Personal Finance

With Retirement Around The Corner, Which Year Round Sunny Cities Are A Good Fit?

Real Estate
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Red (2010) and Red 2 (2013) were a pair of action comedies starring Bruce Wilis, Morgan Freeman, Helen Mirren and John Malkovich as a team of former CIA operatives who are officially retired. R.E.D. was the code acronym for “Retired – Extremely Dangerous”. The underlying theme of the joke was that retirement was boring and unchallenging for the protagonists, who relished getting back into action.

This theme likely resonates with many Baby Boomers who are winding down their working careers and are nearing retirement age. While a lot of them look forward to leaving the daily grind behind, there are still plenty of years left to enjoy life, and they don’t look forward to spending the bulk of it napping on a beach. A mid to large city with cultural events, solid infrastructure, good dining and activities with lots to do is still important for a majority who are in their golden years.  A year round warm weather climate is a plus, especially for health reasons later on.

With its wide geographic expanse, the United States offers a number of retirement destinations that might fit the bill, in terms of location, weather, affordability and activities. However, for the more adventurous, there are international destinations that may offer all of those as well as a foreign exoticism that might appeal to fans of the Red films. 

A Reddit poster and her husband were soliciting suggestions for retirement locations. She is interested in locales apart from the Denver and Sacramento areas that met the following criteria:

  • Affordable
  • Mid to Large sized city
  • Year-round warm weather
  • Good healthcare access
  • Trees preferable – no deserts. 

Luckily for her, there are a range of both domestic and international cities that fit the bill.

Key Points

  • Retirees often choose to relocate to lower cost of living cities with warmer climates where their golden years can be spent in comfort.

  • There are a number of US cities with year round warm weather and are relatively affordable for retirees.

  • For those retirees who are intrepid enough to look abroad, there are a wide variety of warm weather international locales where retirees with modest nest eggs can live out their golden years in luxury. 

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Living In the USA

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Rock and Roll legend Chuck Berry celebrated American cities in his hit song, “Living in the USA”, a number of which are excellent choices for retirees.

As Chuck Berry sang in his famous song, “Living In The USA”: 

I’m so glad I’m living in the USA; 

Anything you want, they’ve got it right here in the USA.

American retirees looking to potentially relocate within the US have a multitude of cities from which to choose that also have a range of cost of living levels. As the poster doesn’t define “affordable”, her citing of Sacramento ($73,500 average cost of living) and Denver ($84,290  average cost of living) can serve as a benchmark. Below are some selections for consideration in descending cost of living price order, bearing in mind that the national cost of living average to live well is roughly $57,500 as of late 2024.

  • Key West, FL: With an average cost of living price of $85,686, Key West offers the beach resort lifestyle with plenty of fishing opportunities for amateur and professional level anglers. Sunshine is the forecast 76% of the year, with an average temperature of 85 degrees. As a major city, healthcare access is top-notch, and palm trees, as one might expect, are plentiful.
  • Miami, FL: Miami’s average cost of living is $68,746, and is probably Florida’s most urban metropolitan environment. Home to the NFL Miami Dolphins, the NBA Miami Heat, and the setting for such popular TV series as Burn Notice, Ballers, Miami Vice, and, appropriately, The Golden Girls, Miami’s cultural diversity reflects its reputation as a prime metropolitan city that rivals New York and Los Angeles.

Florida has additional appeal to retirees, due to housing some of the largest retirement communities in the US. Senior-focused amenities are abundant, and Florida’s lack of state-level income, estate and inheritance taxes are an added benefit for retirees on fixed incomes. 

  • Lubbock, TX: Also referred to as the “Hub City” for the South Plains region of Texas, Lubbock is also famous for being the home of rock and roll pioneer Buddy Holly. Additionally, Lubbock is the main healthcare, cultural, and economic center for the region. With an average cost of living of $46,890, housing costs in Lubbock are also lower than average. Average temperature is 80.6 degrees, with sunshine 72% of the year. Lubbock is also home to Texas Tech University. 
  • Abilene, TX: Cited several months ago by USA Today as one of the “Top 10 Cities For Retirees”, Abilene sports a bustling cultural district, prices 7.7% lower than the national average, and a relatively low cost of living estimate of $46,370 annually.  With a mean temperature of 83.3 degrees and 70% sunshine days, Abilene has plenty of amenities for seniors, as well as such uniquely Texan offerings as the Winter Lightfest and the West Texas Fair and Rodeo. 

Property taxes in Texas are somewhat higher than in the past, although a recent Texas poll indicates that Governor Abbott is considering abolishing Texas property taxes, due to the state’s huge influx of ex-Californians who are fed up with the policies of Governor Newsom that have been adding to the economy.

Living Like Kings and Queens In Foreign Lands

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The islands of Greece offer tremendous cultural, historic, and luxury living on a relatively modest budget for expat retirees.

For retirees with a taste for adventure, a medium-sized nest egg can equate to a fortune in some countries that can offer much of the same amenities as in the US, albeit at a lower price. Additionally, the strength of the US dollar is such that a modest retirement budget can afford a vastly more luxurious lifestyle in many of these exotic locales.

  • Rhodes, Greece: One of the largest islands in Greece, Rhodes has an impressive history and is a frequent tourist site for its blend of ancient and medieval art and architecture. Lindos is a popular coastal attraction and boasts excellent healthcare, cuisine, and other cultural amenities. Weather averages between 75 and 88 degrees with sunshine year round.  Alternative islands with comparable amenities include Corfu, Santorini,  Thessaloniki, and Kalamata, among others. 

Greece provides 7-year-long visas for anyone who can provide sufficient financial evidence of their ability to pay their own way. One can apply for Greek citizenship if they wish to remain past 7 years. 

The average cost of living in Rhodes is $2,600 per month, or $31,200 annually.

  • Puerto Viejo, Costa Rica: Located between Nicaragua and Panama, Costa Rica has built up a glowingly solid reputation as an ideal island paradise for retirees. With an already impressively large and still growing expat community, Costa Rica boasts a wide range of amenities for seniors, with healthcare, and remarkably low crime rates, compared to its neighboring nations. Puerto Viejo is a coastal city with many popular beaches, such as Playa Negra, Playa Chiquita, and Cocles. With its numerous available marine activities and opportunities to explore its national parks, rainforests, and other biodiversity showcases, Puerto Viejo has a temperature range of 71-84 degrees, and offers temporary residency to any foreigner who can attest to a minimum income of $1,000 per month. The average cost of living in Puerto Viejo is $2,150 per month, or $25,800 annually. 
  • Ubud, Bali – Indonesia: For a completely different exotic experience, the tropical island of Bali, in Indonesia, is practically a unique culture unto itself, even for Indonesia. Unlike the majority of Indonesia, which is mostly secular Islamic, Bali is Hindu. As such, its culture is much more tolerant of other religions and philosophies, making Bali a Pacific Rim mecca for many artists, painters, musicians, and other creative types. Balinese gamelan music, which is a unique tuned percussion instrument, sports a wide range of sounds and forms, ranging from operas based on The Mahabharata to modern gamelan solo and orchestral compositions. Average temperature ranges between 73 to 95 degrees, and Indonesia’s excellent healthcare system surpasses that of a number of its ASEAN neighbors. 

With its wonderfully unique and diverse cuisine, magnificent volcanic and jungle landscapes, and cultural offerings, Ubud is a city that has attracted its own expat community. Retirees that meet Indonesia’s expat retiree criteria can enjoy a luxury lifestyle on a modest budget of $1,300 – $2,000 per month, or $15,600 – $24,000 annually, which includes at least one mandatory Indonesian household staff worker. 

Indonesia criteria for expat retirees include:

  • Retirement Visa (Limited Stay permit) issued from an Indonesian embassy or consulate.
  • Minimum age of 55.
  • Possess Life and Health Insurance.
  • Have a lease or rental agreement for an Indonesian residence of record.
  • A lump sum of $50,000 in savings or proof of $3,000 monthly minimum income.
  • At least one registered Indonesian household staff worker. 

These are just a few of the options available for retirees seeking year-round, non-desert, warm-weather climates on an affordable budget. The rest is up to what resonates with each person individually to determine their ultimate destination. 

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