3. Augusta, Georgia

While globally famous for the Masters golf tournament, Augusta is a remarkably accessible and affordable retirement town year-round. Located along the scenic Savannah River, the city features beautiful historic architecture, a mild winter climate, and excellent Southern hospitality.

Georgia is arguably one of the most tax-friendly states for retirees. The state does not tax Social Security, and it offers a massive retirement income exclusion—up to $65,000 per person for those 65 and older.

This means your $40,000 a year will likely be completely free from state income tax. Housing in Augusta remains highly affordable, and the presence of the Medical College of Georgia means retirees have access to cutting-edge healthcare facilities and specialists.