Money is a major consideration in Americans’ retirement plans, but so too is living in a safe place with access to good health care, according to a report released Tuesday by WalletHub, a personal finance website.
Americans look forward to a relaxing retirement, but only a quarter said they are very confident they will have enough money to live comfortably in their after-work years, a recent survey from the Employee Benefit Research Institute found, while two-thirds reported feeling less confident.
Some of the worried majority will work longer than perhaps they had intended. Gallup polling found that Americans in 2022 planned to retire at age 66 on average, compared with age 60 in 1995.
Others will search for a retirement place where their dollar will go farther without sacrificing their lifestyle. WalletHub’s report identifies the best and worst alternatives for those wanting to relocate.
“It’s important to choose wisely when picking where to retire, as many retirees are on a fixed income,” WalletHub analyst Chip Lupo said in a statement.
The best cities for retired people minimize taxes and expenses, and have good opportunities for retirees to continue paid work for extra income if they choose to do so.
“In addition, the top cities provide high-quality health care and offer plenty of enjoyable activities for retirees,” Lupo said.
WalletHub compared the retirement friendliness of 182 U.S. cities — including the 150 most populated ones, plus at least two of the most populated cities in each state — across these dimensions:
• Affordability, including adjusted cost of living, taxpayer friendliness on estate or inheritance tax, and annual cost of adult day health care
• Activities, including recreation and senior centers per capita; museums, theaters and art galleries per capita; fishing facilities per capita; and availability of adult volunteer activities
• Quality of life, including mild weather, violent and property crime rates, share of population 65 and older, and walk score
• Health care, including gerontologists per 10,000 residents 65 and older, health care and home care facilities per capita, life expectancy, and quality of public hospital system
Researchers evaluated those dimensions using 45 relevant metrics, and graded each one on a 100-point scale, with a score of 100 representing the most favorable conditions for retirement. In their analysis, they took into account that cost is a significant factor in retirement and assumed retirees will rely on a fixed income: the lower their expenses, the better retirees will fare in a particular city.
See the gallery for the 12 best American cities for retirement in 2025, according to WalletHub.
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