The best places to retire in 2015-By William P. Barrett

A portion of Browns Canyon, located 90 miles (145 km) west of Colorado Springs, Colorado is pictured in this undated handout photo provided by Trout Unlimited and obtained by Reuters on February 19, 2015. U.S. President Barack Obama announced the designation of Browns Canyon, a picturesque gorge in the Rocky Mountains as national monument February 19, 2015. REUTERS/Trout Unlimited/Handout via Reuters (UNITED STATES - Tags: POLITICS ENVIRONMENT) ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THE AUTHENTICITY, CONTENT, LOCATION OR DATE OF THIS IMAGE. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. NO ARCHIVES. NO SALES

 

Let's face it. After retirement, most people are going to have less income than before. But at the same time they'll have the opportunity to do something about it--like move to a place with cheaper costs, or at least one more to their liking in terms of population density, climate or economic growth. It's a big country and there are a huge variety of places out there.

Toward that end, Forbes has pinpointed 25 communities of wildly differing sizes and styles for its 2015 list of The Best Places To Retire. This year's edition include entries in 19 states in all four time continental zones. Five states--Texas, North Carolina, Florida, Kentucky and Arizona--have two or more listings. Most of our picks are in climates considered warm or moderate. But not all. Fargo, N.D. is back on for the fifth straight year, joined by some other places with cold winters, including Great Falls, Mont.; Casper, Wyo., Pittsburgh, Pa., and Colorado Springs.
Nine of the entries were also on last year's list. All but three--Port Charlotte, Fla.; Raleigh, N.C.; and Rochester, Minn.--have been on some Forbes retirement list in the past five years.
As in previous years, our emphasis continues to be our highlighting places that offer what we consider good retirement value.
There are a number of reasons why on our towns may come and go from our list, including changes in relative underlying economics. Each year we screen more and more cities, and the competition gets more intense.

This year, we weighed data on nearly 500 cities from all 50 states and the District of Columbia. The most important factors were economic: overall cost of living and home prices as compared with national averages, and general state tax climate for retirees (a point that Forbes has been tracking for years.) These are also the main reasons why there are just a few locations (Pittsburgh, Pa., and the Portland, Ore., suburb of Oak Grove) in the pricey Northeast and West Coast.
If money is no object, we have a list for that: 25 Top Places To Retire Rich.
For cost of living, we largely used data from bestplaces,net. Home prices came from a number of sources: quarterly reports of the National Association of Realtors, trulia.com, zillow.com, topix.net, bestplaces.net, realestate.com and coldwellbanker.com
Assuming money is a consideration, cutting housing costs in retirement may be a big objective. According to the Realtors, the average national price of single-family home is $208,700, up 1% in a year. Seven places on our list come in at less than $150,000. The lowest is Pittsburgh at $133,000, followed by Bowling Green, Ky., $138,000; Athens, Ga, $139,000, and Lexington, Ky, $143,000. Three have a typical price more than 10% above the average: Oak Grove, $279,000; Casper, Wyo., $245,000; and Blacksburg, Va., $235,000.

