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The best cities for retirement in states with no income tax

  • There are seven states with no personal income taxes on wages, earnings or investment income.
  • GOBankingRates identified the best cities to retire in each of those states.

As older Americans approach retirement age, many are becoming increasingly pessimistic about their financial future.

With the exception of a Powerball win, where retirees choose to spend their golden years could make all the difference when it comes to making a nest egg last.

To that end, personal finance site GOBankingRates looked at the average expenses for those who are 65 and older, including rent, utilities and the typical tab for a meal at an inexpensive restaurant in states where there is no personal income tax, including Alaska, Texas and, of course, retirement hot spot Florida.

In those seven states, these are the best — and least expected — cities to retire:

Best city to retire in Alaska: Juneau
Percent of the population 65 and older: 8.4%
Median rent per month: $1,837
Utilities: $295

Best city to retire in Florida: Tampa
Percent of the population 65 and older: 11.0%
Median rent per month: $1,542
Utilities: $125

Best city to retire in Nevada: Henderson
Percent of the population 65 and older: 14.3%
Median rent per month: $1,500
Utilities: $100

Best city to retire in South Dakota: Aberdeen
Percent of the population 65 and older: 16.4%
Median rent per month: $600
Utilities: $145

Best city to retire in Texas: San Antonio
Percent of the population 65 and older: 10.4%
Median rent per month: $1,450
Utilities: $130

Best city to retire in Washington: Spokane
Percent of the population 65 and older: 12.8%
Median rent per month: $1,250
Utilities: $120

Best city to retire in Wyoming: Casper
Percent of the population 65 and older: 12.9%
Median rent per month: $1,050
Utilities: $121

In a separate report, the personal finance site compared average expenses for people age 65 and older, including groceries, housing, utilities, transportation and health care in every state to come up with how long a retirement savings of $1 million would really last.

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