Retiring on a budget doesn’t mean you have to sacrifice comfort or style. In fact, with careful planning, you can stretch $100,000 in savings and enjoy a fulfilling retirement in some beautiful and affordable places.
You’re not alone in this journey—more people are retiring than ever before. From 2010 to 2023, the number of retired workers receiving Social Security benefits rose from 34.59 million to 50.15 million. This steady increase shows that retirement planning is more important than ever, especially as these numbers continue to grow.
Whether you want a warm climate, vibrant culture, or lower living costs, there are options within the U.S. and around the world that can fit your budget.
1. Dallas, Texas
Dallas offers a great combination of affordable living and a thriving metropolitan lifestyle. Known for its warm weather, excellent healthcare, and vibrant arts and culture scene, Dallas is a popular destination for retirees.
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You’ll find plenty of parks, golf courses, and recreational activities to enjoy, along with a variety of dining and entertainment options.
Plus, Texas does not have a state income tax, so you can keep more of your pension, savings, or Social Security income. This makes Dallas an attractive choice for retirees who want to minimize their tax burden and enjoy more of their savings.
2. Jacksonville, Florida
Jacksonville is a wonderful place to retire if you’re looking for sunny weather, outdoor activities, and no state income tax. With its beautiful beaches, parks, and golf courses, you’ll have endless opportunities for relaxation and recreation.
Jacksonville offers a good balance of city amenities and a laid-back coastal lifestyle, all while keeping costs low. Plus, Florida’s lack of state income tax is a huge benefit for retirees, helping you keep more of your retirement savings, pension, or Social Security income.
3. Minneapolis, Minnesota
Minneapolis may surprise you as an affordable, beautiful place to retire. With its vast park systems, numerous lakes, and vibrant culture, the city offers a blend of nature and urban living.
There are plenty of outdoor recreation opportunities, including walking and biking paths, and a thriving arts scene. While Minneapolis can be a bit more expensive than some smaller cities, the overall quality of life and access to healthcare make it a great choice for those who like a balance of city amenities and natural beauty.
Minnesota also uses a progressive income tax system, with rates from 5.35% to 9.85% based on your income. (ref) This means people with higher incomes pay a higher percentage in taxes, while those with lower incomes pay a smaller percentage. (ref)
4. Durham, North Carolina
This charming city in North Carolina is perfect for those looking to retire on a budget. It offers a mix of rich history, modern amenities, and natural beauty, all within an affordable cost of living.
Durham’s vibrant arts scene, parks, and mild climate make it an attractive place for retirees who enjoy spending time outdoors.
North Carolina has a flat income tax rate of 4.5%, (ref) which helps make retirement income more predictable, as you won’t be taxed at varying rates like in other states. Besides, housing costs are lower compared to many major cities, making it an attractive option for retirees with limited savings.
5. Phoenix, Arizona
Phoenix offers warm weather, beautiful desert landscapes, and low-cost living that makes it an ideal place to retire on a budget. The city has a mix of affordable housing, good healthcare options, and plenty of recreational activities.
Retirees can enjoy golf, hiking, and outdoor festivals throughout the year. Phoenix is also home to a number of retirement communities and offers various services for older adults, which makes it a popular destination for retirees.
Retiring in Phoenix, Arizona, with $100K in savings can be a realistic option, thanks to the state’s relatively low and progressive income tax system, with a rate of 2.5%, (ref) and no estate or inheritance taxes. This makes it a favorable state for retirees looking to preserve wealth for future needs or beneficiaries.
6. Cleveland, Ohio
Known for its vibrant cultural scene, Cleveland is home to great museums, theaters, and music venues. You can enjoy a slower pace of life without sacrificing access to healthcare, dining, and entertainment.
The city is surrounded by beautiful parks and offers plenty of outdoor activities, making it a great choice for those who enjoy nature. Cleveland’s cost of living is also lower than many other major cities, so you can stretch your $100K savings further.
Cleveland has an income tax rate of 2.5% (ref), and Ohio’s state income tax ranges from 2.75% to 3.75%. (ref) The 2.5% local income tax in Cleveland is manageable, making it an affordable option for many.
7. Madison, Wisconsin
Its excellent healthcare facilities and safe, welcoming community make Madison a desirable place to live, work, and retire. The city offers a variety of cultural events, including music festivals, theater performances, and farmers’ markets, which will keep you entertained throughout your retirement.
The cost of living is fairly low, and the city is walkable, making it easy to get around without a car.