Cost-of-living is expressed as an index, with 100 being the national average. We generally look for places with indexes no higher than 105. Two on the list are higher: Oak Grove (115) and Boise, Id. (107). Five places have indexes at 90 or lower, meaning at least 10% below the national average: Abilene and San Angelo, Tex. (83), Pittsburgh (84), Bowling Green (89) and Lincoln, Neb. (90).
With a significant number of retirees working at least part-time, especially in their early years, we also take into account estimates of current and future economic prosperity. This might also provide a boost to home prices down the road if you decide to sell. These stats include local unemployment rate as compiled by the U.S. Bureau of Labor Statistics and future growth projections as gauged by the Milken Institute. For January 2015, the national unemployment rate was 5.4%, the lowest in years. Only one place on the list is substantially above that, Tucson, at 5.9%. Most are below, and sometimes way below: Fargo, N.D., 2.9%, Rochester, Minn. and San Angelo, both 3.1%; and Abilene, 3.2%.
Our consideration of a state’s tax climate for retirees takes into account the notion that what is low tax for retirees isn’t always the same as for working-age folks. Nine states don’t have a broad-based state income tax–Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.  But such states tend to make up for that with other, higher taxes, most notably, higher sales and real estate levies, which can hit seniors harder. On the other hand, many states with income taxes give special breaks to retirees, such as light or no taxation of Social Security and pension benefits, and inheritances. In our view, the best states for retirees from a tax perspective are Alabama, Alaska, Arizona, Georgia, Idaho, Kentucky, Louisiana, Mississippi, Montana, New Hampshire, New Mexico, Nevada, Oklahoma, South Carolina, South Dakota, Utah and West Virginia.
Seniors rightly worry about physical as well as economic security. So we also give weight to violent crime rates for cities and their surrounding areas as calculated by the Federal Bureau of Investigation.We look at the number of doctors per capita as a proxy for the accessibility of health care. We also take into account the latest Milken Institute report on "Best Cities For Successful Aging." The study evaluates and ranks 352 metropolitan areas using a variety of factors touching on health care, wellness, transportation. living arrangements and economics.
Besides safety, retirees now want to keep fit and active. So we look at ratings for attributes that encourage an active retirement. One we use is Bicycling Magazine‘s ratings of cities for “bikability”. High grades here go to Boise, Columbia, Mo.; Colorado Springs, Pittsburgh and Tucson.
Another is walkscore.com ratings for walkability, or the ability to shop and get places on foot (great for both exercise and non-reliance on cars). Top grades go to Lexington, Ky.; Athens, Ga., and Pittsburgh.
Considerations beyond our ability to assess include personal tastes and needs, such as staying near friends and family. We also don't directly evaluate intangible qualities such as cultural milieu and scenic beauty. But perhaps 10 cities on this list might be considered college towns, which often provide enhanced cultural and other opportunities for their communities. This group consists of Athens (University of Georgia), Blacksburg (Virginia Tech), Bowling Green (Western Kentucky University), Columbia (University of Missouri, Stephens College, Columbia College), Lexington (University of Kentucky, Transylvania University), Lincoln (University of Nebraska), Pittsburgh (University of Pittsburgh, Carnegie Mellon University, Duquesne University, Chatham University), Raleigh, N.C. (North Carolina State University, Shaw University), San Marcos, Tex. (Texas State University) and Tucson, Ariz. (University of Arizona).
And a fair number of our 25 offer mountain or water environments, including Asheville, Blacksburg, Boise, Cape Coral, Casper, Colorado Springs, Great Falls, Logan, Utah; and Port Charlotte.
Our list is in alphabetical order. That means there’s no significance to where a place falls on the list.
Abilene, Texas
PROS: Robust economy, cost of living 17% below national average, average home price $142,000 (national average: $209,000). Low rate of violent crime. High number of doctors per capita, high rank on Milken Institute of best cities for successful aging. Warm climate.
CON: Not very walkable.
NOTED: Average tax climate and air quality. Population 120,000. On list last year.
TRIVIA: Founded as a railroad shipping town for cattle.
Asheville, North Carolina
PROS: Strong economy amid scenic terrain and good weather, cost of living 3% below national norm, average home price $206,000. Abundant doctors. High volunteering culture.
CON: Low walkability assessment, Milken aging rank.
NOTED: Average air quality, serious crime rate, tax climate. Population 87,000. On list in 2012 and 2013.
TRIVIA: City inspired Thomas Wolfe's first novel in 1929, Look Homeward, Angel: A Story of The Buried Life.
Athens, Georgia
PROS: Good tax climate in bustling college town (University of Georgia). Cost of living 1% below U.S. average, average home price $139,000. Low serious crime rate. High Milken aging rank and walkability index.
CON: Middling economy.
NOTED: Average doctors per capita, weather and air quality. Population 120,000. On various Forbes retirement lists in past.
