While 62 may be the earliest you can begin collecting Social Security benefits, you might be fortunate enough to be contemplating an even earlier retirement. Just remember: The earlier you retire, the longer your nest egg will need to last. So, where you choose to retire early can make the difference in whether your savings will stretch over 20, 30 or even 40 years.
To help you in your search, we identified small and midsize cities with populations between 50,000 and 500,000, which also provide cost of living data. We divided the list of cities into four US regions, comparing cities within each area by the cost of living for retirees, age of population, tax friendliness, health rankings by state, economic rankings by state, median home value and medium income.
Explore all 12 of our selections from coast to coast in the interactive map below. Click on a city’s pin for a detailed data summary.
PORTLAND, ME
Interactive map
Click on the place markers for more information
How we chose the cities
To select early retirement destinations in each region, we assessed several factors:
We also provided the information below so you can get a more detailed picture of what it’s like to live in a certain city and state:
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Median home value: Housing values were provided by the US Census Bureau’s American Community Survey (ACS).
Median income: The US Census Bureau’s ACS also provided the median income data for the percentage of the population age 45
to 64.
State population health rankings: The United Health Foundation provided rankings of the health of each state’s population. The rankings are based on more than 30 factors including bad health habits, access to care, and the quality of hospital and nursing home care. We considered cities in states with a ranking of at least 40/50.
State fiscal rankings: The Mercatus Center at George Mason University provided the rankings of each state’s economic health.
The rankings are based on several factors including state governments’ revenue sources, debts, budgets and other services. We considered cities in states with a ranking of at least 35/50.
12 Great Cities for Early Retirees
LAKE HAVASU CITY, AZ
COLORADO SPRINGS, CO
CHEYENNE, WY
HENDERSON, NV
ST. LOUIS, MO
BISMARCK, ND
WINSTON-SALEM, NC
RICHMOND, VA
SAVANNAH, GA
ST. PETERSBURG, FL
MANCHESTER, NH
PORTLAND, ME
Taxes
Cost of living
Population
© 2020 The Kiplinger Washington Editors, Inc.
The Council for Community and Economic Research’s (C2ER) cost of living index provided cost of living data for retired households in participating metropolitan and micropolitan areas. The index includes costs of housing, food and groceries, transportation, utilities, health care and miscellaneous expenses. Within a geographic region, as defined by the US Census Bureau, we favored cities with a lower cost of living.
Cost of living
The American Community Survey (ACS) from the US Census Bureau provided the population data including the percentage of the population age 45 to 64. We chose cities with at least a 20% share of the population age 45 to 64.
Population
Kiplinger’s state-by-state guide to taxes on retirees divides states into five categories: Most tax-friendly, tax-friendly, mixed, not tax-friendly and least tax-friendly. These categories help retirees analyze the overall tax burden in each state. The overall rating takes into account a variety of taxes including state sales tax, Social Security benefits, income tax, property taxes and exemptions for other retirement income. We chose cities with mixed to most tax-friendly ratings. Note: Median property taxes paid are estimates provided by the ACS from the US Census Bureau.
Taxes
Total population
66,218
• Percent of population, age 45 to 64: 23.7%
Cost of living
16.2% above US average
• Median home value: $334,200
• Median income, age 45 to 64: $53,806
Kiplinger’s tax-friendliness rating
Mixed
• Median property taxes paid: $4,983
• State sales tax: 5.5% state levy
• Social Security: Not taxed
State’s population health ranking:
21/50
State’s fiscal ranking:
34/50
MANCHESTER, NH
Total population
112,658
• Percent of population, age 45 to 64: 26.7%
Cost of living
9.7% above US average
• Median home value: $253,900
• Median income, age 45 to 64: $68,803
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Not tax-friendly
• Median property taxes paid: $4,973
• State sales tax: None
• Social Security: Not taxed
6/50
State’s fiscal ranking:
12/50
ST. PETERSBURG, FL
Total population
265,358
• Percent of population, age 45 to 64: 28%
Cost of living
7.4% below US average
• Median home value: $242,700
• Median income, age 45 to 64: $72,406
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Most tax-friendly
• Median property taxes paid: $1,893
• State sales tax: 6% state levy
• Social Security: Not taxed
33/50
State’s fiscal ranking:
4/50
SAVANNAH, GA
Total population
144,457
• Percent of population, age 45 to 64: 22.6%
Cost of living
9.3% below US average
• Median home value: $164,100
• Median income, age 45 to 64: $54,875
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Most tax-friendly
• Median property taxes paid: $1,765
• State sales tax: 4% state levy
• Social Security: Not taxed
40/50
State’s fiscal ranking:
18/50
RICHMOND, VA
Total population
230,436
• Percent of population, age 45 to 64: 22.6%
Cost of living
5.2% below US average
• Median home value: $249,500
• Median income, age 45 to 64: $54,150
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Tax-friendly
• Median property taxes paid: $2,418
• State sales tax: 5.3% state levy
• Social Security: Not taxed
15/50
State’s fiscal ranking:
13/50
WINSTON-SALEM, NC
Total population
246,951
• Percent of population, age 45 to 64: 23.6%
Cost of living
7.5% below US average
• Median home value: $154,200
• Median income, age 45 to 64: $51,422
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Mixed
• Median property taxes paid: $1,625
• State sales tax: 4.75% state levy
• Social Security: Not taxed
36/50
State’s fiscal ranking:
9/50
BISMARCK, ND
Total population
74,632
• Percent of population, age 45 to 64: 22.7%
Cost of living
4.9% below US average
• Median home value: $251,600
• Median income, age 45 to 64: $77,032
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Tax-friendly
• Median property taxes paid: $2,520
• State sales tax: 5% state levy
• Social Security: Not taxed
14/50
State’s fiscal ranking:
19/50
ST. LOUIS, MO
Total population
300,576
• Percent of population, age 45 to 64: 25.3%
Cost of living
10.2% below US average
• Median home value: $150,700
• Median income, age 45 to 64: $48,221
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Mixed
• Median property taxes paid: $1,617
• State sales tax: 4.225% state levy
• Social Security: Social Security benefits are not taxed for married couples with a federal adjusted gross income less than $100,000 and single taxpayers with an AGI of less than $85,000. Taxpayers who exceed those income limits may qualify for a partial exemption on their benefits.
