The 12 Best U.S. Cities to Retire Comfortably in 2026 on a Budget

It's never too early to start setting yourself up for retirement. The more you save now, the more freedom and peace of mind you'll enjoy later. Financial planning is a crucial part of the equation, but it's only half of the story.

The other half is choosing a place to live where your money will go further. Finding a city that is affordable without sacrificing comfort, convenience, or quality of life can make all the difference. These cities make that balance possible.

Editor's note: Unless otherwise noted, all rent data and home price data listed below came from Apartments.com and Zillow, respectively.

Median Home Price: $336,595

Average Rent: $1,149

With its warm, arid climate and overall affordable cost of living (5% below the national average), Albuquerque is a perennial retirement hotspot. It has recently won accolades for its top tier medical care, thanks to abundant facilities with high ratings and low wait times.

Approximately 20% of the population of New Mexico is 65 or older, meaning community awaits.

Median Home Price: $172,036

Average Rent: $1,082

The second-largest city in Georgia ranks 13% below the national average for cost of living in a state that is tax-friendly for older adults. Augusta University has free classes to keep you entertained, as will world-class golf courses.

Great health care is easy to find, and day trips to the Blue Ridge Mountains promise exciting outdoor escapes.

Median Home Price: $216,910

Average Rent: $1,008

Sixteen percent of the population in this underrated community is 65 or older, and locals say the community is very welcoming. Plus, the city is known for its affordability (11% below the national average), especially for housing, making this beachy city great for idyllic coastal living on a budget.

Health care costs are lower here without sacrificing the quality care seniors need.

Median Home Price: $204,291

Average Rent: $986

There's plenty to do both indoors and outdoors during snowy Iowa winters, from fitness activities to classes at one of several bustling senior centers. During warmer months, a nationally ranked farmer's market and green spaces keep residents occupied. The cost of living is 7% below the national average.

Primary care is especially accessible in Des Moines, which is a huge plus for retirees. And a friendly, Midwestern community is appealing to many.

Median Home Price: $280,096

Average Rent: $1,293

The Sunshine State is the country's top retirement hotspot thanks to its warm climate, friendly tax policies, and large population of retirees. Jacksonville remains relatively affordable at 8% below the national average, notably for housing and utilities.

Jacksonville has gorgeous beaches, the scenic St. John's River, great hospitals, and a thriving downtown.

Median Home Price: $319,945

Average Rent: $1,077

The cost of living is 8% below the national average (but 24% below for housing) in Lexington, which is famous for its bourbon trails, mountain and river scenery, and live music venues. Golf lovers and horse aficionados will be happy there.

Locals say the health care is quality, and senior centers have fun activities like pickleball.

Median Home Price: $259,839

Average Rent: $1,324

Pensacola is home to some of the most gorgeous beaches in the world, drawing retirees for decades. One fifth of the population is aged 65 and over.

Beyond the outdoor beauty and thriving retirement communities, Pensacola has a walkable downtown with restaurants and shops. It's affordable coastal living at its finest, with a cost of living 2% below the national average (and 11% below the average for housing).

Median Home Price: $160,106

Average Rent: $918

One of the most affordable cities on this list, Springfield's cost of living is 6% below the national average, largely due to housing. Retirees appreciate the diversity generally found in tax-friendly Illinois, as well as the rich history of its capital.

Nearly 22% of the population is older adults, who enjoy the abundant green spaces of Springfield.

Median Home Price: $231,508

Average Rent: $1,394

With big city amenities and a cost of living 5% below the national average (largely due to housing and health care), Pittsburgh is appealing to many. Quality health care is accessible, the food scene is expanding, and green spaces are plentiful. Retirement income and Social Security are not taxed in Pennsylvania.

Median Home Price: $245,985

Average Rent: $1,070

Hot, sunny, and infused with rich culture, San Antonio is ideal for retirees seeking a home in the Sunbelt. The cost of living is 8% below the national average, making this a larger city without the usual metropolitan price tag.

Quality health care facilities are as abundant as the flavors you'll find in the diverse, thriving food scene.

Median Home Price: $321,510

Average Rent: $978

Sundrenched and arid, Tucson's natural desert beauty frames the city with towering Saguaros and colorful sunsets. But life in this retiree oasis is manageable, with a cost of living below Phoenix and Mesa, affordable for the region. Residents can enjoy golf, pickleball, and hiking all year round.

Median Home Price: $212,006

Average Rent: $895

Tulsa flies under the radar, but it's ideal for retirees thanks to its climate, culture, and a cost of living 16% below the national average. Locals rave in equal parts about its friendly people, food scene, and diversity. A retirement-friendly city, 17% of the population is aged 65 or older.

Conventional wisdom tells us that if you make the right moves throughout your financial lifetime, such as contributing to your 401(k), a comfortable retirement awaits. The prospect is especially attainable in these cities, which balance affordability with amenities that retirees value most.

Of course, personal factors like whether you plan to rent or buy will influence which city is the best fit for your budget. Still, across the board, each of these locations offers a strong foundation for an enjoyable and financially manageable retirement.