Also, Wisconsin has a progressive income tax system, with rates ranging from 3.50% to 7.65% (ref), so if your retirement income is on the lower end, you’ll pay a lower tax rate. For retirees, this means that while taxes may be a bit higher than in some other states, you can still enjoy a relatively low tax burden depending on your income level.
8. Pittsburgh, Pennsylvania
The city’s welcoming atmosphere and strong community spirit make it a great place to settle down and enjoy your retirement. You can explore the city’s museums, enjoy the beautiful parks, or take a walk along the riverfront, all while enjoying affordable housing.
Pittsburgh’s healthcare system is top-notch, which is an important consideration as you age.
Pittsburgh has an income tax rate of about 3%, (ref) and Pennsylvania’s state income tax is flat at around 3.07%. (ref) This is relatively low compared to other states, so retirees can enjoy their savings with less concern about taxes eating into their income.
9. Aurora, Colorado
Aurora is a great place to retire if you love outdoor activities and want to enjoy scenic views of the Rocky Mountains. The city offers a mix of urban living and outdoor adventures, with parks, hiking trails, recreational facilities, and a growing arts scene all close by.
Retiring in Aurora, Colorado, with $100K in savings is possible if you manage your expenses wisely. Colorado’s flat income tax rate of 4.4% (ref) simplifies financial planning, as you’ll pay the same percentage regardless of income level.
Known for excellent healthcare systems, Aurora is no exception. However, healthcare costs in the state are slightly above average. Medicare, along with supplemental insurance, can help offset these costs.
10. Concord, New Hampshire
Concord is surrounded by scenic landscapes, from lakes to mountains, offering retirees plenty of free or low-cost outdoor activities like hiking, fishing, and nature walks. The city has libraries, senior centers, and a vibrant cultural scene, with local theaters and historic sites.
The lack of income and sales taxes reduces financial strain, while the city’s small-town charm and access to nature make it appealing. For retirees with $100K, focusing on housing and property tax budgeting is key, but Concord’s cost-effective living and tax advantages make it a strong contender for a modest retirement.
11. Peru
Retiring in Peru with $100K can offer a comfortable lifestyle due to its lower cost of living compared to many other countries. However, Peru’s progressive income tax system, ranging from 8% to 30% (ref), and the local economic environment are important factors to consider.
If your retirement income is modest (e.g., $15,000 annually), you would likely fall into the lower 8% tax bracket. This keeps taxes relatively affordable for retirees living on withdrawals from savings or modest investment returns.
Also, housing costs in Peru are significantly lower than in the U.S. Renting a small apartment in cities like Lima or Cusco can cost as little as $300–$500 per month in less tourist-heavy areas, and basic utilities, transportation, groceries, and healthcare are all budget-friendly.
12. Costa Rica
Costa Rica offers an unparalleled mix of beaches, rainforests, and mountains. The “Pura Vida” lifestyle emphasizes relaxation and enjoying life’s simple pleasures. You can live in areas like Tamarindo, Atenas, and Escazu that have strong expat communities.
Before making the move, however, you should know that Costa Rica taxes local income only. This means your foreign retirement income (such as Social Security or investment withdrawals from outside Costa Rica) is generally not taxed.
Costa Rica has progressive tax brackets. For individuals earning over $1,750 (₡941,000) but less than $2,560 (₡1,381,000 monthly), there is a 10% tax on the amount exceeding the lower threshold.
Earnings above $2,709 (₡1,381,000) are taxed at higher rates, up to 25%. (ref) If you earn income within Costa Rica—for example, through a local business or property rental—it is subject to taxation.
13. Portugal
Portugal is a stunning European destination known for its welcoming culture, beautiful coastlines, and affordable living costs compared to other Western European countries. You’re considered a tax resident if you spend more than 183 days per year in Portugal.
Tax residents are taxed on their worldwide income at progressive rates ranging from 13.25% to 48% in 2024. (ref) The country also offers the Non-Habitual Resident (NHR) program, which benefits retirees.
Foreign pension income is taxed at 10% for up to 10 years, with other income types (e.g., dividends, interest) being exempt, depending on double-tax treaties with your home country. (ref)
These destinations are perfect for those looking to retire in style without breaking the bank. As more people retire each year, now is a great time to consider your options and find the ideal place to live.
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Nancy has been a plant person from an early age. That interest blossomed into a bachelor’s in biology from Elmira College and a master’s degree in horticulture and communications from the University of Kentucky. Nancy worked in plant taxonomy at the University of Florida and the L. H. Bailey Hortorium at Cornell University, and wrote and edited gardening books at Rodale Press in Emmaus, PA. Her interests are plant identification, gardening, hiking, and reading.