The 7 Best Retirement Towns You’ve Never Heard Of (But Should Consider in 2025)

AnthonyTravel2025-07-095330

When most people think about retirement destinations, they picture the usual suspects: Florida beach towns, Arizona golf communities or North Carolina mountains. But some of the best places to retire are hidden gems that offer all the benefits of popular retirement spots without the crowds, high costs or tourist traps. These exist — and we hunted far and wide to find them.

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These seven towns might not be on your radar yet, but they should be. Each offers a unique (and lovely) combination of affordability, healthcare access, natural beauty and community that makes retirement not just comfortable, but genuinely enjoyable.

Fairhope, Alabama

Nestled on the eastern shore of Mobile Bay, Fairhope consistently flies under the radar despite being one of the South’s most charming small towns. With a population of just over 26,000, it offers the perfect balance of small-town charm and cultural sophistication.

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Why it works for retirees: Fairhope boasts a vibrant downtown filled with art galleries, boutiques and restaurants, plus a strong sense of community that’s hard to find elsewhere. The cost of living is significantly lower than most coastal areas, with average home prices around $483,500. Alabama’s tax-friendly policies for retirees are an added bonus — Social Security benefits aren’t taxed, and there are generous exemptions for retirement income.

The town’s location on Mobile Bay provides water activities (lounging by the water, anyone?) without Gulf Coast hurricane risks, and it’s just 30 minutes from Mobile’s larger medical facilities and airport.

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Dunedin, Florida

While everyone flocks to Naples or Sarasota, Dunedin quietly offers one of Florida’s most appealing retirement experiences. This small city of 36,000 sits on the Gulf Coast between Clearwater and Tarpon Springs, providing beach access without the spring break crowds.

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Why it works for retirees: Dunedin maintains a small-town feel despite being part of the Tampa Bay metropolitan area. The historic downtown is walkable and bike-friendly, with the Pinellas Trail running right through town. Housing costs are more reasonable than other Gulf Coast communities, and the city has invested heavily in parks and its robust recreation programs.

The proximity to Tampa Bay means world-class healthcare is easily accessible, while the location has both beaches and cultural attractions. Plus, it’s the spring training home of the Toronto Blue Jays, adding a fun seasonal attraction and an international team to root for.

Prescott, Arizona

Most people think of Phoenix or Tucson when considering Arizona retirement, but Prescott offers something different: four seasons, pine forests and elevation that keeps summer temperatures bearable. At 5,400 feet above sea level, this town of 48,000 provides Arizona living without the extreme heat. Arizona prices without Arizona heat? Sign us up.

Why it works for retirees: Prescott’s high-desert location means 300-plus days of sunshine annually, but summer highs rarely exceed 90 degrees. The cost of living is lower than similar Sedona, and Arizona’s retirement-friendly tax structure applies here too. The town has a rich history, vibrant arts scene and is surrounded by national forests perfect for hiking and outdoor activities.

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Healthcare is excellent for a town this size, with Yavapai Regional Medical Center serving the area. The proximity to Phoenix (90 minutes) means easy access to major medical facilities and airports when needed.

Beaufort, South Carolina

Tucked between Charleston and Savannah, Beaufort offers Southern charm without the tourist crowds of its famous neighbors. This coastal town of 14,000 features antebellum architecture, waterfront views and a pace of life that truly embodies relaxed retirement.

Why it works for retirees: Beaufort’s historic district is a living museum of well-preserved 18th- and 19th-century architecture, while the waterfront location provides boating, fishing and stunning sunsets. The cost of living is significantly lower than Charleston, and South Carolina offers favorable tax treatment for retirees.

The town has a strong arts community, excellent restaurants and is close enough to larger cities for cultural events and specialized medical care. The presence of a Marine Corps air station provides additional amenities and a sense of security.

Traverse City, Michigan

Don’t let the northern location fool you — Traverse City offers four-season retirement living that many people find surprisingly appealing. This lakefront city sits on Grand Traverse Bay and serves as the cultural and economic hub of northern Michigan.

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Why it works for retirees: Traverse City combines small-town charm with big-city amenities. The area is famous for its wine industry, with over 40 wineries in the region. Summer brings festivals, farmers markets and water activities, while winter offers skiing and snow sports. The cost of living is reasonable, and Michigan doesn’t tax retirement income from most sources.

Healthcare is excellent, with Munson Healthcare serving the region. The town has invested heavily in walkability and bike infrastructure, making it easy to get around without a car.

Hot Springs, Arkansas

Famous for its natural thermal springs and historic bathhouses, Hot Springs offers retirement living with a unique twist. Located in the Ouachita Mountains, it provides small-city amenities with outdoor recreation opportunities.

Why it works for retirees: Arkansas is one of the most tax-friendly states for retirees, with no taxes on Social Security and generous exemptions for other retirement income. Hot Springs National Park runs right through the city, providing hiking trails and the famous hot springs that give the town its name.

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The town has a surprisingly vibrant arts scene, good restaurants and Oaklawn Racing Casino Resort for entertainment. Healthcare is solid for a town this size, and Little Rock is just an hour away for specialized medical needs.

Burlington, Vermont

For retirees who love four seasons and don’t mind winter, Burlington offers an unbeatable combination of natural beauty, cultural amenities and progressive community values. This small town is on Lake Champlain with the Adirondack Mountains visible across the water. Simply stunning.

Why it works for retirees: Burlington consistently ranks among the safest cities in America, with excellent healthcare through the University of Vermont Medical Center. The city has a vibrant downtown, great restaurants and numerous cultural attractions including theaters, museums and music venues.

While Vermont winters are real, the city leans in with tons of super fun winter festivals and outdoor activities. The proximity to Montreal (90 minutes) adds international flair, and the city’s commitment to sustainability and walkability makes it particularly appealing to environmentally conscious retirees.