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The top 2 U.S. cities to retire are in Florida—No. 3 is nearly 1,800 miles away

The top 2 U.S. cities to retire are in Florida—No. 3 is nearly 1,800 miles away
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If your dream retirement destination includes easy access to iconic amusement parks such as Walt Disney World and Universal Studios, you're in luck. Orlando, Florida, has been named the best city to retire, per WalletHub's list of the best and worst places to retire in 2024.

But Orlando has far more to offer retirees than mouse ears and wizard robes, according to WalletHub.

To compile its rankings, the personal finance company evaluated the retirement friendliness of 182 highly populated U.S. cities using data from numerous sources, including the U.S. Census Bureau, the Council for Community and Economic Research, the Bureau of Labor Statistics and the Tax Foundation.

WalletHub's analysis also assumes a retiree will be living on a fixed income. All of the cities were ranked according to how many points they scored out of 100 across four categories:

  • Affordability (25 points): Analyzes factors such as taxpayer friendliness and cost of living
  • Activities (25 points): Evaluates factors such as the availability of music venues, bingo halls, museums and adult volunteer activities
  • Quality of life (25 points): Assesses factors such as the share of the population over the age of 65, a city's walkability and weather
  • Health care (25 points): Considers factors such as the number of health-care facilities, quality of public health systems and life expectancy

Here are the top 10 U.S. cities to retire, according to WalletHub.

  1. Orlando, Florida
  2. Miami
  3. Minneapolis
  4. Tampa, Florida
  5. Fort Lauderdale, Florida
  6. Scottsdale, Arizona
  7. Cincinnati
  8. St. Petersburg, Florida
  9. Casper, Wyoming
  10. Atlanta

What makes Orlando a top retirement spot

It's not too surprising that so many Florida cities ranked highly on WalletHub's list. The Sunshine State doesn't levy state income tax, which means retirement income from a 401(k) or individual retirement account, as well as Social Security retirement benefits, aren't taxed at the state level.

However, Orlando rose to the top of the list due to the wide array of activities available for retirees, per the report. These include numerous art galleries, fishing facilities and music venues. The city also publicizes programs for residents age 55 and up on the "Senior Connections" section of its website, including game nights, trips and dance classes.

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When it comes to affordability, Orlando ranked 9th on WalletHub's list. The cost of living in the city is only about 1% higher than the state average and on par with the national average, according to RentCafe.

Miami, another Florida city, ranked as the second-best place to retire, but scored much lower for affordability. The cost of living there is nearly 20% higher than the national average, per RentCafe.

Factors to consider when choosing where to retire

Remember, one person's dream retirement destination may be another's nightmare location.

Factors such as affordability are important, but consider what else you'll want to prioritize during your post-work years, such as proximity to your family and activities you enjoy.

"[Retirees] should consider, in detail, how they want to spend time in retirement," Jonathon Ferguson, a financial capability specialist at the University of Wisconsin-Madison, says in WalletHub's report.

"For example, who will they spend time with? What activities will they participate in? Where will they spend time in retirement (specific locations)? What positive components of their career/job experience will they miss and how can they build these into their retirement experience?" he says.

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