10 Western U.S. Cities Offering Unexpected Savings for Retirees

The Western U.S. is becoming an increasingly attractive destination for retirees due to its affordable cost of living, tax-friendly policies, and year-round mild weather. As an added bonus, many cities in states such as Colorado, Idaho, Montana, and Oregon offer lower housing costs, reduced daily expenses, and access to top-notch healthcare, making it easier for retirees to make their savings last while also enjoying an active lifestyle.

To help retirement planners make informed decisions, Investopedia partnered with Travel + Leisure to analyze key financial and lifestyle factors, including housing prices, state tax policies, and healthcare access across the U.S. For the West in particular, this short list of destinations highlights our top picks for those seeking a more affordable, comfortable, and well-connected place to retire.

Top Retirement Destinations in the West

1. Pocatello, Idaho

Located in southeastern Idaho, residents call Pocatello the “Gateway to the Northwest” because of all the town has to offer in natural beauty and the western way of life. Pocatello experiences all four seasons in a year, and it’s not uncommon for residents to get outside and enjoy them all.

The cost of living in Bannock County, where the large town (nearly 59,000 residents) of Pocatello resides, is relatively low, with median housing costs at $925 compared to the median income of $64,080. Median monthly transportation and food costs are also below average, cumulatively making this destination a great balance of affordability and outdoor lifestyle perks.

2. Butte-Silver Bow, Montana

Butte-Silver Bow in Deer Lodge County was once the largest city west of the Mississippi River between Chicago and San Francisco. Now, the mid-size town has a population just over 36,000. Butte-Silver Bow has a long and proud history, including mining, Copper Kings, and the birth of the labor movement. 

The communities of Deer Lodge County work hard to honor their history while making room for culture and arts. Today’s historic downtown is still home to many well-kept Victorian buildings with modern businesses blooming inside. 

When it comes to affordable living, Butte-Silver Bow’s median monthly housing cost of $744 is one of the lowest among our top retirement destinations. Additionally, retirees might rest easier knowing the county is home to two major hospitals and a dozen healthcare facilities, even though much of Butte-Silver Bow’s appeal is in its remoteness.

3. Twin Falls, Idaho

Twin Falls offers retirees natural beauty, affordability, and a strong community. With a population of over 55,000, it’s larger than other destinations on this list, but offers a small-town lifestyle while still providing access to big-city amenities such as nearly a dozen hospitals, plentiful other healthcare facilities, and dozens of arts and entertainment venues.

The cost of living is below average, and median home value ($292,700) indicates retired individuals may be able to downsize or pursue homeownership in this area without excessive financial burden. Twin Falls is also located on the Snake River and a popular tourist destination because of its excellent skiing opportunities, outdoor recreation (there’s more than 30 parks in the area), and nearby Shoshone Falls.

4. Pomeroy, Washington

Pomeroy is the county seat of Garfield County, Washington and home to less than 1,500 people, offering a peaceful rural lifestyle and a low cost of living that people wanting to slow down in their retirement years may find appealing.

Because Pomeroy is a smaller, less densely populated town, housing prices are quite a bit below the national average and larger metro areas in this state, sitting at $214,200. For comparison, the average home value in Seattle is $842,608, just a few hours away from Pomeroy.

5. Omak, Washington

Omak in Okanogan County is a small town of about 5,000 people with a big heart. The community is fairly rural, but comes together for its annual Omak Stampede as one way of keeping Omak cultural history alive. The area also offers tons of outdoor recreational activities, like hiking and fishing. 

On top of a below-average cost of living, namely median monthly housing costs in the mid-$800s, Okanogan County is home to 6 hospitals and 64 additional health care facilities, so retirees can sleep well at night knowing they won’t have to go far for care when needed.

6. Great Falls, Montana

Great Falls, Montana, is a large town of nearly 60,500 people between four mountain ranges and home to an international airport. The art community in Great Falls is strong and has many cultural attractions, such as museums and theaters. While spring may be short, summers in Montana are beautiful, and Great Falls’ outdoor recreation is thriving.

The cost of living in Cascade County (where Great Falls lies) is appealing, too. On average, residents spend less than $1,000 a month on housing costs. Monthly food ($626), transportation ($1,181), and tax ($602) costs are also well below the national average.

7. Carson City, Nevada

Carson City is Nevada’s capital, but doesn’t boast the big city price tag most capital cities bring making it an appealing option for those who want a more urban retirement lifestyle without breaking the bank.

While Carson City’s median home values are the highest on this short list at just under $430,000, Nevada doesn’t tax Social Security benefits or IRA, 401(k), or pension withdrawals. Other costs of living including median monthly housing, transportation and food are still well below average, too.

8. Evanston, Wyoming

Evanston may be the quintessential western town of a retiree’s dreams. Although this town has a population of 11,822, there is always something to do. Residents can expect about 300 sunny days a year, making it a great location for anyone interested in outdoor activities like golf or state park exploration. 

Wyoming has no state income tax, so retirees will not pay state tax on their Social Security or any money withdrawn from retirement plans. Median home values in Evanston are at $255,400, which is favorable compared to the national average and indicates there may be lower cost homeownership options for those on a fixed income. Many of the homes in the neighborhoods are ranch-style or bungalows, which is appealing to those who would also like to retire from stairs. 

9. Ontario, Oregon

Ontario is the largest town in Malheur County, Oregon, home to nearly 12,000 and nestled among many state parks and forests. Though it lies along the Snake River, Ontario has a more mild arid climate than one might expect from Oregon.  

This may be a great place to make your money really stretch in retirement, especially housing costs, which are less than $850 each month, on average. Median monthly food costs are also on the lowest end of all 50 of our top retirement destinations. Pair those qualities with plentiful healthcare facilities, a short drive to Boise, and no Social Security income tax, this small town is worth considering.

10. Pueblo, Colorado

Pueblo, Colorado, boasts over 300 sunshine-filled days a year with very low humidity. All that sunshine makes Colorado and its inevitable snowy days more palatable for retirees wanting the sun of Florida without the high temperatures and hair-raising humidity.

This once Wild West City is now a bustling creative hub with 51 county art establishments. Pueblo has community events year-round and is a big enough city that there is always something new to see.

Pueblo’s housing and living costs are lower than the national average and much lower than those of nearby cities in Colorado, such as Colorado Springs and Denver. For example, median monthly housing costs are right around $1,000.

The Bottom Line

Retirees hoping for the laid-back western way of life combined with milder climates and seemingly neverending recreational opportunities at an affordable price have much to choose from in the West. A few western states do not have state income tax, which could be a major draw for retirees on social security income or with income from retirement accounts like a pension or a 401(k). 

Whether looking for a small town with a tight-knit community or a bustling downtown full of restaurants and culture, deciding where to retire should balance financial considerations with lifestyle preferences. 

Understanding your financial needs in retirement makes the planning process even easier. Once you have an idea of how much you’ll need, you can set the money aside to make your dreams a reality.