Key Points
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The list of best retirement cities is dominated by warm-weather locales.
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However, one Alaskan city made the list — and it’s for a surprising reason.
When most people think of popular retirement destinations, they think of warm weather locales like Florida or North Carolina. Indeed, those two states dominate the latest rankings by U.S. News of the top retirement cities in America. But there’s one surprising addition to the list: a city in Alaska with fewer than 300,000 residents.
Image source: Getty Images.
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This Alaskan city could be a dream for retirees
For years, U.S. News has been ranking the best retirement destinations in the U.S. Ranking every potential destination, of course, requires some sort of ranking methodology. Perhaps the biggest factor involved has been the cost of living, which includes many low tax areas. This is a wise methodology, as retirees are often on a fixed income. Choosing a low-cost area to live in can help extend savings while providing a cushion to any potential market downturns.
This year, however, U.S. News updated its methodology to more heavily weigh “happiness” factors. This ensures that the list includes not just money-saving locations, but areas that retirees actually enjoy living in. According to a press release, U.S. News observed that “retirees seek a destination that will not only stretch their dollar, but is also a place for enjoyment.”
This update created a few surprises along the way. Nearly cracking the top 20, for instance, was Anchorage, Alaska, which came in at number 21.
What’s so attractive about Anchorage? There’s no sales tax and no state income tax. The city is also significantly more affordable than most areas in the state. But perhaps the most exciting factor is, of course, the access to nature. In the summer, world-class hiking trails, whale watching, and fly fishing are just minutes away. In the winter, hundreds of miles of ski trails surround the city. Or, you can just cozy up by the fire and read a good book.
You’ll have to be fine with a longer, darker winter, but Anchorage, Alaska, deserves more recognition from retirees than it currently gets.
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In Winter, Anchorage is colder than just about anywhere in the lower 48. It is so cold that you have to plug your car into electricity to keep the engine warm, or else you have to go outside in the cold and start and run your car at lunchtime. Anyone who can afford it flies to Seattle or Hawaii during the Winter. Before you move here, spend 1-2 weeks in the Wintertime and see if you like Anchorage’s weather.
The average winter temperatures in Anchorage, Alaska, typically range from about 5°F to 30°F (−15°C to −1°C). January is usually the coldest month, with average lows around 11°F (−11.7°C) and highs around 23°F (−5°C)
I cannot imagine going to Seattle for ANYTHING.
There are many states that have colder temperature than Anchorage, Alaska, such as North Dakota, Michigan, etc.
I am 74 years old and live in Anchorage. Today the temperatures were in the 30s. Warmer than many locations on teh East Coast.
Also, the cost of just about everything is more. Transportation costs from the Lower 48 to Anchorage need to be factored in.
I lived in Anchorage from 1093 to 2000 and loved it. I was in my thirty’s and very much enjoyed the outdoor activities. I’m certain things have changed there. I met my wife there had a good career and some good friends. I tell people the winter weather is say morning low of 20 and day time highs of 28. Not much warming with only 4-6 hours of sunshine. I would drive to and from work in the dark. Summers were of course opposite. You’d be outdoors and realize it 10 or 11:00 and you got to be to work at 7:00am. Great times. Loved it a lot.
I came to Anchorage in 1967 while serving in the USAF. The population was much smaller at the time and we relied on one another more because we had too. Today there are many more activities than back then both indoor and out. As Rich said, the long days of summer are great, but some people are affected by SAD in the winter because days are short and the lack of sun can be a negative. If you are working normal hours you go to work in the dark and may come home in the dark. You will either love Alaska to leave. I know people who couldn’t wait to leave and 50 years later are still here.
That brings me to the economic factor. Yes, everything here is more expensive. It is true we do at the present time have a Permanent Fund Dividend which I’m sure you have heard about However since the State Legislature thinks its sole purpose is to spend all the money that they can get their hands on we’ve seen the PFD’s best days. Local property taxes keep going up and up because of the Anchorage Assembly’s need to “take care” of everybody. Anchorage is no longer an economically friendly place for people on a fixed income or anybody else for that matter. Our Marxist-Socialist Assembly is a big problem. So think twice before deciding to move here.
The average winter temperatures in Anchorage, Alaska, typically range from about 5°F to 30°F (−15°C to −1°C). January is usually the coldest month, with average lows around 11°F (−11.7°C) and highs around 23°F (−5°C)
Kind of like N. Arkansas this week. 9 deg at night/am and high of 25 in the afternoon…
Don, you’re spot on! Particularly with your mention of the Marxist-Socialist influence. Its becoming a state problem, as more Portland/Seattle/California people move up here. (If you’re living in those areas, stay there! “Enjoy” the societal cesspool you created for yourself, and the fruits of your voting habits and political leanings.)
