Best Cities for Retirement in India

Best City in India for Retirement - Cost, Healthcare, and Lifestyle Guide for NRIs

Last month, I spoke with Rajesh, an NRI in Dubai for 18 years. He's 52 now.

His question: "I want to retire in India in five years. But where? Bangalore feels too chaotic. Goa sounds perfect but is it practical? And what about healthcare as I age?"

If you're reading this, you're probably asking similar questions.

After helping hundreds of NRIs through Belong's advisory services and our WhatsApp community, we have learned that choosing a retirement city isn't about pretty photos.

It's about answering hard questions around money, medical care, and whether you'll actually enjoy living there at 65.

This guide gives you everything. We'll compare costs, healthcare quality, climate, safety, and the hidden factors most articles ignore. By the end, you'll know exactly which city suits your retirement plan.

What Makes a City Right for Retirement? (Beyond the Obvious)

Most articles list "pleasant weather" and "low cost of living." That's incomplete.

Here's what actually matters when you're 60+ and planning to spend 20-30 years in a city:

Healthcare access and quality You need world-class hospitals within 30 minutes. Specialized care matters more as you age. According to recent analysis, healthcare costs can range from ₹50,000-₹2,00,000 annually depending on the city and your health needs.

Real cost of living (not tourist prices) Rent, groceries, help at home, utilities. Factor in inflation. Financial planners recommend building a 6-8% annual inflation buffer into retirement budgets.

Climate you can tolerate year-round Extreme heat or cold becomes harder to handle. You want moderate temperatures.

Social infrastructure Are there clubs, parks, libraries? Can you make friends? Isolation is a real risk.

Proximity to family If your kids are in Mumbai, living in Coimbatore means expensive, tiring travel.

Safety and law enforcement Low crime rates matter. You want to feel secure walking in the evening.

Banking and financial services Easy access to quality banks. Remember, you'll need to convert your NRE/NRO accounts to resident accounts when you return.

Airport connectivity For visiting children abroad or emergency travel.

Tax implications of your residential status Your NRI status changes when you return, affecting how your global income is taxed. Understanding RNOR status can save lakhs in taxes during your first few years back.

👉 Tip: Before shortlisting cities, spend 2-3 months living there. Rent an Airbnb, visit hospitals, join local clubs. Numbers on paper don't capture the "feel" of daily life.

Also Read - Should NRIs Buy Property in India Before Retirement?

The Tax Reality NRIs Must Face When Retiring in India

Let's address the elephant in the room. When you return to India permanently, your tax situation changes dramatically.

Understanding residential status You become a tax resident of India if you stay for 182 days or more in a financial year, or 60 days in the current year plus 365 days in the preceding four years.

As a returning NRI, you'll likely qualify for RNOR (Resident but Not Ordinarily Resident) status for a few years. This is valuable.

Why RNOR status matters Unlike regular residents who are taxed on global income, RNORs are not taxed on foreign income earned and received outside India. This means your foreign pension, overseas rental income, or foreign investments remain tax-free in India for those years.

You qualify as RNOR if you've been a non-resident for 9 out of 10 preceding years, or stayed in India for 729 days or less during the 7 preceding years.

After RNOR status ends Once you become an ordinary resident, India taxes your global income. Planning for this is critical. Many NRIs don't realize this and face unexpected tax bills.

Also Read - Residential Status Under Section 6 Of Income Tax Act

The 2025 tax benefit Budget 2025 declared that income below and up to ₹12.75 lakhs( with the standard deduction of ₹75,000), per person is tax-free in the new tax regime. This applies to interest, rent, and dividends.

For a retired couple, that's up to ₹24 lakhs (or ₹25.5 lakhs with deductions)of annual income without any tax. Structure your investments smartly using GIFT City fixed deposits and DTAA benefits to optimize taxes.

We discuss tax planning strategies in detail in our WhatsApp community - join to learn from others who've done this.

Also Read - Difference Between NRI and Resident Tax Filing in India

How Much Money Do You Actually Need?

For an NRI couple moving back to metros like Bangalore or Mumbai, annual expenses typically range from ₹12-14 lakhs. That's roughly ₹1-1.2 lakhs per month.

Tier-2 cities are cheaper. Coimbatore, Mysore, or Bhubaneswar might cost ₹70,000-90,000 monthly.

