Where is the best small town to retire? (2023)

Where is the safest and least expensive place to retire?

These are the 10 best places to retire in the U.S.—and Pennsylvania dominates the list. Lancaster, Pa., was the top-ranked place to retire, according to a new ranking.

It's no wonder that Portugal has topped the charts for the best places to retire through the years. This tiny country in the southwest corner of Europe has something for everyone.

#1. Portugal. Portugal is one of the world's healthiest places to live, with low rates of disease and an average life expectancy of 81.6 years. People in Portugal die 12% less often from cancer than people living in other European countries.

For those of us who want to retire in the U.S., there are nine states that have no state income taxes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Where is the cheapest warmest place to retire?

More often than not, retirees will find the most affordable and sunniest retirement destinations in the southernmost state of the continental U.S. — Florida. In fact, one third of the 15 U.S. cities on this list are in Florida.

1: Iowa. With monthly housing costs for renters of just $740, Iowa is an incredibly affordable state for seniors on fixed incomes. Factor in low rates of fraud and violent injury death and the SeniorList—working from U.S. Census Bureau data—has named Iowa the safest state for seniors 65+.

A good retirement income is about 80% of your pre-retirement income before leaving the workforce. For example, if your pre-retirement income is $5,000 you should aim to have a $4,000 retirement income.

Panama. Named to the top spot of "Best Places to Retire in 2022" on International Living's Annual Global Retirement Index, Panama has become a popular retirement destination.

States That Don't Tax Retirement Income

Those eight – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – don't tax wages, salaries, dividends, interest or any sort of income.

Retirees who are living on just their Social Security benefits should look for pleasant places where the cost of living is below the national average. Nice places to retire with a low cost of living include Harlingen, Texas; Pittsburgh; Knoxville, Tennessee; La Crosse, Wisconsin; and Easley, South Carolina.

Where is the easiest place for Americans to retire?

According to various studies, including International Living, Portugal is ranked as the best country for US expats to retire to. Its friendly population, welcoming community of American expats, excellent weather, safety records, and affordable cost of living are all big draws for retirees.

South Dakota. When it comes to assisted care living, South Dakota is among the most inexpensive states. It has a stable economy and the lowest tax rate in the nation hence it is the go-to state for most seniors.

Alaska is an income-tax and sales-tax-free state, making it one of the best places to retire on a fixed income.

McAllen, Texas. McAllen made the No. 1 spot as the best city to retire on a monthly budget of $2,500 or less by offering the most budget-friendly expenditures compared to the rest of the U.S. and the top livability score among these 11 cities.

Panama offers a dry, warm climate year round and a very low cost of living–with beach views. You can retire comfortably on $1,300 per month, and it's one of the best countries for quality of life. What's more, English is widely spoken, and you can use your US money anywhere across the country.