Retirement is a time to relax and unwind. However, rising living costs and financial uncertainties can make it challenging to fully embrace this next chapter.
This article looks at the 17 best places to retire in the US in 2024. You may skip our detailed analysis on retirement savings and jump to the 5 Best Places to Retire in the US in 2024.
Retirement Savings and Best Places to Retire in the US
For many years, the 4% withdrawal rate has been the norm. This retirement budgeting rule suggests that retirees are safe to withdraw 4% of the balance in their retirement accounts in the first year of retirement. After the first year, the same dollar amount, adjusted for inflation, can be withdrawn. The 4% rule exists so that retirees can have a steady income stream in their golden years while having an adequate account balance for the future.
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The 4% withdrawal rule was first suggested by financial planner William Bengen back in 1994. However, this rule has a significant limitation: it’s not a one-size-fits-all guideline. Your personal circumstances play a big role. For example, you may not need to withdraw 4% annually if you have a substantial retirement portfolio. On the other hand, if your retirement savings are limited, 4% might fall short of covering your expenses.
More importantly, the rule may not even hold up today. Due to the rising inflation levels over the years, the 4% rule has become less reliable. As prices rise, keeping up with everyday expenses becomes harder, especially if your income stays the same. For retirees, inflation can be especially challenging because their savings may not stretch as far, making it more difficult to cover living costs without spending more of their savings.
So how can retirees withdraw at a safe rate without replenishing their savings? According to a new JPMorgan Chase & Co. (NYSE:JPM) study by JPMorgan Asset Management, having a dynamic model that adapts withdrawal rates and asset allocations in response to changes in economic and market environments and shifts in personal circumstances works better. Since every retiree has unique personal circumstances and risk profiles, using a dynamic withdrawal strategy can help secure their income needs and maximize the utility of their retirement assets.
The five key factors incorporated in its dynamic model include expected lifetime utility, levels of wealth and lifetime income, current age and life expectancy, market randomness and extreme events, and the dynamic nature of the decision-making process. Indeed, crafting a strategy based on such a model can help with a unique withdrawal rate that is better positioned to suit the varied needs of an individual.
Financial security is a key concern for retirees, and making smart investment decisions plays a crucial role in maintaining long-term stability. One potential investment option for retirees is JPMorgan Chase & Co. (NYSE:JPM), the world’s largest private bank by total assets.
JPMorgan Chase & Co. (NYSE:JPM) is also a good bank stock to buy in 2024. It benefits from a global presence in consumer, corporate, and investment markets. This helps the bank stay strong in different economic conditions. The stock increased by 7.4% from the end of 2021 to 2023. Shares have also risen by 23% this year.
While we acknowledge the potential of JPM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Where to Retire
Even when retirees have their finances sorted, another hard decision they need to make is where to settle down. As such, retirees prefer settling in places where they can get the best bang for their buck, and have access to good healthcare while enjoying easy access to modern amenities. Some of the best places to retire financially in the US include cities and towns in the states of Michigan, Oklahoma, Missouri, Kansas, and Minnesota.
Insider Monkey conducted an analysis considering factors such as cost of living, average Social Security pay-out, and estimated after-tax income, to arrive at these top five states. While affordability is an important factor, another important consideration for retirees is safety. As such, some of the safest and most affordable places to retire in the US include places such as Pinehurst in North Carolina, Fort Wayne in Indiana, and Ocala in Florida, to name a few.
The top states retirees are moving from to live an affordable and comfortable life are New York, California, and Massachusetts. Indeed, these are some of the worst states to retire owing to their high cost of living and taxes. While some states may pose financial challenges for retirees, several regions across the U.S. offer affordability, tax benefits, and a comfortable lifestyle instead.
Methodology
To compile a list of the best places to retire in the US in 2024, we reviewed previous lists and compiled a comprehensive list. These were ranked based on factors like housing affordability, cost of living, and quality of life. Scores were totaled, and the cities were ranked in ascending order, with higher-ranking places offering the best combination of these factors.
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On that note, let’s look at some of the best places to retire in the US in 2024:
17. Allentown, Pennsylvania
Insider Monkey Score: 10
IM Cost of Living Index: 97.9
Livability Score: 78
Situated in eastern Pennsylvania, Allentown is one of the best places to retire in the US in 2024. Besides being affordable for the average retiree, the city also promises a rich cultural scene and a vibrant community life. The city’s ongoing urban renewal has brought a surge of energy, with a wide range of cultural attractions, including museums, historic sites, and institutions like Cedar Crest College and Muhlenberg College.
