UK retirement happiness hotspots: the best places to retire

Britain’s best places to retire to for a happy life have been named – and surprisingly it’s not a coastal haven taking the top spot.

The constituency of Amersham and Chesham in Buckinghamshire has been crowned the best place to retire in terms of happiness.

Neighbouring Beaconsfield (also in Buckinghamshire) takes the second spot, while Dorking and Horley in Surrey comes third.

The analysis by L&G reveals the top 20 constituencies across Britain to retire, looking at a range of factors including housing, health and access to amenities.

“This research gives us a more complete picture of what shapes a happy later life,” says Lorna Shah, managing director, retail retirement, at L&G.

“It’s not just about one factor – it’s the combination of health, social connections, environment, and financial security that all play a part in retirement wellbeing.”

If you’re considering retiring early, don’t miss our piece looking at eight tips to help you retire early. Meanwhile, if you’re planning to move abroad when you finish work, check out our guide to the best and worst countries to retire to from a tax planning perspective.

Britain’s retirement happiness hotspots

The L&G research scored 632 areas across six pillars: health, housing, social and community (for example, opportunities to build social connections and distance to nearest station), nature, local amenities and financial security.

Set in Buckinghamshire’s Chiltern Hills – an area of outstanding national beauty – the market towns of Chesham and Amersham took the number one spot, scoring 74 out of 100 overall.

It performs very well on health, with a score of 93, reflecting a high proportion of over 65s in good physical and mental health, as well as good access to GPs. It also scores highly on financial security (78), and across the other remaining pillars: nature (72), social and community (69), housing (66), and local amenities (64), making it a well-rounded environment for later life.

It’s also easy to get to the capital – both towns sit at the end of the Metropolitan line – for retirees wanting some London culture.

The 20 best areas to retire are all in England, spanning counties such as Kent, West Sussex, Suffolk and Cheshire.

While much of London performed poorly in terms of financial security in later life, the capital scored well for access to amenities, nudging some constituencies up the league table. Ruislip, Northwood and Pinner made the top 20 coming in at 14^th overall.

Mid Dunbartonshire (East Dunbartonshire) and Monmouthshire (Gwent) have been named the best places to retire in Scotland and Wales respectively.

Money has strong implications for later life wellbeing

The financial pillar, which covers pension income, cost of living, housing affordability and deprivation levels, has a significant effect on later life wellbeing, according to L&G.

Sheffield Hallam (South Yorkshire), West Aberdeenshire and Kincardine (Aberdeenshire), and Tatton (Cheshire) are all top performers in this area.

A previous study from L&G and the Happiness Research Institute, an independent Danish think tank focusing on wellbeing, happiness and quality of life, found that the happiest retirees have an average monthly income of £1,700, but only 38% of retirees receive this or more, while many live on much less.

The stability of that income was also a factor. Retirees with a guaranteed income report higher levels of satisfaction and face fewer affordability challenges. Those with an annuity – which pays a guaranteed income for life in exchange for a pension – are more likely to report lower levels of stress (51%) and the highest level of financial confidence (24% versus 21%) compared to those without one.

If you have a workplace pension or personal pension, you’ll need to decide how to take money out when you retire. While an annuity pays a guaranteed income, some people prefer the flexibility of drawdown, which means you can choose how much you want to withdraw.

Some retirees like to do a combination of the two, taking a hybrid approach.

We look at how much you need for a comfortable retirement in a separate piece.