What cities would you guess top the list of the best places to retire in the U.S.? Somewhere warm year-round? A coastal town with beaches? A recent analysis shows the top-ranked retirement destination for 2022–2023 doesn’t fit those assumptions.
Ranking the best places to retire
U.S. News & World Report examined data from the 150 largest metropolitan areas in the United States, drawing on information from the U.S. Census Bureau and the Tax Foundation. Each metro was scored using six key factors that matter to many retirees:
- Housing affordability
- Desirability
- Happiness
- Quality of healthcare
- Retiree taxes
- Job market
The research team also surveyed 3,100 people age 45 and over to learn which of these categories matter most when choosing a retirement location. Those survey results were used to weight each category for the overall ranking.
Retiring to the Keystone State
Given those six criteria, which city would you expect to top the list? If you guessed a Florida destination, you’d be surprised. U.S. News named Lancaster, Pennsylvania, the best place to retire in 2022–2023.
Lancaster performed well across several categories. It scored highly for healthcare quality and benefits from housing costs below the national median, making it an affordable option for many retirees. According to data from the St. Louis Federal Reserve Bank, the median home price in Lancaster was about $290,354, compared with the national median of $436,800 in the first quarter of 2023.
Beyond affordability, Lancaster offers a blend of scenic countryside and urban conveniences. The area has an active arts and culture scene, parks, hiking trails, and green spaces—amenities that appeal to retirees seeking social and recreational opportunities. About 18% of Lancaster’s population is age 65 or older, which means retirees are likely to find peers and community activities.
Close behind Lancaster is another Pennsylvania city: Harrisburg. Situated on the Susquehanna River and near many hiking and biking trails, Harrisburg scored highly for housing affordability and nearly matched Lancaster for healthcare quality.
A significant reason Pennsylvania cities rank so well is the state’s tax treatment of retirement income. Pennsylvania does not tax retirement pensions, withdrawals from 401(k) plans or IRAs, or Social Security benefits, which can produce noticeable savings for retirees drawing on those income sources.
The 2022–2023 top places to retire in the U.S.
The top 10 list includes a mix of Pennsylvania and Florida communities, along with one Michigan city:
- Lancaster, Pennsylvania
- Harrisburg, Pennsylvania
- Pensacola, Florida
- Tampa, Florida
- York, Pennsylvania
- Naples, Florida
- Daytona Beach, Florida
- Ann Arbor, Michigan
- Allentown, Pennsylvania
- Reading, Pennsylvania
Pennsylvania’s tax advantages for retirement income help explain the strong showing of its cities on this list. Florida’s popularity stems from a combination of desirable climate and its lack of state income tax, which can also lead to savings for retirees.
Choosing the right place for you
Deciding where to retire is a personal process. What matters most to one person may be different for another. Consider the priorities that matter to you—cost of living, healthcare access, social opportunities, climate, and tax treatment of retirement income—then evaluate locations with those priorities in mind. Explore local guides and resources to compare states and communities before making a move.