America's 5 richest retirement towns

East Honolulu, Hawaii is one of the richest retirement towns in the United States, according to a ranking by GoBankingRates.com.
Adobe Stock/Ryan Tishken

Retirement is often thought of as a time for pinching pennies. But in some parts of the country, retirees live more comfortably than many Americans do during their working years.

Where are those places? GoBankingRates has mapped them out. The personal finance website studied U.S. cities and towns where American seniors — defined as those aged 65 and older — made up at least one-quarter of the population, and then ranked those communities by median income. The result is a list of the wealthiest retirement towns across the United States, from New York to Hawaii.

And these areas aren't just rich; many of them also offer some of the most important features for retired life — like outdoor attractions, social activities and proximity to doctors and hospitals.

"It's important for people of any age to get fresh air, exercise daily and interact with friends and family, but even more so for those who are retired," said Andrew Herzog, a wealth adviser at The Watchman Group in Plano, Texas. "After all, work is no longer a part of daily life, so having a reason to get up and get out every day is a crucial factor in a retirement town."

Read more: Almost 3 out of 10 Americans have no retirement savings

Of course, none of these towns is perfect. Each municipality has its drawbacks, and the fact that the residents have such high incomes means that, in many cases, these are highly expensive places to live.

"No one said these towns were affordable for many retirees," Herzog said. "But assuming you can, it's very difficult to beat the quality of life these towns offer."

Here are the five richest retirement towns in the country:

South Shore Long Island New York
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5. Melville, New York

Fifth on GoBankingRates' list is Melville, a small suburban hamlet in Long Island, New York. The town has a population of 18,526, and 27.8% of those residents are 65-plus. How did it make it to No. 5? The town's median household income is $146,302.

But that's not the only thing that stands out about Melville. Ian Weinberg is the founder of Family Wealth & Pension Management in Woodbury, New York, not far from Melville, and he's familiar with the area's many retirement-friendly qualities.

"Melville is close to Manhattan and the Hamptons, where many of our retired clients have second homes," Weinberg said. "There is major high-end shopping, and Melville is close to the other Gold Coast areas where their adult children are settling in as new parents — in other words, it's close to the kids and grandkids."
Hawaii Kai Golf Course in the eastern suburbs of Honolulu on O'ahu island in Hawaii, next to the Pacific Ocean
Adobe Stock/Alexandre ROSA

4. East Honolulu, Hawaii

The next locale on the list takes us off the East Coast and out of the continental United States entirely. East Honolulu, Hawaii has a population of about 50,000, 27.4% of which are seniors, and a median income of $151,224.

The other selling points are obvious to anyone who's ever vacationed in Hawaii.

"Honolulu has gorgeous nature, fabulous weather, lots of dining and shopping, and of course it's the capital city of Hawaii so there are urban conveniences within reach," said Herzog, who spent his honeymoon in Honolulu.
Bainbridge Island Harbor Panoramic View Winslow Washington Beautiful Sunny Day Landscape
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3. Bainbridge Island, Washington

In third place is Washington State's Bainbridge Island. Out of a population of 24,681, 27% are retirement-age, and the median income is $151,290.

Surrounded by water but just a short ferry ride from Seattle, this green isle of forests and campgrounds is both secluded and close to urban conveniences — among other advantages.

"There's no income tax in Washington State, great access to sports and cultural events, and a lot of natural beauty," said Danika Waddell, president of Xena Financial Planning in Seattle. "This part of the world is especially great for retirees who are pretty active and want to be able to ski or hike."
Ft. Sheridan Aerial View 16
Adobe Stock/pics721

2. Highland Park, Illinois

Another place that offers both natural beauty and proximity to a major city is Highland Park, Illinois. This suburb is just 25 miles north of Chicago, but is home to numerous parks and beaches along the shores of Lake Michigan.

How did this town win GoBankingRates' silver medal? Highland Park's population is 30,209, and 25.3% of those residents are 65-plus. Its median household income is $159,567.
Point Vicente in Rancho Palos Verdes
Adobe Stock/van_sinsy

1. Rancho Palos Verdes, California

Taking home the gold is Rancho Palos Verdes, a coastal city that's not far from Los Angeles but looks like it's on the edge of the world. Perched on a jagged line of cliffs overlooking the Pacific, the area offers two big perks for retirees: convenience and natural beauty.

"Those living in Rancho Palos Verdes have immediate access to the beach, lots of beautiful hills to hike through in neighborhoods or nature, sweeping views of the Pacific Ocean, plentiful restaurants and shopping to go to with friends and adjacency to a major metropolis," Herzog said.

Not only that, but the city features easy access to top-notch medical care.

"There's one thing retirees will need access to, and that's good health care and hospitals," said Noah Damsky, a principal at Marina Wealth Advisors in Los Angeles. "Wealthy retirees in Rancho Palos Verdes have access to elite local hospitals such as UCLA, Cedars-Sinai and Torrance Memorial [Medical Center]."

Out of RPV's population of 41,805 people, 26.2% are aged 65 or older, and the median household income is $166,747. For those who can afford it, it's not a bad part of the Golden State to spend one's golden years.
This article originally appeared in Financial Planning.
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