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.
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To help in your quest, GOBankingRates compiled a list of the best and worst cities for an early retirement. The study included the top 50 most populated cities and top 50 cities with the highest 65 and older population, according to the United States Census Bureau 2022 American Community Survey. GOBankingRates also considered each city’s state taxes on Social Security benefits and/or retirement income.
Based on the data, GOBankingRates found that these 50 cities are among the best and worst for retiring early. Cities are ranked in reverse order, from the worst cities to the best. See if your city made the list — and how that might impact your retirement dreams.
Worst Cities for an Early Retirement
Unfortunately for those seeking early retirement, many of the most popular destinations in America, from New York to San Francisco, 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.
Here’s a look at 25 cities where you’ll need a much larger-than-average nest egg to survive early retirement.
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Marco Island, Florida
2023 average home value: $1,469,607
Annual mortgage cost: $90,290
Total annual necessities cost: $111,950
Taxes on Social Security benefits? No
Taxes on retirement income? No
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San Francisco
2023 average home value: $1,362,447
Annual mortgage cost: $83,706
Total annual necessities cost: $109,913
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Seal Beach, California
2023 average home value: $1,389,468
Annual mortgage cost: $85,366
Total annual necessities cost: $107,682
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
San Jose, California
2023 average home value: $1,322,592
Annual mortgage cost: $81,258
Total annual necessities cost: $106,397
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Ocean City, New Jersey
2023 average home value: $1,323,569
Annual mortgage cost: $81,318
Total annual necessities cost: $103,700
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
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Rancho Mirage, California
2023 average home value: $1,043,912
Annual mortgage cost: $64,136
Total annual necessities cost: $86,711
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Palm Springs, California
2023 average home value: $1,032,019
Annual mortgage cost: $63,405
Total annual necessities cost: $86,045
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Sonoma, California
2023 average home value: $1,005,152
Annual mortgage cost: $61,755
Total annual necessities cost: $85,231
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
San Diego
2023 average home value: $1,020,738
Annual mortgage cost: $62,712
Total annual necessities cost: $84,981
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
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Los Angeles
2023 average home value: $939,112
Annual mortgage cost: $57,697
Total annual necessities cost: $81,617
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Hilton Head Island, South Carolina
2023 average home value: $934,651
Annual mortgage cost: $57,423
Total annual necessities cost: $77,975
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
New York
2023 average home value: $763,619
Annual mortgage cost: $46,915
Total annual necessities cost: $77,457
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Oakland, California
2023 average home value: $849,941
Annual mortgage cost: $52,219
Total annual necessities cost: $76,408
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
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Seattle, Washington
2023 average home value: $889,339
Annual mortgage cost: $54,639
Total annual necessities cost: $76,215
Taxes on Social Security benefits? No
Taxes on retirement income? No
Long Beach, California
2023 average home value: $819,454
Annual mortgage cost: $50,346
Total annual necessities cost: $73,689
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Burr Ridge, Illinois
2023 average home value: $744,951
Annual mortgage cost: $47,612
Total annual necessities cost: $69,846
Taxes on Social Security benefits? No
Taxes on retirement income? No
Boston, Massachusetts
2023 average home value: $744,846
Annual mortgage cost: $45,762
Total annual necessities cost: $69,332
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
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Washington
2023 average home value: $715,766
Annual mortgage cost: $43,975
Total annual necessities cost: $67,827
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Naples, Florida
2023 average home value: $698,917
Annual mortgage cost: $42,940
Total annual necessities cost: $64,729
Taxes on Social Security benefits? No
Taxes on retirement income? No
Fountain Hills, Arizona
2023 average home value: $692,723
Annual mortgage cost: $42,560
Total annual necessities cost: $64,303
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Bonita Springs, Florida
2023 average home value: $641,865
Annual mortgage cost: $39,435
Total annual necessities cost: $62,307
Taxes on Social Security benefits? No
Taxes on retirement income? No
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Cocoa Beach, Florida
2023 average home value: $655,971
Annual mortgage cost: $40,302
Total annual necessities cost: $61,417
Taxes on Social Security benefits? No
Taxes on retirement income? No
Palm Desert, California
2023 average home value: $621,636
Annual mortgage cost: $38,192
Total annual necessities cost: $60,447
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Estero, Florida
2023 average home value: $601,853
Annual mortgage cost: $36,977
Total annual necessities cost: $60,386
Taxes on Social Security benefits? No
Taxes on retirement income? No
Miami
2023 average home value: $575,630
Annual mortgage cost: $35,366
Total annual necessities cost: $59,542
Taxes on Social Security benefits? No
Taxes on retirement income? No
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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 Wichita, Kansas; Albuquerque, New Mexico and Minneapolis — and several also have no taxes on retirement income.
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.