Breaking down monthly expenses for a couple

Expense Category	Metro Cities (₹)	Tier-2 Cities (₹)
Rent (2BHK)	30,000-60,000	12,000-25,000
Groceries & Food	20,000-30,000	15,000-20,000
Utilities	5,000-8,000	3,000-5,000
Transportation	8,000-15,000	5,000-8,000
Healthcare/Insurance	10,000-20,000	8,000-15,000
Entertainment/Dining	10,000-20,000	5,000-10,000
Household Help	10,000-15,000	6,000-10,000
Total	93,000-168,000	54,000-93,000

(Source: Compiled from Numbeo cost of living data and retirement planning analyses)

The retirement corpus question For some NRIs choosing smaller towns, a retirement corpus of ₹3-4 crores may be sufficient. For those settling in metros with higher living and healthcare costs, the requirement could stretch to ₹7-8 crores.

Use Belong's tools to calculate your specific needs based on expected returns and inflation.

👉 Tip: Own a home before you retire. It removes rent from your monthly expenses, immediately cutting costs by 30-40%. Explore properties early, even if retirement is 5-7 years away.

Also Read - Real Estate Investment in India for NRIs – Rules and Pitfalls

India's Top 10 Retirement Cities Compared

Let me break down the best cities for retirement. I've grouped them by what they're best suited for.

Best Overall: Pune

Pune is one of the best places to retire in India, also the second-largest city in Maharashtra, a favorite among retirees due to the weather, low pollution levels, and proximity to Mumbai.

The appeal:

Pleasant climate year-round (16-35°C)
Excellent hospitals: Jehangir Hospital, Ruby Hall Clinic, Deenanath Mangeshkar Hospital
Strong cultural scene: music, theater, historical sites
Many senior living communities and gated societies
Good airport connectivity

The reality:

Traffic can be heavy in central areas
Property prices are high (₹60-90 lakhs for a 2BHK in good areas)
Monsoons are intense (June-September)

Monthly cost for a couple: ₹80,000-1,20,000

If your children are in Mumbai and you want access to top healthcare without Mumbai's chaos, Pune is ideal. Consider areas like Kharadi, Baner, or Hinjewadi for retirees.

Best for Weather: Coimbatore

Coimbatore, which has the moniker 'Manchester of East', is another popular destination for retirement mainly due to pleasant weather, good healthcare facilities, and low cost of living.

The appeal:

Moderate climate (20-35°C)
Lower cost of living than metros
Quality hospitals: PSG Hospitals, KMCH
Spiritual centers nearby (Isha Foundation, Annamalai)
Cleaner air than most large cities

The reality:

One concern is that the crime rate is higher than the national average
Limited cultural/entertainment options
Fewer international flight connections

Monthly cost for a couple: ₹65,000-85,000

Great for NRIs who prioritize peace and affordability over urban amenities.

Best for Culture & Amenities: Bangalore

Bangalore has been the best place to retire in India for quite some time, with many gated communities for retirees being developed in the city.

The appeal:

Pleasant weather (15-35°C)
World-class hospitals: Manipal, Narayana Health, Apollo
Cosmopolitan culture, diverse food, arts, theaters
Excellent parks: Cubbon Park, Lalbagh
Strong expat community

The reality:

Traffic is a major issue. If you're planning to live in Bangalore, select a location that is self-sufficient with all amenities so that your commute is reduced
High property costs
Water scarcity issues

Monthly cost for a couple: ₹1,00,000-1,50,000

If you want an active retirement with culture, restaurants, and activities, Bangalore works. Choose self-contained neighborhoods like JP Nagar, Jayanagar, or Whitefield.

Best for Mountains: Dehradun

The beautiful hills around Dehradun make it one of the most popular retirement destinations in India.

The appeal:

Himalayan foothills, clean air, scenic views
Cooler climate (5-35°C)
Growing retirement home infrastructure
Quieter pace of life
Close to Rishikesh and Mussoorie

The reality:

Winters can be quite cold
Limited specialized healthcare (serious cases require Delhi)
Smaller social scene
Seasonal tourism can increase prices

Monthly cost for a couple: ₹70,000-95,000

Perfect for NRIs who dream of mountain living and don't mind limited healthcare access.

Best for Affordability: Mysore

Also known as a Pensioner's Paradise, Mysore is a wonderful retirement destination in India. The city is bursting with parks and lush gardens, and it is quite affordable to live in, with a single expat retiree requiring $556 (₹46,500) a month.

The appeal:

Very affordable
Pleasant climate (16-34°C)
Clean, well-planned city
Rich cultural heritage (Mysore Palace, Dasara festival)
Good local hospitals

The reality:

Smaller city with limited cosmopolitan vibe
Fewer entertainment options
Basic international connectivity

Monthly cost for a couple: ₹60,000-80,000

Ideal if budget is a primary concern and you prefer traditional Indian culture.

Other Cities Worth Considering

Chandigarh Chandigarh is a senior citizen's haven, India's first planned city with excellent connectivity and a pollution-free environment, with a low crime rate and vicinity to the mountains of Himachal Pradesh.

Great infrastructure, clean, safe. Winters are cold. Cost: ₹85,000-1,15,000/month.

Bhubaneswar Bhubaneswar is appealing for retirees with its rich cultural heritage, modern healthcare facilities, and tropical pleasant climate. The cost of living for a single expat retiree is $475 (₹40,000), with $96 (₹8,000) per month spent on rent.

Affordable, spiritual, safe. Hot summers. Cost: ₹65,000-90,000/month.

Goa Beach life, international vibe, seafood. But destinations like Goa attract significant tourist influx during peak season (November-March), which can drive up rents by 25-35%. High alcohol and entertainment costs. Cost: ₹90,000-1,40,000/month.

Pondicherry The city offers a calm and serene environment with French colonial architecture, coastal climate with mild temperatures, and rent for a one-bedroom apartment varying from $150-350 (₹12,500-29,000).

Charming, beachy, cultural. Limited specialized healthcare. Cost: ₹70,000-1,00,000/month.

Also Read - How Much Money Does an NRI need to Retire

Healthcare Infrastructure: What Really Matters

Let's talk about something critical that most retirement articles gloss over: healthcare access as you age.

The healthcare hierarchy in India

Tier 1 (Best): Mumbai, Delhi, Bangalore, Chennai, Pune

Multi-specialty hospitals with international standards
Access to rare specialists (oncology, cardiology, neurology)
Medical tourism infrastructure
24/7 emergency care

Tier 2 (Good): Coimbatore, Chandigarh, Ahmedabad, Jaipur

Quality multi-specialty hospitals
Most specialists available
Good emergency care
May need to travel to Tier 1 for rare conditions

Tier 3 (Basic): Mysore, Dehradun, Bhubaneswar, Goa

Decent local hospitals
Basic specialists
Serious conditions require travel to bigger cities

Retirees should invest in private health insurance of at least ₹5-10 lakh per person to protect against unexpected medical expenses.

NRI-specific health insurance considerations Many NRIs have health insurance from their resident country. Health insurance for NRIs typically covers medical expenses within India, and while some plans may extend coverage abroad, it is often limited to critical illness insurance accompanied by heavy co-payments and high premiums.

You need India-specific health coverage. Companies like HDFC ERGO, Care Health, and Star Health offer NRI health insurance. Buy it early - waiting periods for pre-existing conditions are typically 2-4 years.

Check our guide on NRI term insurance and life insurance plans for NRIs for comprehensive protection.

👉 Tip: Schedule a "trial stay" of 3 months in your shortlisted city before deciding. Test hospital access, consult with doctors, and understand the real quality of care available.

Lifestyle Factors That Make or Break Retirement

Numbers and hospitals matter. But will you actually be happy there? Here are the softer factors:

Social infrastructure Can you join clubs, find friends, attend events? Cities with established expat or returned-NRI communities are easier.

Pune, Bangalore, and Goa have active retiree networks. Belong's WhatsApp community can connect you with others who've retired in your chosen city.

Cultural activities If you enjoy music, theater, art galleries, check what's available. Mumbai, Delhi, Bangalore, and Pune have vibrant scenes. Smaller cities offer less.

Food and dining Metros offer international cuisine. Tier-2 cities are more traditional. If you've developed certain tastes abroad, this matters.

Air quality Delhi's AQI regularly hits "severe" in winter. Mumbai's air is moderate. Hill stations and smaller cities like Mysore, Coimbatore, and Chandigarh have better air.

Check AQI data before deciding.

Walkability and public transport Can you walk to shops, parks, clinics? Cities like Chandigarh and Mysore are pedestrian-friendly. Mumbai has excellent trains. Bangalore's traffic makes it car-dependent.

As you age, walkable neighborhoods become more important than you think.

Banking and Financial Services When You Return

This is practical but crucial. Your NRI accounts need to be converted to resident accounts.

What changes

NRE and NRO accounts must be redesignated to resident savings accounts
FCNR deposits mature and you decide whether to repatriate or keep funds in India
Tax treatment changes: NRE interest is no longer tax-free as a resident

Banking infrastructure in cities All major cities have good banking. Even smaller cities like Mysore and Coimbatore have branches of HDFC, ICICI, SBI, and Axis.

