GOBankingRates

50 Best (and Worst) Cities for an Early Retirement

Nicolas McComber / Getty Images

Nicolas McComber / Getty Images

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.

Check Out: 27 Ugly Truths About Retirement
Related: 30 Best Jobs If You Want To Retire Early

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. 11, 2021

FangXiaNuo / iStock.com

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 (except for Albuquerque, New Mexico, Kansas City, Missouri, and Wichita, Kansas), and some also have no taxes on retirement income. 

Not all cities have low costs across the board — Tulsa, for example, has a high healthcare cost  — 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.

More To Know: Hidden Obstacles That Keep People From Retirement

Retire Comfortably
Stan Shebs / Wikimedia Commons

25. Hudson, Florida

  • 2021 average home value: $236,714
  • Annual mortgage cost: $11,472.42
  • Annual grocery cost: 4,334.32
  • Annual healthcare cost: $6,561.31
  • Annual utilities cost: $3,960.80
  • Annual transportation cost: $4,066.14
  • Total annual necessities cost: $30,394.58
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No

Learn: 27 Best Strategies To Get the Most Out of Your 401(k)

©Shutterstock.com

24. Tucson, Arizona

  • 2021 average home value: $267,297
  • Annual mortgage cost: $13,620
  • Annual grocery cost: 4,014.82
  • Annual healthcare cost: $5,434.42
  • Annual utilities cost: $3,760.30
  • Annual transportation cost: $3,469.87
  • Total annual necessities cost: $30,299.41
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes

Discover: 30 Cities That Are Getting Too Expensive for Retirees

Steve Hedin / Wikimedia Commons

23. Sun City, Arizona

  • 2021 average home value: $261,480
  • Annual mortgage cost: $12,012
  • Annual grocery cost: 4,035.84
  • Annual healthcare cost: $6,147.90
  • Annual utilities cost: $3,994.85
  • Annual transportation cost: $4,033.82
  • Total annual necessities cost: $30,2224.40
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
nwinter / Getty Images/iStockphoto

22. Pahrump, Nevada

  • 2021 average home value: $285,678
  • Annual mortgage cost: $12,984
  • Annual grocery cost: 4,229.22
  • Annual healthcare cost: $5,681.14
  • Annual utilities cost: $3,854.88
  • Annual transportation cost: $3,423.18
  • Total annual necessities cost: $30,172.41
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
Retire Comfortably
JSvideos / Shutterstock.com

21. Tavares, Florida

  • 2021 average home value: $242,720
  • Annual mortgage cost: $11,760
  • Annual grocery cost: 4,,187.18
  • Annual healthcare cost: $6,387.94
  • Annual utilities cost: $3,919.19
  • Annual transportation cost: $3,746.46
  • Total annual necessities cost: $30,000.77
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
Ken Badgley / Getty Images/iStockphoto

20. Lady Lake, Florida

  • 2021 average home value: $242,011
  • Annual mortgage cost: $11,724
  • Annual grocery cost: 4,237.63
  • Annual healthcare cost: $6,387.94
  • Annual utilities cost: $3,957.02
  • Annual transportation cost: $3,624.33
  • Total annual necessities cost: $29,930
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
Sean Pavone / Shutterstock.com

19. Jacksonville, Florida

  • 2021 average home value: $238,709
  • Annual mortgage cost: $11,568
  • Annual grocery cost: 4,170.37
  • Annual healthcare cost: $6,474.63
  • Annual utilities cost: $3,888.92
  • Annual transportation cost: $3,642.29
  • Total annual necessities cost: $29,744.21
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No

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

Manuela Durson / Shutterstock.com

18. San Antonio, Texas

  • 2021 average home value: $218,473
  • Annual mortgage cost: $12,204
  • Annual grocery cost: $3,842.46
  • Annual healthcare cost: $6,221.24
  • Annual utilities cost: $3,590.07
  • Annual transportation cost: $3,566.86
  • Total annual necessities cost: $29,424.62
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
TriggerPhoto / Getty Images/iStockphoto

17. Columbus, Ohio

  • 2021 average home value: $216,247
  • Annual mortgage cost: $11,904
  • Annual grocery cost: 4,153.55
  • Annual healthcare cost: $5,774.49
  • Annual utilities cost: $3,862.44
  • Annual transportation cost: $3,263.39
  • Total annual necessities cost: $28,930.88
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
Retire Comfortably
Photoladybug / Getty Images/iStockphoto

