10 Affordable Cities for Retirement

These places are a bargain for retirees — and you can't beat the lifestyle

by: Sarah Mahoney | from: AARP The Magazine | Sept./Oct. 2011 issue

En español | If money didn't matter, there'd be plenty of fabulous places to spend your retirement: a penthouse in Paris. An all-glass modern on the beach in Malibu. Perhaps a small winery in Napa Valley.

10 Affordable Places

Pennsylvania's scenic capital made the list. — Photo courtesy Flickr

Our 10 most affordable cities to retire in are located in the following states. Click on each to see which places made the cut.

But money does matter. Even as the financial markets limp out of their recessionary funk, many of us are redefining what our "dream" retirement might look like.

Sure, Honolulu has beaches and well-priced pineapples, but few of us can afford its median home price of $550,000. Chicago has world-class dining and lake views galore, though its 9.75 percent sales tax can put those amenities out of reach. Then again, not many of us want to move to a one-stoplight town either, even if it is cheap.

We started our search for the perfect retirement destinations by examining financial data on more than 350 cities across the country. We looked at not only property- and sales-tax rates, median housing price, and cost of living but also the tax rate on pensions and Social Security. Then we added in such criteria as recreation, climate, and arts and culture.

The result: 10 retirement destinations that are affordable and livable.

Next: A colonial city with a thriving historic district. >>

CORRECTION: The property tax rates for five cities in AARP The Magazine’s "Best Places 2011" story were misstated in many copies of the September/October issue. The correct rates are as follows: Gainesville, GA, 0.776%; Portland, ME, 1.435%; Tulsa, OK, 0.877%; Winchester, VA, 0.553%; Wenatchee, WA, 1.052%.

Source: Sperling’s Best Places