This article takes a look at the 15 best places to retire in Kentucky. If you wish to skip our detailed analysis on navigating retirement in Kentucky, you may go to 5 Best Places to Retire in Kentucky.
Kentucky’s Retirement Landscape
Of Kentucky’s population, over 1.6 million residents fall in the 50 and above category, reports Senior Living. This means Kentucky has a higher percentage of people in this age group than the national average, with 36.4% compared to the U.S. average of 35.3%. While Kentucky may house a higher percentage of older adults than average, their financial circumstances do not follow suit. According to Senior Living, the average income for senior citizen households in Kentucky is $36,161 – $7,574 less than the US average of $43,735. This means that, on average, Kentucky senior citizens are making $3,013 per month. So, how do Kentucky’s expenses measure?
Zillow Group, Inc. (NASDAQ:Z) puts the median figure for a one-bedroom rental in Kentucky at $925. This is 42% lower than Zillow Group, Inc. (NASDAQ:Z)’s US average of $1,600. As for groceries, NowPatient’s state-by-state rankings lent a figure of $315.2 for an individual’s monthly shopping. Similarly, numbers for Kentucky healthcare spending come out to $998 per resident, according to USAFacts. Subtract groceries, rent, and healthcare from the average Kentucky senior citizen’s income, and you’re left with less than $800. Now, consider the senior citizens who are surviving solely on a Social Security income – a mere $1,909 per month according to the Social Security Administration’s 2024 payout. For them, the above-stated figures for rent, groceries, and healthcare become out of budget.
This doesn’t mean that a Kentucky retirement isn’t possible for retirees living on Social Security checks – it just requires a bit more planning. For instance, Zillow Group, Inc. (NASDAQ:Z) lists Kentucky one-bedroom rentals for as low as $412. Similarly, senior citizens who plan to become retirement-time homeowners would find the state’s housing market to be favorable. Redfin Corporation (NASDAQ:RDFN) lists Kentucky’s median house price to be a low of $249,000. While Redfin Corporation (NASDAQ:RDFN) says that this is a 7.3% increase since February 2023, it is still much lower than states such as Florida, Washington, and Hawaii. The state of Kentucky also doesn’t tax Social Security income, landing it among the states that won’t tax Social Security income in 2024. However, most other types of retirement income are taxed. Of these types, some may qualify for an exclusion. Property and sales taxes in the state are relative low, but there is an inheritance tax in the state as well.
However, there’s more than finances that make the Bluegrass State retirement-friendly. When it comes to health and safety, Kentucky triumphs across several metrics. For instance, U.S. News & World Report states that just 7.9% of Kentucky’s population is without health insurance, compared to a national average of 12.2%. Similarly, on average the state experiences 89 days of unhealthy air quality annually – 25 less than the national average of 114 days. Road quality in Kentucky is also on the winning side. About 7.4% of all roads in the state are in poor condition compared to a dire 19% across the US. All of these factors combine to make retirement living in Kentucky a pleasant experience.
To facilitate present and potential retirees in navigating the move to Kentucky state, we have compiled a list of the 15 best places to retire in Kentucky.
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Methodology
To compile this list of the 15 best places to retire in Kentucky, we consulted several sources including our lists of 25 Most Affordable Places to Retire in the U.S. in 2024, 15 Affordable Hidden Gem Southern Cities to Retire In, Niche, Retireable, Movoto, and NewHomeSource. Once a list of places was compiled using these sources, we then ranked them across multiple factors, namely, their cost of living, their livability scores, and their median house price. For this article, livability scores were taken from Area Vibes, and median house prices were taken from Redfin Corporation (NASDAQ:RDFN). Our cost of living index covers housing, utilities, food, transport, taxes, and healthcare, where an index score of 100 depicts the US average. To ensure that the places were of a suitable living standard, we removed any with a livability score below 65. A cumulative score was assigned to each place, with the 15 highest-scoring places making our list of the 15 best places to retire in Kentucky. For places that gained an equal score, their cost of living index was used as a tie-breaker. Our list is presented in ascending order.
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Here are the 15 best places to retire in Kentucky:
15. Lyndon
Insider Monkey Score: 69
Livability: 77
Cost of Living Index: 92.9
Median House Price: $284,950
A Louisville suburb set in Jefferson County, Lyndon is our first pick for the best places to retire in Kentucky for retirees. Senior citizens living on a budget will gladly welcome Lyndon’s low cost of living and house prices, making their finances a little easier. The area also offers a range of dining options for when you don’t feel like cooking, including the highly-rated The Goose Eatery & Hangout and Los Aztecas Mexican Restaurant.
