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12 Worst Cities in the Southwest for Retirees

This article takes a look at the 12 worst cities in the Southwest for retirees. If you wish to skip our detailed analysis on navigating retirement living in the US, you may go to 5 Worst Cities in the Southwest for Retirees

Balancing the Retirement Math

“Math! What am I even going to use it for?!” Either we’ve heard it, or we’ve said it, but almost all of us have had some sort of a relationship with Math. In a report titled ‘Women and Men in STEM Often at Odds Over Workplace Equity’, the Pew Research Center found that 42% of Americans disliked math in school. Well, there’s bad news for these 42% as they get older. Turns out, there’s a lot of math in retirement, particularly in the US – and balancing the income and expense equation isn’t as easy as freshman algebra. 

The Social Security Administration’s Social Security payout for 2024 is a rough $1,909 per month, a figure most retirees rely on given that they don’t have thousands saved in the retirement bank. Compare this with the Bureau of Labor Statistics findings that the average monthly expense of US citizens 65 years old and above is $4,345, and the math simply doesn’t compute. The presented figures leave a disparity of more than $2,400 – a sum rather large for a retired US citizen to fill. So, what do senior citizens then do? Some exit the States and find the most affordable places to retire in the world. Others simply get by – many on sums as low as $1,200 and $1,500 a month. 

“Retirement is like a long vacation in Las Vegas. The goal is to enjoy it to the fullest, but not so fully that you run out of money”

-Jonathan Clements, Founder, HumbleDollar 

While not an easy feat by any means, the place where you decide to spend your retirement certainly has an impact. 

Plotting the Retirement Landscape

If there’s one thing about Americans, it’s that they’re quick to solutions. Your hometown isn’t suiting your retirement plans? Get up, pack up, and move. That’s exactly what over 338,000 retirees did in 2023 – the biggest move in three years and a 44% increase over 2022 – found HireAHelper in their Annual Retiree Migration StudySo, where are all these retirees going? According to the United Van Lines’ 2023 National Movers Study, the Southwest is a popular choice for US retirees opting for an out of state retirement. Of the states that retirees moved to in 2023, the top ten included three Southwestern states, namely, Nevada, Arizona, and New Mexico. This is no surprise – with it’s moderate climate and comparatively lower cost of living, the Southwest offers American retirees with the perfect backdrop to start their retirement on a pleasant note. 

The retail market there is also pleasant, with plenty of companies offering retiree and senior citizen discounts, along with member-only offers. This includes names such as Kohl’s (NYSE:KSS), Kroger Co (NYSE:KR), and the Bloomin’ Brands Inc. (NASDAQ:BLMN) owned Outback Steakhouse, among many others. For reference, Kohl’s (NYSE:KSS) offers a 15% discount every Wednesday, Kroger Co (NYSE:KR) offers rewards and points with its Shopper’s Card, and Bloomin’ Brands Inc.’s (NASDAQ:BLMN) Outback Steakhouse offers a 10% discount on food and non-alcoholic beverages. The best part is the variance in company types – shop for clothes at Kohl’s (NYSE:KSS), get your groceries at Kroger Co (NYSE:KR), and enjoy a meal at a Bloomin’ Brands Inc. (NASDAQ:BLMN) restaurant. 

That being said, it’s easy to get sucked in to the packaged attraction of a Southwestern retirement. While there are certainly plenty of great retirement options in the region, there are some equally bad ones – and it’s best to steer clear of those. After all, not every Southwestern city is a gem. 

To know more about the worst cities in the Southwest for retirees, read below. 

Pixabay/Public Domain

Methodology

To compile this list of the 12 worst cities in the Southwest for retirees, we consulted several sources including our list of 20 Worst Places to Retire in the US, and GOBanking Rates, FinanceBuzz, AZ Big Media, HuffPost News, and Consumer Affairs. Once a list of Southwestern cities was compiled using these sources, they were then assigned scores. 

These cities were ranked across four main factors, namely, the cost of living, tax-friendliness, their median house price, and their health rank. For reference, cost of living data was taken from Best Places, tax friendliness from Smart Asset, and median house prices were taken from Realtor. As for health scores, those were taken from Area Vibes

Equal weightage was assigned to each of these factors, and the cities were ranked, selecting the bottom twelve for our list. As for the lowest-scoring city, it earned the number one spot on our list of worst cities in the Southwest for retirees. The resulting list is presented in descending order, with the lowest ranked city presented last. For cities that earned an equal cummulative score, the cost of living index was used as a tie-breaker. 