16. New Orleans

  • 2021 average home value: $243,747
  • Annual mortgage cost: $10,968
  • Annual grocery cost: 4,170.37
  • Annual healthcare cost: $5,681.14
  • Annual utilities cost: $3,302.56
  • Annual transportation cost: $4,759.40
  • Total annual necessities cost: $28,881.46
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes

Find More: A Troubling Look at the State of Retirement in 2021

Sean Pavone / Getty Images/iStockphoto

15. Green Valley, Arizona

  • 2021 average home value: $257,014
  • Annual mortgage cost: $11,784
  • Annual grocery cost: 4,035.84
  • Annual healthcare cost: $5,501.10
  • Annual utilities cost: $3,870.01
  • Annual transportation cost: $3,279.50
  • Total annual necessities cost: $28,470.45
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
DenisTangneyJr / iStock.com

14. Albuquerque

  • 2021 average home value: $257,508
  • Annual mortgage cost: $11,784
  • Annual grocery cost: 4,035.84
  • Annual healthcare cost: $5,407.75
  • Annual utilities cost: $3,677.08
  • Annual transportation cost: $3,211.25
  • Total annual necessities cost: $28,115.91
  • Taxes on Social Security benefits? Yes
  • Taxes on retirement income? Yes
Badger13 / Shutterstock.com

13. Zephyrhills, Florida

  • 2021 average home value: $199,137
  • Annual mortgage cost: $9,648
  • Annual grocery cost: 4,292.28
  • Annual healthcare cost: $6,561.31
  • Annual utilities cost: $3,650.60
  • Annual transportation cost: $3,563.26
  • Total annual necessities cost: $27,715.46
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
styxclick / Getty Images/iStockphoto

12. Baltimore

  • 2021 average home value: $178,553
  • Annual mortgage cost: $8,916
  • Annual grocery cost: 4,119.92
  • Annual healthcare cost: $5,974.53
  • Annual utilities cost: $4,059.16
  • Annual transportation cost: $4,468.45
  • Total annual necessities cost: $27,538.06
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
Retire Comfortably
DenisTangneyJr / Getty Images/iStockphoto

11. Hot Springs Village, Arkansas

  • 2021 average home value: $224,718
  • Annual mortgage cost: $10,188
  • Annual grocery cost: $4,119.92
  • Annual healthcare cost: $6,114.56
  • Annual utilities cost: $3,612.77
  • Annual transportation cost: $3,315.42
  • Total annual necessities cost: $27,350.66
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes

Save: 30 Greatest Threats to Your Retirement

©Shutterstock.com

10. Kansas City, Missouri

  • 2021 average home value: $192,246
  • Annual mortgage cost: $9,600
  • Annual grocery cost: 4,069.47
  • Annual healthcare cost: $6,301.26
  • Annual utilities cost: $3,835.96
  • Annual transportation cost: $3,186.10
  • Total annual necessities cost: $26,992.80
  • Taxes on Social Security benefits? Yes
  • Taxes on retirement income? Yes
Sean Pavone / Getty Images/iStockphoto

9. Milwaukee

  • 2021 average home value: $160,477
  • Annual mortgage cost: $8,856
  • Annual grocery cost: 3,905.52
  • Annual healthcare cost: $6,921.38
  • Annual utilities cost: $3,828.40
  • Annual transportation cost: $3,437.54
  • Total annual necessities cost: $26,948.84
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
Sean Pavone / Shutterstock.com

8. Louisville, Kentucky

  • 2021 average home value: $207,966
  • Annual mortgage cost: $9,912
  • Annual grocery cost: $4,077.88
  • Annual healthcare cost: $5,734.48
  • Annual utilities cost: $3,510.62
  • Annual transportation cost: $3,706.94
  • Total annual necessities cost: $26,941.93
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
Ken Bosma / Wikimedia Commons

7. Oklahoma City, Oklahoma

  • 2021 average home value: $165,567
  • Annual mortgage cost: $7,980
  • Annual grocery cost: $3,981.19
  • Annual healthcare cost: $7,814.90
  • Annual utilities cost: $3,673.29
  • Annual transportation cost: $3,430.36
  • Total annual necessities cost: $26,879.74
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes

Learn: How To Find a Financial Advisor

Retire Comfortably
Sean Pavone / Getty Images

6. Bella Vista, Arkansas

  • 2021 average home value: $235,294
  • Annual mortgage cost: $9,372
  • Annual grocery cost: $4,098,90
  • Annual healthcare cost: $5,734.48
  • Annual utilities cost: $3,582.50
  • Annual transportation cost: $3,502.20
  • Total annual necessities cost: $26,290.08
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes

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

Wildnerdpix / Shutterstock.com

5. Wichita, Kansas

  • 2021 average home value: $157,655
  • Annual mortgage cost: $8,304
  • Annual grocery cost: $3,993.80
  • Annual healthcare cost: $6,808.03
  • Annual utilities cost: $3,915.41
  • Annual transportation cost: $3,502.20
  • Total annual necessities cost: $26,909.20
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
shuttersv / Shutterstock.com

4. El Paso, Texas

  • 2021 average home value: $162,374
  • Annual mortgage cost: $9,072
  • Annual grocery cost: $3,867.68
  • Annual healthcare cost: $5,781.16
  • Annual utilities cost: $3,673.29
  • Annual transportation cost: $3,301.05
  • Total annual necessities cost: $25,695.18
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
karenfoleyphotography / Getty Images

3. Indianapolis, Indiana

  • 2021 average home value: $186,864
  • Annual mortgage cost: $8,964
  • Annual grocery cost: $3,934.94
  • Annual healthcare cost: $5,787.82
  • Annual utilities cost: $3,412.27
  • Annual transportation cost: $3,556.08
  • Total annual necessities cost: $25,655.11
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
©Shutterstock.com

2. Tulsa, Oklahoma

  • 2021 average home value: $153,888
  • Annual mortgage cost: $7,416
  • Annual grocery cost: $3,989.60
  • Annual healthcare cost: $7,301.46
  • Annual utilities cost: $3,616.55
  • Annual transportation cost: $3,222.02
  • Total annual necessities cost: $25,545.63
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
Retire Comfortably
benedek / Getty Images

1. Memphis, Tennessee

  • 2021 average home value: $119,451
  • Annual mortgage cost: $3,108
  • Annual grocery cost: $3,922.33
  • Annual healthcare cost: $6,561.31
  • Annual utilities cost: $3,643.03
  • Annual transportation cost: $3,394.44
  • Total annual necessities cost: $20,629.11
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
Eloi_Omella / Getty Images/iStockphoto

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 Austin, 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.

Related: The Complete Guide to the Best Retirement Age

felixmizioznikov / Getty Images/iStockphoto

25. Bonita Springs, Florida

  • 2021 average home value: $468,878
  • Annual mortgage cost: $22,716
  • Annual grocery cost: $4,519.30
  • Annual healthcare cost: $7,821.56
  • Annual utilities cost: $3,714.91
  • Annual transportation cost: $3,319.01
  • Total annual necessities cost: $42,090.78
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
f11photo / Shutterstock.com

24. Miami

  • 2021 average home value: $458,671
  • Annual mortgage cost: $22,224
  • Annual grocery cost: $4,510.89
  • Annual healthcare cost: $6,587.98
  • Annual utilities cost: $3,612.77
  • Annual transportation cost: $5,190.44
  • Total annual necessities cost: $42,126.08
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
ARTYOORAN / Shutterstock.com

23. Palm Desert, California

  • 2021 average home value: $512,645
  • Annual mortgage cost: $24,840
  • Annual grocery cost: $4,372.16
  • Annual healthcare cost: $5,854.50
  • Annual utilities cost: $4,176.43
  • Annual transportation cost: $4,518.74
  • Total annual necessities cost: $42,244.86
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
pascaluehli / Getty Images/iStockphoto

22. Cocoa Beach, Florida

  • 2021 average home value: $1512,645
  • Annual mortgage cost: $24,840
  • Annual grocery cost: $4,372.16
  • Annual healthcare cost: $6,294.59
  • Annual utilities cost: $3,764.09
  • Annual transportation cost: $3,182.51
  • Total annual necessities cost: $42,453.35
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
T71024 / Wikimedia Commons

21. Portland, Oregon

  • 2021 average home value: $543,631
  • Annual mortgage cost: $26,616
  • Annual grocery cost: $$4,359.55
  • Annual healthcare cost: $5,727.81
  • Annual utilities cost: $3,022.62
  • Annual transportation cost: $4,666.01
  • Total annual necessities cost: $44,391.99
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
Harry Beugelink / Shutterstock.com