14. Villa Hills
Insider Monkey Score: 75
Livability: 78
Cost of Living Index: 91.1
Median House Price: $263,000
Our second pick – the city of Villa Hills – provides residents with stunning water views as it overlooks the Ohio River. A small place with a population of below 7,500 at the time of the last United States Census, Villa Hills is the perfect dwelling place for retirees who want to take it slow.
13. Berea
Insider Monkey Score: 75
Livability: 73
Cost of Living Index: 84.5
Median House Price: $257,950
At an index of 84.5, Berea’s cost of living is among the lowest in our list of the best places to retire in Kentucky. Not only can residents enjoy a more affordable living, but they can also move one step closer to becoming homeowners thanks to Berea’s low median house price and property taxes. There’s lots to do in the city – including visiting its famed restaurants and attending local art festivals – meaning that no retiree will get bored.
12. Lexington
Insider Monkey Score: 76
Livability: 87
Cost of Living Index: 92.3
Median House Price: $305,000
Kentucky’s second most populous city, Lexington, takes the next spot on our list. Famously known as the ‘Horse Capital of the World’, Lexington boasts a variety of thoroughbred racetracks and horse farms. Among the most popular is Keeneland, where thousands come to purchase horses of their own and watch the annual horse races. Of course, the city also keeps in mind its other residents with a range of museums, eateries, and nature spots that retirees can frequent. This city is one of the best places to retire for active adults.
11. Paducah
Insider Monkey Score: 77
Livability: 67
Cost of Living Index: 88.8
Median House Price: $168,000
A city set in McCracken County, Paducah is an important node for the Illinois Central Railway. It is also home to several dry dock facilities which in part contribute to the city’s importance. From a financial perspective, the city offers a cost of living that is 11.2% lower than the national average, helping retirement savings go further. Residents can also get outdoorsy and visit the Stuart Nelson Small Dog Park, the Bob Noble Park, and Kolb Park, to name a few.
10. Fort Thomas
Insider Monkey Score: 78
Livability: 91
Cost of Living Index: 89.8
Median House Price: $328,750
Our next pick, Fort Thomas, is one of the nicest parts of Kentucky to live in. Located on the Ohio River’s south bank, the city opens up to scenic water views and sprawling greens thanks to its many parks. Retirees can also rest assured when it comes to their health as the St. Elizabeth Ft. Thomas Hospital in the city caters to a wide range of medical care domains.
9. Owensboro
Insider Monkey Score: 80
Livability: 70
Cost of Living Index: 83.9
Median House Price: $183,000
It’s natural to ask yourself, ‘What are the pros and cons of retiring in Kentucky?’ when considering your retirement move. Well, if you’re retiring in Kentucky’s Owensboro city, then one of its major pros is the low median house price. At $183,000, Owensboro residents can purchase a home for over $200,000 below the US national median.
8. Frankfort
Insider Monkey Score: 80
Livability: 72
Cost of Living Index: 82.9
Median House Price: $209,000
The next spot on our list goes to the capital city of Kentucky – Frankfort. The city is known for being the home ground of three distilleries – Three Boys Farm Distillery, Castle & Key Distillery, and Buffalo Trace Distillery. Apart from this, the city also boasts a variety of indoor and outdoor activities such as the Rebecca Ruth Candy Tours & Museum, the Salato Wildlife Education Center, and Cove Spring.
7. Crestview Hills
Insider Monkey Score: 81
Livability: 84
Cost of Living Index: 88.2
Median House Price: $263,750
A college town, Crestview Hills is the perfect retirement escape for senior citizens who want a peaceful retirement in a friendly town. With a cost of living that is 11.8% lower than the national average, Crestview Hills is financially welcoming for retirees who are surviving off of Social Security checks or otherwise limited monthly budgets.
6. Shively
Insider Monkey Score: 84
Livability: 78
Cost of Living Index: 92.4
Median House Price: $130,250
If being a retirement-time homeowner has always been at the top of your to-do list, then the city of Shively in Jefferson County is one of your best options. With a low median house price of $130,250, Shively can be a nice place to own a home. The city is also a great place to live with a range of indoor and outdoor activities, nearby healthcare centers, and a range of delicious eateries.
Click to continue reading and see the 5 Best Places to Retire in Kentucky.
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Disclosure: none. 15 Best Places to Retire in Kentucky is originally published on Insider Monkey.