Retirees can enjoy a thriving arts scene and take part in the many events that make Allentown special, such as The Great Allentown Fair, Lights in the Parkway, and seasonal favorites like the Allentown Beer Fest and Blues, Brews, and BBQ.
16. Jacksonville, Florida
Insider Monkey Score: 13
IM Cost of Living Index: 95.7
Livability Score: 80
The love for the Sunshine State is mutually found amongst retirees. This time, it’s Jacksonville that stands out from the crowd. Top healthcare facilities, thriving cultural scene, and abundant recreational activities make it a prime choice for retirees.
The cherry on top has got to be its beautiful beaches, affording seniors a coastal lifestyle they may have always dreamed of. And then there are annual events like the Jacksonville Jazz Festival and the Riverside Arts Market that keep the community lively and engaged.
15. Durham, North Carolina
Insider Monkey Score: 13
IM Cost of Living Index: 98.8
Livability Score: 81
The alluring city of Durham in North Carolina is hands-down one of the best places to retire in the US. Some retirees love it for its celebrated food scene, others endorse it for its prestigious universities and learning opportunities, and yet many others appreciate it for its vibrant community life.
World-class healthcare, a vibrant downtown, and historic architecture further add to the appeal of retiring here.
14. Boise, Idaho
Insider Monkey Score: 14
IM Cost of Living Index: 119.6
Livability Score: 83
The clean, lively, artistic, and most importantly, tree-lined city of Boise is another appealing destination to retire to in the US. The city’s compelling blend of natural beauty, affordability, and diverse culinary scene adds to the appeal of retiring here.
However, that’s not all. Retirees can spend more than 210 days of sunshine here, enjoying scenic parks, hiking trails, as well as the nearby Boise River.
13. Pensacola, Florida
Insider Monkey Score: 15
IM Cost of Living Index: 89
Livability Score: 79
Situated in the Pensacola Panhandle, Pensacola promises 500 years of history, coastal charm, affordability, and most of all; a laid-back lifestyle. Its stunning white-sand beaches and emerald waters are a charmer, offering retirees a chance to enjoy year-round sunshine and outdoor activities like fishing, boating, and golfing.
Then there’s the city’s historic downtown, filled with unique shops, restaurants, and cultural venues, including theaters and museums that celebrate its rich history.
12. Lancaster, Pennsylvania
Insider Monkey Score: 15
IM Cost of Living Index: 99.5
Livability Score: 82
Another Pennsylvania pick, Lancaster appeals to those who value small-town life, rich history, and close-knit communities. This bustling city brims with diverse shopping areas, exceptional dining, and historical landmarks.
The cost of living is close to the national average, and retirees get to enjoy a high quality of life here. Lancaster is also home to the famed Amish Country, where retirees can enjoy tranquil landscapes and a slower pace of life.
11. Peoria, Illinois
Insider Monkey Score: 15
IM Cost of Living Index: 82.8
Livability Score: 74
Set on the Illinois River, Peoria is an affordable retirement destination that is bursting with amenities for seniors. No wonder it is a retiree-favorite, with many public parks, a lively music scene, local dining options, and much more.
It location along the river offers a beautiful backdrop, as well as provides opportunities for outdoor activities such as fishing, hiking, and boating. There are excellent healthcare options available, making it one of the best places to retire in the US.
10. Ogden, Utah
Insider Monkey Score: 15
IM Cost of Living Index: 107.2
Livability Score: 83
Blessed with stunning scenery and abundant recreational opportunities, Ogden is another strong contender on our list of best places to retire in the US. This city is especially appealing to seniors who love to enjoy the outdoors.
Its setting against the stunning Wasatch Mountains offers retirees access to year-round outdoor activities, from hiking and skiing to fishing and biking. Downtown is a treat itself, with its pedestrian-friendly layout, distinctive architecture, and wide range of dining, shopping, nightlife, and entertainment options.
9. Springfield, Missouri
Insider Monkey Score: 18
IM Cost of Living Index: 79
Livability Score: 72
Situated in the heart of the Ozarks, Springfield offers everything a retiree dreams of having in their golden years. Besides world-class healthcare, pristine parks, scenic trails, and charming rivers and streams, Springfield offers a blend of historic and modern theaters, vibrant fall festivals, and a wide array of shopping options. This city truly has it all.