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders. 

Here are the 12 worst cities in the Southwest for retirees:

12. Albuquerque, New Mexico

Insider Monkey Score: 17 

Cost of Living Index: 92

Tax-friendliness: Moderately tax-friendly

Median House Price: $375,000

Health Grade: B

With a median house price below the national average and a cost of living index that is also 8% lower than the national average, Albuquerque in New Mexico may appear to be an ideal retirement spot. However, what earns it a spot on our list of worst cities in the Southwest for retirees is a host of finer problems. With lacking infrastructure, Albuquerque is not the most pedestrian-friendly place in the US, nor is it favorable to public transport. This poses a problem for senior citizens who may not possess their own vehicle. Combine this with the high summer temperatures and sparse entertainment opportunities, and Albuquerque chalks up to be a somewhat subpar retirement spot.

11. Snowflake, Arizona

Insider Monkey Score: 12.5

Cost of Living Index: 97.9

Tax-friendliness: Moderately tax-friendly

Median House Price: $435,000

Health Grade: F

Located in Navajo County, Arizona, Snowflake may appear like an ideal retirement spot with its lower than average cost of living. However, a closer look reveals a poor healthcare system along with unfavorable tax policies. The state of Arizona taxes retirement income as regular income, applying a flat 2.5% rate.

10. Las Vegas, Nevada

Insider Monkey Score: 12.5

Cost of Living Index: 110.6

Tax-friendliness: Very tax-friendly 

Median House Price: $445,000

Health Grade: B

The city of casinos, Las Vegas does better as a vacation spot rather than a retirement pick. High cost of living and high house prices make it one of the worst big cities to live in USA. However, it’s worth noting that the city does carry favorable tax policies, a satisfactory healthcare system, and is one of the sunniest cities in the US.

9. Carson City, Nevada

Insider Monkey Score: 12

Cost of Living Index: 109.4

Tax-friendliness: Very tax-friendly

Median House Price: $580,700

Health Grade: B

For retirees looking to purchase a retirement home with their savings, Carson City is a place to avoid. With median house prices nearing the $600,000 mark and a cost of living that is 9.4% higher than the national average, this Nevada city is certainly not one for social security retirees.

8. Henderson, Nevada

Insider Monkey Score: 12

Cost of Living Index: 110.6

Tax-friendliness: Very tax-friendly

Median House Price: $525,000

Health Grade: B

Our third Nevada pick for our list of worst cities in the Southwest for retirees brings another housing and cost of living nightmare. With median house prices at $525,000, Henderson retirees will be paying an extra $137,400 on average as compared to overall median house prices in the US. It’s only saving grace? Nevada treats all retirement income as tax-free. However, this is only good news for retirees with sizeable savings in the bank.

7. Lake Havasu City, Arizona

Insider Monkey Score: 11.5

Cost of Living Index: 100.1

Tax-friendliness: Moderately tax-friendly

Median House Price: $564,900

Health Grade: C

Up on number seven, Lake Havasu City in Arizona makes its way into the top 10 worst cities in the Southwest for retirees. While it boasts a healthy cost of living at only 0.1% higher than the national average, the housing market and healthcare standards are what land it a spot on this list. Senior citizens with ailing health and retirees who dream of buying their forever home on a budget should take caution before moving here.

6. Taos, New Mexico

Insider Monkey Score: 10

Cost of Living Index: 96

Tax-friendliness: Moderately tax-friendly

Median House Price: $650,000

Health Grade: F

Our second New Mexico pick for the worst cities in the Southwest for retirees comes with a hit to the housing market. With median house prices soaring at $650,000, senior citizens should think twice before relocating to Taos. The renting situation isn’t much better with the average rent for a one-bedroom apartment priced at $1,795 according to Zumper

Click to continue reading and see the 5 Worst Cities in the Southwest for Retirees.

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Disclosure: none. 12 Worst Cities in the Southwest for Retirees is originally published on Insider Monkey. 

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

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