Retirement removes a constraint most people don’t even notice until it’s gone: You no longer have to live near your job. That single change opens up decisions for you that were off the table for decades – moving somewhere warmer, trading a mortgage for a lower cost of living, or finally living five minutes from grandchildren instead of five hours.
There’s no single best place to retire, because there’s no single reason people retire somewhere. The better question isn’t “where should I retire,” it’s “what do I actually want retirement to look like,” and then finding the place that fits the bill.
Start with the retirement lifestyle you want
Before you even start looking at cities to retire to, take some time to really think about what an ordinary week in retirement will look like for you.
Do you want to live near restaurants, museums, and public transportation? Or is somewhere with more space and quiet more to your liking? Do you want golf, hiking, beaches, cultural attractions, volunteer opportunities, or an active adult community? How important is proximity to an airport?
Also consider how much driving you want to do as you get older. A location that works well at 65 should ideally continue working for you later in retirement.
The AARP Livability Index can be useful when comparing communities. It evaluates locations based on factors including housing, transportation, health, environment, social engagement, and access to amenities.
Tip: Make three lists before researching retirement destinations: your must-haves, nice-to-haves, and deal breakers. They can keep you from choosing an attractive vacation destination over one that better fits everyday life.
Compare the true cost of living
Affordable retirement cities are about more than home prices.
To determine what your true cost of living will be, consider the expected costs of:
- Housing or rent
- Property taxes
- Homeowners or renters insurance
- Utilities
- Transportation
- Groceries
- Healthcare
- Home maintenance
- Recreation and entertainment
Taxes also deserve closer attention when retiring to another state. States differ in how they treat various types of income and in their property, sales, and other taxes. Rather than relying on an outdated list of “tax-friendly” states, review the current rules through the appropriate state tax agency and discuss the implications of a potential move with your financial or tax professional.
Lowering your cost of living is a strong reason to consider moving after retirement, and a lower-cost destination can help retirement savings go further.
Research healthcare before choosing a destination
Access to healthcare may become increasingly important throughout retirement.
Look beyond whether a city has a hospital. Consider whether your preferred physicians, specialists, pharmacies, rehabilitation facilities, and other services are available there.
You can use Medicare’s Care Compare tool to look for physicians, hospitals, nursing homes, hospice providers, and healthcare facilities that participate in Medicare by location.
If you have Medicare Advantage or prescription drug coverage, find out if moving to a new city could affect your plan. Moving outside a plan’s service area may trigger a Special Enrollment Period during which you can change coverage.
Tip: Hospital count doesn’t tell you much – what matters more is whether the specific specialists you see now have an equivalent in the city you’re moving to.
Think about family and community
Moving closer to family is a common retirement goal, but think about what “closer” really means.
Living 15 minutes from grandchildren may be perfect for you, but for others, being within a short flight to maintain more independence may be ideal.
Social connections matter, too. Consider how easily you could build a community through clubs, recreation centers, faith communities, volunteer organizations, neighborhood events, classes, or other activities.
Visit a retirement or active adult community in person and ask residents about what it’s like to live there. Don’t rely solely on the amenities listed online.
Choose housing for today and tomorrow
Relocating for retirement is a good opportunity to reconsider how much home you need.
Downsizing offers significant advantages, including lower monthly expenses and fewer maintenance responsibilities. Before you start looking for a new house, consider how your needs may change over time. A house with fewer stairs or all on one level with less yard space might be easier to manage as you get older.
With fewer possessions, you can look into other options like a smaller single-family home, condo, or apartment. And don’t discount an active adult community, independent living community, or continuing care retirement community.
Tip: Square footage shouldn’t be your only criteria when downsizing. Where will you store your things? Do you want space for guests? Which rooms do you regularly use?
Test-drive your retirement destination
A city can feel very different when you live there than when you’re just visiting.
Renting for several weeks or months before buying a home (if you can) is a good way to see what living there will be like. Shop for groceries, drive or walk your normal routes, explore healthcare options, visit neighborhoods, and experience the area outside peak tourist season.
If climate is an important reason for relocating, visit during the season most likely to challenge you. You may feel differently about a coastal community that feels perfect in February when hurricane season rolls around, and driving in a mountain town in winter might prove difficult.
Create a simple retirement destination scorecard
Once you have narrowed your choices down to a few cities, create a scorecard and rate each location from 1 to 5 in categories such as:
- Housing affordability
- Overall cost of living
- Taxes
- Healthcare
- Climate
- Proximity to family
- Transportation and walkability
- Recreation and social opportunities
- Housing options
- Long-term accessibility
Then give greater weight to the categories that are most important to you. A destination doesn’t have to win every category to be the right choice.
Plan your move early
After you decide which city you want to retire to, make sure you have plenty of time to prepare.
It will take much longer to sort through household items accumulated over decades than it will to pack for a typical move. Start with items you rarely use and make thoughtful decisions about what to keep, sell, donate, give to family, or store.
Look for a professional moving company with senior moving experience for moves that may include downsizing, relocating closer to family, or transitioning to independent or assisted living.
If retirement takes you farther from home, an experienced long-distance moving company can also coordinate the transportation and logistics involved in relocating across state lines.
Find the best place to retire for you
The best retirement isn’t necessarily the city at the top of some national ranking list. It’s the place that fits your budget, priorities, health needs, relationships, and vision for the years ahead.
This is a major decision, so give yourself time to compare your city options, visit the ones you like best, and plan for more than just your first few years of retirement. With the right planning, moving to a new city can help create a retirement that works on moving day – and the next chapter of your life.