This article takes a look at the 12 worst cities in the Southwest for retirees. If you wish to skip our detailed analysis on navigating retirement living in the US, you may go to 5 Worst Cities in the Southwest for Retirees. 

Balancing the Retirement Math

“Math! What am I even going to use it for?!” Either we’ve heard it, or we’ve said it, but almost all of us have had some sort of a relationship with Math. In a report titled ‘Women and Men in STEM Often at Odds Over Workplace Equity’, the Pew Research Center found that 42% of Americans disliked math in school. Well, there’s bad news for these 42% as they get older. Turns out, there’s a lot of math in retirement, particularly in the US - and balancing the income and expense equation isn’t as easy as freshman algebra. 

The Social Security Administration’s Social Security payout for 2024 is a rough $1,909 per month, a figure most retirees rely on given that they don't have thousands saved in the retirement bank. Compare this with the Bureau of Labor Statistics findings that the average monthly expense of US citizens 65 years old and above is $4,345, and the math simply doesn’t compute. The presented figures leave a disparity of more than $2,400 - a sum rather large for a retired US citizen to fill. So, what do senior citizens then do? Some exit the States and find the most affordable places to retire in the world. Others simply get by - many on sums as low as $1,200 and $1,500 a month. 

While not an easy feat by any means, the place where you decide to spend your retirement certainly has an impact. 

Plotting the Retirement Landscape

If there’s one thing about Americans, it’s that they’re quick to solutions. Your hometown isn’t suiting your retirement plans? Get up, pack up, and move. That’s exactly what over 338,000 retirees did in 2023 - the biggest move in three years and a 44% increase over 2022 - found HireAHelper in their Annual Retiree Migration Study.  So, where are all these retirees going? According to the United Van Lines’ 2023 National Movers Study, the Southwest is a popular choice for US retirees opting for an out of state retirement. Of the states that retirees moved to in 2023, the top ten included three Southwestern states, namely, Nevada, Arizona, and New Mexico. This is no surprise - with it’s moderate climate and comparatively lower cost of living, the Southwest offers American retirees with the perfect backdrop to start their retirement on a pleasant note. 

The retail market there is also pleasant, with plenty of companies offering retiree and senior citizen discounts, along with member-only offers. This includes names such as Kohl’s (NYSE:KSS), Kroger Co (NYSE:KR), and the Bloomin’ Brands Inc. (NASDAQ:BLMN) owned Outback Steakhouse, among many others. For reference, Kohl’s (NYSE:KSS) offers a 15% discount every Wednesday, Kroger Co (NYSE:KR) offers rewards and points with its Shopper’s Card, and Bloomin’ Brands Inc.’s (NASDAQ:BLMN) Outback Steakhouse offers a 10% discount on food and non-alcoholic beverages. The best part is the variance in company types - shop for clothes at Kohl’s (NYSE:KSS), get your groceries at Kroger Co (NYSE:KR), and enjoy a meal at a Bloomin’ Brands Inc. (NASDAQ:BLMN) restaurant. 

That being said, it’s easy to get sucked in to the packaged attraction of a Southwestern retirement. While there are certainly plenty of great retirement options in the region, there are some equally bad ones - and it’s best to steer clear of those. After all, not every Southwestern city is a gem. 

To know more about the worst cities in the Southwest for retirees, read below. 

Pixabay/Public Domain

Methodology

To compile this list of the 12 worst cities in the Southwest for retirees, we consulted several sources including our list of 20 Worst Places to Retire in the US, and GOBanking Rates, FinanceBuzz, AZ Big Media, HuffPost News, and Consumer Affairs. Once a list of Southwestern cities was compiled using these sources, they were then assigned scores. 

These cities were ranked across four main factors, namely, the cost of living, tax-friendliness, their median house price, and their health rank. For reference, cost of living data was taken from Best Places, tax friendliness from Smart Asset, and median house prices were taken from Realtor. As for health scores, those were taken from Area Vibes. 

Equal weightage was assigned to each of these factors, and the cities were ranked, selecting the bottom twelve for our list. As for the lowest-scoring city, it earned the number one spot on our list of worst cities in the Southwest for retirees. The resulting list is presented in descending order, with the lowest ranked city presented last. For cities that earned an equal cummulative score, the cost of living index was used as a tie-breaker. 

