In your search for the perfect retirement retreat, affordability will be a key factor. We all want to live in a place where we can indulge our passions… and where our dollar stretches far enough to make those passionate pursuits possible. While an affordable retirement destination may look different to different people, there are some commonalities. This includes states and cities that have low tax rates for seniors, a high number of senior living and health options to choose from, and a lower overall cost of living, including energy, transportation, and health costs.

Using these criteria, we have compiled a list of the seven of the most affordable places to retire in the U.S., across several regions. Which is right for you?  

1. Hendersonville, Tennessee

Tucked along the shores of Old Hickory Lake, Hendersonville offers a retirement lifestyle where you can immerse yourself in natural beauty, indulging in all the hiking, fishing and boating that you desire. Considered part of the greater Nashville area, Hendersonville is a picturesque oasis with a unique and vibrant history. While the cost of living here is a bit higher than the national average, it offers a more affordable alternative to Nashville.

Tennessee is also one of just a few states that charge no personal income tax. Retirement savings and Social Security income are also not taxed, making it extremely affordable for retirees. To balance this, the state’s combined local and state sales tax is the second highest in the country. That means it’s a strong choice for those arriving with most of what they already need.

2. Dallas, Oregon

Those looking for an affordable retirement destination on the west coast that doesn’t come with the west coast price tag may enjoy the rugged beauty of Dallas, Oregon. The cost of living here is a bit higher than the national average, but housing costs are 60% less than a city like Bend, Oregon, which offers a similar climate and outdoorsy culture at a much stiffer price.

Nestled in the heart of Oregon’s stunning Willamette Valley, residents enjoy the classic natural beauty of this region, including mountains, rivers, lakes and outdoor recreation areas. The wonders of the Oregon Coast are just a short drive away.  

3. Birmingham, Alabama

Birmingham is the largest city in Alabama, known as the “Heart of Dixie” and home to numerous cultural and historic landmarks. It also offers plenty of warm weather and recreational activities. Access all the amenities and entertainment of a bustling city at an affordable price.

Located among the foothills of the Appalachians, the Gulf Coast is just a four-hour drive away for those seeking a weekend getaway. USA Today consistently ranks the state as one of the top five most affordable in the country. In Alabama, Social Security income and public and private pension income aren’t taxed. There is also no inheritance or estate tax.

4. Port Charlotte, Florida

Florida is still the first state most people think of when they hear the words “retirement destination.” There's a good reason for this! Florida’s year-round warm weather, extremely senior-friendly tax laws, and wealth of senior living options (especially for LGBTQ+ seniors) make it very popular with older adults. That said, its popularity can also drive up prices in some of the larger cities.

For a more affordable place to retire in Florida, look no further than Port Charlotte. Located near Tampa on the Gulf Coast, cost of living is about 12% below the national average. Yet it also offers the same warm winters and hot summers as the rest of the state. This quaint, modern town is known for its laid-back lifestyle, amazing beaches and Old Florida charm. 

5. New Albany, Ohio

Located just 20 minutes north of Columbus, New Albany, Ohio is also an affordable retirement city. The city often makes “best of” lists for its ample parks and outdoor attractions. If you’re looking for room to sprawl, this overlooked midwestern gem may be the perfect fit. With a population of just over 10,000, you get all the charm of the country while being within a short drive to Columbus’s amenities and events.

Here, you can also enjoy all four seasons, including seasonal festivals and local farmers’ markets.  Ohio also has low property tax rates, and offers several tax credits for adults 65 and older, which can reduce your overall tax burden.

6. White River Junction, VT 

If you’re looking for an affordable retirement destination in New England, White River Junction, Vermont may fit the bill. This cozy little town is home to about 2,500 residents, making it perfect for those who love getting to know their neighbors. Located on the Connecticut River in the Upper Valley region of the state, it’s an outdoor lovers’ paradise year-round, offering plenty of opportunities for fishing, skiing, hiking and much more.

This is a quiet, friendly little town. Its location and size make it much more affordable than other cities on the east coast, which help make up for Vermont’s higher tax rates. Boston is about two hours away by car.

7. Greensboro, North Carolina

If you can’t decide on whether to retire to the beach or the mountains, enjoy easy access to the pleasures of both in Greensboro, North Carolina. This affordable retirement destination boasts a variety of eclectic restaurants, coffee shops and theaters. It has plenty of outdoor recreation too, including twelve golf courses (six public and six private).

Cost of living is about 15% less than the national average, and tax rates are at a reasonable flat rate, while Social Security benefits are exempted. Property tax and sales tax are also fairly moderate. Summers are warm and winters are mild, making this a great place for those who prefer a moderate climate.

Affordable Retirement Destinations for Every Budget

Discover how rich and vibrant a community-centered retirement lifestyle can be in an award-winning independent living community managed by Life Care Services, An LCS Company. Every community offers personalized experiences, exciting events, and warm hospitality at every turn. Whatever your budget, there’s a Life Care Services haven just waiting for you! Explore communities here or subscribe to our newsletter for resources, tips and news related to our many exciting new residences.