Fortune Ranks 25 Best Places to Retire Affordably
California town tops list as new study finds West Coast and New England locations offer retirees best value
Two of the three top spots in the inaugural Fortune 25 Best Places to Retire Affordably are surprisingly taken by cities in California—not traditionally thought of as a state featuring “affordable” places to retire.
The new list, released this month, was created based on a range of socioeconomic factors, including healthcare, wellness, livability, resources for older adults, financial health, geographic desirability (such as climate and proximity to nature), and affordability.
“Where to retire and how to make sure it is affordable is something so many Americans think about—often well before they actually retire. We are excited to introduce this new Fortune list, which we believe will become an annual go-to list providing valuable guidance on where to look and just what affordability means for retirees in today’s economy,” said Alyson Shontell, Fortune Editor in Chief and Chief Content Officer.
“Aspiring retirees have a variety of needs and wants for the place they will call home for the long haul, but it’s evident that easy access to quality health care, community, and outdoor spaces are most commonly sought after,” added Alexa Mikhail, Fortune senior wellness reporter.
To build this new ranking, Fortune conducted an independent evaluation of over 2,000 cities, towns, suburbs, exurbs, villages, and townships with populations of approximately 10,000 or more across all 50 states. Areas where home sale prices exceeded twice the state median were excluded from the final analysis. While affordability is inherently subjective and relative, the ranking includes a broad variety of regions and baseline costs of living, all delivering lifestyle and health value for retirees. The methodology can be found here.
The top 10 Fortune Best Places to Retire Affordably in 2024:
1. American Canyon, California
Located in Southern Napa County, American Canyon offers affordable housing near both Napa’s world-class wineries and two beaches, Newport Beach and Huntington Beach. Fortune says it’s ideal for active retirees, with kayaking, biking, hiking, and golfing options. The city boasts a tight-knit community feel, local events, and proximity to top healthcare facilities.
2. Newport, Rhode Island
Fortune says Newport’s scenic beaches, waterfront walks, and historic mansions provide a peaceful yet engaging atmosphere. Retirees enjoy cliff trail walking, exploring architecture downtown, and dining at waterfront seafood restaurants. Newport also offers a variety of activities, from concerts and fitness programs to fishing and golfing, as well as access to quality medical care and proximity to Providence and Boston. Residents also enjoy Rhode Island’s tax benefits for retirees.
3. Santa Clara, California
As part of Silicon Valley, Fortune says Santa Clara is a great location for those who have adult children living and working nearby at tech giants like Apple and Google. The city is bustling with a lively cultural scene, so for seniors who appreciate the fine arts, there’s always something to do.
4. Beaufort, South Carolina
Retirees looking for some Southern hospitality can find it in Beaufort, a Low Country gem on South Carolina’s Port Royal Island. Although the cost of living here is 4% above the state average, it’s 3% lower than the national average, and housing prices are 15% lower than the national average, making it overall an affordable place to retire in—especially for a coastal city. South Carolina also has no estate tax and no income tax on Social Security; nor does it tax the first $10,000 of other retirement income.
5. Portsmouth, New Hampshire
Fortune says it’s hard to resist the charm of Portsmouth’s cobblestone streets, colonial architecture, and serene waterfront, no matter your age. That’s why Portsmouth takes a seat on its inaugural 25 Best Places to Retire Affordably list after making Fortune’s Best Places to Live for Families list two years in a row. It’s a peaceful New England haven for those who still want to enjoy all four seasons. New Hampshire is one of the few states without income tax, which is good news for retirees’ Social Security, pension, and retirement distributions. New Hampshire does tax interest and dividend income at 3%, but this tax will be eliminated in 2025.
6. Shoreline, Washington
Shoreline is a bedroom community in the greater Seattle area located between Puget Sound and Lake Washington. With views of their waters and the faraway trees of Olympic National Forest and the Mount Baker-Snoqualmie National Forest, Shoreline has plenty of green and blue spaces that can help enhance seniors’ well-being.
7. Maple Valley, Washington
With no state income tax, Washington is high on retirees’ radar. And the commuter town of Maple Valley, just 50 minutes from Seattle and 30 minutes from Tacoma, is a beautiful place to land. Surrounded by lush forests and panoramic views of Mount Rainier, it’s a nature lover’s paradise for retirees who enjoy the outdoors and soothing green terrain.
8. Scarborough, Maine
Located about seven miles south of Portland, Scarborough is a safe and laid-back community, ideal for retirees seeking a more quiet life. Its proximity to Maine’s largest city gives seniors easy access to a thriving culinary scene, a wide array of cultural options, such as galleries and art walks, as well as major hospitals. Although Maine is known for its cold winters, Scarborough’s coastal location creates milder temperatures during that time of year, with pleasant and breezy summers. Retirees don’t pay taxes on Social Security benefits in the state of Maine, and they’re allowed to deduct up to $35,000 in pension income.
9. Portland, Maine
For seniors who don’t want to give up city life, Portland offers all the amenities of an urban center without the chaos; it’s clean, safe, and friendly with a strong community that has a small-town feel. Driving around is typically stress-free: Traffic congestion doesn’t plague Portland as it does most cities. That’s if you even want to drive at all—the waterfront city is incredibly walkable, from the downtown center to Old Port. And as Maine’s largest city, with more than 68,000 people, Portland has a host of volunteering opportunities retirees can choose from.
10. Lafayette, Colorado
Small-town Colorado vibes are big in Lafayette, which holds a perfect corner spot 35 minutes north of Denver and 25 minutes east of Boulder. The proximity to two of Colorado’s most popular cities gives retirees access to world-class medical facilities offering specialized treatments and advanced care as well as a vibrant arts and culture scene. Retirees living in Colorado also enjoy a fair share of tax benefits; some of them can exclude their Social Security benefits from their taxable income. The state also allows those age 55 and older to deduct up to $20,000, and those 65 and older to deduct up to $24,000.
Cities 11 through 25
The cities outside of the top 10 in the Fortune 25 Best Places to Retire Affordably are highlighted by four cities in Florida and two each in North Carolina, New Mexico and Delaware.
11. Wellington, Florida
12. Delray Beach, Florida
13. West Palm Beach, Florida
14. Cary, North Carolina
15. Chapel Hill, North Carolina
16. Virginia Beach, Virginia
17. South Burlington, Vermont
18. Charleston, South Carolina
19. Colorado Springs, Colorado
20. Tempe, Arizona
21. Rio Rancho, New Mexico
22. Middletown, Delaware
23. Newark, Delaware
24. Santa Fe, New Mexico
25. Coral Gables, Florida
SEE ALSO:
• Top 30 Middle-Class Retirement Towns in U.S. 2024
• 6 Tax-Friendly Overseas Havens for Retirees
• Best and Worst U.S. Cities to Retire in 2024: WalletHub