It is impossible to write about affordable retirement towns without mentioning those in Florida.  One such town, Pensacola, is located in the panhandle on Florida's Gulf Coast and is a former Spanish settlement that will charm both history buffs and sun-worshippers.  

On a scale of 100, with 100 being the national average, Pensacola rates a 90 when it comes to cost-of-living.   Florida has no income tax (and  medical services, groceries and prescriptions are exempt from the state's 7% sales tax).  There is no estate tax, but there is a tax on assets ($1 per $1,000 on assets under $100,000 and $2 per $1,000 on assets over $200,000, with a $20,000 exemption for individuals and a $40,000 exemption for couples).  Property taxes are $24 per $1,000, but there is a $25,000 homestead exemption.  Recreation and housing costs are below the national average, but food, health care and transportation are slightly higher.  When all of these factors are considered, Pensacola is an affordable retirement spot.