Jacksonville, Florida
2023 average home value: $302,867
Annual mortgage cost: $18,608
Total annual necessities cost: $40,288
Taxes on Social Security benefits? No
Taxes on retirement income? No
Minneapolis
2023 average home value: $324,141
Annual mortgage cost: $19,915
Total annual necessities cost: $40,071
Taxes on Social Security benefits? Yes
Taxes on retirement income? Yes
Zephyrhills, Florida
2023 average home value: $297,397
Annual mortgage cost: $18,271
Total annual necessities cost: $40,017
Taxes on Social Security benefits? No
Taxes on retirement income? No
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Tucson, Arizona
2023 average home value: $325,344
Annual mortgage cost: $19,989
Total annual necessities cost: $39,994
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Green Valley, Arizona
2023 average home value: $323,949
Annual mortgage cost: $19,903
Total annual necessities cost: $39,793
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Chicago
2023 average home value: $284,420
Annual mortgage cost: $17,474
Total annual necessities cost: $39,549
Taxes on Social Security benefits? No
Taxes on retirement income? No
Wildwood, Florida
2023 average home value: $289,140
Annual mortgage cost: $17,764
Total annual necessities cost: $38,370
Taxes on Social Security benefits? No
Taxes on retirement income? No
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Albuquerque, New Mexico
2023 average home value: $311,913
Annual mortgage cost: $19,613
Total annual necessities cost: $38,322
Taxes on Social Security benefits? Yes
Taxes on retirement income? Yes
Hot Springs Village, Arkansas
2023 average home value: $287,293
Annual mortgage cost: $17,651
Total annual necessities cost: $38,198
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Houston
2023 average home value: $265,761
Annual mortgage cost: $16,328
Total annual necessities cost: $38,174
Taxes on Social Security benefits? No
Taxes on retirement income? No
Omaha, Nebraska
2023 average home value: $264,117
Annual mortgage cost: $16,227
Total annual necessities cost: $37,702
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
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Philadelphia
2023 average home value: $207,677
Annual mortgage cost: $12,759
Total annual necessities cost: $36,951
Taxes on Social Security benefits? No
Taxes on retirement income? No
San Antonio
2023 average home value: $257,993
Annual mortgage cost: $15,851
Total annual necessities cost: $36,379
Taxes on Social Security benefits? No
Taxes on retirement income? No
Columbus, Ohio
2023 average home value: $243,089
Annual mortgage cost: $14,935
Total annual necessities cost: $35,201
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Louisville, Kentucky
2023 average home value: $230,721
Annual mortgage cost: $14,175
Total annual necessities cost: $35,008
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
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Kansas City, Missouri
2023 average home value: $220,799
Annual mortgage cost: $13,565
Total annual necessities cost: $34,602
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Indianapolis
2023 average home value: $219,547
Annual mortgage cost: $13,489
Total annual necessities cost: $33,850
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Oklahoma City
2023 average home value: $194,392
Annual mortgage cost: $11,943
Total annual necessities cost: $33,327
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
El Paso, Texas
2023 average home value: $209,432
Annual mortgage cost: $12,867
Total annual necessities cost: $33,197
Taxes on Social Security benefits? No
Taxes on retirement income? No
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Tulsa, Oklahoma
2023 average home value: $192,520
Annual mortgage cost: $11,828
Total annual necessities cost: $32,660
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Baltimore
2023 average home value: $172,958
Annual mortgage cost: $10,626
Total annual necessities cost: $32,400
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Milwaukee
2023 average home value: $182,470
Annual mortgage cost: $11,211
Total annual necessities cost: $32,028
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Wichita, Kansas
2023 average home value: $180,018
Annual mortgage cost: $11,060
Total annual necessities cost: $31,734
Taxes on Social Security benefits? Yes
Taxes on retirement income? Yes
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Memphis, Tennessee
2023 average home value: $147,323
Annual mortgage cost: $9,051
Total annual necessities cost: $29,576
Taxes on Social Security benefits? No
Taxes on retirement income? No
Detroit
2023 average home value: $64,593
Annual mortgage cost: $3,968
Total annual necessities cost: $27,019
Taxes on Social Security benefits? No
Taxes on retirement income? Yes
Jordan Rosenfeld and 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 2022 American Community Survey. GOBankingRates analyzed these 100 cities using the following criteria: (1) average 2023 home value using Zillow’s November 2023 data; (2) an annual mortgage cost using a 20% down payment and a 6.62% 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 and healthcare, based on the Bureau of Labor Statistics’ 2022 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 whether each city’s state taxed Social Security benefits and/or retirement income using data from CNBC and each state’s individual website for supplemental data. All data was collected and is up to date as of Jan. 10, 2024.
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This article originally appeared on GOBankingRates.com: 50 Best (and Worst) Cities for an Early Retirement
