This Kentucky City Is One of the Best Places to Retire in 2026, According to Forbes

Dreaming About Retirement Even in the Middle of Real Life

Even though my daughter is still in middle school, and I’ll probably have to work until I’m 100 to help her afford college, a wedding, and all the other curveballs life tends to throw, it’s still really fun to dream about retiring. Someday.

I always tease my mom, who has been retired for several years, when she says she’s so busy. I’m like, Mom, you literally have nothing but time. I could only dream of having your schedule.

How Much People Think They Need to Retire

According to a Northwestern Mutual survey, most people say they need about $1.46 million saved before they feel comfortable retiring and continuing to meet their long-term financial goals.

But there is a big gap in reality. The same survey found that most people only have about $90,000 saved when they actually retire.

With men having an average life expectancy of 73.5 years and women 79.3 years, according to the CDC, many people are aware they may outlive their retirement savings.

Because of that, around 40 percent of retirees rely entirely on Social Security to make ends meet.

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What Retirement Actually Costs

The average annual retirement spending in Kentucky is about $53,886 per year. At that rate, $1 million would last about 18.5 years in Kentucky, depending on lifestyle and location.

Why Location Matters So Much

Where you choose to retire can make a huge difference in how far your money goes. Lower cost of living, taxes, and healthcare access can stretch savings much further.

To make things easier, Forbes Magazine compiled a list of the 25 Best Places to Retire in 2026, and one Kentucky city made the list.

Forbes compared nearly 1,000 U.S. locations, focusing on places with a high quality of life at a relatively affordable price.

They looked at factors including median home prices, healthcare access, air quality, crime rates, and tax rates.

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Lexington, Kentucky Makes the List

Lexington, Kentucky came out as one of the standout retirement cities.

Even with its big fancy horse farms, the median home price Forbes cited is about $329,000, roughly 20 percent below the national average. For comparison, the median home price in Evansville is around $198,977. Lexington is higher, but reflects the cost of that rolling bluegrass countryside lifestyle.

Healthcare, Air Quality, and Safety

Lexington has about 155.5 physicians per 100,000 residents, which is below the national average of 247, meaning healthcare access can vary depending on location.

Air quality is generally solid. According to AccuWeather, Lexington typically falls between 30 and 60 on the Air Quality Index, which is considered good to moderate.

On safety, Lexington performs well. The city’s violent crime rate is about 2.77 per 1,000 residents, significantly below the national average of 13.32.

Taxes and Final Notes

If retirees choose to work part-time, Kentucky has a flat state income tax rate of 3.5 percent.

The one downside Forbes noted about Lexington is that it is not very walkable.

Other cities that made Forbes’ list include Green Valley, Arizona; Appleton, Wisconsin; Iowa City, Iowa; Lincoln, Nebraska; Midland, Michigan; Pittsburgh, Pennsylvania; and San Antonio, Texas.

Read the entire list here