The top two U.S. cities for retirement are located in Florida, with the third-best option being approximately 1,800 miles away.

If you dream of retiring in a location with easy access to renowned amusement parks such as Walt Disney World and Universal Studios, Orlando, Florida, is the ideal destination for you. According to WalletHub's 2024 list of the best and worst places to retire, Orlando has been ranked as the top city to retire.

According to WalletHub, Orlando has much more to offer retirees than just amusement parks and costumes.

The personal finance company assessed the retirement friendliness of 182 highly populated U.S. cities using data from multiple sources, including the U.S. Census Bureau, the Council for Community and Economic Research, the Bureau of Labor Statistics, and the Tax Foundation.

The analysis by WalletHub considers that a retiree will have a fixed income and ranks the cities based on their scores out of 100 in four categories.

• Analyzes factors such as taxpayer friendliness and cost of living to determine affordability (25 points).
• The evaluation of factors such as music venues, bingo halls, museums, and adult volunteer activities is included in the 25-point activities.
• The quality of life (25 points) is evaluated based on factors including the percentage of the population aged 65 and above, a city's walkability, and its weather conditions.
• The quality of health care (25 points) is influenced by factors such as the availability of health facilities, the effectiveness of public health systems, and the average life expectancy.

Here are the top 10 U.S. cities to retire, according to WalletHub.

1. Orlando, Florida
2. Miami
3. Minneapolis
4. Tampa, Florida
5. Fort Lauderdale, Florida
6. Scottsdale, Arizona
7. Cincinnati
8. St. Petersburg, Florida
9. Casper, Wyoming
10. Atlanta

What makes Orlando a top retirement spot

It's not surprising that many Florida cities rank highly on WalletHub's list, as the state doesn't impose a state income tax, meaning retirement income from a 401(k) or individual retirement account, as well as Social Security retirement benefits, aren't taxed at the state level.

Due to the report, Orlando was ranked at the top of the list of cities for retirees because of its diverse range of activities for seniors. The city offers a variety of options such as art galleries, fishing facilities, and music venues. Additionally, the city's website features a "Senior Connections" section that highlights programs for residents aged 55 and above, including game nights, trips, and dance classes.

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Orlando was ranked 9th on WalletHub's list for affordability, with a cost of living only 1% higher than the state average and on par with the national average, according to RentCafe.

Miami, another city in Florida, was ranked as the second-best place to retire, but scored lower for affordability. According to RentCafe, the cost of living in Miami is nearly 20% higher than the national average.

Factors to consider when choosing where to retire

One person's dream retirement destination may be another's nightmare location.

When planning for your post-work years, while affordability is crucial, also consider what else you value, such as being near your loved ones and engaging in enjoyable activities.

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