TRIVIA: World's only double-barreled cannon--which never worked--is on display at City Hall.
Blacksburg, Virginia
PROS: Economically booming college town (Virginia Tech). Average home price $235,000. Above average air quality. Low crime rate. High Milken aging rank.
CONS: Cost of living 2% above national average.
NOTED: Average tax climate, doctors per capita and walkability. Mild climate. Population 44,000. Repeat listee from last year.
TRIVIA: Named two centuries ago for town's founder.
Boise, Idaho
PROS: Strong state capital economy. Typical home price $175,000. Good tax climate. Low serious crime rate. High Milken aging rank. Strong marks for bikeability and volunteerism.
CONS: Overall cost of living 7% above U.S. average, below average air quality, not too walkable.
NOTED: Low humidity but cold winters. Population 215,000. On last year's list.
TRIVIA: No agreement on where city's name came from.
Bowling Green, Kentucky
PROS: Vibrant, growing economy in college town (Western Kentucky University). Cost of living 11% below national average, average home price just $138,000, good tax climate. Low crime rate, high Milken aging rating.
CONS: Low walkability rank.
NOTED: Average doctors per capita, mild climate and air quality. Population 61,000. Repeat entry on list.
TRIVIA: Home of the National Corvette Museum.
Cape Coral, Florida
PROS: Rosy economy in half-century-old Gulf of Mexico coast city developed with a master plan. Cost of living 4% below national average, with home prices also slightly national average, at $190,000. Good weather, above average air quality, low serious crime rate.
CONS: Low Milken aging rank, low walkability.
NOTED: Average tax climate, average physicians per capita. Population 166,000. Returnee from last year's list.
TRIVIA: City's 400 miles of canals may be tops in the world.
Casper, Wyoming
PROS: Bracing economy and low unemployment in scenic, mile-high city. Cost of living at the national average, average home prince $245,000. Above average air quality. Low serious crime rate. High Milken aging rank.
CONS: Cold winters, low walkability.
NOTED: Average tax climate, doctors per capita. Population 60,000. Newcomer to this list.
TRIVIA: Town's name is misspelling of local hero.
Colorado Springs, Colorado
PROS: Promising economic outlook and plentiful jobs in the outdoor playgound bordered by scenic Pike's Peak. Cost of living at the national average, average home price $225,000. Above average air quality. High rank on Milken aging index. Kudos for bicycling environment and atmosphere of volunteering.
CONS: Low walkability, above average home price of $225,000, cold winters.
NOTED: Average tax climate, physicians per capita and serious crime rate. Population 440,000. Last on this list 2011.
TRIVIA: Town once dubbed the "City of Millionaires."
Columbia, Missouri
PROS: Booming economy in classic college town (University of Missouri, Stephens College, Columbia College). Halfway between St. Louis and Kansas City. Cost of living 5% below national norm, average home price $159,000. Abundant doctors per capita, top ranking on Milken aging list. Good bicycle environment.
CONS: Weather subject to extremes, below average air quality, crime rate too high.
NOTED: Average tax climate. Population 115,000. Back on list after skipping a year.
TRIVIA: Mizzou campus sporty statue of cartoon character Beetle Bailey.
Fargo, North Dakota
PROS: Fast-growing town with rocket economy on the north-flowing Red River of the North. Cost of living 2% below national average, typical home price $176,000. High number of doctors per capita, high rank on Milken aging index. High marks for volunteering culture.
CON: Cold winters.
NOTED: Average tax climate, air quality, serious crime rate and walkability rank. Population 114,000. Constant presence on this list.
TRIVIA: No scenes in 1996 Oscar-honored movie Fargo were shot in Fargo.
Great Falls, Montana
PROS: Strong economy and low unemployment on the banks of the Missouri River. Cost of living 2% below national average, average home $172,000, good tax climate. Above average air quality. High number of doctors per capita, high Milken aging rank, low serious crime rate.
CON: Cold winters.
NOTED: Average walkability. Population 60,000. Newcomer to list.
TRIVIA: Name comes from five Missouri River waterfalls in close proximity.
Huntsville, Alabama
PROS: Tennessee River Valley town enjoys sold economy. Cost of living 3% below national norm, average home price $174,000, good tax climate. Sits in top half of Milken aging rankings.
CONS: High crime rate, low walkability rating.
NOTED: Average doctors per capita and air quality. Mild winters, hot summers. Population 186,000. On list in some previous years.
TRIVIA: Original name was Twickenham.
Lexington, Kentucky
PROS: Strong bluegrass economy led by horse industry and colleges (University of Kentucky, Transylvania University). Cost of living 5% less than U.S. average, typical home price $143,000, good tax environment. Moderate climate. Numerous physicians per capita, high Milken aging rank. High marks for walkability and volunteerism.
CONS: None.
NOTED: Average air quality, serious crime rate. Population 308,000. On some previous lists.
TRIVIA: Location--in 1817--of first American performance of a Beethoven symphony.

More on Forbes: Click here for the full list of 25 Best Places To Retire In 2015

Culled from Forbes: