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With people often living well into their 80s and 90s, retirement is no longer a brief period at the end of your life. Many retirees can expect to spend 20 to 30 years or more in retirement, making decisions about where to live increasingly important.
At the same time, working out how to fund a retirement potentially lasting several decades can feel hugely challenging. According to research from Pensions UK, around 15 million people are not on track to save enough to maintain a moderate standard of living in retirement.
It says that a single person would need an annual income of approximately £32,700 a year after tax for a moderate standard of living, rising to £45,400 for a couple.
A moderate retirement lifestyle includes spending around £59 a week on groceries, £33 a week on meals out, and £11 a week on takeaways. It also allows for £110 a month to treat friends or family to a meal, as well as a two-week, all-inclusive three-star holiday in Europe costing around £1,600 and an additional long off-peak weekend break in the UK each year. Find out more in our article How much do you need to retire comfortably?
Against this backdrop, choosing the right location to live in when you retire could make a significant difference to both your finances and quality of life.
New research from private healthcare provider Spire Healthcare has ranked the best and worst regions in the UK for retirement, taking into account factors including house prices, crime rates, healthcare access, community activities, and environmental quality. The findings highlight how geography can affect not only lifestyle but also how far your retirement income is likely to stretch.
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,600 reviews on VouchedFor, the review site for financial advisers.
Why location matters
Retirement planning often focuses on building a pension pot, but where you choose to live can be just as important as how much you’ve saved.
Housing costs, council tax, transport expenses, access to healthcare, and opportunities for low-cost social activities all have an impact on your day-to-day spending and how you budget.
The difference between retiring in a region with average house prices of £226,000 and one where properties cost more than £500,000 could affect everything from the size of your retirement fund to the amount of inheritance you leave behind.
As inflation continues to put pressure on household budgets, retirees are increasingly looking beyond traditional retirement hotspots and considering locations that offer a better balance between affordability and lifestyle.
The UK's best regions for retirement
According to Spire Healthcare’s Retirement Index, the East Midlands is the best region for retirement in 2026, followed by Wales and South West England.
The study considered housing costs in different areas, as well as crime rates and the availability of free community events, recognising that financial constraints can make paid activities less accessible for some retirees. It also looked at the number of hospitals available within each region, as healthcare access tends to become increasingly important as people age.
1. East Midlands
The East Midlands topped the rankings thanks to its combination of relatively affordable housing, healthcare access, good air quality, and a wide range of opportunities for community engagement.
With average house prices of around £226,000 in the East Midlands, retirees downsizing from more expensive parts of the country may be able to release significant equity from their homes, potentially providing valuable additional retirement income or create a financial buffer for unexpected expenses.
For example, compared with average prices in London, retirees downsizing to the East Midlands could potentially free up more than £300,000 of housing equity. If invested to generate a 4% annual income, it could provide an additional £12,000 a year before tax.
The region also boasts more than 2,500 free community events, helping retirees stay socially active without adding pressure to their budgets.
2. Wales
Wales came second overall, offering retirees a strong mix of affordability and lifestyle benefits.
Average property prices in Wales stand at around £257,000, potentially reducing the amount of retirement income needed to cover housing costs and allowing pension savings to go further.
The region also performed well on social engagement measures and fall-risk assessments, both important factors for maintaining independence in later life.
3. South West England
The South West remains one of the UK’s most popular retirement destinations and secured third place in the rankings.
Although house prices are higher in the South West than in the East Midlands or Wales, averaging more than £340,000, the region scored highly for quality of life and community opportunities.
The South West also benefits from lower crime rates than many other parts of the country and offers access to extensive natural landscapes, coastlines, and outdoor activities.
The worst regions for retirement
At the opposite end of the rankings, Spire Healthcare’s Retirement Index identified London and the East of England as the least retirement-friendly regions.
London
London finished last, mainly due to its exceptionally high housing costs.
Average house prices in the capital currently exceed £526,000, more than double those in the East Midlands. While many London homeowners may have built up substantial property wealth, retirees who remain in the capital often face significantly higher living costs.
Property maintenance, council tax, transport expenses, and everyday spending can all place greater demands on retirement income.
London also recorded one of the highest crime rates among the regions analysed.
East of England
The East of England ranked second from bottom, with average house prices of around £462,400 creating affordability challenges for both existing residents and those considering relocating to the area.
While the region offers many attractive coastal and rural locations, retirees may find that housing costs consume a larger proportion of their available wealth than elsewhere in the UK.
What this means for your pension
Where you choose to live in retirement can have a big impact on how much income you need from your pension and how long your retirement savings may last.
While Pensions UK suggests a single person may need around £32,700 a year after tax to enjoy a moderate retirement lifestyle, these figures are based on national averages and don’t reflect the significant differences in living costs across the UK.
For example, imagine two retirees with identical pension incomes. One lives mortgage-free in the East Midlands, while the other lives in London and still has a mortgage or rent to pay. The retiree in the East Midlands not only has lower housing costs but may have more opportunities for low-cost or free leisure activities, potentially allowing their pension income to stretch further.
For homeowners, relocating can also unlock equity tied up in property. A retiree selling a home in an expensive area and moving to a lower-cost region may be able to release a substantial lump sum that could be used in several ways. For example, they might choose to invest the money to generate additional income in retirement, keep it as a cash reserve for unexpected expenses, help family members financially, or simply to provide greater financial peace of mind throughout retirement.
Releasing equity may also reduce pressure on pension savings. For example, if lower housing and day-to-day living costs mean you need to withdraw less from your pension each year, your retirement fund could potentially last longer. This can be particularly important for those relying on defined contribution pensions, where the amount available in retirement depends on investment performance and withdrawal rates.
Moving to a more affordable area could even influence when you are able to retire. Some people find that reducing their expected living costs means they need a smaller pension pot to support their desired lifestyle, potentially allowing them to stop working sooner than they had originally planned. Find out more in our article When can I retire?
However, it’s important not to focus solely on the financial benefits. Moving home can involve significant costs, including estate agent fees, legal fees, Stamp Duty and removal costs.. Retirees should also think carefully about access to healthcare, public transport, family, friends, and local support networks, all of which can have a major impact on quality of life in later years.
Before making any decisions, it can be helpful to create a detailed retirement budget and compare how your expected spending might differ in various locations. Looking beyond house prices and considering the total cost of living can provide a clearer picture of where your pension income is likely to stretch furthest.
For many retirees, the ideal location will be one that strikes the right balance between affordability, lifestyle, and proximity to the people and services that matter to them.
Learn more in our article Is it time to downsize your home? 5 questions to help you decide.
A final thought…
Retirement planning is about much more than building a pension pot. Where you choose to live can have a major impact on your finances, health, and happiness.
Ultimately, the cheapest place to retire won’t necessarily be the best. Being close to family, friends, healthcare and local amenities can be just as important as keeping costs down.
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,600 reviews on VouchedFor, the review site for financial advisers.
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