Finding Your Golden Nest: 14 States Where Retirees Can Still Afford Comfortably

“burn’s night at a retirement home” by k4dordy is licensed under CC BY 2.0

As we approach our golden years, the dream of a relaxing and carefree retirement often clashes with the ever-rising cost of living. Many of us envision settling down by a favorite golf course or close to family, but for a significant number, the specific location takes a back seat to the crucial question: ‘Where can I get the most bang for my buck?’ It’s a valid concern, especially when considering that retirement is often more expensive than people think, with experts estimating a need for 70% to 90% of pre-retirement income to maintain the same standard of living. This financial reality makes choosing an affordable retirement destination more critical than ever.

Indeed, the U.S. Department of Labor highlights a concerning statistic: ‘only about half of Americans have calculated how much they need to save for retirement.’ And while most Americans can expect to spend about 20 years in retirement, a mere quarter of private-industry workers contribute to 401(k) or other defined contribution plans. This gap between expectation and preparation underscores the importance of finding locations that won’t stretch finances thin. The good news is that comfortable retirement doesn’t have to be a pipe dream, even on an annual income of less than $65,000.

GoBankingRates embarked on a comprehensive study to identify states where retirees can truly thrive without breaking the bank. Their methodology, as explained by certified financial planner Michelle Kruger, PhD, director of financial planning at Gratus Capital, involved examining data from the Bureau of Labor Statistics’s 2023 Consumer Expenditure Survey for people aged 65 and older. These average consumer expenditures were then adjusted using the Missouri Economic Research and Information Center’s 2024 quarter-two cost-of-living index for each state to pinpoint total consumption expenditures. To define a ‘comfortable’ retirement income, Stephen Kates, a certified financial planner and principal financial analyst for RetireGuide, noted that ‘each total was increased by 20% to account for added room in the budget.’ The study meticulously tracked five key spending categories: groceries, health care, housing, utilities, and transportation. With this robust framework, we’ve uncovered some truly remarkable places where your retirement dollars can go further, allowing you to embrace your post-work years with greater peace of mind.

1. **Fargo, ND**North Dakota has consistently earned high marks as one of the best states for retirement, primarily due to its combination of low costs and a tax-friendly environment. Fargo, with a city population of 129,064 and 13.6% of its residents aged 65 or older, epitomizes this financial wisdom. The cost of living for retirees in Fargo is a remarkable 9.4% below the national average, making it a truly financially savvy choice for your golden years.

One of the most significant advantages for retirees in Fargo is the incredibly affordable housing market. According to Zillow, the median home cost in Fargo stands at $318,214, which contributes significantly to the city’s overall low cost of living. This allows retirees to enjoy a comfortable standard of living, with an average income for the 65+ population reported at $67,000, and the state’s tax rating for retirees being ‘Tax Friendly’.

Beyond the financial benefits, Fargo also offers a vibrant community enriched by educational institutions. North Dakota State University, along with several other area colleges, provides a host of amenities that appeal to retirees and students alike. These include engaging sporting events and diverse cultural attractions, such as numerous musical and theater performances. The wellness score for Fargo is a healthy 66, indicating a good quality of life, though prospective residents should prepare for winter, as the average low temperature in January is literally 0 degrees Fahrenheit, accompanied by an average of 47 inches of snow annually.

2. **Rochester, NY**While New York state often comes with a reputation for high living costs, Rochester stands out as a surprising exception, offering a more affordable retirement option. With a city population of 211,100 and 12% of its population aged 65+, Rochester’s cost of living for retirees is 11.4% below the national average, providing a welcome reprieve from the state’s typical expenses. This affordability is a significant draw for those looking to retire in the Northeast without the hefty price tag.

Housing costs in Rochester are particularly appealing, being about 64% below average for retired residents. Zillow data indicates a median home value of $239,538, which is considerably lower than the national average of $368,581 and a stark contrast to New York state’s average of $509,127. Such savings in housing can free up substantial budget room for other expenses, or perhaps for enjoying the local amenities that make Rochester unique.

Of course, preparing for winter is essential here, with an average annual snowfall of 97.5 inches. However, the region offers plenty to keep spirits warm, including the renowned Finger Lakes Region, which boasts over 100 wineries within a 90-minute drive. Casa Larga Vineyards, for instance, is just 20 minutes from downtown, offering delightful local wine options. The average income for the 65+ population is $40,000, and while the state’s tax rating for retirees is ‘Not Tax Friendly,’ the significant savings on living costs, especially housing, still make Rochester a viable option.

3. **Richland, WA**Richland, Washington, part of a metro area that includes Kennewick, presents another compelling option for retirees seeking a blend of affordability and a high quality of life. While its cost of living for retirees is 0.5% *above* the national average, this slight increase is offset by a higher average income among its senior population. With a city population of 59,718 and 16.5% of its residents aged 65+, Richland boasts an impressive average income for this demographic of $83,066, significantly higher than Kennewick’s $64,053.

Richland also demonstrates strong financial health for its older residents with a lower poverty rate of 7.6% among those aged 65 and up, which is better than Kennewick’s 8.3% and notably lower than the national poverty rate of 9.3% for the same age group. This economic stability, combined with the state’s ‘Tax Friendly’ rating for retirees, makes Richland a robust choice for those who value financial security in retirement.

For those who love the outdoors or fine wine, Richland offers an abundance of activities. Residents can enjoy boating and fishing on the Columbia, Yakima, and Snake Rivers, or explore the 23-mile Sacagawea Trail for hiking and biking. Additionally, the area is a wine enthusiast’s dream, with more than 200 wineries located within a 50-mile radius, providing beautiful views and numerous tasting opportunities. The community score for Richland is 59, reflecting a balanced lifestyle for its retirees.

4. **Albuquerque, NM**For retirees dreaming of sunshine and vibrant cultural experiences, Albuquerque, New Mexico, offers a bright and engaging option. The city enjoys an impressive 310 sunny days each year, providing ample opportunity to indulge in outdoor activities across all four seasons. With a city population of 562,336, and 12.9% aged 65 and up, Albuquerque’s cost of living for retirees is 8% below the national average, which is certainly a draw.

The sunny climate is perfect for exploring the many hiking and biking trails in and around the city, enjoying hot air ballooning, or playing on a variety of local golf courses. As the sun sets, Albuquerque’s local casinos come alive, offering concert venues, restaurants, and a range of games including table games, slots, and bingo, adding an energetic element to the local nightlife. The wellness score for the city is 60, suggesting a good overall quality of life.

However, it’s important to note that while costs are below average, incomes also tend to be lower, with the average income for an Albuquerque resident being $56,366 a year, compared to the U.S. average of $62,088. Furthermore, the sales tax rate for Albuquerque is 7.75%, slightly above the U.S. average of 7.52%, and the income tax rate ranges from 1.7% to 5.9%. A significant concern is the poverty rate among residents aged 65 and up, which stands at 17.3%, higher than the 10.9% for the U.S. and 15.8% for the state. This means careful financial planning is crucial, especially given the state’s ‘Least Tax Friendly’ rating for retirees, despite the allure of its sunny skies and cultural richness.

“Downtown Kansas City Missouri” by StuSeeger is licensed under CC BY 2.0

5. **Kansas City, MO**Kansas City, Missouri, is a dynamic metropolitan area that truly straddles two states and offers a rich tapestry of attractions for retirees and people of all ages. With a city population of 502,597 and a substantial 15.7% aged 65 and up, the city’s cost of living for retirees is a compelling 11.6% below the national average. This affordability, combined with a vibrant cultural scene, makes it a noteworthy consideration for retirement.

The city is celebrated for its incredibly vibrant music and arts scene, a legacy that includes legendary jazz musician Charlie Parker. Retirees can explore the American Jazz Museum, the Nelson-Atkins Museum of Art, and the stunning Kauffman Center for the Performing Arts. Food enthusiasts will also delight in the authentic barbecue for which Kansas City is famous. For visiting grandchildren, attractions like Legoland, the Sea Life Aquarium, and the Kansas City Zoo provide endless entertainment.

Kansas City also benefits from a strong university presence. The University of Missouri maintains a campus in the city, bringing over 16,000 undergraduate and graduate students, along with all the amenities of college life. A unique offering is Communiversity, an all-volunteer education program that provides a wide variety of classes and seminars to the entire metro area, encouraging lifelong learning. The average income for the 65+ population is $60,042, and the state’s tax rating for retirees is ‘Mixed,’ indicating some tax advantages alongside potential drawbacks. The wellness score is 61, reflecting a lively and engaging environment for seniors.

6. **Sioux Falls, SD**For those who might not have considered the Mount Rushmore State for retirement, Sioux Falls, South Dakota, emerges as a particularly advantageous place to settle down. Boasting a city population of 189,258 with 15.3% aged 65+, Sioux Falls offers a compelling suite of benefits for retirees. Its cost of living is impressively low, at 13.7% below the national average, making it an excellent choice for budget-conscious seniors.

Sioux Falls is recognized for its strong economy, low unemployment rates, and excellent healthcare infrastructure, including hospitals that specialize in geriatric services. These practical advantages contribute to the city’s high quality of life. The Milken Institute has even lauded Sioux Falls as one of the best small metro areas for successful aging, citing its recreational activities such as regularly scheduled morning walks and pinochle for the senior program, run by the city’s Parks and Recreation department.

Financially, Sioux Falls continues to impress. The median home value is $335,526, which is lower than the U.S. average of $368,581. Moreover, South Dakota’s tax environment is one of the most favorable for retirees, boasting no income, estate, or inheritance taxes. This ‘Most Tax Friendly’ status means more of your retirement income stays in your pocket. The average income for the 65+ population is $66,761, complemented by a wellness score of 63, all contributing to a comfortable and financially secure retirement in the city.

“2009-0805-Mankato-NFrontStDist” by Bobak Ha’Eri is licensed under CC BY 3.0

7. **Mankato, MN**If you can brave the cold winters and navigate a less-than-ideal tax situation, Mankato, Minnesota, presents a hidden gem for retirees. Located about 90 miles southwest of the Twin Cities, this small but rapidly developing city, with a population of 43,938 and 12.2% aged 65+, is experiencing a significant economic boom. The cost of living for retirees here is 13.3% below the national average, a stark contrast to other Minnesota metro areas like Minneapolis, which has living costs 7.6% above the national average for retirees.

Mankato’s downtown area has undergone substantial revitalization projects in recent years, introducing a vibrant mix of restaurants, shops, and entertainment venues. The city’s strategic plan is ambitious, aiming to spread this development throughout the Minnesota River Valley. Goals include adding housing within walking distance of jobs and shops, expanding Riverfront Park and other recreational lands, and even building a pedestrian bridge across the Minnesota River to North Mankato.

Despite this growth, living costs have remained commendably low. However, it’s important to consider that typical incomes in Mankato are also lower, with an overall annual income for residents averaging $56,274, compared to Minneapolis’s $70,099. The average income for the 65+ population in Mankato is $58,520, and the state’s tax rating for retirees is ‘Least Tax Friendly’. The wellness score is 57, suggesting that while the community is growing and affordable, individuals should weigh the tax implications and income levels carefully when considering Mankato for retirement.

Continuing our journey through the best retirement spots, this section delves into the next seven cities, examining their distinct appeal, affordability metrics, and quality of life factors that make them ideal for comfortable post-work living.

“Solar panels on Peoria, Ariz. Walmart (3896)” by Walmart Corporate is licensed under CC BY 2.0

8. **Peoria, IL**For retirees seeking remarkable affordability without sacrificing urban amenities, Peoria, Illinois, emerges as a compelling option. This relatively small city, with a population of 113,672 and 16.8% of residents aged 65 or older, boasts a cost of living for retirees that is an impressive 24.4% below the national average. This significant cost savings is a major draw for those looking to stretch their retirement dollars further in the Midwest.

One of Peoria’s standout features for retirees is its incredibly low housing costs, which are approximately 61.5% below the national average. With a median home value of just $130,361, compared to the U.S. median of $368,581, housing here presents a substantial opportunity for financial relief. Furthermore, the city has seen considerable investment in its downtown area, with the Downtown Development Corporation of Peoria assisting numerous projects, including the issuance of 717 construction permits valued at an estimated $78 million, signaling a vibrant, developing urban core.

The revitalized Riverfront area offers a dynamic setting with an array of eateries, shops, and attractions. Highlights include the Peoria Riverfront Museum, which not only features a Giant Screen Theater and Dome Planetarium but also hosts a senior program with a free bi-monthly morning lecture series and free admission for guests aged 60 and up on the second Wednesday of every month. Beyond the downtown, the Peoria Park District provides ample opportunities for outdoor recreation, boasting 62 park sites with miles of hiking trails, golf courses, and a nature center. While the average income for the 65+ population is $53,568 and the state’s tax rating for retirees is ‘Mixed,’ the sheer affordability, especially in housing, makes Peoria a strong contender.

9. **Lincoln, NE**Often overshadowed by its larger counterpart, Omaha, Lincoln, Nebraska, confidently stands on its own as an attractive and affordable retirement destination. As the state capital, Lincoln offers a pleasant balance of urban amenities and natural beauty, featuring a city population of 289,136 with 16.1% of its residents aged 65 or older. Retirees here can enjoy a cost of living that is 7.4% below the national average, making it an economically sensible choice for post-work life.

Lincoln provides a wealth of attractions to keep retirees engaged and active, including more than 130 parks, a diverse culinary scene with fine restaurants, an active nightlife, and a variety of museums and theaters. Noteworthy highlights include the picturesque Sunken Gardens for horticultural enthusiasts and the fascinating Museum of American Speed for car lovers. As a vibrant college town, home to both the University of Nebraska’s Lincoln campus and Union College, the city enjoys a youthful energy while also catering to its senior population.

Crucially, Lincoln is well-equipped to support its aging residents, offering approximately 30 health-care and social service facilities per 1,000 seniors, a significantly higher ratio than the U.S. average of about 19 per 1,000 seniors. The average income for the 65+ population is $62,566, and the city boasts a wellness score of 63, indicating a high quality of life. However, prospective residents should be aware that Nebraska carries a ‘Least Tax Friendly’ rating for retirees, a factor that requires careful consideration alongside the city’s other benefits.

10. **Huntsville, AL**Huntsville, Alabama, nestled in the northern part of the ‘Heart of Dixie,’ offers an appealing blend of affordability, a favorable tax environment, and a robust economy, making it an excellent choice for retirement. With a city population of 210,081 and a substantial 18.5% of its residents aged 65 or older, Huntsville benefits from all the low-cost, low-tax advantages characteristic of Alabama, further enhanced by more generous incomes for its retirement-age population. The cost of living for retirees is 5.8% below the national average.

This city boasts a remarkably robust economy and a highly educated populace, driven by the presence of NASA’s Marshall Space Flight Center, the Redstone Arsenal, and the Huntsville campus of the University of Alabama. Beyond its economic prowess, Huntsville offers a rich array of cultural attractions, ranging from an engaging sculpture trail to a sophisticated symphony orchestra. For those who appreciate the great outdoors, opportunities for recreation abound, including excellent bass fishing, making it a well-rounded destination for diverse interests.

Indeed, Alabama as a whole provides many of the popular retirement attractions found in Florida, such as warm weather, humidity, beautiful beaches, and ample golf courses, but typically at a more accessible price point. In Huntsville, retirees benefit from an average income of $60,959 for the 65+ population, a strong wellness score of 67, and the state’s highly ‘Tax Friendly’ rating, ensuring more of their hard-earned retirement savings remain in their pockets.

11. **Lexington, KY**For retirees enchanted by equine beauty or the rich heritage of fine spirits, Lexington, Kentucky, offers far more than just horses and bourbon. This charming city, with a population of 321,354 and 14.8% of its residents aged 65 or older, provides a comfortable retirement setting where the cost of living for seniors is 9.2% below the national average. It’s a place where diverse interests can flourish amidst a backdrop of affordability.

Lexington truly spoils its residents with a wealth of recreational opportunities. The city features more than 100 parks, five public golf courses, and a sprawling 734-acre nature preserve equipped with over 10 miles of hiking trails, perfect for staying active and connected with nature. For those who prefer indoor entertainment, Lexington offers numerous galleries and theaters, including the historic Lexington Opera House, which presents a varied schedule of ballets, Broadway musicals, comedy shows, and operas, alongside the University of Kentucky’s Singletary Center for the Arts.

Academic pursuits are also highly accessible to seniors in Lexington. The Osher Lifelong Learning Institute at the University of Kentucky provides various courses, forums, interest groups, trips, and events tailored for individuals aged 50 or older, with an annual membership costing a modest $50. Additionally, the Donovan Fellowship allows Kentucky residents aged 65 and older to attend university classes for free, space permitting, fostering a culture of lifelong learning. With an average income of $61,526 for the 65+ population, a community score of 67, and a ‘Most Tax Friendly’ state tax rating for retirees, Lexington presents a financially sound and culturally rich option.

12. **Morgantown, WV**Morgantown, West Virginia, despite being a smaller city with a population of 29,316 and 13% of its residents aged 65 or older, offers compelling advantages for retirees, particularly those interested in education and robust healthcare. The cost of living for retirees here is a respectable 10.2% below the national average, making it a budget-conscious choice, though prospective residents should consider its ‘Not Tax Friendly’ state tax rating.

