With 50% of people thinking it’s not realistic for the average American to expect to retire comfortably, the personal-finance company WalletHub today released its report on 2025’s Best & Worst Places to Retire, as well as its 2025 Retirement Savings Survey.
To help Americans plan for a comfortable retirement without breaking the bank, WalletHub compared more than 180 U.S. cities across 45 key measures of affordability, quality of life, health care and availability of recreational activities. The data set ranges from the cost of living to retired taxpayer-friendliness to the state’s health infrastructure.
| Best Cities to Retire | Worst Cities to Retire | |
| 1. Orlando, FL | 173. Bridgeport, CT | |
| 2. Scottsdale, AZ | 174. Salem, OR | |
| 3. Minneapolis, MN | 175. Pearl City, HI | |
| 4. Miami, FL | 176. Fontana, CA | |
| 5. Tampa, FL | 177. Fresno, CA | |
| 6. Atlanta, GA | 178. Newark, NJ | |
| 7. Fort Lauderdale, FL | 179. Bakersfield, CA | |
| 8. Cincinnati, OH | 180. Rancho Cucamonga, CA | |
| 9. Madison, WI | 181. Stockton, CA | |
| 10. Casper, WY | 182. San Bernardino, CA | |
To view the full report and your city’s rank, please visit:
https://wallethub.com/edu/
Retirement Savings Survey
- Retirement doubt. 50% of people don’t think it’s realistic for the average American to expect to retire comfortably.
- Americans worry about retirement. Nearly 2 in 5 people feel anxious when thinking about retirement.
- Many people lack a plan. More than 1 in 4 Americans don’t have a retirement plan.
- Many people may never retire. 43% of people say they expect to work until they die.
- Debt takes precedence. Most Americans (53%) think paying off debt is more important than making retirement contributions.
- Dependency risk. More than 1 in 4 Americans are counting on family members to support them financially when they retire.
For the full survey, please visit:
https://wallethub.com/blog/
“It’s important to choose wisely when picking where to retire, as many retirees are on a fixed income. As a result, the best cities for retired people are those that minimize taxes and expenses, as well as have good opportunities for retirees to continue paid work for extra income, if they choose to do so. In addition, the top cities provide high-quality health care and offer plenty of enjoyable activities for retirees.”
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“Orlando, FL, is the best place to retire, in part because it is one of the most tax-friendly cities and is located in a state without estate, inheritance or income taxes. In addition, while Orlando doesn’t have a particularly low cost of living, it is relatively inexpensive when it comes to homemaker services and adult day health care. On top of that, Orlando ranks as the third-best city for recreation, and it provides good access to quality health care.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What financial factors should retirees take into consideration when deciding where to retire?
“There are a wide range of financial factors that need to be considered when someone is deciding where to spend their retirement. For example, tax burdens in various states can vary widely. While some states such as Florida and Texas may not have state income taxes, their property and sales taxes tend to be higher. Early in retirement, most couples look forward to expensive vacations (e.g., ocean cruises, international travel), that would require ready sources of cash, that may not be available if you just put a large downpayment on a new home for retirement. In addition, adult children and grandchildren, as well as aging parents, often need more personal and financial assistance than in the past. As a result, you may need to consider these demands when deciding where you are going to live during your retirement years.”
Kenneth S. Shultz, PhD – Professor; Department Chair, Psychology; Faculty Affiliate of the Center on Aging, California State University, San Bernardino
“Public services, taxes, housing costs, walkability, public transportation, accessibility of housing.”
Joanna N. Lahey – Professor, Texas A&M University
What is the biggest mistake that people make when planning their retirements?
“One of the biggest mistakes older workers make is assuming that their retirement is a long way off, and they don't need to plan for it. In fact, my research shows most retire earlier than they expected, whether because of layoffs, early retirement packages, poor health, caregiving responsibilities, a spouse's retirement, overload, or a bad boss. And planning should include considering lifestyle as well as financial issues. People are living longer, and need to think about how they want to spend these bonus years, including the possibility of another (often part-time) job, involving either paid work or unpaid volunteering.”
Phyllis Moen – Distinguished Research Scholar, Institute for Social Research & Data Innovation (ISRDI); Professor Emeritus, University of Minnesota & Cornell University
“Not saving enough, and not starting early. Another big mistake is using a high-fee broker instead of a low-fee one like Fidelity or Vanguard. Bogleheads has really great advice for the lowest cost ways to invest retirement money (use index or target-date funds from a low-cost broker) so you get the returns on your investment instead of a company that does nothing but skim off the top or who trades excessively to increase fees and risk.”
Joanna N. Lahey – Professor, Texas A&M University
What tips do you have for living on a fixed income during retirement?
“Traditionally, financing retirement was thought of as the three-legged stool – consisting of guaranteed pensions, social security, and personal savings. However, fewer employers are offering their employees guaranteed pension benefits (AKA, defined benefit pension plans). These have been replaced with 401k, 403b, and 457 plans (AKA, defined contribution retirement plans), where a steady stream of income and returns is not guaranteed. In addition, the employee must assume the risk of managing their retirement accounts. If one is too aggressive in investing their retirement funds, they may lose a significant portion of their accounts with a market downturn. However, if they are too conservative in their investing, they may not keep up with inflation and struggle to cover their living expenses in retirement over time. Thus, it is important to plan for a mixture of accounts that help provide a hedge against inflation, while also being able to weather market downturns. An increasingly popular option for retirees is to convert a portion of your 401k or IRA plan into a guaranteed, lifetime annuity. That way you will have a source of some guaranteed income in retirement, while still having some flexibility with the remaining funds.”
Kenneth S. Shultz, PhD – Professor; Department Chair, Psychology; Faculty Affiliate of the Center on Aging, California State University, San Bernardino
“Retirees tend to cook more and go out less. Some downsize their houses – though be sure to safeguard that money so it lasts if you do that. Some people move in with family. Pay attention to politics because the near future is going to be critical for Social Security and Medicare, which older people have worked for their entire lives but may be cut. Similarly, Medicaid, which provides services to older people that they may not be aware of, has already been cut. State and local programs that affect older people will also be important going forward.”
Joanna N. Lahey – Professor, Texas A&M University
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