14/50
State’s fiscal ranking:
19/50
HENDERSON, NV
Total population
320,190
• Percent of population, age 45 to 64: 27.1%
Cost of living
2.5% above US average
• Median home value: $371,500
• Median income, age 45 to 64: $106,374
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Most tax-friendly
• Median property taxes paid: $2,117
• State sales tax: 6.85% state levy
• Social Security: Not taxed
35/50
State’s fiscal ranking:
10/50
LAKE HAVASU CITY, AZ
Total population
53,952
• Percent of population, age 45 to 64: 29%
Cost of living
9.4% above US average
• Median home value: $235,900
• Median income, age 45 to 64: $58,714
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Most tax-friendly
• Median property taxes paid: $1,351
• State sales tax: 5.6% state levy
• Social Security: Not taxed
31/50
State’s fiscal ranking:
27/50
CHEYENNE, WY
Total population
64,243
• Percent of population, age 45 to 64: 23.5%
Cost of living
9.5% below US average
• Median home value: $200,200
• Median income, age 45 to 64: $74,017
Kiplinger’s tax-friendliness rating
State’s population health ranking:
Most tax-friendly
• Median property taxes paid: $1,275
• State sales tax: 4% state levy
• Social Security: Not taxed
19/50
State’s fiscal ranking:
6/50
COLORADO SPRINGS, CO
Total population
478,215
• Percent of population, age 45 to 64: 26.2%
Cost of living
1.6% above US average
• Median home value: $318,200
• Median income, age 45 to 64: $82,813
Kiplinger’s tax-friendliness rating
Tax-friendly
• Median property taxes paid: $1,375
• State sales tax: 2.9% state levy
• Social Security: Up to $24,000 of Social Security benefits taxed by
the federal government, along with other retirement income, can be
excluded for Colorado income tax purposes ($20,000 for taxpayers 55
to 64 years old).
State’s population health ranking:
10/50
State’s fiscal ranking:
28/50
12 Great Cities for
Early Retirees
© 2020 The Kiplinger Washington Editors, Inc.
Portland, ME
Bismarck, ND
Manchester, NH
St. Louis, MO
St. Petersburg, FL
Henderson, NV
Savannah, GA
Lake Havasu City, AZ
Richmond, VA
Cheyenne, WY
Winston-Salem, NC
Colorado Springs, CO
Not tax-friendly
• State sales tax: 6% state levy
• Social Security: Social Security benefits are
exempt for single filers making less than $45,000
a year ($60,000 for joint filers).
