Whether retirement is a long way off, or just around the corner, you might be starting to think about what your plans are for this exciting chapter of your life. For many, the appeal of moving abroad for a change of scenery and a different pace of life is extremely tempting, but how much does it cost to live in the world’s happiest cities for your retirement years and which locations in Europe and the UK are best overall for affordability and quality of life?
Taking a list of the 46 happiest cities in the world according to the World Happiness Report, our study has revealed the cost of living in each of these locations, estimating how much it would cost to live there throughout your retirement years.
In addition, we’ve analysed a seedlist of cities in Europe and the UK to determine the best locations overall to spend your retirement, analysing metrics including property prices, flight time back to the UK, average life expectancy, number of bus routes available, happiness and cost of living.
The cost to retire in the world’s happiest city, Helsinki, Finland
To determine the average length of retirement in the happiest cities across the world, we compared the UK’s retirement age, which is currently 66 for both men and women, against each country’s life expectancy. Looking at average monthly living costs, which covers the prices of consumer goods such as groceries, restaurants, transport and utility bills, we’ve then calculated just how much it costs to live in the top happiest cities during these years.
Known for its beautiful landscape and high safety levels, it might not come as a surprise that Helsinki is reported to be the happiest city in the world. Our research has shown that it costs around £174,848 on average to live in Helsinki throughout your retirement years (16.5 retirement years on average). Per individual, the Finnish capital has a cost of living that works out at just under £885 per month.
If you’re looking for a happy retirement somewhere further away, then Wellington, New Zealand may be the perfect location. Ranking as the second happiest city in the world, the cost of living during your retirement years comes in slightly cheaper than Helskinki at £167,207 (16.8 retirement years on average). Copenhagen, Denmark is the third happiest city, and costs the most to live there of all three locations at £175,214 (15.4 retirement years on average).
How much does it cost in total to live in the world’s top 20 happiest cities throughout your retirement years?
| Happiness rank | City | Country | Happiness score | Price per square metre to buy a property outside of the city centre | Average life expectancy | Monthly cost of living per person (without rent/ housing cost) | Estimated cost of living during total retirement years* |
|---|---|---|---|---|---|---|---|
| 1 | Helsinki | Finland | 7.8 | £3,703 | 82.5 | £884 | £174,848 |
| 2 | Wellington | New Zealand | 7.6 | £5,580 | 82.8 | £829 | £167,207 |
| 3 | Copenhagen | Denmark | 7.5 | £4,376 | 81.4 | £948 | £175,214 |
| 4 | Bergen | Norway | 7.5 | £3,022 | 82.9 | £972 | £197,487 |
| 5 | Oslo | Norway | 7.5 | £4,765 | 82.9 | £932 | £189,485 |
| 6 | Tel Aviv | Israel | 7.5 | £8,333 | 83.5 | £877 | £184,086 |
| 7 | Stockholm | Sweden | 7.4 | £5,229 | 83.3 | £819 | £170,298 |
| 8 | Brisbane | Australia | 7.3 | £5,228 | 83.9 | £929 | £200,017 |
| 9 | Reykjavik | Iceland | 7.3 | £3,489 | 83.5 | £966 | £203,029 |
| 10 | Toronto | Canada | 7.3 | £6,161 | 83 | £838 | £170,550 |
| 11 | Melbourne | Australia | 7.3 | £5,547 | 83.9 | £880 | £189,382 |
| 12 | Perth | Australia | 7.3 | £4,332 | 83.9 | £889 | £191,319 |
| 13 | Auckland | New Zealand | 7.2 | £5,894 | 82.8 | £858 | £172,872 |
| 14 | Zurich | Switzerland | 7.2 | £11,884 | 84.3 | £1,473 | £322,565 |
| 15 | Christchurch | New Zealand | 7.2 | £2,016 | 82.8 | £713 | £143,660 |
| 16 | Washington | United States | 7.2 | £3,380 | 79.1 | £996 | £156,612 |
| 17 | Dallas | United States | 7.2 | £2,094 | 79.1 | £920 | £144,719 |
| 18 | Sydney | Australia | 7.1 | £7,694 | 83.9 | £923 | £198,639 |
| 19 | Houston | United States | 7.1 | £1,331 | 79.1 | £795 | £125,132 |
| 20 | Dublin | Ireland | 7.1 | £4,441 | 82.8 | £889 | £179,289 |
*Total is based on current cost of living prices and average retirement life span in the respective country. Provisions should be made for rising prices and a longer than average lifespan. Estimated cost of living during the total years spent in retirement is irrespective of housing costs.
Zurich is the most expensive place to retire, costing a total £322,565
Ranking as the 14th happiest city in the world, Zurich is the most expensive city for retirement in our ranking, with a high average monthly cost of living rate of £1,473 per person, which totals a staggering £322,565 across an average retirement length for this location of just over 18 years.
