50 Best (and Worst) Cities for an Early Retirement

If you’re planning on retiring early, you’ll likely need to live in a city where your money will last 40 years or more. And unless you’re a multimillionaire, you’ll need to find a city that has low costs across a wide variety of categories, including taxes.

To help in your quest, GOBankingRates analyzed the cost of necessities in 100 U.S. cities, comprised of the 50 largest cities and the 50 cities with the largest 65-and-older population. Taxation of Social Security benefits and/or retirement income was also considered. Based on the data, GOBankingRates determined the best and worst cities overall for early retirement. Cities are ranked in reverse order, from good to best for the top cities and from bad to worst for the bottom-ranked cities. See if your city is on the list — or if you should pack up your bags for greener pastures.

Last updated: Oct. 21, 2020

25 Best Cities for an Early Retirement

The top 25 cities for early retirement all have one thing in common: low costs. For the most part, these cities also have no taxes on Social Security benefits, and many also have no taxes on retirement income. And if you think this half of the list is dedicated to a bunch of smaller towns, think again: The top three cities here all have populations over 383,000.

Not all cities have low costs across the board — Memphis, for example, has the highest healthcare cost of any city in this study, at 30% above the national average — but most of the cities in the top 25 have below-average costs. Here’s a look at your best options if you’re hoping to jump off the treadmill early and enjoy a long and prosperous early retirement.

25. Bullhead City, Arizona

• 2019 median listing price: $254,471
• Annual mortgage cost: $13,620
• Annual grocery cost: $4,105.21
• Annual healthcare cost: $7,195.80
• Annual utilities cost: $3,606.29
• Annual transportation cost: $3,060.68
• Total annual necessities cost: $31,587.98
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

24. Sebastian, Florida

• 2019 median listing price: $232,566
• Annual mortgage cost: $13,032
• Annual grocery cost: $4,011.46
• Annual healthcare cost: $6,499
• Annual utilities cost: $3,487.45
• Annual transportation cost: $4,419.69
• Total annual necessities cost: $31,449.60
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

23. Pahrump, Nevada

• 2019 median listing price: $235,755
• Annual mortgage cost: $13,452
• Annual grocery cost: $4,171.61
• Annual healthcare cost: $5,855.80
• Annual utilities cost: $3,784.57
• Annual transportation cost: $4,154.90
• Total annual necessities cost: $31,418.87
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

22. Apache Junction, Arizona

• 2019 median listing price: $217,500
• Annual mortgage cost: $12,456
• Annual grocery cost: $4,105.21
• Annual healthcare cost: $7,142.20
• Annual utilities cost: $3,706.57
• Annual transportation cost: $3,960.20
• Total annual necessities cost: $31,370.18
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

21. Jacksonville, Florida

• 2019 median listing price: $216,841
• Annual mortgage cost: $12,432
• Annual grocery cost: $3,777.10
• Annual healthcare cost: $6,499
• Annual utilities cost: $3,817.99
• Annual transportation cost: $4,563.77
• Total annual necessities cost: $31,089.86
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

20. Lady Lake, Florida

• 2019 median listing price: $208,000
• Annual mortgage cost: $12,108
• Annual grocery cost: $3,777.10 
• Annual healthcare cost: $6,452.10
• Annual utilities cost: $3,884.84
• Annual transportation cost: $4,637.75
• Total annual necessities cost: $30,859.80
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

19. Oklahoma City

• 2019 median listing price: $190,985
• Annual mortgage cost: $11,076
• Annual grocery cost: $3,499.78
• Annual healthcare cost: $7,939.50
• Annual utilities cost: $3,606.29
• Annual transportation cost: $4,291.19
• Total annual necessities cost: $30,412.76
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

Read: 15 Retirement Mistakes and Why They’ll Shrink Your Nest Egg

18. Tucson, Arizona

• 2019 median listing price: $226,057
• Annual mortgage cost: $12,936
• Annual grocery cost: $3,730.23
• Annual healthcare cost: $5,648.10
• Annual utilities cost: $3,691.72
• Annual transportation cost: $4,287.29
• Total annual necessities cost: $30,293.34
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

