasons without moving into the colder northern states.

The city provides access to the Great Smoky Mountains, outdoor recreation, restaurants, college sports and a growing range of cultural activities.

Tennessee is also known for having no individual state income tax, although retirees should still look at the entire state and local tax picture rather than focusing on income tax alone.

Knoxville can be particularly appealing if you want outdoor recreation but don't want to live in a traditional Florida retirement destination.

7. Asheville, North Carolina

Asheville has a completely different personality.

Nestled in the Blue Ridge Mountains, it attracts people who want scenery, hiking, restaurants, arts, music and a more independent lifestyle.

The area is particularly attractive to retirees who would rather spend their retirement exploring mountain trails than sitting beside a swimming pool.

Housing costs can vary significantly, however, and retirees should also consider insurance, healthcare access and the financial impact of living in a popular destination.

Asheville is a good example of why "best place to retire" is personal. Someone who loves mountains and outdoor activities may rank it highly, while a retiree who wants beaches and warm winters may have a completely different opinion.

8. Greenville, South Carolina

Greenville has become a popular destination for people looking for a smaller city with a lively downtown and access to the outdoors.

The city sits near the Blue Ridge Mountains and offers restaurants, parks, walking trails and cultural attractions.

It also gives retirees a middle ground between a large metropolitan area and a small rural community.

For someone who wants an active retirement but does not necessarily want a traditional retirement community, Greenville is worth exploring.

9. San Antonio, Texas

San Antonio offers something that many retirement destinations struggle to provide: big-city amenities without the price tag of some of America's largest coastal cities.

The city has major healthcare facilities, restaurants, cultural attractions, parks and a substantial airport.

Texas also has no individual state income tax.

But again, look beyond the income-tax headline. Property taxes can be significant, and Texas weather can be challenging. Summers are hot, and severe weather can be an important consideration depending on where you live.

San Antonio may be a good fit for retirees who want plenty of amenities and don't want to sacrifice access to a major city.

10. Colorado Springs, Colorado

If your ideal retirement involves hiking, mountains and being outdoors, Colorado Springs deserves a look.

The city sits at the foot of Pikes Peak and provides easy access to a huge range of outdoor activities.

It also has a substantial population and healthcare infrastructure, which can become increasingly important as you get older.

The tradeoff is that Colorado is not the cheapest retirement destination, and winter weather is obviously very different from Florida or Arizona.

If you love the mountains, however, that may not be a downside at all.

11. Huntsville, Alabama

Huntsville is one of the less obvious retirement destinations on this list.

The city has a strong technology and engineering economy, a growing population and access to cultural and educational opportunities.

It also offers a lower-cost alternative to some of the better-known retirement destinations.

For retirees who want a relatively affordable city with more economic and cultural activity than a small retirement community, Huntsville is worth investigating.

12. Prescott, Arizona

Prescott gives retirees an alternative to the hotter desert cities farther south.

At a higher elevation, it has a somewhat different climate and offers pine forests, mountains, hiking and a historic downtown.

It has also developed a strong retirement community, making it easier for newcomers to meet other retirees.

The big consideration is that the higher elevation also means cooler winters. Prescott is not the place to go if your definition of retirement requires warm weather every day of the year.

What About Florida?

Florida shows up repeatedly on lists of popular retirement destinations, and there are good reasons for that.

Warm weather, beaches, golf, large retirement communities and no individual state income tax are all attractive.

But Florida isn't automatically the right financial choice for every retiree.

Home prices, homeowners insurance, flood insurance, property taxes and hurricane risk can significantly affect the cost of living.

If you are considering Florida, compare the total cost of living rather than simply looking at the state's income-tax rate.

What About Arizona?

Arizona is another state that appears frequently in retirement discussions.

The dry climate appeals to people who don't like humidity, while the state's mountains and desert landscapes provide plenty of outdoor opportunities.

Tucson, Green Valley, Prescott and the Phoenix-area communities all offer very different retirement experiences.

The biggest question is whether you can handle the summer heat.

A retirement destination that looks perfect in January may feel very different in July.

You Don't Have to Move to a Traditional Retirement State

One of the biggest mistakes people make when researching retirement destinations is assuming they need to move to Florida, Arizona or another traditional retirement state.

You don't.

You might already live in your ideal retirement location.

Staying close to family can save money, reduce travel expenses and provide a support network that becomes increasingly valuable as you age.

There is also something to be said for knowing your community. You already know the doctors, grocery stores, restaurants and neighbors. You know how the weather behaves. You know where everything is.

Moving somewhere simply because a website called it one of the "best places to retire" is probably not enough reason to uproot your life.

How Much Does Location Really Matter to Your Retirement Plan?

More than many people realize.

A move can change several parts of your financial plan at the same time.

Housing might become cheaper. Your property taxes could change. Your insurance costs could increase. Your healthcare expenses could change. You might drive less or more. You could spend more on travel and entertainment because you are closer to the places you want to visit.

Even state income taxes can affect how much of your retirement income you actually keep.

That means the best retirement destination is not necessarily the city with the lowest cost of living.

It is the place where your finances and your lifestyle work together.

Before You Move, Try Living There

If you are serious about moving in retirement, consider renting before buying.

Spend several months there if you can.

Visit during the season you think you will like least. If you are moving to Arizona, visit during summer. If you are moving to the mountains, spend some time there in winter.

Try the grocery stores. Check out the healthcare system. Drive around the neighborhoods. Spend time downtown. Talk to people who actually live there.

You are not just choosing a vacation destination.

You are choosing where you may spend the next 20, 30 or even 40 years.

How to Compare Retirement Destinations

Instead of asking which city is ranked number one, create your own shortlist.

Start with five or six locations that seem interesting. Then compare them based on the things that actually matter to you.

• Annual housing cost
• Property taxes
• State and local income taxes
• Home and auto insurance
• Healthcare costs and access
• Utilities
• Transportation
• Groceries and everyday expenses
• Climate
• Natural-disaster risk
• Distance from family
• Activities and social opportunities

Then put those numbers into your retirement plan.

Fun Facts About Retirement in the USA

• Florida isn't the only retirement destination. Retirees are increasingly considering cities and towns across the country, including mountain communities, college towns and smaller cities.
• A lower-tax state isn't necessarily a lower-cost state. Housing, insurance, property taxes and healthcare can offset an attractive income-tax situation.
• Summer matters. A city can be wonderful during the winter and brutally hot during the summer. Visit during the less attractive season before making a permanent move.
• Your retirement location can change your spending dramatically. Housing is one of the biggest components of most household budgets, so even a relatively modest change in housing costs can have a meaningful effect on a retirement plan.
• You don't have to move. Staying close to family and friends can be one of the most valuable retirement decisions you make.

The Bottom Line

There are plenty of great places to retire in the USA.

Florida may be perfect for one retiree. Arizona may be perfect for another. Someone else may be happier in Tennessee, North Carolina, Texas or Colorado. And another person may discover that the best place to retire is the house they already live in.

The important thing is not to choose your retirement destination based on somebody else's ranking.

Use those lists to generate ideas. Then look at the numbers yourself.

Estimate your housing costs. Consider taxes and insurance. Think about healthcare. Account for inflation. Consider what happens if one spouse dies. And most importantly, see whether your retirement income and investments can support the lifestyle you want for the rest of your life.