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50 Best (and Worst) Cities for an Early Retirement

·16 min read
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
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

Stan Shebs / Wikimedia Commons
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
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
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
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

JSvideos / Shutterstock.com
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
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
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
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
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

Photoladybug / Getty Images/iStockphoto
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
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
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
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
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

DenisTangneyJr / Getty Images/iStockphoto
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
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
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
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
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

Sean Pavone / Getty Images
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
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
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
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
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

benedek / Getty Images
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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

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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.

This article originally appeared on GOBankingRates.com: 50 Best (and Worst) Cities for an Early Retirement