17. Kansas City, Missouri

• 2019 median listing price: $199,421
• Annual mortgage cost: $12,192
• Annual grocery cost: $3,628.67
• Annual healthcare cost: $6,713.40
• Annual utilities cost: $3,766
• Annual transportation cost: $3,960.20
• Total annual necessities cost: $30,260.27
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

16. Port Charlotte, Florida

• 2019 median listing price: $221,943
• Annual mortgage cost: $13,092
• Annual grocery cost: $4,011.46
• Annual healthcare cost: $6,224.30
• Annual utilities cost: $3,591.44
• Annual transportation cost: $3,333.26
• Total annual necessities cost: $30,252.46
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

15. Baltimore

• 2019 median listing price: $161,954
• Annual mortgage cost: $10,260
• Annual grocery cost: $3,863.03
• Annual healthcare cost: $6,505.70
• Annual utilities cost: $3,985.12
• Annual transportation cost: $5,630.72
• Total annual necessities cost: $30,244.58
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

14. Sun City, Arizona

• 2019 median listing price: $189,314
• Annual mortgage cost: $10,500
• Annual grocery cost: $3,730.23
• Annual healthcare cost: $6,807.20
• Annual utilities cost: $3,921.98
• Annual transportation cost: $5,089.46
• Total annual necessities cost: $30,048.87
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

13. Albuquerque, New Mexico

• 2019 median listing price: $228,519
• Annual mortgage cost: $12,864
• Annual grocery cost: $3,417.75
• Annual healthcare cost: $5,875.90
• Annual utilities cost: $3,610.01
• Annual transportation cost: $4,115.96
• Total annual necessities cost: $29,883.62
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

12. Columbus, Ohio

• 2019 median listing price: $182,914
• Annual mortgage cost: $12,420
• Annual grocery cost: $3,632.58
• Annual healthcare cost: $5,976.40
• Annual utilities cost: $3,791.99
• Annual transportation cost: $4,041.97
• Total annual necessities cost: $29,862.95
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

11. El Paso, Texas

• 2019 median listing price: $181,464
• Annual mortgage cost: $12,504
• Annual grocery cost: $3,417.75
• Annual healthcare cost: $5,936.20
• Annual utilities cost: $3,606.29
• Annual transportation cost: $4,189.94
• Total annual necessities cost: $29,654.19
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

10. Louisville, Kentucky

• 2019 median listing price: $214,261
• Annual mortgage cost: $12,072
• Annual grocery cost: $3,527.12
• Annual healthcare cost: $5,983.10
• Annual utilities cost: $3,446.59
• Annual transportation cost: $4,614.39
• Total annual necessities cost: $29,643.20
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

9. Tulsa, Oklahoma

• 2019 median listing price: $189,043
• Annual mortgage cost: $11,052
• Annual grocery cost: $3,499.78
• Annual healthcare cost: $7,416.90
• Annual utilities cost: $3,550.58
• Annual transportation cost: $4,100.38
• Total annual necessities cost: $29,619.64
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

8. Milwaukee

• 2019 median listing price: $129,171
• Annual mortgage cost: $9,696
• Annual grocery cost: $3,542.74
• Annual healthcare cost: $7,061.80
• Annual utilities cost: $3,758.57
• Annual transportation cost: $4,571.56
• Total annual necessities cost: $28,630.67
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

7. Green Valley, Arizona

• 2019 median listing price: $197,264
• Annual mortgage cost: $11,388
• Annual grocery cost: $3,730.23
• Annual healthcare cost: $5,648.10
• Annual utilities cost: $3,799.42
• Annual transportation cost: $4,003.03
• Total annual necessities cost: $28,568.78
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

6. Wichita, Kansas

• 2019 median listing price: $170,529
• Annual mortgage cost: $10,416
• Annual grocery cost: $3,531.02
• Annual healthcare cost: $6,612.90
• Annual utilities cost: $3,843.99
• Annual transportation cost: $3,613.63
• Total annual necessities cost: $28,017.55
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

