What’s the Cost of Living in India’s Best Places for Retirement?

A good retirement destination is more than just scenic views and good weather. One of the biggest factors (sometimes the deciding one) is affordability. 

While deciding on a place where you can retire, you must first ask yourself: 

• How much will it actually cost to live in the cities you’ve shortlisted? 
• Can your retirement corpus comfortably fund that lifestyle?

As retirement planning increasingly focuses on long-term sustainability, it becomes essential to assess the financial implications of relocating to a new city.

This article presents an overview of the cost of living in several popular Indian cities for retirement, offering insights to help individuals make well-informed decisions.

City	Living Costs for a Couple (Ex-Rent)	Typical 2BHK/3BHK Rent	Cost of Living Index	Notes
Goa (Panaji/Porvorim belt)	₹65K–70K	₹25K–40K	22.1% lower than Mumbai	Tourist-driven rent fluctuations; strong private healthcare.
Pune	₹80K–85K	₹20K–45K	22.8	Robust healthcare; well-connected city.
Coimbatore	₹55K–60K	₹15K–35K	17.3	Low pollution; medical hub.
Dehradun	₹60K–65K	₹20K–40K	25.9% lower than Mumbai	Access to hills; growing healthcare infrastructure.
Chandigarh–Tri-City	₹70K	₹15K–32K	20.2	Excellent civic services; well-planned urban layout.
Pondicherry	₹55K–60K	₹8K–20K	N/A	Distinctive cultural ambience; emerging wellness hub.
Kasauli	₹50K	₹35K (2BHK cottage)	N/A	Clean environment; limited hospital access.
Delhi	₹85K–95K	₹20K–30K (outer) ₹50K–60K (central)	21.9	Comprehensive healthcare; excellent transport.
Bengaluru	₹80K–85K	₹25K-55K	22.4	Temperate climate; strong public amenities.
Ahmedabad	₹60K	₹19K–30K	21.8	Safe city; notable rise in rents.
Bhubaneswar	₹60K	₹8K–28K	19.3	Green city with heritage sites; improving air connectivity.
Dharamshala	₹50K	₹12K–20K	N/A	Cooler climate; limited access to tertiary healthcare.
Jaipur	₹55K–60K	₹15K–25K	19.1	Heritage city with modern amenities.
Mysore	₹55K–60K	₹17K–31K	N/A	Clean city; favourable retirement environment.
Rishikesh	₹45K–50K	₹15K–25K	N/A	Spiritual hub; advanced healthcare available in Dehradun.

Source: Magicbricks, Numbeo

*Couple costs are interpolated from Numbeo’s single and family-of-four baskets for June 2025.
†Numbeo Cost-of-Living Index, 100 = cost in New York City.

Key Observations

1. Tier-II Cities Offer Strong Value

Retirees seeking affordability without compromising on healthcare will find good value in Coimbatore, Mysore, and Bhubaneswar. These cities typically allow for a total monthly outlay below ₹70,000–₹75,000, while providing reliable access to medical services, good quality of life, and a less congested urban environment.

2. The Impact of Tourist Seasons

Destinations such as Goa and Kasauli attract a significant tourist influx during the peak season (November to March), which can drive up rents by 25%–35%. Retirees considering these areas should factor in potential seasonal fluctuations in housing costs or negotiate longer-term leases to secure stable pricing.

3. Cost Versus Convenience in Metros

Metropolitan areas such as Delhi and Bengaluru command the highest rental costs in this list. However, they offer unparalleled advantages – world-class healthcare systems, extensive metro networks, and robust infrastructure. These cities remain ideal for retirees who prioritise proximity to advanced medical care and well-developed transport connectivity.

4. Rents on the Rise

Ahmedabad has witnessed a significant increase in rental rates over the past year, with average rents climbing by approximately 25%–30%. Prospective retirees should account for this trend when planning housing budgets in the city.

Source: Times of India

Planning Tips

Here’s how you can plan your retirement in the above cities. 

1. Index your pension: National CPI is running near 5%, but rental inflation in larger cities is closer to 8-12%. Add at least a 6% buffer to your annual budget.

Source: MOSPI

2. Health cover: Even in low-cost cities, a private health plan of ₹5-10 lakh per person prevents large out-of-pocket shocks.
3. Trial stay: Before relocating, rent for three months to test climate, healthcare access and social life.
4. Neighbourhood checks: Local costs vary widely inside each city. Verify grocery and utility prices within the exact area you plan to live.

Practical Considerations for Retirees

If you are considering any of the above cities for your retirement home, it would help to keep the following in mind, too:

1. Adjusting for Inflation

While national CPI inflation currently hovers around 5%, housing costs, especially in metros, are rising at a faster pace (8%–12% annually). It is prudent to incorporate at least a 6% annual buffer into one’s retirement budget to maintain purchasing power and financial stability.

2. Health Insurance Coverage is Essential

Regardless of location, retirees should invest in private health insurance of at least ₹5–10 lakh per person. This ensures protection against unexpected medical expenses, even in otherwise affordable cities.

3. Consider a Trial Stay

Before permanently relocating, it is advisable to conduct a trial stay of three months. This allows individuals to evaluate:

• Climate suitability
• Accessibility of healthcare services
• Availability of community and recreational activities
  

4. Evaluate Neighbourhood-Level Costs

Costs can vary substantially between neighbourhoods within the same city. For instance:

• In Rishikesh, Tapovan commands higher rental rates (~₹30K), whereas other town areas may offer rates closer to ₹9K–10K.
  
• In Delhi, outer zones such as Dwarka or Rohini offer more affordable options compared to central locations.
  

Prospective retirees should conduct localized cost checks—covering groceries, utilities, and transport—in the specific area they are considering.

Conclusion

Choosing the right Indian city for retirement requires a balanced view of lifestyle preferences and financial planning. This analysis demonstrates that it is possible to enjoy a comfortable and fulfilling retired life across a wide range of cities—provided the financial implications are clearly understood.

In summary:

• ₹50K–70K/month (inclusive of rent) is adequate for many tier-II destinations.
• ₹85K–1 lakh/month offers more flexibility in metros or premium tourist cities.

Retirees are advised to build in a 6%–8% annual inflation adjustment and secure adequate health insurance to preserve both financial security and peace of mind. With informed planning, India continues to offer excellent opportunities for an affordable, well-rounded retirement lifestyle.