Whilst a number of cities including New York, Boston and London have the next highest average monthly cost of living, due to the high life expectancy of those living in Iceland at 83.5 years, Reykjavik in fact comes in second place as the most expensive city to spend your total retirement at £203,029. Comparatively, New York has a total retirement cost of living at £181,893, with an average life expectancy of 79.1 years.
The sunny city of Brisbane is the third most expensive location to live for the duration of your full retirement, costing around £200,017.
The best cities in Europe to retire based on quality of life and affordability
To support our study, we wanted to delve deeper into the best cities in Europe to retire, not only based on cost, but also other quality of life metrics including property prices outside of the city centre, cost of living, happiness rates and travel time back to the UK.
Spain is an incredibly popular travel and retirement destination amongst Brits, so it might not come as a surprise that Madrid tops our list as the best city in Europe in which to retire overall. With an average life expectancy of 84 and an affordable monthly cost of living rate of £578 per person, it would cost around £124,876 to live here comfortably throughout your retirement years. It’s also just over 2 hours to get back to the UK!
The top 10 cities in Europe for retirement:
| Rank | City | Country | Cost per square metre to buy a property | Flight time to London (Hours.Minutes) | Happiness rate | Average life expectancy | Monthly cost of living | Estimated cost of living during total retirement years* |
|---|---|---|---|---|---|---|---|---|
| 1 | Madrid | Spain | £2,349 | 2.15 | 6.5 | 84 | £578 | £124,876 |
| 2 | Cork | Ireland | £2,468 | 1.15 | 6.9 | 82.8 | £794 | £160,065 |
| 3 | Bergen | Norway | £3,022 | 1.50 | 7.5 | 82.9 | £972 | £197,487 |
| 4 | Barcelona | Spain | £2,746 | 2.1 | 6.4 | 84 | £659 | £142,293 |
| 5 | Helsinki | Finland | £3,703 | 3.00 | 7.8 | 82.5 | £884 | £174,848 |
| 6 | Vienna | Austria | £3,883 | 2.15 | 7.0 | 82.1 | £729 | £140,432 |
| 7 | Brussels | Belgium | £2,856 | 1.10 | 6.7 | 82.2 | £803 | £155,892 |
| 8 | Stockholm | Sweden | £5,229 | 2.20 | 7.4 | 83.3 | £819 | £170,298 |
| 9 | Dublin | Ireland | £4,441 | 1.15 | 7.1 | 82.8 | £889 | £179,289 |
| 10 | Copenhagen | Denmark | £4,376 | 1.55 | 7.5 | 81.4 | £948 | £175,214 |
*Total is based on current cost of living prices and average retirement life span in the respective country. Provisions should be made for rising prices and a longer than average lifespan. Estimated cost of living during the total years spend in retirement is irrespective of housing costs.
Cork is the second-best city in Europe for retirement, with a really short flight time of 1 hour 15 minutes back to London, UK, and one of the highest average life expectancies at 82.8 years. Bergen in Norway ranks third overall.
If you’re looking to secure a property in your new retirement city, Chisinau in Moldova ranks as the most affordable of all locations analysed, costing £774 per square metre outside of the city centre. Sarajevo and Bucharest rank in second and third as the most affordable for property.
The best cities in the UK to retire based on quality of life and affordability
For those not looking to move abroad, we also wanted to determine the best locations in the UK to retire. Analysing a seedlist of the happiest cities in the UK, we’ve also looked at metrics including the number of bus routes, the price of property per square metre, average life expectancy, happiness and overall cost of living per month to reveal the best cities for a retirement closer to home.
With many cities benefiting from a lower cost of living than the rest of the UK, it might not come as a surprise that northern cities dominate the ranking whilst also being some of the happiest locations in the UK.
Surrounded by beautiful Lancashire countryside and located just 14 miles from the beach, Preston comes in first place with a happiness score of 7.52 out of 10 (making it the 14th happiest city in the UK overall). Preston also has 165 bus routes for local travel, and a cost of living rate of around £636 a month. Preston also benefits from being within a comfortable distance to bigger cities such as Liverpool and Manchester, so you can truly experience the best of both worlds.