Take a Look: 50 Things Every 50-Something Should Know About Retirement

5. Hot Springs Village, Arkansas

• 2019 median listing price: $208,654
• Annual mortgage cost: $10,896
• Annual grocery cost: $3,499.78
• Annual healthcare cost: $6,016.60
• Annual utilities cost: $3,546.87
• Annual transportation cost: $4,018.61
• Total annual necessities cost: $27,977.85
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

4. Bella Vista, Arkansas

• 2019 median listing price: $195,236
• Annual mortgage cost: $10,680
• Annual grocery cost: $3,531.02
• Annual healthcare cost: $5,688.30
• Annual utilities cost: $3,517.16
• Annual transportation cost: $4,369.07
• Total annual necessities cost: $27,785.55
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

3. Memphis, Tennessee

• 2019 median listing price: $104,178
• Annual mortgage cost: $6,888
• Annual grocery cost: $3,527.12
• Annual healthcare cost: $8,716.70
• Annual utilities cost: $3,576.58
• Annual transportation cost: $4,283.40
• Total annual necessities cost: $26,991.80
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

2. Indianapolis

• 2019 median listing price: $173,391
• Annual mortgage cost: $10,128
• Annual grocery cost: $3,542.74
• Annual healthcare cost: $5,795.50
• Annual utilities cost: $3,350.03
• Annual transportation cost: $4,041.97
• Total annual necessities cost: $26,858.24
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

1. Cleveland

• 2019 median listing price: $83,564
• Annual mortgage cost: $6,768
• Annual grocery cost: $3,632.58
• Annual healthcare cost: $5,514.10
• Annual utilities cost: $3,524.59
• Annual transportation cost: $4,088.70
• Total annual necessities cost: $23,527.97
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

25 Worst Cities for an Early Retirement

Unfortunately for those seeking early retirement, many of the most popular destinations in America, from New York to Los Angeles to Dallas, all appear on the worst cities for early retirement list. This ranking has nothing to do with the desirability of these cities but everything to do with how fast they’ll drain your bank account.

Some cities, like Seattle, actually have healthcare and utility costs that are far below the national average — along with no taxes on Social Security or retirement income. However, as is the case with many cities in the bottom 25, astronomical housing and transportation costs are enough to drag Seattle down. Here’s a look at 25 cities where you’ll need a much larger-than-average nest egg to survive early retirement.

25. Aventura, Florida

• 2019 median listing price: $399,543
• Annual mortgage cost: $23,148
• Annual grocery cost: $4,011.46
• Annual healthcare cost: $6,646.40
• Annual utilities cost: $3,580.30
• Annual transportation cost: $6,456.25
• Total annual necessities cost: $43,842.41
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

24. Austin, Texas

• 2019 median listing price: $395,145
• Annual mortgage cost: $25,620
• Annual grocery cost: $3,464.62
• Annual healthcare cost: $6,184.10
• Annual utilities cost: $3,680.57
• Annual transportation cost: $5,085.56
• Total annual necessities cost: $44,034.86
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

23. Portland, Oregon

• 2019 median listing price: $459,607
• Annual mortgage cost: $25,812
• Annual grocery cost: $3,921.62
• Annual healthcare cost: $5,594.50
• Annual utilities cost: $2,967.49
• Annual transportation cost: $5,739.76
• Total annual necessities cost: $44,035.37
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

22. Denver

• 2019 median listing price: $484,100
• Annual mortgage cost: $25,056
• Annual grocery cost: $3,730.23
• Annual healthcare cost: $6,458.80
• Annual utilities cost: $3,572.87
• Annual transportation cost: $5,229.64
• Total annual necessities cost: $44,047.54
• Taxes on Social Security benefits? Yes
• Taxes on retirement income? Yes

21. Lincoln, California

• 2019 median listing price: $496,528
• Annual mortgage cost: $26,076
• Annual grocery cost: $4,050.52
• Annual healthcare cost: $5,909.40
• Annual utilities cost: $4,011.12
• Annual transportation cost: $4,435.27
• Total annual necessities cost: $44,482.31
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

20. Fountain Hills, Arizona

• 2019 median listing price: $485,757
• Annual mortgage cost: $25,632
• Annual grocery cost: $3,730.23
• Annual healthcare cost: $6,807.20
• Annual utilities cost: $3,717.71
• Annual transportation cost: $5,163.44
• Total annual necessities cost: $45,050.59
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

19. Dallas

• 2019 median listing price: $389,600
• Annual mortgage cost: $26,052
• Annual grocery cost: $3,628.67
• Annual healthcare cost: $6,331.50
• Annual utilities cost: $3,714
• Annual transportation cost: $5,400.98
• Total annual necessities cost: $45,127.15
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

18. Palm Springs, California

• 2019 median listing price: $476,700
• Annual mortgage cost: $26,604
• Annual grocery cost: $3,921.62
• Annual healthcare cost: $5,594.50
• Annual utilities cost: $4,230.25
• Annual transportation cost: $5,914.99
• Total annual necessities cost: $46,265.36
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

17. Palm Beach Gardens, Florida

• 2019 median listing price: $460,257
• Annual mortgage cost: $26,676
• Annual grocery cost: $4,011.46
• Annual healthcare cost: $6,452.10
• Annual utilities cost: $3,606.29
• Annual transportation cost: $5,634.62
• Total annual necessities cost: $46,380.47
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

16. Detroit

• 2019 median listing price: $369,000
• Annual mortgage cost: $27,084
• Annual grocery cost: $3,542.74
• Annual healthcare cost: $5,688.30
• Annual utilities cost: $3,331.46
• Annual transportation cost: $8,099.52
• Total annual necessities cost: $47,746.02
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

15. Miami

• 2019 median listing price: $477,478
• Annual mortgage cost: $27,504
• Annual grocery cost: $4,011.46
• Annual healthcare cost: $6,646.40
• Annual utilities cost: $3,546.87
• Annual transportation cost: $6,608.12
• Total annual necessities cost: $48,316.85
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

14. Marco Island, Florida

• 2019 median listing price: $594,571
• Annual mortgage cost: $31,248
• Annual grocery cost: $4,011.46
• Annual healthcare cost: $6,921.10
• Annual utilities cost: $3,639.72
• Annual transportation cost: $3,263.17
• Total annual necessities cost: $49,083.45
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

Check Out: 27 Ugly Truths About Retirement

13. District of Columbia

• 2019 median listing price: $592,388
• Annual mortgage cost: $29,712
• Annual grocery cost: $4,113.02
• Annual healthcare cost: $5,534.20
• Annual utilities cost: $3,936.84
• Annual transportation cost: $6,249.87
• Total annual necessities cost: $49,545.93
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

12. Long Beach, California

• 2019 median listing price: $602,357
• Annual mortgage cost: $31,524
• Annual grocery cost: $3,921.62
• Annual healthcare cost: $5,708.40
• Annual utilities cost: $3,606.29
• Annual transportation cost: $7,098.76
• Total annual necessities cost: $51,859.08
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

11. Rancho Mirage, California

• 2019 median listing price: $622,065
• Annual mortgage cost: $34,452
• Annual grocery cost: $3,921.62
• Annual healthcare cost: $5,594.50
• Annual utilities cost: $3,962.84
• Annual transportation cost: $6,020.12
• Total annual necessities cost: $53,951.09
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

10. Northbrook, Illinois

• 2019 median listing price: $542,907
• Annual mortgage cost: $35,112
• Annual grocery cost: $3,667.73
• Annual healthcare cost: $6,298
• Annual utilities cost: $3,528.30
• Annual transportation cost: $5,809.85
• Total annual necessities cost: $54,415.88
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

9. San Diego

• 2019 median listing price: $699,429
• Annual mortgage cost: $36,396
• Annual grocery cost: $4,050.52
• Annual healthcare cost: $5,721.80
• Annual utilities cost: $3,817.99
• Annual transportation cost: $5,217.96
• Total annual necessities cost: $55,204.27
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

8. Oakland, California

• 2019 median listing price: $686,786
• Annual mortgage cost: $36,372
• Annual grocery cost: $4,327.85
• Annual healthcare cost: $6,539.20
• Annual utilities cost: $3,353.74
• Annual transportation cost: $5,128.40
• Total annual necessities cost: $55,721.19
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

7. Seattle

• 2019 median listing price: $693,969
• Annual mortgage cost: $37,788
• Annual grocery cost: $3,921.62
• Annual healthcare cost: $5,473.90
• Annual utilities cost: $2,555.23
• Annual transportation cost: $6,094.11
• Total annual necessities cost: $55,832.87
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

6. Walnut Creek, California

• 2019 median listing price: $765,429
• Annual mortgage cost: $40,980
• Annual grocery cost: $4,327.85
• Annual healthcare cost: $6,840.70
• Annual utilities cost: $3,810.56
• Annual transportation cost: $5,354.25
• Total annual necessities cost: $61,313.36
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

5. Boston

• 2019 median listing price: $739,857
• Annual mortgage cost: $41,556
• Annual grocery cost: $4,128.64
• Annual healthcare cost: $5,587.80
• Annual utilities cost: $4,337.95
• Annual transportation cost: $5,907.20
• Total annual necessities cost: $61,517.59
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

4. Los Angeles

• 2019 median listing price: $825,343
• Annual mortgage cost: $42,888
• Annual grocery cost: $3,921.62
• Annual healthcare cost: $5,708.40
• Annual utilities cost: $3,480.02
• Annual transportation cost: $7,425.86
• Total annual necessities cost: $63,423.90
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

3. San Jose, California

• 2019 median listing price: $974,698
• Annual mortgage cost: $50,496
• Annual grocery cost: $4,327.85
• Annual healthcare cost: $6,277.90
• Annual utilities cost: $3,595.15
• Annual transportation cost: $6,647.06
• Total annual necessities cost: $71,343.96
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

2. New York

• 2019 median listing price: $794,714
• Annual mortgage cost: $50,388
• Annual grocery cost: $4,480.18
• Annual healthcare cost: $6,767
• Annual utilities cost: $5,589.57
• Annual transportation cost: $8,235.81
• Total annual necessities cost: $75,460.56
• Taxes on Social Security benefits? No
• Taxes on retirement income? No

1. San Francisco

• 2019 median listing price: $1,290,143
• Annual mortgage cost: $65,148
• Annual grocery cost: $4,327.85
• Annual healthcare cost: $6,231
• Annual utilities cost: $3,621.15
• Annual transportation cost: $6,884.59
• Total annual necessities cost: $86,212.59
• Taxes on Social Security benefits? No
• Taxes on retirement income? Yes

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Methodology: GOBankingRates determined the best (and worst) cities in the United States for an early retirement by looking at the top 50 most populated cities and top 50 cities with the highest 65-and-older population, according to the United States Census Bureau. GOBankingRates analyzed these 100 cities using the following criteria: (1) average 2019 median listing price for all homes sourced from Zillow’s 2019 data; (2) an annual mortgage cost, calculated with Zillow’s mortgage calculator, assuming a 20% down payment and a 3.49% 30-year fixed-rate mortgage as sourced from the Federal Reserve Bank of St. Louis; and (3) itemized cost of living index for groceries, utilities, transportation, healthcare and miscellaneous expenditures, based on the Bureau of Labor Statistics’ Consumer Expenditure Survey third quarter 2017 through second quarter 2018, which were adjusted to each city’s local cost of living, sourced from Sperling’s Best Places. Factors (2) and (3) were combined to give the (4) total annual necessities cost of living, which was the determining factor for the final rankings, with the lower cost of living being best. GOBankingRates also found if each city’s state taxed Social Security benefits and retirement income, sourced from AARP and each state’s official website. All data was compiled and verified on Sept. 9, 2019.

About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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