Choosing the best place to retire is a complex decision. Many organizations publish annual lists of top retirement spots and consider factors like affordability, taxes, amenities and more into the equation. However, the ideal retirement location truly varies by individual needs and wants. Here are some main considerations that are likely to influence retirement choices:
- City living verses country. The type of atmosphere one desires boils down to personal choice. For some, the hustle and bustle of the city equal a vibrant place to live during the golden years. For others, the pristine and quiet countryside offers peace and the ideal retirement. There is no right or wrong, only what’s best for you.
- Affordability & tax environment. Affordability thresholds vary by person and circumstance. Housing budget depends on retirement funds, savings and investments, Social Security benefits, and more. State and local tax laws can also influence the affordability of a retirement location. Click here for a list of tax-friendly states.
- Amenities & personal fulfillment. Amenities refer to desirable or useful features. Folks who are social and active will likely benefit from community clubs and pools and features like a fitness center or shuffleboard or pickleball court. People with dogs will likely prefer retiring in a pet friendly community with dog parks.
- Special services. Retirees who don’t want lawn maintenance or chores like cleaning the pool will likely gravitate toward maintenance-free housing or condo living. It’s all about making daily living comfortable and worry free.
- Proximity to places of interest. One retiree might want to golf every day of the year, thus closeness to quality golf courses is a priority. Another retiree might prefer history and volunteer work, thereby seeking a community with a variety of historical museums in which to offer their services.
- Weather/climate. Some people love cold weather and snow; others love heat and sunshine. It’s optimal to retire in a climate where you feel most comfortable and happy. People should also consider weather or earth patterns, and account for the likelihood of flooding, hurricanes, tornadoes, earthquakes, tsunamis, or wildfires.
- Proximity to family and friends. It’s a priority for most retirees to maintain accessibility to those they love. Some people who retire seek to spend more time with their children and/or grandchildren. Therefore, they may prefer to live in the same state as their family or within driving or airport distance.
- Migration trends. Some seniors prefer to be with people their own age who live similar lifestyles. They intentionally seek out over 55 communities in new and upcoming neighborhoods offering camaraderie.
- Safety & crime rate. Living in a safe environment is a top concern of many retirees. When looking for that ideal place to live, it’s good to seek out low crime areas where one feels safe and protected.
- Proximity to decent healthcare. As people age, they are at higher risk of developing
some health conditions. Therefore, it is comforting to know that decent healthcare facilities are in the region. Healthcare access and quality really count.
- Red state vs. blue state. For a good number of people, living in a state with like-minded voters matters. Ultimately, they prefer to live in communities where they help shape the laws, feel at home politically, and are comfortable expressing their views.
- Cost of living. Compare and contrast the cost of living in different areas, including HOA fees, utilities, groceries, and more. The goal is to ensure your retirement income is enough for the area in which you plan to live.
- Value for money. Home and property values can vary greatly depending upon where you live. Many people seek to get the biggest bang for their buck, meaning they want to get the best possible home at the most reasonable price. Even when people are downsizing, they may seek upgrades in a retirement home that can ease their lifestyle. Old or new home prices can vary depending upon where you decide to live. People may get their dream retirement home by moving to an affordable area.
- Opportunities to age in place. Some people seek peace of mind knowing that they’ll never have to move again. When the time is right, they may go from independent living to using supportive services while staying within the same community at a stable cost.
Avoid two common mistakes
These are just a few of many vital considerations when choosing where to live during retirement. People are encouraged to evaluate what’s important to them and use that information for guidance. One of the biggest mistakes that can be made is retiring without a solid retirement plan. Another mistake is acting impulsively. Both can lead to costly mistakes and/or regret. Taking a leap can be exciting, but it can also be risky.
How much risk are you willing to take?
Recently, Business Insider shared the story of a couple who sold everything they owned, quit their jobs, and retired in Europe at 60. The duo felt motivated to move after feeling burnt out from their careers as real estate agents. Though they had a large custom home on five acres overlooking the Cascade Mountain Range in Oregon, their lives became stressful due to health issues and rising bills. While moving abroad afforded them opportunities to travel, and they describe their life in Albania as good, they also experienced “growing pains” such as loneliness associated with being far from family and challenges learning a new language. The couple took a big risk and time will likely tell them whether they made the right decision.
Create a plan
It’s a good time to consult a financial planner to review your finances and set long and short-term goals. Together, you can see where you stand and map out a retirement plan that considers factors that matter the most to you, whether it’s top-rated healthcare, a sunny climate, tax-friendly policies or other lifestyle choices. A well-developed financial plan should account for rising costs, protect against inflation, and strike balance between your dreams and financial resources. The goal is for you to avoid outliving your money and maintain quality of life throughout the retirement years.
Reducing stress
People can also benefit mentally by planning financially. Consulting a professional financial expert can greatly reduce stress and make decisions such as choosing the right time for retirement easier. Retirement is a period of change. Financial concerns can increase during retirement when regular work paychecks cease. Having a financial plan in place and knowing that you are making wise monetary decisions can benefit your physical and emotional health by decreasing stress.
Do your homework
People are encouraged to do research well ahead of retirement years. Unsure of where to retire? Worry about making a mistake? Talk to friends and family who have retired. Visit as many places as you can to narrow down where you can see yourself living. Be sure to check out the area of interest, plus surrounding neighborhoods. Note that some retirement communities offer reduced cost visitor options – opportunities for potential buyers to tour communities and enjoy a brief stay there at a reasonable price before hopefully making a commitment. Contact developers to see if they participate. Don’t be impulsive. Consider renting and getting a feel for a place if you are unsure about buying.
Adjusting expectations in retirement
Experts estimate that people may need 70 to 90 percent of pre-retirement income to maintain their current lifestyle, so proper planning and budgeting for retirement is essential. Having sufficient income replacement such as Social Security income or adequate savings allows people to maintain financial independence and not burden other family members such as children for support. Sometimes people must adjust their expectations to make things work.
Don’t rush your decisions
Retirement planning should not be rushed, for it is a major life decision that deserves research and wise decision making. Deciding where to retire is one of the biggest choices that people have. There are numerous factors that can influence one’s decision, so it’s helpful to evaluate what’s personally important to you so that you can settle into the affordable, carefree, fun and happy retirement you deserve.
Stay tuned for Part II coming soon – Best places to retire 2026
Disclosure: This article is purely informational and is not intended as a substitute for professional financial or retirement advice.