Kiplinger’s tax-friendliness rating
Cost of living
• Hospital beds per 1,000 people: 2.1
• Active doctors per 100,000 people: 367.1
• Primary care physicians per 100,000
people: 183.3
Total population
5% below U.S. average
• Median home value: $223,700
VERMONT
State’s population health ranking:
66,218
• Percent of population, age 45 to 64: 23.7%
State’s fiscal ranking:
21/50
Mixed
• Median property taxes paid: $4,983
• State sales tax: 5.5% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
16.2% above US average
• Median home value: $334,200
• Median income, age 45 to 64: $53,806
Total population
66,218
• Percent of population,
age 45 to 64: 23.7%
State’s population health ranking:
21/50
State’s fiscal ranking:
34/50
PORTLAND, ME
Not tax-friendly
• Median property taxes paid: $4,973
• State sales tax: None
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
9.7% above US average
• Median home value: $253,900
• Median income, age 45 to 64: $68,803
Total population
112,658
• Percent of population,
age 45 to 64: 26.7%
State’s population health ranking:
6/50
State’s fiscal ranking:
12/50
MANCHESTER, NH
Most tax-friendly
• Median property taxes paid: $1,893
• State sales tax: 6% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
7.4% below US average
• Median home value: $242,700
• Median income, age 45 to 64: $72,406
Total population
265,358
• Percent of population,
age 45 to 64: 28%
State’s population health ranking:
33/50
State’s fiscal ranking:
4/50
ST. PETERSBURG, FL
Most tax-friendly
• Median property taxes paid: $1,765
• State sales tax: 4% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
9.3% below US average
• Median home value: $164,100
• Median income, age 45 to 64: $54,875
Total population
144,457
• Percent of population,
age 45 to 64: 22.6%
State’s population health ranking:
40/50
State’s fiscal ranking:
18/50
SAVANNAH, GA
Tax-friendly
• Median property taxes paid: $2,418
• State sales tax: 5.3% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
5.2% below US average
• Median home value: $249,500
• Median income, age 45 to 64: $54,150
Total population
230,436
• Percent of population,
age 45 to 64: 22.6%
State’s population health ranking:
15/50
State’s fiscal ranking:
13/50
RICHMOND, VA
Mixed
• Median property taxes paid: $1,625
• State sales tax: 4.75% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
7.5% below US average
• Median home value: $154,200
• Median income, age 45 to 64: $51,422
Total population
246,951
• Percent of population,
age 45 to 64: 23.6%
State’s population health ranking:
36/50
State’s fiscal ranking:
9/50
WINSTON-SALEM, NC
Tax-friendly
• Median property taxes paid: $2,520
• State sales tax: 5% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
4.9% below US average
• Median home value: $251,600
• Median income, age 45 to 64: $77,032
Total population
74,632
• Percent of population,
age 45 to 64: 22.7%
State’s population health ranking:
14/50
State’s fiscal ranking:
19/50
BISMARCK, ND
Tax-friendly
• Median property taxes paid: $2,520
• State sales tax: 5% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
4.9% below US average
• Median home value: $251,600
• Median income, age 45 to 64: $77,032
Total population
74,632
• Percent of population,
age 45 to 64: 22.7%
State’s population health ranking:
14/50
State’s fiscal ranking:
19/50
BISMARCK, ND
Most tax-friendly
• Median property taxes paid: $2,117
• State sales tax: 6.85% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
2.5% above US average
• Median home value: $371,500
• Median income, age 45 to 64: $106,374
Total population
320,190
• Percent of population,
age 45 to 64: 27.1%
State’s population health ranking:
35/50
State’s fiscal ranking:
10/50
HENDERSON, NV
Most tax-friendly
• Median property taxes paid: $1,351
• State sales tax: 5.6% state levy
• Social Security: Not taxed
Kiplinger’s tax-friendliness rating
Cost of living
9.4% above US average
• Median home value: $235,900
• Median income, age 45 to 64: $58,714
Total population
53,952
• Percent of population,
age 45 to 64: 29%
State’s population health ranking:
31/50
State’s fiscal ranking:
27/50
LAKE HAVASU CITY, AZ
Mixed
• Median property taxes paid: $1,617
• State sales tax: 4.225% state levy
• Social Security: Social Security benefits are not
taxed for married couples with a federal
adjusted gross income less than $100,000 and
single taxpayers with an AGI of less than
$85,000. Taxpayers who exceed those income
limits may qualify for a partial exemption on
their benefits.
Kiplinger’s tax-friendliness rating
Cost of living
10.2% below US average
• Median home value: $150,700
• Median income, age 45 to 64: $48,221
Total population
300,576
• Percent of population,
age 45 to 64: 25.3%
State’s population health ranking:
39/50
State’s fiscal ranking:
15/50
ST. LOUIS, MO
To rank all 50 states plus the District of Columbia for retirement, we scored each state based on a number of factors:
How we chose the cities
Cost of living
Population
Taxes
The data from Sperling’s Best Places takes into account overall costs— across all age groups—for housing, food and groceries, transportation, utilities, health care and miscellaneous expenses. A higher percentage correlates to a higher cost of living. In our scoring, a state with a higher percentage received less points than a state with a lower percentage.
Median home value: Housing values were provided by the American Community Survey from the U.S. Census Bureau. For scoring purposes, a state with a higher average home value received less points than a state with a lower average home value.
Cost of living
To assess a state’s health care accessibility, reports from the Association of American Medical Colleges, Kaiser Family Foundation,
and United Health Foundation were evaluated for the number of hospital beds, active doctors and primary care physicians available across
a population set. States with higher numbers were given more points than those with
lower numbers.
Population
Kiplinger’s state-by-state guide to taxes on retirees divides states into five categories: Most tax-friendly, tax-friendly, mixed, not tax-friendly and least tax-friendly. These categories help retirees analyze the overall tax burden in each state. The overall rating takes into account a variety of taxes including state sales tax, Social Security benefits, income tax, property taxes and exemptions for other retirement income. We chose cities with mixed to most tax-friendly ratings. Note: Median property taxes paid are estimates provided by the ACS from the US Census Bureau.
Taxes
