Top 10 U.S. Cities for High-Income Retiree Living

Have you ever wondered where retirees in the U.S. are living their best lives, financially speaking? Picture this: a sunny coastal town, a cozy coffee shop buzzing with silver-haired locals, and the kind of lifestyle that makes you think, “This is what retirement should feel like.” For many, the dream of a comfortable retirement hinges on one key factor: income. And not just any income, but a steady stream from Social Security checks and carefully planned savings withdrawals. According to recent analyses, some U.S. cities stand out as havens for retirees pulling in the highest annual incomes. Let’s dive into the top 10 cities where retirees are thriving, explore why these places shine, and unpack what it means for your own retirement dreams.

Where Retirees Thrive Financially

Retirement isn’t just about kicking back with a good book or perfecting your golf swing—it’s about having the financial freedom to enjoy those moments without stress. Across the U.S., retirees rely heavily on two primary income sources: Social Security benefits and withdrawals from retirement accounts like 401(k)s or IRAs. Recent data shows that in certain cities, retirees are raking in impressive sums from these sources, far surpassing the national average. These locations aren’t just random dots on a map; they’re places where higher earners have settled, leveraging their career-long savings and larger Social Security checks to live comfortably. So, what makes these cities special, and which ones top the list?

The Top 10 Cities for Retiree Income

Let’s get to the good stuff: the cities where retirees are living on the highest annual incomes. These rankings come from a deep dive into Census Bureau data, focusing on average incomes from Social Security and retirement savings withdrawals. Each city offers a unique blend of lifestyle, affordability, and financial opportunity, making them magnets for well-off retirees. Here’s the breakdown:

1. Carlsbad, California: Retirees here enjoy an average annual income of $85,442, with $56,685 from savings and $28,757 from Social Security. Think sunny beaches and upscale living—Carlsbad’s a gem for those who’ve saved diligently.
2. Bellevue, Washington: With $85,061 in total income ($55,346 from savings, $29,715 from Social Security), this Pacific Northwest hub offers tech-driven prosperity and scenic views.
3. Naperville, Illinois: Retirees pull in $85,055 yearly, including $54,134 from savings and $30,921 from Social Security. It’s a charming suburb with a vibrant community feel.
4. Arlington, Virginia: Just outside D.C., retirees earn $82,252, with $55,856 from savings and $26,396 from Social Security. Proximity to the capital adds a cosmopolitan edge.
5. Sugar Land, Texas: This Southern charmer boasts $80,901 in retiree income, with $52,946 from savings and $27,955 from Social Security. No state income tax sweetens the deal.
6. Norman, Oklahoma: A surprising entry, with $80,177 total income ($55,056 from savings, $25,121 from Social Security). Affordable living meets college-town energy.
7. Alexandria, Virginia: Retirees here enjoy $79,273, including $53,697 from savings and $25,576 from Social Security. Historic charm and urban access make it a draw.
8. The Woodlands, Texas: With $79,033 in income ($47,281 from savings, $31,752 from Social Security), this planned community offers luxury and tranquility.
9. Boulder, Colorado: Retirees earn $78,186, with $50,280 from savings and $27,906 from Social Security. Outdoor enthusiasts love the mountain vibes.
10. Carrollton, Texas: Rounding out the list, retirees bring in $77,921, with $54,319 from savings and $23,602 from Social Security. It’s a budget-friendly Texas gem.

These numbers paint a picture of retirement done right, but what’s driving these high incomes? Let’s unpack the factors that make these cities stand out.

Why These Cities Lead the Pack

It’s no coincidence that these cities top the charts. For one, they tend to attract higher earners who’ve spent decades building substantial nest eggs. Social Security benefits, while capped, are tied to your career earnings, so professionals in high-paying fields—like tech in Bellevue or finance in Arlington—often receive larger checks. But it’s not just about Social Security. The real game-changer is retirement savings. In Carlsbad, for example, retirees are withdrawing a whopping $56,685 annually from their accounts, a testament to disciplined saving and smart investing over the years.

“Retirement income is a reflection of a lifetime of financial choices. The cities where retirees thrive are often where savers and planners settle.”

– Financial planning expert

Another factor? These cities often have higher costs of living, which means retirees need more income to maintain their lifestyles. Take Carlsbad: its coastal allure comes with a price tag, but those who’ve saved enough can afford the sunny dream. Conversely, places like Norman and Carrollton offer a lower cost of living, allowing retirees to stretch their dollars further. It’s a balancing act—higher incomes often align with higher expenses, but the right city can make all the difference.

Social Security vs. Savings: The Income Breakdown

Here’s where things get interesting. Across the U.S., Social Security is a lifeline for many retirees—58% call it a major income source, according to recent surveys. But in the top 10 cities, it’s only part of the equation, typically making up 30-40% of total income. The rest? That comes from retirement accounts, where the disparity is stark. For instance, while Social Security payments range from $15,421 in some cities to $31,752 in The Woodlands, savings withdrawals swing wildly—from $16,282 in Allentown, Pennsylvania, to Carlsbad’s $56,685.

This table shows just the top three, but the trend is clear: savings withdrawals are the heavy hitters. Why? Because Social Security has a ceiling, while your 401(k) or IRA withdrawals depend on how much you’ve socked away. I’ve always found it fascinating how these numbers reflect not just financial habits but also the kind of life retirees want to lead.