20. Fountain Hills, Arizona

  • 2021 average home value: $578,712
  • Annual mortgage cost: $26,532
  • Annual grocery cost: $4,267.06
  • Annual healthcare cost: $6,147.90
  • Annual utilities cost: $3,786.78
  • Annual transportation cost: $4,112.84
  • Total annual necessities cost: $44,846.58
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
MoreISO / Getty Images/iStockphoto

19. Hilton Head Island, South Carolina

  • 2021 average home value: $628,784
  • Annual mortgage cost: $28,392
  • Annual grocery cost: $4,494.08
  • Annual healthcare cost: $6,454.62
  • Annual utilities cost: $3,748.95
  • Annual transportation cost: $2,421.01
  • Total annual necessities cost: $45,510.01
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
LunaseeStudios / Shutterstock.com

18. Denver

  • 2021 average home value: $568,607
  • Annual mortgage cost: $27,300
  • Annual grocery cost: $4,283.88
  • Annual healthcare cost: $6,167.90
  • Annual utilities cost: $3,639.25
  • Annual transportation cost: $4,170.31
  • Total annual necessities cost: $45,561.33
  • Taxes on Social Security benefits? Yes
  • Taxes on retirement income? Yes

See: All the Steps You Need To Take Now If You Want To Retire Next Year

Manuel Mayo / Shutterstock.com

17. Austin

  • 2021 average home value: $541,739
  • Annual mortgage cost: $30,264
  • Annual grocery cost: $4,065.27
  • Annual healthcare cost: $6,294.59
  • Annual utilities cost: $3,748.95
  • Annual transportation cost: $3,947.61
  • Total annual necessities cost: $48,320.42
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? No
pawel.gaul / Getty Images/iStockphoto

16. Boston

  • 2021 average home value: $691,793
  • Annual mortgage cost: $31,104
  • Annual grocery cost: $4,683.26
  • Annual healthcare cost: $5,561.11
  • Annual utilities cost: $34,418.54
  • Annual transportation cost: $4,734.26
  • Total annual necessities cost: $50,501.17
  • Taxes on Social Security benefits? No
  • Taxes on retirement income? Yes
    LeoPatrizi / Getty Images/iStockphoto

    15. Sedona, Arizona

    • 2021 average home value: $706,926
    • Annual mortgage cost: $32,484
    • Annual grocery cost: $4,397.38
    • Annual healthcare cost: $7,674.87
    • Annual utilities cost: $3,919.19
    • Annual transportation cost: $2,923.89
    • Total annual necessities cost: $51,399.33
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    Pola Damonte / Shutterstock.com

    14. North Palm Beach, Florida

    • 2021 average home value: $666,935
    • Annual mortgage cost: $32,316
    • Annual grocery cost: $4,548.73
    • Annual healthcare cost: $6,541.31
    • Annual utilities cost: $3,684.64
    • Annual transportation cost: $4,346.32
    • Total annual necessities cost: $51,437
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? No
    Ron_Thomas / Getty Images

    13. Long Beach, California

    • 2021 average home value: $781,101
    • Annual mortgage cost: $35,664
    • Annual grocery cost: $4,283.88
    • Annual healthcare cost: $5,961.19
    • Annual utilities cost: $3,673.29
    • Annual transportation cost: $5,671.77
    • Total annual necessities cost: $54,858.13
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    Tinnaporn Sathapornnanont / Shutterstock.com

    12. District of Columbia

    • 2021 average home value: $781,101
    • Annual mortgage cost: $35,664
    • Annual grocery cost: $4,796.76
    • Annual healthcare cost: $5,907.85
    • Annual utilities cost: $4,009.98
    • Annual transportation cost: $4,859.98
    • Total annual necessities cost: $55,238.57
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    steve estvanik / Shutterstock.com

    11. Rancho Mirage, California

    • 2021 average home value: $797,341
    • Annual mortgage cost: $37,356
    • Annual grocery cost: $4,267.06
    • Annual healthcare cost: $5,854.50
    • Annual utilities cost: $4,036.46
    • Annual transportation cost: $4,798.91
    • Total annual necessities cost: $56,312.94
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    Ron_Thomas / Getty Images

    10. San Diego, California

    • 2021 average home value: $866,544
    • Annual mortgage cost: $40,608
    • Annual grocery cost: $4,611.79
    • Annual healthcare cost: $5,934.52
    • Annual utilities cost: $3,888.92
    • Annual transportation cost: $4,317.58
    • Total annual necessities cost: $59,360.82
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    samvaltenbergs / Getty Images/iStockphoto