The top 10 cities in the UK to retire:
| Rank | City | Price per square metre to buy a property | Number of bus routes | Happiness rate | Average life expectancy | Monthly cost of living (without rent/housing costs) | Retirement savings needed* |
|---|---|---|---|---|---|---|---|
| 1 | Preston | £1,370 | 165 | 7.52 | 78.6 | £636 | £96,141 |
| 2 | Bradford | £1,433 | 121 | 7.49 | 79.4 | £623 | £100,301 |
| 3 | Doncaster | £1,219 | 102 | 7.54 | 79.4 | £662 | £106,608 |
| 4 | Newcastle upon Tyne | £1,714 | 213 | 7.49 | 79.5 | £728 | £117,750 |
| 5 | Birmingham | £1,837 | 194 | 7.32 | 79.4 | £682 | £109,927 |
| 6 | Hull | £1,127 | 76 | 7.38 | 77.8 | £615 | £87,098 |
| 7 | Stoke-on-Trent | £1,124 | 51 | 7.59 | 77.8 | £680 | £96,167 |
| 8 | Wolverhampton | £1,428 | 71 | 7.53 | 78.9 | £711 | £110,295 |
| 9 | Coventry | £1,833 | 86 | 7.41 | 80 | £687 | £115,085 |
| 10 | Sheffield | £1,690 | 179 | 7.45 | 80.5 | £791 | £137,315 |
*Total is based on current cost of living prices and average retirement life span in the respective country. Provisions should be made for rising prices and a longer than average lifespan. Estimated cost of living during the total years spend in retirement is irrespective of housing costs.
Revealed to be the 28th happiest city in the UK overall, Canterbury is one of the most beautiful and historic cities in the country, however, it is also one of the most expensive places to live with an average monthly living cost of £965 per month, meaning it would cost around £178,624 to live here throughout the duration of your retirement.
Meanwhile, Cambridge comes in second place as the most expensive city for retirement where it would cost £169,293 to live from retirement age up until the city’s average life expectancy. Cambridge is also home to the most expensive property prices in the ranking, setting residents back £5,474 per square metre on average. York comes in third place as the most expensive city for retirement with an expected cost of living of £154,057 throughout the years spent in retirement.
Top tips on how to plan for a happy retirement
- Make sure to start saving early
If you’re an adult in your 20s or 30s, it can be tempting to spend your money instead of saving, especially as retirement can seem like a long way off. However, even making small monthly contributions to a pension scheme will give your money the opportunity to grow over time, meaning you’ll be rewarded when you finally do get to retirement age.
- Figure out how much you need to save for your retirement
Many of us will have grand plans for our retirement whilst others will have less of an idea of what we want our lives to look like once we finish working. It can be useful to have some sort of an idea of what you want to do in your retirement, what your priorities are and where you want to live. This can help you determine your saving goals and expenditures.
- Work out your expected retirement income
If you are close to the State Pension age or are looking to retire earlier, it can be useful to work out how much income you are expecting to receive. You can receive a State Pension estimate via the government website, and you can also request a quote from your pension provider to work out how much you are likely to receive. This can help you to budget your finances and make a realistic plan for your retirement to come.
- Find lost pensions
If you’ve had multiple jobs over the years, your pension savings might be spread out across several pension providers. You might have even forgotten about some of the pension pots you’ve paid into at jobs you may have had a long time ago, or only for a short period of time. You can track down lost pensions by contacting the provider, helping you to have a clearer picture of what you have saved and where.
- Utilise your ISA allowance to help grow your savings over time
Aside from saving into a pension scheme and building on your pension pot, making use of your yearly ISA allowance is a great way to help you grow your savings. Any savings you make into an ISA are tax-free, and ISA options such as our Stocks and Shares ISA can help you to grow your savings in the medium to long-term, without having to pay capital gains tax. Check out our range of savings plans here.
Sources and methodology
- The top 50 happiest cities in the world were selected for the seedlist from the World Happiness Report. The top 30 happiest cities in Europe were selected for the ranking on the best cities in Europe for retirement. European countries that are transcontinental were excluded from the ranking.
- The top 30 happiest cities in the UK were selected from ONS data on happiness rankings.
- To find the estimated cost of living throughout retirement years, the monthly cost of living for one individual person was multiplied by the average number of months spent in retirement. To find the average number of months spent in retirement, we found the number of years spent in retirement by subtracting the UK’s retirement age from each country’s average life expectancy for Europe and per city for the UK. This was then multiplied by 12 to find the average number of months spent in retirement.
- Please note that the estimated retirement costs is assuming you already have capital that can be used to pay to buy or rent a property. The estimated cost of living figure is calculated using the average life expectancy in the respective country, so provisions will need to be made for longer lifespans.
- Please also note that the current cost of living figures are reflective of todays prices. Provisions will need to be made for rising prices.
- Please note that the estimated cost of retirement does not take into account pensions.
- Monthly cost of living for one individual person (without rent), cost per square metre to buy property outside of the city centre for Europe was taken from Numbeo.
- The average cost of property per square metre was taken from the – UK – ONS.
- Number of bus routes per city for the UK taken from Geopunk.
- Flight time was taken from Skyscanner. Flight time of direct flights (unless unavailable, flights with stops was used) from the main airport of the target city to “London (Any)”. For search purposes, the flight date (one way) June 2nd is used. Results are filtered by “Fastest first”.
