Retirees seeking the "retirement trifecta" -- golf, the beach and warm weather -- often flock to pricey places like Palm Beach, Hilton Head or Santa Barbara. But those same sugar-sand beaches, sunshine and some of the best golf in the nation can be had at a much lower price -- in Alabama.
Also SeeRetire Here, Not There: State-by-State Forget your parents' retirement destinations. These less-known gems offer lower prices and peppy economies.
"Our beaches are as beautiful as you'll find barring maybe the Caribbean," says Fergus Tuohy, an Ameriprise Financial advisor based in Birmingham. "And it's not like in south Florida where it's sweltering most of the time." The golf can hold its own too: Retirees enjoy the Robert Trent Jones Golf Trail, a collection of 11 different championship courses totaling 468 holes, which The Wall Street Journal said "may be the biggest bargain in the country." And it's not just the golf that's affordable here. The state's overall cost of living is 12% below average, and even living along the coastline is reasonable. Gulf Shores costs 11.2% more than average to live in, compared to 36.4% for Boca Raton and 121.7% for Santa Barbara.
Nicknamed the "Heart of Dixie," Alabama has a distinct southern flair (expect a lot of "yes ma'ams"), a rabid love of college football (Alabama and Auburn games leave the cities awash in red and orange) and a conservative-minded electorate. The state has several top-notch health care facilities, including the University of Alabama Hospital in Birmingham, and the Southeast Alabama Medical Center in Dothan.
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Furthermore, Alabama's assisted living and nursing homes cost significantly less. A private room in a nursing home in Alabama costs $186 per day, compared to $239 for the nation as a whole; and $2,694 per month for assisted living, compared to $3,477 for the rest of the country, according to the MetLife Mature Market Institute. And though residents pay income taxes here, the rate tops out at 5% and Social Security and pension income are exempt. Plus, homeowners over 65 don't pay property taxes and there is no estate tax.
But the state has some significant downsides. For one, 17.1% of residents live in poverty compared to 13.8% for the nation, according to the U.S. Census Bureau; and Alabama has one of the highest obesity rates in the nation. Though there are good health care facilities in the larger cities, many residents in outlying areas don't have a lot of options, as there are just 178 physicians per 100,000 people in Alabama, compared to 221 in the U.S. as a whole, according to Sperling's Best Places. And sales tax averages 7.5% compared to the 6.8% U.S. average.
Still, residents say the soothing Gulf Coast beaches, inexpensive golf courses, and pleasant climate more than make up for those downsides. These four places give retirees the best that Alabama has to offer:
Huntsville Rob Hainer / Shutterstock.comNew York native and part-time consultant and speaker Vincent Boles, 57, says he traveled the world 18 times over during his 33 years of military service. But when he decided to retire in 2009, he settled on Huntsville. Home to NASA's Marshall Space Flight Center and a large aerospace industry, the city attracts a diverse range of residents. "Huntsville also gets so much energy from the tech sector, and there's a can-do spirit," he adds, noting Huntsville was where some of the key technology for the Apollo moon landings was developed.
By the numbers- Population: 176,705
- Median home cost: $142,600
- Cost of living: 6.7% lower than average
- Unemployment: 7.4%
- Source: Sperling's Best Places
A popular spot for military retirees, many of whom visited this community at one point in their careers Huntsville offers an interesting melding of southern hospitality and high-tech culture, explains Charles Winters, the executive vice president of the Huntsville/Madison County Convention & Visitor's Bureau. Although this town has one of the highest concentrations of PhDs in the nation, few would mistake it for Silicon Valley. "You can't expect to go the grocery store and be out in five minutes," explains Boles -- this is the kind of town where people chat over groceries, the morning paper or in line at the bank. But unlike a lot of small cities in the South, thanks to the tech sector its residents hail from all over the world.
While crime in Huntsville is higher than average, residents say it tends to be contained to certain areas. And they add that Huntsville's unique culture, as well as a plethora of outdoor activities, more than compensates. Because of its location in the foothills of the Appalachian Mountains, miles of hiking and biking trails are minutes away; boaters can head a few minutes south of town to the Tennessee River, and golfers can hit up one of Huntsville's seven courses, including the Hampton Cove courses, which are part of the Robert Trent Jones Golf Trail. Retirees also like that Huntsville boasts the state's oldest symphony orchestra, quality medical care, and a lower than average cost of living, says Winters.
Fairhope Wikimedia CommonsFairhope Municipal Pier Fountain
Dreaming of a place that would give people a "fair hope" of success, Fairhope's 1894 founders made this town a "cooperative," whereby residents jointly owned the town's land and paid annual dues, rather than property taxes, to keep it running smoothly. This bohemian mindset has extended into today: The cooperative community model still exists, volunteerism is widespread and artists abound. "There's barely anyone in this town who doesn't give back in one way or another, whether it's sitting on a community board or helping with one of our arts fests," says Sherry Sullivan, the town's director of community affairs. That mindset is "engrained in our history."
