Choosing Where to Retire: What’s a ‘Livability Index’?
Key takeaways:
Finding the perfect place to retire may take some time and research — especially if you’re living on a low-to-moderate fixed income like Social Security.
A livability index ranks places based on factors such as housing costs, healthcare access, crime rates, and local amenities. The higher a location's score, the better the place is to live.
Seniors may want to play close attention to access to hospitals and elder care services that you may need now or when you get older.
If you currently live in a place that lacks senior care services or has a high cost of living, then you may consider moving to a new location for retirement. You could save on everything from housing costs to groceries by choosing to live in a new city.
Find out more about how a livability index can help you find the best place to retire.
How do I choose where to live in retirement?
Many people consider possible retirement locations by learning about estimated basic living costs. Seniors may also consider healthcare and leisure activities. These are important to research — especially if you will be on a fixed income or living only on Social Security. Crime rates and distance to relatives may also affect your decision.
Search and compare options
The American Association of Retired Persons’ (AARP) Livability Index is one way to sort through possible retirement locations.
What’s a livability index?
The AARP Livability Index is an easy-to-read reference that helps people identify great places to live. Each livability index score takes multiple factors into account such as housing, transportation, and health.
Places are scored on a scale of 0 to 100. The higher the score, the better. The nation’s average livability index score is 50. Anything above a 50 is considered a better-than-average place for seniors to live. You can search a community on the AARP Livability Index based on an address, city and state, county, or ZIP code.
What factors should I consider when looking for a place to retire?
The AARP Livability Index is a great place to start when searching for the best place to retire. However, it’s not the only resource available, and you should consider other places-to-live references before you make your final decision.
Here is a list of factors to consider when looking for a place to retire:
Cost of living
Housing costs, such as average rent
Climate
Hospital availability and quality
Crime rates
Local entertainment
Transportation costs
Senior care services quality and availability
Distance to relatives
Local tax laws
What are the best U.S. cities for retirees?
Depending on the ranking calculation methods and year, the top cities for retirees can vary.
The AARP Livability Index ranks top-scoring cities in four groups:
Large cities: 500,000 or more population
Mid-sized cities: 100,000 to 499,999 population
Small cities: 25,000 to 99,999
Small towns: 5,000 to 24,999
Three locations are chosen as standouts in each category. Here are the top-rated cities for the latest rankings released in fall 2021.
Large cities
City | Overall livability score |
|---|---|
65 | |
63 | |
63 |
Mid-sized cities
City | Overall livability score |
|---|---|
67 | |
67 | |
67 |
Small cities
City | Overall livability score |
|---|---|
66 | |
66 | |
65 |
Small towns
Town | Overall livability score |
|---|---|
72 | |
71 | |
71 |
How do I plan for retirement?
Much of your life during retirement will depend on your financial resources. One way to make informed decisions is to work with a qualified financial advisor. These professionals help people plan for retirement by looking at individual situations and making recommendations.
Consulting a financial advisor can help you:
Decide when to retire and begin collecting any benefits
Estimate your monthly income and expenses during retirement
Understand and potentially minimize your tax burden during your retirement years, especially if you move to another state
The bottom line
Moving to a new city when you retire could serve you well — especially if you will be living on a fixed low-to-moderate income such as Social Security. Choosing a new location may allow you to pay less for monthly expenses with a better quality of life. Rankings such as the AARP Livability Index use dozens of indicators to help you weigh the options.
Why trust our experts?
References
American Association of Retired Persons. (n.d.). How livable is your community?
American Association of Retired Persons. (2022). AARP livability index: Great neighborhoods for all ages.
Brandon, E. (2022). 10 costs to include in your retirement budget. U.S. News & World Report.
Burrows, D. (2022). The 11 most expensive cities in the U.S. Kiplinger.
Esswein, P.M. (2022). Keys to finding the perfect place to retire. Kiplinger.
Hartman, R. (2020). How to decide where to retire. U.S. News & World Report.
Muhlbaum, D. (2023). Taxes in retirement: How all 50 states tax retirees. Kiplinger.