Both Anchorage and Fairbanks are burdened with politically active Liberals who are getting into Borough positions way too often. All they know how to do is spend more, build more government-owned recreation facilities, give the public schools whatever they ask, and raise our property taxes to pay for their Santa Claus ways.
While we get an increasingly measly PFD (don’t even think of moving here to get an extra thousand or so bucks), the property taxes keep going up. Add to that, if you burn firewood from your land in order to help offset heating bills, Fairbanks has bowed to the EPA and prohibits burning during times of deep cold temps, when you really need it. These past 6 or so weeks have been pretty much -20F and lower.
Been here over 4 decades, and its changing from a place of personal freedom where you can choose to live cheap (small, owner-built dry cabin heated with wood, that you can add onto as you get the money), to a place where those options are drying up.
Personally I don’t live in, nor care for, “Los Anchorage”. We just try to get through it unscathed by heavy traffic, on our trips to the Kenai. A lot of folks are moving out to the Valley (Wasilla, Palmer) to get out of the city. So maybe the article should be more about the Valley. I was even surprised to see how much the community out on the Glenn, out by Matanuska Glacier is building up. Folks must be teleworking out there.
We’re Closed. No Vacanies. L48ers Not Welcome.
Anchorage use to be nice, but hasn’t been for years. HIGH property taxes more than make up for no sales taxes (the Anchorage city council is considering a tax though). City government is very LEFT wing; they have budgeted over $2million for DEI in 2026. Homelessness is out of control. We only go into ANC when we absolutely need to. We love Alaska. Anchorage not so much. It’s not call Los Anchorage for nothing.
The first time I flew into Anchorage as a flight attendant in the winter time I got one heck of a shock when I stepped outside the airport. The air was so cold it choked me. I had to cough a bit to breath. What makes me laugh to this day is my nose hairs froze. I was told while there many locals go to the tanning beds…not to get a tan but to get warm.
The cruise ship pictured implies that cruise ships go to Anchorage. Such is not the case. Anchorage does not have a deep-water port to accommodate cruise ships. Cruise ships dock in Whittier and Seward, and the passengers are transferred by bus or train to Anchorage.
My husband and I lived in Anchorage over 25 years and in 2007 we retired to “someplace warm” North Carolina. The amenities you mention that Anchorage has to offer to retirees are for healthy younger ones who have other sources of income besides Social Security.
I have blocked the commercial-based Retire.ly website. What garbage.
I fly from the Midwest to Anchorage ten times annually to spend time with my daughter and her family. Winter temperatures aren’t different than Duluth, MN. The cost of living in Anchorage can be high if you purchase everything locally. Most savvy residents enroll in Amazon Prime and Walmart Shipping and pay lower 48 prices on most purchases. If you eat in restaurants frequently, you’ll pay high prices, because there’s a history of higher prices in Anchorage and owners capitalize on that history. If you go to Anchorage’s Costco Business center, you may find prices only about 10% higher than in Seattle, but there’s no sales tax.
I’m now 88 yrs old. I and my siblings moved to Seward with our parents in 1953. After military service and college, I moved back with family to Anchorage in 1961 and conducted business for the next 25 years. After growing new businesses in the Puget Sound area, we returned to hometown of Seward, built and operated a B&B for nearly ten years. What an absolutely wonderful place to be in those years to raise a family. I returned a few years ago to represent the company I worked for in Anchorage. Still a great place to live. But, I think I do see the liberals are spreading everywhere and Alaska has not been spared. If you’re young, go for it. Alaska is for the tough and can be one of the best decisions you will ever make. Plan well.
The ONLY thing enticing is the LIBERALS everyone speaks of. I call that progress. The rest are thrill seekers or crazy old coots. No thanks. I had a really nice summer vacation back in the 80’s; so beautiful! I would do that again and then go home. Alaskan winter is for alcoholics and the bears that I will gladly watch on National Geographic. It’s not a lifestyle for living.
Eh, can’t wait to leave after 12 years, couple more for retirement, elsewhere. Anchorage has many issues, drugs, crime, homeless, miserable people, costs, property taxes and ice. The good? Haven’t found it yet. House is wickedly up in value, so there’s that. Food? Subpar for average mall food on the whole.