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Slideshow

November 2011

10 Great Retirement Cities in the U.S.

Birmingham, Ala.

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Sean Pathasema

Metro population: 1,128,047

Retiree cost-of-living index: 90.9 (national average is 100)

Average taxes per capita: $1,712 (national average is $2,424)

Income-tax exemptions: Social Security benefits; military, civil-service, state- and local-government pensions; qualified private pensions

Residents over 65: 12.8% (national average is 13%)

Lipitor score: -8.8% (compared to national average, $174.71)

They call Alabama "sweet home" for a reason: Living costs are low, sunny days are abundant, and taxes per capita fall $700 below the national average. Alabama exempts most retirement income from state income taxes, and older homeowners don�t pay property taxes. Medical costs are nearly 15% less than the national average. And in Birmingham, the state�s largest city, these amenities come with huge Dixie charm. It is home to an opera, orchestra and ballet, as well as a segment of the renowned Robert Trent Jones Golf Trail.

Top selling point: Big-city living at a Deep South discount
Biggest drawback: The summer heat can be stifling.