6 Cities You Should Avoid If You’re Retiring in 2025

If you’re retiring in 2025, you might be one of the many seniors considering relocating. If that’s the case, there are many factors to consider, such as cost of living, weather, crime rate and tax rates for instance. Yet, some cities that might seem attractive at first might not be a great fit for retirees for these reasons.

“Here’s what you need to focus on: taxes and cost of living are game changers,” said Dutch Mendenhall, co-founder, RADD Companies. For instance, he said that states such as Texas and Florida with no income tax will let your retirement savings go further, while high-tax cities like Honolulu and Newark will eat into your money fast.

“Healthcare costs? Big deal. As you age, these bills stack up, so find a place with affordable healthcare and solid services,” he said, adding that you should also not overlook safety either.

“High crime not only messes with your peace of mind but jacks up insurance and other costs,” he said. “Bottom line: choose wisely to protect your retirement.”

Here are some cities you should avoid if you’re retiring in 2025, according to experts.

Newark’s proximity to New York City drives up the cost of living while the median income remains much lower than needed for comfort, according to Mendenhall.

“It’s expensive for retirees to manage day-to-day living, and those starting to save late could face a dire shortage of retirement funds,” he said, adding that even with average earnings, taxes, property costs and healthcare expenses can drain retirement savings.

While the tropical island life is tempting, Honolulu’s cost of living is sky-high, with housing, utilities and imported goods all adding significantly to your monthly expenses, said Mendenhall.

“Hawaii is beautiful, but paradise comes at a cost,” he said. “Taxes are higher, and your dollar won’t stretch as far as in other states. You may struggle to cover healthcare and daily living costs unless you have significant savings or pensions.”

The cost of living in New Orleans is higher than what many retirees may anticipate.

“With a vibrant culture but an underperforming economy, many people won’t save enough to enjoy the city’s unique lifestyle in their golden years,” said Mendenhall.

He added that the combination of rising taxes, healthcare costs and a struggling economy can make it challenging to manage retirement funds, especially if you don’t have a robust financial plan in place.

According to Chad Breeden, owner and founder of Sentry Real Estate, Los Angeles has rising crime rates and a very high cost of living, which makes it a tough place for retirees to comfortably manage expenses.

“Also, traffic congestion and long commutes can decrease your quality of life which is important for anyone looking for a more relaxed retirement,” he said.

Miami is very appealing to retirees but the increasing housing costs and vulnerability to hurricanes can add significant financial risk for retirees.

“Miami’s regular natural disasters can lead to higher insurance premiums and property damage,” noted Breeden.

It is nearly impossible for retirees to successfully live in San Francisco, as housing costs are among the highest in the nation, and other expenses, such as gas, are also exorbitantly high, said Alex Blackwood, CEO, co-founder of mogul Club.

“The situation is expected to get significantly worse, particularly with Chevron and Exxon’s exodus from the Bay Area, which is expected to drive costs even higher,” he added.