Retiring in Arkansas: Benefits, and Challenges
Arkansas combines affordability and natural beauty, making it an appealing retirement choice.
Arkansas may be an attractive destination for retirees due to its mild climate, beautiful natural scenery, and affordable cost of living. While there is no official count of how many people retire to Arkansas each year, as of 2024, more than 17% of the state’s population is over the age of 65.
Arkansas is a relatively affordable state with a sizable population over the age of 65.
Retirees may be attracted to Arkansas for its low cost of living and natural beauty.
Some disadvantages to retiring in Arkansas could include extreme weather and limited access to healthcare or cultural activities.
Some potential areas to look at include Hot Springs, Fayetteville, and Little Rock.
What age can you retire in Arkansas?
In Arkansas, there is no mandated retirement age, like in all US states. This means that individuals are free to retire whenever they choose, as long as they can financially support themselves. However, there are some age-related benefits and considerations for retirees in Arkansas:
Social Security benefits: The earliest age at which you can begin receiving Social Security benefits is 62, but if you delay taking benefits, your monthly payments will increase. Full retirement age (FRA) is between 66 and 67, depending on your birth year. Delaying benefits until after FRA can result in even higher monthly payments.
Medicare eligibility: Medicare eligibility begins at age 65, regardless of retirement status. However, if you choose to retire before age 65, you will need to find alternative healthcare coverage until you become eligible for Medicare.
Retirement savings: Regardless of retirement age, individuals should start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of their income for retirement.
Why do people retire in Arkansas?
There are a handful of key reasons that Americans may want to retire in Arkansas.
Tax-friendly retirement accounts: Arkansas does not tax Social Security benefits, and other types of retirement income such as pensions and 401(k) withdrawals are also tax-friendly in the state.
Affordable cost of living: One of the most significant financial benefits of retiring in Arkansas is the affordable cost of living. Housing, food, and healthcare costs are all generally lower in Arkansas than in many other states.
Beautiful natural scenery: Arkansas is home to breathtaking natural beauty, including the Ozark Mountains, Hot Springs National Park, and the Buffalo National River. This makes it an attractive destination for retirees who love outdoor activities like hiking, fishing, and camping.
Quiet and peaceful: Unlike many other retirement destinations, Arkansas offers a calm and serene environment for retirees seeking a slower pace of life. While there are some sizable cities, their populations do not rival those in states like California or Texas.
What puts people off retiring to Arkansas?
There can be some drawbacks to retiring in Arkansas, too.
Limited healthcare options: While Arkansas is home to some excellent hospitals and medical centers, access to healthcare can be limited in some rural areas of the state.
Limited cultural activities: While Arkansas has plenty of natural beauty to explore, it may not offer as many cultural activities and events as larger cities in other states.
Extreme weather: Arkansas can experience extreme weather conditions, including tornadoes and ice storms, which can be a concern for some retirees.
Limited job opportunities: For retirees who may want or need to continue working part-time, job opportunities can be limited in some areas of Arkansas.
What are the best places to retire in Arkansas?
If Arkansas is your chosen retirement state, here are some of the top potential areas to retire to:
Hot Springs: Located in the Ouachita Mountains, Hot Springs is known for its natural hot springs and historic bathhouses. The city offers a variety of outdoor activities, including hiking, fishing, and boating on nearby Lake Hamilton.
Fayetteville: Home to the University of Arkansas, Fayetteville has a lively cultural scene and a thriving downtown area. The city's mild climate, low cost of living, and access to medical care make it a popular retirement destination.
Little Rock: Arkansas's capital city offers a mix of city amenities and outdoor recreation opportunities. It has a vibrant arts and culture scene and several parks and nature reserves.
Bentonville: Best known as the home of retail giant Walmart, Bentonville has experienced significant growth in recent years. The city's downtown area offers a variety of shopping and dining options, while the nearby Crystal Bridges Museum of American Art is a popular cultural attraction.
Eureka Springs: Nestled in the Ozark Mountains, Eureka Springs is a picturesque town with a rich history. The city's Victorian architecture and quaint downtown area make it a popular tourist destination, but retirees also appreciate its peaceful atmosphere and scenic beauty.
Mountain Home: Located in the Ozark Mountains, Mountain Home is known for its natural beauty and outdoor recreation opportunities. The city is home to several retirement communities and offers a low cost of living and access to medical care.
Bella Vista: Situated in northwest Arkansas, Bella Vista is a planned community with several golf courses, lakes, and other amenities. The community has a high percentage of retirees and offers a variety of housing options.
Get expert financial advice
To sum it up, while the beautiful scenery, affordability, and friendly communities are major draws for many retirees, the potential for extreme weather and limited healthcare options should be considered before making the move.
To support your financial independence journey, from retirement planning to investment strategies, it can be important to seek expert financial advice. This advice can help you weigh all of the costs associated with retiring in Arkansas — including property taxes, insurance, and living expenses — to make an informed decision about whether the state is the right choice for your retirement.
A retirement planning expert can help.
Find an independent advisor through Unbiased.
Content Writer
Sam Becker is a freelance writer and journalist based near New York City. He is a native of the Pacific Northwest and a graduate of Washington State University. He has worked as a business and finance journalist and writer for more than a decade, working with media publications, brands, and experts in the field