The Absolute Worst City To Retire In The US For Affordability Is A Wildly Popular Tropical Getaway

Honolulu, Hawaii's capital city, is a destination for millions of travelers annually. In 2025, the city's home island of Oahu had more than 5.5 million visitors, nearly all of which fly into or begin their vacation in bustling Honolulu. Azure waters, expansive beachfronts, and world-class dining may make it a sought-after sanctuary for a few days or weeks, but would you want to retire here? 

If you ask WalletHub, the answer is no. A report from the personal finance site has deemed Hawaii's largest city among the worst places to retire in the U.S. Sure breathtakingly beautiful Honolulu is among the "10 Cleanest Cities In The World" and a vacation paradise, but it's lacking in affordability. The high cost of goods and services there is one of the reasons Honolulu was also named one of the world's "most disappointing" destinations. While three popular Florida cities occupy WalletHub's Top 5 retirement locales list, Honolulu resting at the bottom illustrates that idyllic getaways do not always equate to the perfect place to retire. 

Honolulu interestingly tops many best as well as worst lists. It's been named Hawaii's happiest city due to its world-class eats and ethereal beauty, as well as the world's safest city to visit by Berkshire Hathaway Travel Protection in 2024. However, for retirees it may tap fixed incomes a bit too much. According to WalletHub, the adjusted cost of living in Honolulu is twice as high as the city with the lowest cost of living, Brownsville, Tex. 

According to online crowdsourcing database Numbeo on costs in Brownsville and the same expenses in Honolulu, a meal at an inexpensive restaurant costs an average of $10 in Brownsville, but can set you back $28 in Honolulu. A liter of milk in Brownsville is 87 cents versus $2.30 in Honolulu. Rent for a one-bedroom apartment in downtown Honolulu runs $2,913 per month, while the same in central Brownsville is only $947. These are all significant differences, but, are they balanced by the destinations themselves? After all, Brownsville isn't an stunning island oasis with millions of tourists flocking to its shores.

While retirement may be less affordable in Honolulu, many elements make it an enticing home or vacation destination — perhaps enticing enough to take the pricey leap to residency after years of working. It's good to know that caring and respect for kūpuna (seniors) is a deep-seated facet of Hawaiian culture, and, Honolulu offers many free and affordable activities for senior residents that offset some of the higher costs of living there. That may be why approximately one in four Honolulu residents are over 60. 

Outdoor recreation is a big part of what makes Honolulu a popular vacation destination, and resident retirees can enjoy a lot for less. Golfers 65 and over get discounts on several public and semi-private courses, with some ranging from only $10 a day to $95 a month. Foster Botanical Garden and the Friendship Garden trail are scenic, serene spaces that are just $3 or donation-based to enjoy, respectively. Many attractions offer discounts for senior-aged retirees, like the tranquil Byodo-In Temple. Then there's the free activities. Hikes of all levels surround the city, and the challenging but picturesque hike up the iconic Diamond Head crater is free for residents – as is snorkeling the world-renowned Hanauma Bay Nature Preserve. The city's famous white sand beaches are also free — including Kahala Beach Park with less crowds and calmer waters. 

The city and county of Honolulu provides an array of classes, clubs, and events especially for local kūpuna, while the local YMCA features hula lessons for ages 50 to 100. Within the city limits, retirees over age 65 can get an annual pass for the bus or new Skyline rail system for $45 and save money on gas. Outside Honolulu, the 597-square-mile tropical island paradise awaits exploration, with even more free and affordable things to do. So the decision to splurge on a Honolulu vacation and live elsewhere versus retirement in this vibrant city that's name fittingly translates to "sheltered harbor" may be challenging one.