How Social Security Works in Retirement

Social Security isn’t a one-size-fits-all deal. Your benefits depend on a few key factors: how long you worked, how much you earned, when you were born, and when you start claiming. For those born in 1960 or later, the full retirement age is 67. Claim earlier, and your checks shrink; wait longer, and they grow. It’s like a financial choose-your-own-adventure story. Higher earners in places like Naperville or The Woodlands often max out their benefits, but even then, the cap keeps things in check. In 2025, the average retiree will get just under $24,000 a year from Social Security—not enough to live large in most of these top cities.

Here’s a quick rundown of what shapes your Social Security payout:

• Years Worked: You need at least 10 years of work to qualify, but 35 years of earnings are used to calculate your benefit.
• Earnings History: Higher salaries mean bigger checks, up to a limit.
• Claiming Age: Start at 62, and you could lose up to 30% of your benefit. Delay until 70, and you could gain up to 24%.

It’s a system that rewards patience and planning, but it’s not the whole story. Savings are where the real flexibility lies.

The Power of Retirement Savings

If Social Security is the steady bassline of retirement income, then savings withdrawals are the soaring melody. Retirees in the top 10 cities are tapping into substantial retirement accounts, often built over decades of disciplined investing. Take Carlsbad, where the average retiree pulls out $56,685 a year. Following the 4% rule—a guideline suggesting you withdraw 4% of your savings annually to make it last 30 years—that implies a nest egg of over $1.4 million. Not chump change!

“The 4% rule is a starting point, but your lifestyle and location dictate how much you really need.”

– Retirement planning advisor

The beauty of savings is control. You decide how much to withdraw (within limits) and when to start. At age 59½, you can begin pulling from tax-deferred accounts like 401(k)s without penalty, but by 73, required minimum distributions (RMDs) kick in, forcing you to take out a set amount each year. For retirees in high-cost cities like Boulder or Alexandria, those withdrawals need to be hefty to cover the lifestyle. But in places like Norman, where living costs are lower, the same amount goes further.

What Does a Comfortable Retirement Cost?

Here’s the million-dollar question (sometimes literally): How much do you need to retire comfortably? It depends on where you live and how you want to spend your days. Recent estimates suggest a comfortable retirement—covering essentials with room for fun—ranges from $61,000 a year in Mississippi to over $129,000 in Hawaii. The top 10 cities lean toward the higher end, but they also offer unique perks, like cultural amenities in Arlington or outdoor adventures in Boulder.

Let’s break it down with a quick list of factors that shape your retirement budget:

• Location: High-cost cities like Carlsbad demand bigger budgets, while places like Carrollton are more forgiving.
• Lifestyle: Are you a homebody or a globetrotter? Your hobbies and travel plans matter.
• Work Plans: Some retirees pick up part-time gigs to supplement income, easing the pressure on savings.
• Longevity: Planning for 20 years of retirement is different from planning for 30 or more.

I’ve always thought the 4% rule is a solid starting point, but it’s not gospel. If you’re eyeing a city like Bellevue, you might need to tweak that number to match the cost of living. And don’t forget unexpected costs—healthcare, home repairs, or that dream trip to Italy can throw a wrench in even the best-laid plans.

Choosing Your Retirement City

So, how do you pick the right city for your golden years? It’s not just about the numbers—it’s about the life you want to live. Carlsbad’s beaches might call to you, but if you’re not a fan of California’s taxes, Sugar Land’s no-income-tax policy might be more your speed. Maybe you’re drawn to Boulder’s hiking trails or Naperville’s small-town charm. Each city on this list offers something unique, but they all share one thing: retirees with the means to enjoy them.

Here’s a quick guide to choosing your spot:

• Cost of Living: Research housing, taxes, and daily expenses. Texas cities like Carrollton score high for affordability.
• Amenities: Love culture? Alexandria’s museums and restaurants are a draw. Prefer nature? Boulder’s your place.
• Community: Look for vibrant retiree communities with activities like book clubs or fitness classes.
• Healthcare: Access to quality medical care is crucial as you age.

Personally, I think there’s something magical about finding a place that feels like home but also fits your budget. It’s like dating—you’ve got to find the right match, not just the flashiest option.

Planning for Your Own High-Income Retirement

Dreaming of retiring in one of these top cities? It starts with planning—years, even decades, in advance. The retirees in Carlsbad and Bellevue didn’t get there by accident. They saved aggressively, invested wisely, and made smart choices about when to claim Social Security. If you’re still in your working years, now’s the time to max out your 401(k) contributions or explore other investment vehicles like IRAs or taxable brokerage accounts.

Here are some steps to get you on track:

1. Boost Your Savings: Aim to save at least 15-20% of your income annually. Automate contributions to make it painless.
2. Invest Smartly: Diversify your portfolio with stocks, bonds, and maybe even real estate to grow your wealth.
3. Delay Social Security: Waiting until 70 can significantly increase your monthly checks.
4. Budget for Your Dream City: Use tools like retirement calculators to estimate how much you’ll need in your chosen location.

It’s not just about the money, though. Think about what makes you happy. Maybe it’s a quiet life in Norman or the hustle of Arlington. Wherever you land, the goal is to build a retirement that feels rewarding, not restrictive.

The Bigger Picture

Retirement is a marathon, not a sprint. The cities on this list aren’t just about high incomes—they’re about what those incomes enable: freedom, comfort, and the chance to live life on your terms. Whether you’re drawn to the sunny shores of Carlsbad or the vibrant streets of Naperville, the key is to plan ahead and make choices that align with your vision. I’ve always believed that retirement is less about the destination and more about the journey—how you get there matters just as much as where you end up.

“A successful retirement isn’t just about money—it’s about crafting a life you love.”

– Wealth management coach

So, what’s your retirement dream? Are you eyeing a spot on this list, or do you have another city in mind? Wherever you’re headed, start planning today. Your future self will thank you.