Many seniors are happy to age in place after they retire. Others prefer to pack their bags and settle somewhere new, where they can live comfortably off their retirement income. If you’re searching for a new place to settle down and enjoy your leisure years, here are five affordable cities for Baby Boomers interested in living well and saving money.
1. Raleigh, NC
Sometimes known as Oak City, Raleigh combines several important advantages that make it an attractive place for Baby Boomers. Most importantly, North Carolina does not tax social security benefits. It does tax private retirement income, but at a low 4.25 percent rate, enabling seniors to keep more of their money. Residents pay less in sales and property and taxes as well, especially compared to the majority of states further north and out west, making it easier to get by on a fixed income.
Even the mild weather helps you save money. While Raleigh experiences four distinct seasons, temperatures rarely rise above 90°F or fall below freezing, helping you save on heating and cooling costs.
In addition to financial security, Baby Boomers living in Raleigh also have access to some of the nation’s top medical facilities. The city is part of the Research Triangle, a major hub for science and technology centered on three of the nation’s top universities (Duke, UNC-Chapel Hill, and North Carolina State). Their hospitals and clinics offer cutting-edge treatments designed to improve your health and quality of life.
The city is also popular for its mix of arts, music, theater, museums, and parks. Seniors can even attend lectures, workshops, and cultural events sponsored by local universities or volunteer at one of the many civic organizations within the city ‒ making it easy to stay active in retirement.
2. Nashville, TN
Tennessee does not tax retirement income (pensions, social security, and 401(k) and IRA withdrawals), making it an attractive destination for Baby Boomers looking to preserve their nest eggs. The state is also known for its low taxes and affordable cost of living. Everyday expenses are cheaper and the low property taxes allow seniors to purchase a spacious home without overstretching their budget.
The state also enjoys a mild climate, similar to North Carolina. While Tennessee has hot days and cold ones, seniors don’t have to worry about shoveling their driveway or sweating through 100-degree heat ‒ allowing them to maintain a comfortable home environment for less than they would in Florida or New England.
Even though it’s more expensive, Baby Boomers prefer Nashville to rural Tennessee for its healthcare and recreation. The city contains a number of nationally recognized hospitals, including the Vanderbilt University Medical Center and Nashville General, whose equity and inclusion initiatives have helped make it one of the top healthcare providers in the state.
No discussion of Nashville is complete without mentioning its cultural scene. Besides its concerts and festivals, the city is home to more than 250 live music venues, including Ryman Auditorium and the Grand Ole Opry. There are also several prominent museums, as well as a thriving theater community.
For seniors who prefer the outdoors, there are golf courses, jogging trails, bicycle paths, and over 170 neighborhood parks. For adventurous residents, the Smoky Mountains are just a few hours away. In addition to their magnificent views, they’re also the perfect place for hiking, fishing, and bird watching.
3. Phoenix, AZ
For Baby Boomers sick of ice and snow, Phoenix is the top spot in the country. With average highs ranging from 68-105°F and clear skies 300 days a year, it’s no surprise the city is called “The Valley of the Sun.”
But Phoenix offers more than warm weather. Like Tennessee and North Carolina, Arizona doesn’t tax social security. The state also grants partial exemptions on other forms of retirement income, to help ease the financial burden on seniors. Property taxes are also incredibly low, enabling you to keep more of your money.
The city’s housing market is also geared towards Baby Boomers. Communities such as Sun City and Sun City West enable seniors to free up equity and reduce ongoing maintenance costs while enjoying a full, active lifestyle.
Phoenix is also home to some of the best regional hospitals in the United States, including the Mayo Clinic, consistently ranked as Arizona’s leading medical provider. Their proximity helps reduce travel expenses, while ensuring reliable access to essential care.
While most seniors come to save money, it’s not the only reason. Phoenix is also popular for its recreation facilities, especially its golf courses. The city has over 200 of them. If golf’s not your thing, you’ll also find tennis courts, pickleball courts, nature trails, and cycling paths, not to mention theaters, museums, concert halls, and social clubs to help you explore your interests and meet new people.
4. Indianapolis, IN
Budget conscious Baby Boomers are moving to the Midwest for its low costs and affordable housing. Daily expenses in Indianapolis are 10-15 percent below the national average, making it the perfect place for people on a fixed income. Thanks to a construction boom, its homes sell for over $500,000 less than they do in larger markets like Boston or San Diego, enabling Baby Boomers to purchase a comfortable home at a reasonable price.
What’s more, Indiana does not tax social security. Other retirement accounts such as IRAs and 401(k)s are taxed but at a flat 3.23 percent, which the state plans to lower even further over the next few years.
But living in Indianapolis doesn’t just help you save money. It also provides access to high-quality healthcare. The Indiana University Health System operates several hospitals throughout the city, including Indiana University Health Medical Center. In 2025,U.S. News & World Report listed it as one of the best in the country for its ability to treat a wide range of complex health conditions.
On top of its practical benefits, Indianapolis offers lots of opportunities for fun and recreation as well. The city boasts three major sports franchises (Colts, Pacers, Fever), plus the Indianapolis Motor Speedway, home of the Indianapolis 500.
There are several theaters and museums as well, including the Indianapolis Museum of Art, which owns an extensive collection of classic and contemporary works. If you prefer being outdoors, the city’s park system is filled with gardens, lakes, and trail systems perfect for hiking, bicycling, and horseback riding, not to mention twelve public golf courses.
5. Charlotte, NC
North Carolina is one of America’s most popular moving destinations, so it’s not surprising that its two biggest cities both made the list. Like Raleigh, Charlotte has a mild climate and low taxes. North Carolina doesn’t touch social security benefits and provides partial exemptions for other forms of income, such as pensions, IRAs, and 401(k)s.
While Charlotte’s housing costs are a bit above the national average, they are significantly lower than other East Coast cities like New York or Miami. Property taxes are more reasonable as well, enabling you to purchase an upscale home on a relatively modest budget.
Charlotte’s medical infrastructure is equally strong as Raleigh's, with major hospitals like Atrium Health and Novant Health situated within easy driving distance. Their proximity allows you to access state-of-the-art care without steep travel costs and out-of-pocket expenses.
The cost of living in Charlotte is below average, but that’s not the only reason Baby Boomers move here. The city has an enormous park system. Most of its neighborhoods are connected by greenways designed for walking, biking, and running, often around lakes, rivers, and other natural landmarks.
Nature preserves and wooded areas outside the city are a great way to get out and experience local wildlife, while Charlotte’s location near the Smoky Mountains and Atlantic Ocean make it a convenient launching point for fun weekend getaways.
But you don’t have to travel to feel inspired. Charlotte’s emerging art scene contains top-tier museums, theaters, and concert venues, like the Blumenthal Performing Arts Center. For a more intimate experience, seniors head to the Arts District in North Davidson, where they can peruse murals, art galleries, and live concerts in neighborhood clubs and restaurants.
Choosing the Right Place to Retire
While many Baby Boomers are happy where they are, for others, relocating helps them get the most out of their retirement. Previous generations often moved after the end of their career, but in most cases, they chose someplace close by. Baby Boomers, on the other hand, generally choose cities 50-100 miles away ‒ ones that help them manage their income, look after their health, and pursue their interests.
North American Long Distance Moving Services
At North American Van Lines, we strive to make your relocation as easy as possible. Our agents work with you to craft a moving plan that fits your budget, needs, and schedule. From planning to packing to shipping, storage, and final delivery ‒ there is nothing we can’t handle. Whether you're moving for retirement or to be close to family, we have the tools and experience to get you there safely. Contact us today for a free quote!