By the numbers- Population: 16,463
- Median home cost: $235,900
- Cost of living: 8.2% higher than average
- Unemployment: 8.4%
- Source: Sperling's Best Places
Partly because of its bohemian beginnings, Fairhope appeals to an "eclectic and creative" group of people, particularly artists. Dozens of galleries, studios and antique shops now line the streets, and on the first Friday of every month, the town has an art walk, where residents peruse the galleries and shops to sample art, hors d'oeurvres and live music. There's also a three-day arts festival that attracts more than 150,000 visitors each year, and a rich literary and music legacy. Artists who have called Fairhope home include Jimmy Buffett, Fannie Flagg, Andy Andrews, and Winston "Forrest Gump" Groom.
Situated on bluffs overlooking the Mobile Bay and lined with Spanish moss-draped trees, Fairhope has an abundance of natural beauty. To preserve those vistas, there's a town ordinance against big box stores (so you won't find any Walmarts in Fairhope) and new buildings must adhere to guidelines designed to preserve the town's look and feel, says Sullivan. But this small town charm comes with its downsides: Although there is a hospital in town, for most big city amenities one must drive 30 minutes to Mobile.
Orange Beach/Gulf Shores Darryl Vest / Shutterstock.comGulf Shores is known for its bright, "sugar white" quartz sand.
When retired teacher Mary Wolf first saw Gulf Shores back in 1990, the Michigan native says she realized "the beaches here are a whole new level of beautiful -- it's not just the perfect sand and clear water, it's also the sense of calm you feel when you're near them."
By the numbers- Population: 5,889 / 6,661
- Median home cost: $294,600 / $254,800
- Cost of living: 17.6% / 11.2% higher than average
- Unemployment: 8.4%
- Source: Sperling's Best Places
The beach towns of Orange Beach and its neighbor Gulf Shores offer 32 miles of white sugar-sand and emerald-green waters. But these Alabama beaches are far more affordable than some Florida retiree hotspots just to the south. The cost of living in Gulf Shores is just 11.2% higher than average, compared to 109% higher for Palm Beach and 36.4% higher for Boca Raton. And life here is more laid back than in those places, residents say. "The vibe is casual -- you don't get dressed up to go anywhere," says Joanie Flynn, the vice president of marketing for Gulf Shores & Orange Beach Tourism. (Just beware: The area can feel overrun with tourists in the warmer months.)
There's also a lot to do outdoors in this area, especially for fisherman. The reason: Orange Beach has one of the largest recreational charter boat fleets on the northern Gulf Coast; one of the most expansive artificial reef programs in the country; and the Gulf State Park Pier, one of the longest fishing piers in the area. All of this makes the area popular with fisherman and excellent territory for catching red snapper, Spanish mackerel, grouper and marlin. Plus, there's inland fishing -- as well as kayaking -- in the bays and waterways that crisscross the area. Retirees will also find nine golf courses, including the two Arnold Palmer courses that make up Craft Farms; and Kiva Dunes, which Golf Digest named the best course in Alabama.
Volunteerism is popular here, especially as it relates to nature, says Flynn. Popular initiatives include helping save the area's sea turtles by moving nests that are in danger away from the water and "bird banding," where volunteers work with researchers who put markers on local birds so they can help track the population. Retirees also like that there's a regional medical center in Foley, which is just north of Gulf Shores. There are also plenty of other retirees, especially in the winter, as the area attracts a lot of "snowbirds" who spend part of the winter in the South and summers elsewhere, says Flynn. For Wolf, the areas' snowbird status is a big plus: "We get to see our friends from Wisconsin and Michigan a lot because so many of them are snowbirds," says Wolf. "It helps us stay in touch."
Auburn Kevin C. Cox/Getty ImagesThe Auburn Tigers celebrate a touchdown against the Alabama Crimson Tide at Jordan-Hare Stadium on November 26, 2011 in Auburn, Alabama.
With an orange tiger paw the size of a full city block and an 86,000-seat, orange-shirt-filled football stadium, Auburn is first and foremost a college town (one that lives for its football team -- the Auburn University Tigers). But residents don't need to be 19-year-old college students to enjoy life here. The presence of the university means that retirees have access to the school's Osher Lifelong Learning Institute, as well as many cultural amenities. There's the Jule Collins Smith Museum of Fine Art at, which hosts a permanent collection of American and European Art. And the city's festivals include Auburn CityFest, an outdoor spring arts festival attracting more than 10,000 visitors, and On the Tracks, a series of mini food festivals in the spring and fall in which the area's restaurateurs offer up their best food and wine.
By the numbers- Population: 53,979
- Median home cost: $164,200
- Cost of living: 1.1% lower than average
- Unemployment: 7.8%
- Source: Sperling's Best Places
But above all, and second only to a Tiger football game, retirees here like to golf, residents say. Auburn was ranked the number one golf city in America by Golf Digest -- for good reason. It's home to the renowned Grand National courses (part of the Robert Trent Jones Golf Trail) -- boasting 54 holes, many surrounding the 600-acre Lake Saugahatchee. There's also Auburn Links, an 18-hole, par 72 course designed by architect Ward Northrup that sits along the picturesque Parkerson Mill Creek; and Indian Pines, an 18-hole, par 71 course, which boasts an island green in the middle of the lake.
While sales tax here is high (8%, compared to a nationwide average of 6.8%), overall, the overall cost of living is still low. The median home costs just $164,200, well below average. Plus, Auburn has a major medical center in town and is just an hour from Montgomery and two from Atlanta.
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