West Virginia University (WVU) is a significant asset to Morgantown’s senior community, providing unique educational benefits. Residents aged 65 and up can take WVU courses, both for credit or not, at a discounted rate, fostering intellectual engagement in retirement. Alternatively, individuals aged 50 or older can join the local chapter of the Osher Lifelong Learning Institute, with a $50 annual membership granting access to a wide range of interest groups, trips, social gatherings, and program classes covering subjects from local and international history to music, computers, and yoga.

The university’s presence also significantly boosts local healthcare services. WVU operates numerous medical facilities, including the Eye Institute, Heart Institute, and Ruby Memorial Hospital. The Milken Institute notably credited the area’s abundance of medical services—such as orthopedic surgeons, primary-care clinicians, and home-health-care professionals—for contributing to Morgantown’s high ranking (18th) among small metro areas for successful aging. While the average income for the 65+ population is $36,911, which is on the lower side, the comprehensive healthcare network and educational opportunities make Morgantown a strong consideration for a well-supported retirement, particularly for those prioritizing health and learning.

“Columbus, OH Skyline” by jpmueller99 is licensed under CC BY 2.0

13. **Columbus, OH**As the largest city in the Buckeye State, Columbus, Ohio, provides a unique proposition for retirees: big-city amenities paired with surprisingly small costs. With a city population of 898,143 and 15.2% of its residents aged 65 or older, Columbus boasts a cost of living for retirees that is 8.6% below the national average, making it an accessible urban retirement destination. This affordability is especially pronounced in its housing market.

Housing in Columbus is notably affordable, with the median home value standing at $253,754, which is comparable to the state median of $243,907, according to Zillow. This financial advantage frees up budget for enjoying the city’s myriad activities. As home to Ohio State University, Columbus offers a vibrant college-town culture, including major sporting events, concerts, and diverse cultural diversions. A particularly senior-friendly initiative is Program 60, which invites Ohio residents aged 60 and older to take university courses for free, encouraging continuous learning in retirement.

Beyond the campus, downtown Columbus offers a lively scene with an eclectic mix of shops, galleries, and restaurants. Specific neighborhoods like the Short North and German Village are especially worth exploring for their unique charm and community feel. The average income for the 65+ population is $58,575, and while the state’s tax rating for retirees is ‘Mixed,’ the combination of low costs, ample activities, and educational opportunities positions Columbus as a dynamic and affordable choice for retirement.

“Les Galeries Lafayette (Berlin)” by dalbera is licensed under CC BY 2.0

14. **Lafayette, LA**For retirees dreaming of a culturally rich and affordable post-work life, Lafayette, Louisiana, known as the ‘Cajun Capital City,’ offers an irresistible blend. With a city population of 122,669 and 17% of its residents aged 65 or older, Lafayette invites you to embrace the phrase ‘laissez les bons temps rouler’ (let the good times roll) while benefiting from a cost of living for retirees that is 9.8% below the national average. It’s a place where history, distinctive foods, two-stepping tunes, and vibrant Cajun and Creole culture thrive.

Nature lovers will find plenty to appreciate in the Lafayette area. Situated on the Mississippi Flyway and the Atchafalaya Loop of America’s Wetland Birding Trail, the region offers abundant wildlife observation opportunities. Furthermore, its numerous rivers, swamps, and bayous provide picturesque settings for paddling, fishing, and exploring the unique ecosystem of Louisiana. These natural amenities contribute significantly to the quality of life for active retirees seeking outdoor adventures.

What makes Lafayette particularly appealing is its affordability compared to more famously expensive Louisiana cities like New Orleans, which lies about 130 miles to the east. If your vision of retirement involves a celebration that stretches your budget as much as the party keeps rolling, Lafayette is an ideal destination. The average income for the 65+ population is $55,329, and with a ‘Tax Friendly’ state rating for retirees, you can enjoy the rich culture and natural beauty without undue financial strain, ensuring a truly comfortable and joyous retirement.

As we’ve journeyed through these states and cities, it becomes clear that a comfortable retirement is well within reach, even on a modest income. The key lies in balancing financial prudence with personal happiness, finding a place where your hard-earned dollars go further, and your quality of life flourishes. From the cultural vibrancy of Kansas City to the natural beauty of Lafayette, these destinations demonstrate that the golden years can indeed be a time of peace, enjoyment, and financial ease, proving that the dream of a relaxing post-work life doesn’t have to be just a dream—it can be your reality. Ultimately, the ‘best’ place to retire is the one that aligns with both your budget and your aspirations for a joyful, fulfilling life after work.