Digital banking reduces the need for physical branches. Ensure your chosen city has reliable internet connectivity.

Investment management Consider where you'll invest your retirement corpus. Belong offers USD fixed deposits through GIFT City that are tax-free and protect against rupee depreciation.

You can also explore best investment options and alternative investment funds through our platform.

Use our FD rates comparison tool to find the best returns in your city.

Property: Buy, Rent, or Senior Living Community?

Buying property Pros: No monthly rent, asset appreciation, sense of permanence Cons: High upfront cost, maintenance responsibility, less flexibility

If you're certain about the city, buying makes sense. It removes rent from your monthly expenses, cutting costs significantly.

Property prices vary widely:

Metro cities: ₹60-150 lakhs for a 2BHK in good areas
Tier-2 cities: ₹30-60 lakhs for similar properties

NRIs and OCIs can purchase residential property in India without RBI approval. See real estate rules for NRIs for details.

Renting Pros: Flexibility, no maintenance hassles, try before committing Cons: Monthly expense, rent inflation, landlord dependencies

Before permanently relocating, it is advisable to conduct a trial stay of three months to evaluate climate, healthcare access, and social life. Rent first, then decide.

Senior living communities Growing in cities like Pune, Bangalore, Coimbatore, and Chennai. These offer:

Age-appropriate infrastructure (ramps, grab bars)
On-site medical facilities
Social activities and community
Maintenance-free living

Costs range from ₹40 lakhs-1.2 crores depending on city and amenities.

Research communities early. Waitlists can be long for popular ones.

The Hidden Costs Nobody Tells You About

Beyond rent and groceries, factor in:

Household help In India, having domestic help for cleaning, cooking, and errands is common and affordable. Budget ₹8,000-15,000 monthly.

Property taxes and society charges If you own, expect ₹15,000-50,000 annually depending on city and property size. Gated societies add monthly maintenance (₹3,000-10,000).

Travel to visit children abroad If your kids live in the UAE, US, or UK, budget for annual visits. Flights, visa fees, travel insurance add up.

Festival and family expenses Weddings, functions, gifts. Indian social life involves expenses you might not have had abroad.

Inflation Inflation National CPI runs near 2-3%, but rental inflation in larger cities is closer to 5-8%. Add at least a 4% buffer to your annual budget. (source)

A ₹1 lakh monthly expense today becomes ₹1.48 lakhs in 10 years at 4% inflation.

Making the Decision: A Framework

Here's how to choose:

Step 1: Define your priorities Rank these factors for yourself:

Healthcare quality
Cost of living
Climate
Proximity to family
Cultural activities
Airport access
Social infrastructure

Step 2: Shortlist 2-3 cities Based on your priorities, narrow down options.

Step 3: Visit and experience Spend time in each city. Visit hospitals, explore neighborhoods, talk to residents.

Step 4: Run the numbers Use retirement calculator to see if your corpus supports that city's costs.

Step 5: Plan your finances

Determine your residential status for tax
Convert accounts appropriately
Structure investments for tax efficiency
Set up health insurance

Step 6: Make a gradual transition Don't burn bridges. Rent for 6-12 months first. Keep some funds abroad initially. Test your decision.

How Belong Helps NRIs Retire Smartly in India

At Belong, we've built tools and services specifically for NRIs planning retirement:

USD Fixed Deposits in GIFT City Earn tax-free returns in dollars, protecting against rupee depreciation. No TDS, easy repatriation. Learn more about GIFT City FDs.

Retirement planning tools

FD rates comparison across all major banks
Residential status calculator to understand tax implications
Rupee vs Dollar tracker to time your remittances
Compliance compass to stay on top of regulations

Expert advisory Our SEBI-registered advisors help you:

Structure your retirement corpus tax-efficiently
Navigate DTAA benefits
Plan for RNOR and post-RNOR years
Optimize between old and new tax regimes

Community support Join Belong's WhatsApp community where 800+ NRIs share experiences about retiring in different Indian cities. Ask questions, get real answers from people who've done it.

Download the Belong app to access all our tools and start planning your retirement today.

Your Retirement Deserves Planning, Not Hope

Choosing a retirement city is one of the biggest financial and lifestyle decisions you'll make. It affects your daily happiness, your healthcare access, your family time, and your financial security for 20-30 years.

Don't rush it. Don't rely on nostalgic memories of a city from 20 years ago. Do your research, visit places, run the numbers, talk to people living there now.

And remember: retirement in India can be incredible. The warmth of family, the richness of culture, the affordability of life, the comfort of being home. But only if you choose the right city for your specific needs.

Your next steps: