The 5 best American cities to retire in

Here are the 5 best American cities to retire in

September 18, 2023 6:58 PM

St. Louis, Missouri is the second-best American city for retired life, according to a study by ConsumerAffairs.

Where's the best place to retire? It can be an overwhelming question. There are so many factors to consider: cost of living, weather, access to health care — and, of course, proximity to one's grandkids. The list goes on and on.

Luckily, ConsumerAffairs has offered some answers. The research and news platform analyzed 165 urban areas and put together a list of America's most retirement-friendly cities. The criteria included affordability, crime rates, the availability of parks and cultural activities, walkability and many other concerns — all of which are relevant when deciding where to spend one's golden years.

"It's a big decision," said Mark Huffman, a writer and retirement expert for ConsumerAffairs. "There are so many factors, and if you're not considering them, you can easily make a mistake."

Today a growing number of Americans start their retirement in a new state. The moving company United Van Lines found that of all the interstate moves it handled last year, 20% were by new retirees. More than 234,000 newly retired Americans moved to another state in 2022 — 4% more than in 2021, according to Hire a Helper, a moving services booking company.

So the question of where to retire is increasingly important. But it's not just a matter of data. Some retirement advisors say it's crucial to visit a place before deciding to move there.

"Feel is so important," said Monica Dwyer, vice president of Harvest Financial Advisors in West Chester, Ohio. "Does it feel like home? Is there a community there that you could really become intertwined with? Is it the kind of place that has people who share your same values and ideals? Community is so incredibly important as a determinant of longevity and a healthy lifestyle."

But before clients start traveling across the country, studies like ConsumerAffairs' offer a quick primer on where to look. Huffman hopes readers will find the rankings helpful.

"I hope that they consider some things that they might not have considered," he said. "If you just pick a name out of a hat, you could move somewhere where they don't have a hospital and they have one grocery store in town, and it charges insanely high prices."

Below are the five best cities to retire in, according to ConsumerAffairs:

Lincoln, Nebraska

Anyone expecting a sunny Florida metropolis in the top spot may be surprised by the study's No. 1 pick: Lincoln, Nebraska.

The capital of the Cornhusker State distinguished itself in two important ways: its affordability and its low crime rate. The study found that only 43.6% of residents spend more than 30% of their income on rent — which was low compared with other cities — and there were only 3,134 crimes per 100,000 people.

It also had another advantage: A relatively large number of seniors — 14.6% of the population — is 65 and older. For retirees, that means more than just a larger group of peers to socialize with.

"Having a large population of seniors will attract businesses and infrastructure that cater to that age demographic, because they have a large customer base," Huffman said.

St. Louis, Missouri

Similar to Lincoln, St. Louis got high marks for its low cost of living and high population of seniors. Fifteen percent of residents are 65 and older, and 47.3% spend more than 30% of their income on rent.

In general, the top rankings tended to favor cities in this part of the country — for good reason, Huffman said.

"If you look at the map, it's very clear: The top places are largely in the Midwest," he said. "The Midwest generally has a pretty low cost of living. Your money goes farther."

In addition, St. Louis got the highest "Walk Score" — a measure of how walkable the area is — of any of the top five cities: 65.5 out of 100. Lincoln, by comparison, scored only 42.7.

Champaign, Illinois

Continuing the Midwest trend, the No. 3 spot went to Champaign, Illinois. The city scored high on walkability — 49.8 — and low on crime — 3,408 crimes per 100,000 people.

Also, as the home of the University of Illinois, Champaign is a college town. And like many college towns, the city offers a thriving arts scene, sports events and other engaging activities for college kids and seniors alike.

"A college town offers a lot of cultural things," Huffman said. "You're in a stimulating environment, which, for aging people, is important."

Andrew Sivertsen, a senior financial planner at The Planning Center in Moline, Illinois, highly recommends Champaign as a retirement destination.

"The cost of living and housing is very affordable," Sivertsen said. "You will enjoy the fullness of all four seasons, and the people are largely tolerant, accepting of new people and all-around polite."

Des Moines, Iowa

Next on the list is the capital of the Hawkeye State. Of the top five cities, Des Moines had the overall lowest cost of living, scoring 85.9 out of 100 on the study's cost of living index. (The lower the score, the lower the cost of living. Lincoln, by comparison, scored 91.2.)

The city also boasts a large number of seniors, with 13% of the population aged 65 or older, and a decent walkability score of 44.9. According to Sivertsen, Des Moines and Champaign offer many of the same perks for retirees.

"Both cities are mid-sized urban communities with a suburban feel," he said. "Both have robust communities with a lot of opportunities for recreation and entertainment, like civic centers for high profile concerts, college sporting events and diverse dining options."

El Paso, Texas

Rounding out the top five is El Paso, Texas. This jewel of the Lone Star State is notable for its low crime rate, at just 1,864 crimes per 100,000 people, and high senior population, with 14.1% of residents aged 65 and up.

It also offers something else: a warmer climate. The average temperature in El Paso from February 2022 to January 2023 was 66.6 degrees Fahrenheit, according to ConsumerAffairs.

All of this makes El Paso an attractive place for retirees to settle down. But in addition to factors like temperatures and crime rates, retirement advisors emphasize another factor to consider: family.

"Several of my clients have moved to other states for their retirement, but in each case they did that to be closer to their adult children and grandchildren," said Robin Hovis, a financial advisor at LPL Financial in Millersburg, Ohio. "So, I say, live in retirement near the people who matter to you, and find ways to manage your other needs from that location."