I’m a Retirement Expert: I Would Never Retire in These 9 Popular Cities

08/05/2024

Golden Gate bridge with clouds over San Francisco, California. USA

Just because a city is a great place to visit doesn’t mean it is a great place to live, especially for retirees. Some can be expensive, crowded, and unsafe for retirees.

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While not every city is like this, here is a list of nine popular cities I would never recommend retiring to.

San Francisco

San Francisco and the surrounding Bay Area have become increasingly expensive for real estate in recent years. Unless you already own a home in San Francisco, it is likely too expensive for you to retire there. Plus, the roads are steep and can be difficult for retirees to drive, park, and walk on. There is also a large homeless population and a high petty crime rate in some areas of the city, which can make parts of the city feel unsafe at times.

“While San Francisco boasts a vibrant culture and beautiful landscapes, it is often not the best choice for retirees primarily due to its extremely high cost of living and tax burden,” said Michael Hills III, CFS®, CIS, and financial advisor at Apex Wealth. “California has one of the highest state income taxes in the country, which can significantly impact retirees living on fixed incomes. The housing market is prohibitively expensive, and while the state exempts Social Security retirement benefits from state income taxes, other types of retirement income are taxed at regular rates.”

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Chicago

The harsh winters and hot summers may not appeal to retirees. Heavy snowfall can make it difficult to get out of your house in the winter if you have limited mobility. Plus, the cost of living in Chicago is relatively high for things like housing, taxes, and utilities. Like San Francisco, there is a high crime rate in some areas of Chicago, which can make parts of the city feel unsafe at times.

Kahului, Hawaii

Although Kahului, Hawaii, is beautiful, it may not be great for retirees. Hawaii has the second-highest income tax rate in the country. While Hawaii doesn’t tax Social Security benefits, other sources of retirement income will be taxed. And you likely won’t be able to afford to live on Social Security alone since the cost of housing in Kahului is high.

New York City

New York City is one of the most popular and famous cities, but it is not a great place to retire. It’s crowded and expensive, which many retired people may not enjoy. Housing costs are extremely high, as are taxes, healthcare, and almost everything else. One thing that New York City does have going for it is its public transportation options, which can be great for retirees who don’t want to drive.

“New York City is less ideal for retirees due to its high cost of living, including one of the highest housing costs in the country,” said Hills III. “New York also has a high tax burden; it levies state income taxes and New York City imposes an additional income tax. These factors can quickly deplete retirement savings.”

Boston

Like Chicago, Boston’s winters can be long, harsh, and snowy. Boston’s streets and transit system can be confusing and offer limited parking. There are many universities in Boston, so the large number of students can make retirement living less appealing. Boston also has expensive housing and a high cost of living.

Newark, New Jersey

New Jersey may be convenient for working adults who must commute to New York City, but it offers little appeal for retirees. It doesn’t offer many retirement-friendly activities, has a poor hospital system, and has a low quality of life overall. Plus, it is expensive and has the sixth-highest tax burden of all states.

Miami

Miami is well-loved for its warm weather, beaches, culture, and entertainment. However, limited public transit, high cost of living, storms, and traffic congestion can make it less appealing for a city to retire. Miami also attracts a relatively young demographic and has a lot of nightclubs and party vibes so that retirees can feel out of place.

Las Vegas

Las Vegas has a lot of adult entertainment and is a relatively affordable city, but it may not be the best place to retire. Las Vegas generally has a 24/7 party scene, with some establishments open all night. Summers can be miserably hot and can even be unsafe for older adults. Plus, there can be a lot of traffic around the Strip, making daily errands frustrating for residents. Beyond the party entertainment, there isn’t a lot of substantive culture or community for retirees.

“Las Vegas offers entertainment and no state income tax, which might seem appealing initially,” said David Blain, CFA, founder and chief executive officer at BlueSky Wealth Advisors. “Yet, it’s important to consider the intense heat which can affect lifestyle quality and health as age progresses. Also, while housing may seem affordable compared to other large cities, fluctuating tourism economy can impact local services and infrastructure, which is particularly relevant for retirees requiring consistent healthcare and community services.”

Los Angeles

The weather, beaches, and laid-back vibe make Los Angeles a popular city to live in and visit. However, the city’s pollution, wildfire risks, high cost of living, and traffic can make it a less-than-ideal location for retirement.

Los Angeles is known for its traffic, which can be difficult for retirees who may have difficulty sitting in cars for long periods or have trouble driving. The traffic also contributes to air pollution, posing health issues for older residents.

While California is generally expensive, Los Angeles is especially so, as housing, food, utilities, and gas all contribute to the higher cost of living in the city. Retirees also have to deal with the risk of wildfires, which can be especially dangerous for older residents with health issues.

While this list includes cities with many negative aspects, there might be circumstances that make each attractive. If you have family in or near one of these cities, you may be willing to overlook the negative factors. These are choices that only you can make for your individual circumstances.