The best thing about the city, however, is that all of this is offered at a cost of living that is well below the national average.
8. Cedar Rapids, Iowa
Insider Monkey Score: 18
IM Cost of Living Index: 81.8
Livability Score: 74
Theater, music, and museums: the three words that summarize Cedar Rapids best. Those young at heart especially love this city, but there is more than just entertainment in Cedar Rapids. There are lush parks, scenic trails, and also the picturesque Cedar River with abundant recreation opportunities.
Residents also love this city for its strong sense of community and ease of amenities, making it one of the best places to retire in the US.
7. Pittsburgh, Pennsylvania
Insider Monkey Score: 19
IM Cost of Living Index: 91.8
Livability Score: 82
Pennsylvania is surely a retiree favorite with 3 cities making it to our list. Pittsburgh, with its vibrant cultural scene and a calendar full of events, is home to world-class museums, theaters, and a renowned music scene.
Pittsburgh also boasts a strong healthcare system and a variety of dining, shopping, and entertainment options. Its friendly neighborhoods and rich history make Pittsburgh a welcoming and engaging place to spend one’s golden years.
6. Des Moines, Iowa
Insider Monkey Score: 19
IM Cost of Living Index: 86.6
Livability Score: 81
Des Moines, the capital city of Iowa, is the best blend of affordability, culture, and high quality of life. The city boasts a range of cultural attractions, including art galleries, theaters, and music venues, along with a thriving local food scene.
Des Moines’ parks, trails, and nearby lakes offer plenty of opportunities for outdoor activities. The city’s friendly community, strong healthcare facilities, and diverse shopping and dining options further enhance its appeal as a well-rounded retirement destination.
5. Florence, Alabama
Insider Monkey Score: 20
IM Cost of Living Index: 83
Livability Score: 81
Retirees on a fixed income can consider retiring to Florence, Alabama. This retirement destination offers a cost of living more than 15% lower than the national average. Besides its affordability, Florence appeals to retirees with its warm hospitality, rich history, and abundant attractions.
The nearby scenic outdoors, including the Tennessee River and local parks, provide ample opportunities for outdoor recreation.
4. Ann Arbor, Michigan
Insider Monkey Score: 21
IM Cost of Living Index: 105.5
Livability Score: 89
The bustling university town of Ann Arbor, also known as Tree City, is brimming with lively sporting events, excellent medical facilities, and safe neighborhoods. Its charming downtown offers unique shops, diverse dining options, and local farmers’ markets. Ann Arbor also boasts beautiful parks, trails, and the Huron River, providing ample outdoor recreational opportunities.
3. Youngstown, Ohio
Insider Monkey Score: 24
IM Cost of Living Index: 74.4
Livability Score: 80
For the retiree looking for the best bang for their buck without compromising on quality of life, Youngstown is the best place to be. Affordability, historical charm, and a strong sense of community make it one of the best places to retire in the US.
2. Fort Wayne, Indiana
Insider Monkey Score: 27
IM Cost of Living Index: 82
Livability Score: 83
The small-town feel, affordable cost of living, and high quality of life make Fort Wayne in Indiana another enticing option to consider for seniors. There are lots of friendly attractions to explore, fun festivals and events, and outdoor activities to keep busy year-round.
Living expenses in Fort Wayne are 18% lower than the national average.
1. Sioux Falls, South Dakota
Insider Monkey Score: 29
IM Cost of Living Index: 90.7
Livability Score: 84
Topping our list of best places to retire in the US in 2024 is Sioux Falls, South Dakota. This city happens to be in the state that has been ranked the best state to retire in the US by Insider Monkey. It is known to be one of the safest and most affordable places to spend one’s golden years. It’s also a vibrant mix of entertainment, food, culture, shopping, and adventure.
Besides its budget-friendly lifestyle, retirees will love Sioux Falls for its picturesque parks, including the stunning Falls Park which features beautiful waterfalls and walking trails. It’s further enriched by its vibrant cultural scene, characterized by a variety of museums, theaters, and local events. Then there’s its strong healthcare system and diverse dining and shopping options, tying it all together to bring a complete retirement package.
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Disclosure: None. This article was originally published on Insider Monkey.
