Where should clients retire early?

September 9, 2019 2:00 AM

More than half of Americans don’t know if they’ll be able to live comfortably through retirement.

Making matters worse is approximately one in three are preparing to retire early — meaning they will face longer time horizons and need larger nest eggs saved up to last through their golden years, according to new data from Northwestern Mutual.

One way to help clients looking to leave work-life early is to find a more cost-effective place to retire, so savings can last even longer. Keep in mind, it’s also likely that clients will want to live in a city with a high concentration of other residents their age.

A study by Kiplinger analyzed cities around the country to determine which have the most favorable conditions for early retirees. Some of the most important factors to consider: how favorable are the tax laws and how high are the cost-of-living expenses.

The study also looked at the economic health, average household income and the demographics of the population. Cities with higher concentrations of residents between the ages of 45 and 65 were prioritized in the ranking. The national average for the age group is 26.1% of a city's popoulation, according to the data.

The overall tax picture of each state was also ranked from least tax friendly to most tax friendly, based on factors like retirement income, property and tax breaks for seniors.

Data was collected from the Council for Community and Economic Research, Sperling's Best Places, U.S. Census Bureau, HealthView Services, Mercatus Center at George Mason University and United Health Foundation.

Huntsville, Alabama

Population of ages 45 to 64: 27.8%

Retired cost of living compared to national average: 5.4% below

Median income of age group: $77,266

State’s tax friendliness: Tax friendly

Juneau, Alaska

Population of ages 45 to 64: 29.3%

Retired cost of living compared to national average: 33.2% above

Median income of age group: $102,396

State’s tax friendliness: Most tax friendly

Lake Havasu City, Arizona

Population of ages 45 to 64: 28%

Retired cost of living compared to national average: 0.2% below

Median income of age group: $44,328

State’s tax friendliness: Mixed

Hot Springs, Arkansas

Population of ages 45 to 64: 27.1%

Retired cost of living compared to national average: 8% below

Median income of age group: $49,692

State’s tax friendliness: Not tax friendly

San Francisco, California

Population of ages 45 to 64: 26.8%

Retired cost of living compared to national average: 83.3% above

Median income of age group: $105,396

State’s tax friendliness: mixed

Denver, Colorado

Population of ages 45 to 64: 25.7%

Retired cost of living compared to national average: 9.9% above

Median income of age group: $84,653

State’s tax friendliness: Mixed

New Milford, Connecticut

Population of ages 45 to 64: 33.4%

Retired cost of living compared to national average: 16.6% above

Median income of age group: n/a

State’s tax friendliness: Least tax friendly

Newark, Delaware

Population of ages 45 to 64: 16%

Retired cost of living compared to national average: 11.5%

Median income of age group: n/a

State’s tax friendliness: Tax friendly

Tampa, Florida

Population of ages 45 to 64: 27.3%

Retired cost of living compared to national average: 9.3% below

Median income of age group: $68,759

State’s tax friendliness: Most tax friendly

Savannah, Georgia

Population of ages 45 to 64: 24%

Retired cost of living compared to national average: 9.8% below

Median income of age group: $68,759

State’s tax friendliness: Most tax friendly

Kapaa, Hawaii

Population of ages 45 to 64: 28.3%

Retired cost of living compared to national average: 67.5%

Median income of age group: $82,891

State’s tax friendliness: Tax Friendly

Twin Falls, Idaho

Population of ages 45 to 64: 22.6%

Retired cost of living compared to national average: 9.3% below

Median income of age group: $58,063

State’s tax friendliness: Mixed

Champaign-Urbana, Illinois

Population of ages 45 to 64: 21.6%

Retired cost of living compared to national average: 9.7% below

Median income of age group: $73,227

State’s tax friendliness: Mixed

Evansville, Indiana

Population of ages 45 to 64: 27.2%

Retired cost of living compared to national average: 6.4% below

Median income of age group: $61,349

State’s tax friendliness: Least tax friendly

Des Moines, Iowa

Population of ages 45 to 64: 24.9%

Retired cost of living compared to national average: 9.2% below

Median income of age group: $80,898

State’s tax friendliness: Not tax friendly

Topeka, Kansas

Population of ages 45 to 64: 27.2%

Retired cost of living compared to national average: 8.2% below

Median income of age group: $65,788

State’s tax friendliness: Least tax friendly

Louisville, Kentucky

Population of ages 45 to 64: 27.4%

Retired cost of living compared to national average: 6.8% below

Median income of age group: $65,005

State’s tax friendliness: Most tax friendly

Lafayette, Louisiana

Population of ages 45 to 64: 25.4%

Retired cost of living compared to national average: 8.5% below

Median income of age group: $55,140

State’s tax friendliness: Tax friendly

Portland, Maine

Population of ages 45 to 64: 30.2%

Retired cost of living compared to national average: 17.1% above

Median income of age group: $77,152

State’s tax friendliness: Mixed

Lexington Park, Maryland

Population of ages 45 to 64: 27.5%

Retired cost of living compared to national average: 12% above

Median income of age group: $105,417

State’s tax friendliness: Least tax friendly

Pittsfield, Massachusetts

Population of ages 45 to 64: 30.3%

Retired cost of living compared to national average: 7.4% above

Median income of age group: $65,943

State’s tax friendliness: Not tax friendly

Grand Rapids, Michigan

Population of ages 45 to 64: 25.5%

Retired cost of living compared to national average: 2.2% below

Median income of age group: $71,042

State’s tax friendliness: Not tax friendly

Minneapolis, Minnesota

Population of ages 45 to 64: 26.7%

Retired cost of living compared to national average: 5.8% above

Median income of age group: $89,630

State’s tax friendliness: Least tax friendly

Gulfport-Biloxi, Mississippi

Population of ages 45 to 64: 26.3%

Retired cost of living compared to national average: 13% below

Median income of age group: $53,386

State’s tax friendliness: Most tax friendly

St. Louis, Missouri

Population of ages 45 to 64: 27.5%

Retired cost of living compared to national average: 9.9% below

Median income of age group: $72,205

State’s tax friendliness: Mixed

Bozeman, Montana

Population of ages 45 to 64: 23%

Retired cost of living compared to national average: 2.6% above

Median income of age group: $75,219

State’s tax friendliness: Not tax friendly

Omaha, Nebraska

Population of ages 45 to 64: 24.9%

Retired cost of living compared to national average: 3.8% below

Median income of age group: $76,471

State’s tax friendliness: Least tax friendly

Gardnerville Ranchos, Nevada

Population of ages 45 to 64: 31.1%

Retired cost of living compared to national average: 34.1% above

Median income of age group: $69,183

State’s tax friendliness: Most tax friendly

Manchester, New Hampshire

Population of ages 45 to 64: 30%

Retired cost of living compared to national average: 10.4% above

Median income of age group: $93,052

State’s tax friendliness: Most tax friendly

Asbury Park, New Jersey

Population of ages 45 to 64: 24.2%

Retired cost of living compared to national average: 25.5% above

Median income of age group: n/a

State’s tax friendliness: Mixed

Albuquerque, New Mexico

Population of ages 45 to 64: 26.1%

Retired cost of living compared to national average: 2.4% below

Median income of age group: $59,944

State’s tax friendliness: Least tax friendly

Buffalo, New York

Population of ages 45 to 64: 28.3%

Retired cost of living compared to national average: 6.1% below

Median income of age group: $67,558

State’s tax friendliness: Not tax friendly

Raleigh, North Carolina

Population of ages 45 to 64: 25.9%

Retired cost of living compared to national average: 7.3% below

Median income of age group: $82,608

State’s tax friendliness: Not tax friendly

Bismark, North Dakota

Population of ages 45 to 64: 25.8%

Retired cost of living compared to national average: 2.8% below

Median income of age group: $82,884

State’s tax friendliness: Tax friendly

Cincinnati, Ohio

Population of ages 45 to 64: 27%

Retired cost of living compared to national average: 4.2% below

Median income of age group: $72,675

State’s tax friendliness: Mixed

Oklahoma City, Oklahoma

Population of ages 45 to 64: 24.1%

Retired cost of living compared to national average:13.9%

Median income of age group: $65,355

State’s tax friendliness: Not tax friendly

Portland, Oregon

Population of ages 45 to 64: 26.2%

Retired cost of living compared to national average: 28.7% above

Median income of age group: $79,11

State’s tax friendliness: Not tax friendly

Pittsburgh, Pennsylvania

Population of ages 45 to 64: 28.9%

Retired cost of living compared to national average: 1% above

Median income of age group: $70,254

State’s tax friendliness: Most tax friendly

Providence, Rhode Island

Population of ages 45 to 64: 28.1%

Retired cost of living compared to national average: 22.5% above

Median income of age group: $77,721

State’s tax friendliness: Not tax friendly

Greenville, South Carolina

Population of ages 45 to 64: 26.3%

Retired cost of living compared to national average: 2.6% below

Median income of age group: $59,527

State’s tax friendliness: Tax friendly

Pierre, South Dakota

Population of ages 45 to 64: 27.8%

Retired cost of living compared to national average: 2.5% below

Median income of age group: $71,807

State’s tax friendliness: Most tax friendly

Knoxville, Tennessee

Population of ages 45 to 64: 27.2%

Retired cost of living compared to national average: 17.4% below

Median income of age group: $58,303

State’s tax friendliness: Tax friendly

Sherman, Texas

Population of ages 45 to 64: 26.8%

Retired cost of living compared to national average: 14.3% below

Median income of age group: $64,446

State’s tax friendliness: Tax friendly

Ogden, Utah

Population of ages 45 to 64: 20.7%

Retired cost of living compared to national average: 0.7% below

Median income of age group: $84,527

State’s tax friendliness: Least tax friendly

Burlington, Vermont

Population of ages 45 to 64: 27.6%

Retired cost of living compared to national average: 17.2% above

Median income of age group: $83,500

State’s tax friendliness: Least tax friendly

Roanoke, Virginia

Population of ages 45 to 64: 28.4%

Retired cost of living compared to national average: 10.3% below

Median income of age group: $62,803

State’s tax friendliness: Tax friendly

Seattle, Washington

Population of ages 45 to 64: 26.4%

Retired cost of living compared to national average: 50.1% above

Median income of age group: $92,533

State’s tax friendliness: Tax friendly

Morgantown, West Virginia

Population of ages 45 to 64: 23.2%

Retired cost of living compared to national average: 6.3% below

Median income of age group: $63,746

State’s tax friendliness: Not tax friendly

Green Bay, Wisconsin

Population of ages 45 to 64: 27.6%

Retired cost of living compared to national average: 10.2% below

Median income of age group: $70,934

State’s tax friendliness: Least tax friendly

Cheyenne, Wyoming

Population of ages 45 to 64: 25.9%

Retired cost of living compared to national average: 7.9% below

Median income of age group: $75,418

State’s tax friendliness: Most tax friendly