Best Cities for Gen X Retirement

Top 5 best cities for Gen X retirement

#1. Frisco, Texas

This Dallas-Fort Worth suburb tops the list of best cities for Gen X retirement due to its strong economic factors, and low poverty rate (2.9%) as well as a $184,523 median income among Gen Xers, which is the highest on our list. These factors, along with a relatively low sales tax rate (8.2%), propelled Frisco to the top of the list.  

#2. Cary, North Carolina

Cary, a suburb of Raleigh, North Carolina, boasts a high life expectancy of 81.2 years as well as an already large Gen X population. In fact, 14.26% percent of Cary’s population is Gen X. Cary also has a low poverty rate and the lowest violent crime rate among cities within the top 10 ranking.   

#3. McKinney, Texas

Located roughly 20 minutes northeast of Frisco, McKinney comes in at the No. 3 best places for Gen X retirement. In 2022, the city experienced an influx of nearly 3,000 Gen Xers, which increased McKinney’s Gen X population to 13%, according to the Census Bureau. McKinney also has one of the lowest poverty rates (4.6%) among the 170 cities within our analysis. 

#4. Plano, Texas

A short drive south of McKinney takes us to the No. 4 city on our list, Plano, Texas. Plano is the third Dallas-Fort Worth suburb within our ranking. With a median Gen X household income of $130,778 as well as no state income tax, Plano provides an ideal economic environment for Gen X retirees. 

#5. Gilbert, Arizona

Gilbert is the first of four Phoenix suburbs within our top 10 list of best places for Gen X retirement. Nearby Chandler, Arizona (No. 7), and Peoria, Arizona (No. 8) also landed on the top 10 list of most ideal cities for Gen X retirement, according to our analysis.   

Where is Gen X moving to?

With the increase in remote work opportunities, Americans across the country have migrated to new cities seeking both a better quality of life and more affordable housing. We took a look at which cities have experienced the largest influx of Gen Xers by analyzing Census Bureau migration data for those aged 45 to 54. 

Our analysis included the 170 largest cities across the country and found that Scottsdale, Arizona has been a magnet for Gen Xers. In 2022, which is the most recent data available, Scottsdale gained 6,215 Gen Xers, which increased the total percentage of Gen Xers to 13.68%. 

Elsewhere, Orlando, Florida, experienced an influx of 7,923 Gen Xers, while Fort Lauderdale’s Gen X population increased by 4,507. Rounding out the top five were Hialeah, Florida (a suburb of Miami) and Henderson, Nevada (a suburb of Las Vegas).  

Deciding where and when to retire can be complicated. According to our nationwide survey, the average age Gen Xers believe they’ll be able to retire is 67.5 years. However, more than 1 in 3 Americans surveyed (38%) and 39% of Gen Xers say they’ll never be able to retire.

It’s important to keep in mind that retirement is not a one-size-fits-all approach. Some may decide to hold off on retiring and continue saving, while others might opt to work part-time, start a small business or pursue a passion project during their golden years. 

If you haven’t already, take a hard look at your goals, as well as your current retirement plans such as a 401(k) and budgeting habits, to map out a realistic financial retirement future. 

Methodology

To determine our ranking, we analyzed more than 170 census-defined places with a population of 150,000 or more via the U.S. Census Bureau. We compared these cities across 12 weighted variables: median home price, median household income for the Gen X population, median real estate tax, property crime, violent crime, patient to physician ratio, life expectancy, poverty rate, percentage of Gen X population who moved in within the last year, total Gen X population as a percentage of the entire population, state income tax rate as well as the sales tax rate in each state. 

Each variable was graded on a 100-point scale. To determine an overall score, each city’s weighted average was calculated across all metrics.

Affordability (40 points total)

• Median home price (10 points): This metric reflects the average cost of purchasing a home in each city, which is crucial for Gen Xers planning for retirement. Affordable housing can help stretch retirement savings further.
• Median household income for the Gen X population (8 points): Higher household incomes provide greater financial stability, allowing Gen Xers to save more for retirement and maintain their lifestyle.
• State tax (6 points): State tax rates directly impact disposable income and can influence the overall affordability of living in a particular city.
• Sales tax (6 points): Sales tax rates affect the cost of daily expenses, impacting the overall cost of living and the ability to save money during retirement.
• Median property taxes (6 points): Property taxes are a significant ongoing expense for homeowners and can greatly affect the affordability of living in a city.
• Poverty rate (4 points): A lower poverty rate indicates a higher standard of living and economic stability, which is beneficial for retirees.

Safety (20 points total)

• Property crime per 100,000 (10 points): This metric measures the frequency of property crimes, such as burglary and theft. Lower rates of property crime contribute to a safer and more secure living environment for retirees.
• Violent crime per 100,000 (10 points): This metric measures the frequency of violent crimes, such as assault and robbery. Lower rates of violent crime are critical for ensuring the safety and well-being of Gen Xers in their retirement years.

Health (20 points total)

• Patient-to-physician ratio (10 points): This metric indicates the availability of medical professionals relative to the population. A lower patient-to-physician ratio suggests better access to healthcare services, which is vital for retirees.
• Average life expectancy (10 points): Higher life expectancy reflects the overall health and quality of life in a city. It indicates access to healthcare, healthy living conditions, and a supportive environment for aging.

Demographic Appeal (20 points total)

• Percentage of Gen X population who have moved into each city within the last year (10 points): This metric reflects the city’s attractiveness to Gen Xers. A higher percentage suggests the city is popular among this demographic, potentially due to favorable living conditions and amenities.
• Total Gen X population as a percentage of the entire population (10 points): This metric shows the proportion of Gen Xers in the city’s population, indicating a community where Gen Xers can find peers and support networks.

In June 2024, we conducted a nationwide survey of 1,500 Americans to gain insight into retirement planning. The survey respondents included 37% males, 60% females, and 3% identifying as non-binary/non-conforming. The survey responses rely on self-reporting, which may be subject to recall bias or social desirability bias. The collected data underwent quantitative analysis to identify trends, patterns, and correlations related to retirement planning.

Sources: U.S. Census Bureau’s American Community Survey, Zillow, Tax Foundation, Internal Revenue Service, Council for Community and Economic Research, FBI Uniform Crime Reporting (UCR) Program, Social Security Administration, Pew Research Center

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