Can you guess which city took the top spot in a new analysis of the best places to retire from U.S. News & World Report?
Here’s a hint: Think Florida, as the list leans ridiculously heavy to the state, with four or the top six cities and nine of the 25 overall. U.S. News explains this being “largely due to the state’s affordable homes, low taxes and high ratings for happiness and desirability.”
Pennsylvania surprisingly grabs four spots on the list, while California and Arizona were completely shut out. Only Portland, Oregon represents the Western U.S. on the list (being the only city in the top 25 east of Texas).
The new U.S. News analysis compares the 125 largest metropolitan areas in the country as potential places to retire. Smaller cities and regions, including some that are popular with retirees, were not included in the analysis.
The study includes data on housing affordability, happiness, desirability, retiree taxes, the job market and access to quality health care, and is weighted based on a U.S. News online survey of 2,541 people age 45 and older about their retirement preferences.
The “retiree taxes index” score accounted for 14.82% of the total score, and is intended to measure the expected tax friendliness of each metro area for retirees. The composite retirement tax score is based on a sales tax index (40% of the score) and an income tax index (60% of the score).
Since over half of retirees rely on Social Security for more than 50% of their income, half the income tax index is based on the state’s income tax rates for regular income, with the other half on the state’s taxation of Social Security income.
The Not Top 10
Before we count down the top 10, here’s a look at the rest of the list:
- Austin, Texas
- Manchester, New Hampshire
- Knoxville, Tennessee
- Miami, Florida
- Lakeland, Florida
- Fort Wayne, Indiana
- Tampa, Florida
- Pittsburgh, Pennsylvania
- Melbourne, Florida
- Portland, Oregon
- Chattanooga, Tennessee
- Orlando, Florida
- Allentown, Pennsylvania
- El Paso, Texas
- Harrisburg, Pennsylvania
Top 10 Places to Retire
Dallas-Fort Worth, Texas
No income tax and an affordable median home price in the area of just $165,200 among those 60+ were two reasons cited by U.S. News for Dallas-Forth Worth’s top-10 ranking. Fifteen percent of the area’s 7-million-plus population is age 60+.
Grand Rapids, Michigan
A thriving artistic community and an affordable cost of living—the median home price among 60+ is just $153,800—landed Grand Rapids on the list. Nineteen percent of the 1-million-plus population is 60+.
Nashville, Tennessee
Tennessee’s booming state capital is also a college town in addition to being the hub of country music. There’s no state income tax, but there are taxes on dividends and interest. Eighteen percent of the nearly 2 million population is 60+.
Winston-Salem, North Carolina
U.S. News says Winston-Salem’s affordable housing prices are appealing to retirees on a budget and allow for a high quality of life on a modest retirement income. The population is listed at just 658,195, but 22% are age 60+.
Jacksonville, Florida
U.S. News says Jacksonville is among the fastest-growing places in the country, with people (especially seniors) drawn to its mild winters, beaches, golf courses and high-performing hospitals. Of its near 1.5-million population, 21% are 60+.
Port St. Lucie, Florida
Gotta be that it’s the spring training home of the New York Mets, right? Or its reasonable cost of living, high “desirability” and “happiness” scores, ocean beach and freshwater marsh access. Almost one-third of its 454,482 residents are 60+.
Asheville, North Carolina
A mountain town with high marks for affordability and community pride, U.S. News notes it has long been a haven for artists, writers and musicians, and is increasingly known for its food and craft-brewing scene. Of the 445,625 residents, 28% are 60+.
Lancaster, Pennsylvania
Perhaps a surprise top-three city on the U.S. News list, the city of 536,494 situated between Philadelphia and Harrisburg has a strong Amish influence and a median home price of just $189,600 among people 60+, which make up 23% of the population.
Sarasota, Florida
Sarasota’s white sand beaches draw many retirees (38% of the 768,381 population is 60+) to the area, U.S. News says. Sarasota scored highly in a Gallup survey of well-being, with residents saying they have supportive social and community relationships. The moderate housing costs allow retirees on a budget to enjoy a Florida beach retirement.
And the “Best Place to Retire in 2020,” according to U.S. News, is…
Fort Myers, Florida
The Gulf Coast city of Fort Myers has long been a popular retirement destination, and over a third of its 700,165 population is age 60 or older. U.S. News notes it scored well on the desirability and happiness metrics. The median home price of $200,200 makes it an affordable place to spend retirement years fishing, boating or relaxing at the beach.
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.