Are You Ready to Retire? Discover Affordable Retirement Havens for 2025
Keep in mind that if you want an enjoyable retirement, the cost of living is a crucial factor to consider. Relying on a fixed income can be extremely challenging, especially in 2025, when technology took over and the world is constantly and rapidly changing. The economic situation is crazy, and even the basic daily expenses have become almost impossible to manage.
We are no longer considering activities that could make our lives more enjoyable, but tend to focus on the things that will basically keep us alive. The daily spending is incredibly high, leaving us no chance to spend extra on anything fun. We are forced to give up on our favorite activities and hobbies, and stay focused on the price hikes to see how we can manage our fixed monthly income.
One of the most annoying things is that the groceries we used to buy a few months ago are currently almost impossible to afford. What are we supposed to do in the future? How can we achieve a happy retirement? All these questions are raising serious concerns among American retirees, so it’s no wonder that 60% of them decide to move somewhere less expensive.
Read on and discover the best places to retire in the United States in 2025. The top presents places with the below-average living costs. And that’s not all! On top of affordability, all these incredible places rank very well when it comes to safety and health care facilities. You’ll find here diverse options, from beautiful towns with beaches to mountain hidden gems full of serenity. Get ready to relocate and make the best out of your retirement!
9 Places Where Retirement Feels Like Heaven
1. Fargo, North Dakota
North Dakota has a generous tax situation, attracting many retirees. So, if you were thinking about whether it’s worth it or not to move out for retirement, Fargo doesn’t need much time to exceed your expectations.
The city’s population is approximately 125,000, with 14% of the population being over 65. One of the biggest advantages the place offers is that the cost of living for retirees is below the national average. According to Zillow, Fargo offers low housing costs for retirees, with a median home value of $315,000.
Also, Fargo was ranked first in the state for health care, so this is another reason why retirees feel safer here.
2. Decatur, Alabama
Even though Alabama offers many great spots for affordable living, Decatur is a top pick for retirees. The median home value is just $120,40o, and probably the best part is that the Tennessee River offers countless options for outdoor recreation.
Retirement comes with a lot of challenges. The transition from a life full of work to living on a fixed income is not always smooth, but what makes the entire process feel better are the recreational activities. Retirees are always looking for new opportunities to grow and make new friends. For example, one of the most famous activities in Decatur is fishing at Wheeler Lake.
Reconnecting with nature and spending time with friends is something retirees love. Another great thing you need to know is that the tax situation is very attractive. In Alabama, Social Security is not taxed, and most pension income and homeowners 65 are exempt from state property taxes.
3. Prescott, Arizona
The Grand Canyon State is undoubtedly one of the most retiree-friendly places in the United States. Many Americans consider Arizona, mostly because of its climate, but also for its natural beauty. And that’s not all! We can’t ignore the fact that the tax situation is also very attractive.
There are no state taxes on Social Security, making Arizona one of the most tax-friendly states in America. Retirees are huge fans of this state, and Prescott is, by far, one of the best places for retirement. It offers numerous theaters, galleries, and music venues, as well as countless things to do outdoors. Some of the top choices when it comes to adventure are golfing and hiking.
4. Sioux Falls, South Dakota
Have you ever thought about moving to South Dakota? It might be one of the best places for your golden years. It’s filled with a lot of advantages, and some of the main ones are the health care and the strong economy.
Another thing retirees love is that there is no income tax and no estate or inheritance taxes. Sioux Falls is a top retirement destination for those seeking affordable living and quality healthcare. Even Forbes has recognized it as one of the best places to retire.
5. Grand Junction, Colorado
Grand Junction is another tax-friendly option for retirees. In 2025, when the price hikes are scaring us, choosing the best place for our golden years is a top decision.
Grand Junction is perfect for the nature-loving retirees who enjoy biking, hiking, and warm temperatures. And while the destination offers unlimited outdoor activity options, there are a lot of indoor activities that shouldn’t be underestimated. For example, there are multiple cultural offerings for retirees at Colorado Mesa University.
Colorado manages to keep state taxes low for retirees, and residents age 55 or older can easily get a generous retirement-income exclusion from state income taxes.
6. Sandy Springs, Georgia
Did you know that in Sandy Springs, the cost of living for retirees is approximately 5% lower than the U.S. average? That’s why many retirees consider moving there for their golden years.
The best part about Sandy Springs is that it offers small-city comforts while also being very close to important attractions. So, getting bored there is basically impossible. Those who love outdoor activities can enjoy fishing, while those who are more into the arts can visit the performing arts center or theaters.
7. Bloomington, Indiana
If you are looking for a lively place with a lot of entertainment options, Bloomington, Indiana, might be the perfect retirement destination for you. The tax rating for retirees is not friendly at all, but if you can beat that and you’re also willing to brave the harsh winters, it might be a great place for your golden years.
Bloomington hosts a lot of sports events, concerts, and festivals, so you’ll have the chance to stay socially active and make new friends. Another great thing is that Indiana University offers a variety of courses, as well as interesting day trips for local adults.
Even though there are pros and cons about retiring in Bloomington, the overall living costs are low, and the housing expenses for retirees are also below the national average.
8. Topeka, Kansas
Kansas has a place in the top 10 states for retirement, being known for its low cost of living. A lot of retirees move to Kansas, specifically Topeka, because of the affordability. For example, the median home value for the Sunflower State is about $130,000, but in Topeka is even lower, at just $95,000.
Considering that Topeka is not far from the University of Kansas, there are a lot of amenities for college life, and the seniors who want to improve their skills or discover new areas can join some classes. The university has a special program for those over 50. So, if you are looking for an affordable place to retire, but also want to keep your mind sharp, Topeka might be the best choice for you.
9. Chattanooga, Tennessee
Last but not least on our list is Chattanooga. The city is tax-friendly, and most areas have below-average living costs for retired residents. The housing costs are low, at about 13% below the national average.
The city provides an incredible arts scene with a lot of beautiful galleries throughout the famous Bluff View Art District. You’ll never get bored in Chattanooga, with music events and theater performances year-round.
Most retirees from the city love to take bike rides along the Tennessee River. So, if you are a nature fan and would love to stay physically active in your golden years, Chattanooga offers you endless opportunities.
Here is a T-shirt with a funny message, perfect if you’re retiring in 2025. ”Not my problem anymore” can be easily found on Amazon. Check it out!
Before leaving, here’s today’s song pick: “The Gambler” by Kenny Rogers – A classic about knowing when to hold ‘em and when to fold ’em, perfect for learning financial wisdom the hard way.
Also, here’s what to read next: Should YOU Downsize? The Pros and Cons Explained