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders. 

Here are the 12 worst cities in the Southwest for retirees:

12. Albuquerque, New Mexico

Insider Monkey Score: 17  Cost of Living Index: 92 Tax-friendliness: Moderately tax-friendly Median House Price: $375,000 Health Grade: B With a median house price below the national average and a cost of living index that is also 8% lower than the national average, Albuquerque in New Mexico may appear to be an ideal retirement spot. However, what earns it a spot on our list of worst cities in the Southwest for retirees is a host of finer problems. With lacking infrastructure, Albuquerque is not the most pedestrian-friendly place in the US, nor is it favorable to public transport. This poses a problem for senior citizens who may not possess their own vehicle. Combine this with the high summer temperatures and sparse entertainment opportunities, and Albuquerque chalks up to be a somewhat subpar retirement spot.

11. Snowflake, Arizona

Insider Monkey Score: 12.5

Cost of Living Index: 97.9

Tax-friendliness: Moderately tax-friendly

Median House Price: $435,000

Health Grade: F

Located in Navajo County, Arizona, Snowflake may appear like an ideal retirement spot with its lower than average cost of living. However, a closer look reveals a poor healthcare system along with unfavorable tax policies. The state of Arizona taxes retirement income as regular income, applying a flat 2.5% rate.

10. Las Vegas, Nevada

Insider Monkey Score: 12.5

Cost of Living Index: 110.6

Tax-friendliness: Very tax-friendly 

Median House Price: $445,000

Health Grade: B

The city of casinos, Las Vegas does better as a vacation spot rather than a retirement pick. High cost of living and high house prices make it one of the worst big cities to live in USA. However, it’s worth noting that the city does carry favorable tax policies, a satisfactory healthcare system, and is one of the sunniest cities in the US.

9. Carson City, Nevada

Insider Monkey Score: 12

Cost of Living Index: 109.4

Tax-friendliness: Very tax-friendly

Median House Price: $580,700

Health Grade: B

For retirees looking to purchase a retirement home with their savings, Carson City is a place to avoid. With median house prices nearing the $600,000 mark and a cost of living that is 9.4% higher than the national average, this Nevada city is certainly not one for social security retirees.

8. Henderson, Nevada

Insider Monkey Score: 12

Cost of Living Index: 110.6

Tax-friendliness: Very tax-friendly

Median House Price: $525,000

Health Grade: B

Our third Nevada pick for our list of worst cities in the Southwest for retirees brings another housing and cost of living nightmare. With median house prices at $525,000, Henderson retirees will be paying an extra $137,400 on average as compared to overall median house prices in the US. It’s only saving grace? Nevada treats all retirement income as tax-free. However, this is only good news for retirees with sizeable savings in the bank.

7. Lake Havasu City, Arizona

Insider Monkey Score: 11.5

Cost of Living Index: 100.1

Tax-friendliness: Moderately tax-friendly

Median House Price: $564,900

Health Grade: C

Up on number seven, Lake Havasu City in Arizona makes its way into the top 10 worst cities in the Southwest for retirees. While it boasts a healthy cost of living at only 0.1% higher than the national average, the housing market and healthcare standards are what land it a spot on this list. Senior citizens with ailing health and retirees who dream of buying their forever home on a budget should take caution before moving here.

6. Taos, New Mexico

Insider Monkey Score: 10

Cost of Living Index: 96

Tax-friendliness: Moderately tax-friendly

Median House Price: $650,000

Health Grade: F

Our second New Mexico pick for the worst cities in the Southwest for retirees comes with a hit to the housing market. With median house prices soaring at $650,000, senior citizens should think twice before relocating to Taos. The renting situation isn’t much better with the average rent for a one-bedroom apartment priced at $1,795 according to Zumper. 

Click to continue reading and see the 5 Worst Cities in the Southwest for Retirees.

Suggested Articles:

• 18 Best Southern Cities to Retire on a Budget of $1,500 a Month

• 15 Best East Coast Cities to Retire on a Budget of $1,200 a Month

• 20 Best Small Towns in Florida to Retire

Disclosure: none. 12 Worst Cities in the Southwest for Retirees is originally published on Insider Monkey.