    9. Seattle

    • 2021 average home value: $889,083
    • Annual mortgage cost: $42,900
    • Annual grocery cost: $4,569.75
    • Annual healthcare cost: $5,681.14
    • Annual utilities cost: $2,602.70
    • Annual transportation cost: $4,939
    • Total annual necessities cost: $60,692.59
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? No

    Take a Look: 35 Retirement Planning Mistakes That Waste Your Money

    ©Shutterstock.com

    8. New York

    • 2021 average home value: $701,185
    • Annual mortgage cost: $37,056
    • Annual grocery cost: $4,901.86
    • Annual healthcare cost: $7,508.17
    • Annual utilities cost: $5,693.42
    • Annual transportation cost: $6,505.11
    • Total annual necessities cost: $61,664.56
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? No
    Jon Bilous / Shutterstock.com

    7. Los Angeles

    • 2021 average home value: $897,101
    • Annual mortgage cost: $42,036
    • Annual grocery cost: $4,376.36
    • Annual healthcare cost: $5,961.19
    • Annual utilities cost: $3,544.67
    • Annual transportation cost: $5,937.58
    • Total annual necessities cost: $61,855.80
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    Davel5957 / Getty Images

    6. Oakland, California

    • 2021 average home value: $958,693
    • Annual mortgage cost: $44,916
    • Annual grocery cost: $4,679.05
    • Annual healthcare cost: $6,901.38
    • Annual utilities cost: $3,416.05
    • Annual transportation cost: $4,518.74
    • Total annual necessities cost: $64,431.22
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    Todd A. Merport / Shutterstock.com

    5. Marco Island, Florida

    • 2021 average home value: $959,815
    • Annual mortgage cost: $46,512
    • Annual grocery cost: $4,767.34
    • Annual healthcare cost: $6,734.68
    • Annual utilities cost: $3,707.34
    • Annual transportation cost: $2,923.89
    • Total annual necessities cost: $64,645.24
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? No
    f11photo / Shutterstock.com

    4. Ocean City, New Jersey

    • 2021 average home value: $940,553
    • Annual mortgage cost: $57,516
    • Annual grocery cost: $4,800.97
    • Annual healthcare cost: $5,907.85
    • Annual utilities cost: $4,229.39
    • Annual transportation cost: $3,505.79
    • Total annual necessities cost: $75,960
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    ferrantraite / Getty Images

    3. Seal Beach, California

    • 2021 average home value: $1,240,651
    • Annual mortgage cost: $58,128
    • Annual grocery cost: $4,494.08
    • Annual healthcare cost: $6,394.61
    • Annual utilities cost: $3,692.21
    • Annual transportation cost: $4,367.87
    • Total annual necessities cost: $77,076.77
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    SpVVK / Getty Images/iStockphoto

    2. San Jose, California

    • 2021 average home value: $1,274,281
    • Annual mortgage cost: $59,712
    • Annual grocery cost: $4,779.95
    • Annual healthcare cost: $6,701.34
    • Annual utilities cost: $3,661.94
    • Annual transportation cost: $5,423.92
    • Total annual necessities cost: $80,279.15
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes
    franckreporter / Getty Images/iStockphoto

    1. San Francisco

    • 2021 average home value: $1,539,644
    • Annual mortgage cost: $72,144
    • Annual grocery cost: $4,901.86
    • Annual healthcare cost: $6,688
    • Annual utilities cost: $3,688.43
    • Annual transportation cost: $5,682.54
    • Total annual necessities cost: $93,104.84
    • Taxes on Social Security benefits? No
    • Taxes on retirement income? Yes

    More From GOBankingRates

    John Csiszar contributed to the reporting for this article.

        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 2019 American Community Survey. GOBankingRates analyzed these 100 cities using the following criteria: (1) average 2021 Home Value Zillow’s 2021 data; (2) an annual mortgage cost using Zillow’s mortgage calculator using a 20% down payment and a 2.88% 30-year fixed rate mortgage as sourced from the Federal Reserve Bank of St. Louis and propery tax rates sourced from the Tax Foundation; and (3) itemized cost-of-living index for groceries, utilities, transportation, healthcare and miscellaneous expenditure, based on the Bureau of Labor Statistics’ 2020 Consumer Expenditure Survey, 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; (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/or retirement income from AARP and each state’s individual website for supplemental data. All data was collected and is up to date as of Sept. 28, 2021.