This Overlooked Texas Gem Is One Of The Best Cities In The USA For Retirement

Texas is a unique state that provides opportunities for retirees with both higher incomes and retirees with less to spend. So, while there are cities in Texas where buying a home will cost you big time, there are also several cities in Texas where you can live on just Social Security alone. Plano, Texas — a suburb located outside the hum and buzz of nearby Dallas — is the perfect example of this Texan duality. 

According to the U.S. Census Bureau, the median household income of your average Texan in 2023 was $76,292 compared to Plano, where the average income was $108,649. While you might assume that a high cost of living would exist alongside the high earner status of the Plano populace, a 2022 SmartAsset survey of the 100 largest cities in the U.S. gave Plano second place for housing costs relative to income. These factors helped Plano take the number one spot for best city in Texas for retirees and fifth place in the country for affordability in retirement. With this in mind, Plano just might be the overlooked gem you were looking for in 2025.

Texas is far from one of the cheapest states in the U.S. to retire and the estimate for a 30 year retirement in the state is just over $2.4 million, according to GOBankingRates. However, if you were earning the median income of $108,649 in Plano during your career — and began socking away just 10% of your annual earnings starting at an optimal early age – you will have saved just over $2.7 million by the time you turn 67 years old (the age at which you can claim full Social Security retirement benefits, if you were born in 1960 or afterward). In 2025, that would mean earning a maximum of $4,018 per month, or $48,216 per year, in benefits alone.

According to RentCafe, rents in Plano are 25% higher than the state average and 16% higher than the rest of the country. The average rent in Plano is $1,729 per month, which is the equivalent of $20,748 per year or less than half of the maximum Social Security benefit you could be earning. Meanwhile the average cost of a home sits at around $677,000, as of March 2025. In a scenario where you began saving 10% of the median income in Plano at a young age, you could potentially retire comfortably at 67 without having to touch your retirement savings for housing.

While this is a benefit more related to the state than the city, it would still apply to you as a Plano-resident. Texas just happens to be one of several states without any income tax, which means, with the exception of federal taxes, you would get to keep even more of your income for your retirement lifestyle. Along with your Social Security benefits, Texas also won't tax your 401(k), IRA, or pension payments, which is the icing on the cake.

You might also be wondering how safe Plano is. Outside of financial scams that all senior citizens need to be aware of, you'll be excited to learn that residents of Plano face less risk of violent crime than many other places in the country. According to the Plano Police Department, in 2024 there were only 43 reported incidents of violent crime, representing just .15 per 1000 people. Property crime was also down 11.9% in 2024, the lowest since 1993.