Retirees seeking the retirement trifecta — golf, the beach and warm weather — often flock to pricey places like Hilton Head, Palm Beach or Santa Barbara. But sugar-sand beaches, sunshine and some of the best golf in the nation can be had at a much lower price in Alabama.

The northern part of the state encompasses foothills of the Appalachian Mountains, where the outdoor amenities include hiking, lake-side living and fishing. High-tech Huntsville, where the National Aeronautics and Space Administration planned its moon landings, attracts professionals in all kinds of scientific fields. Cities such as Montgomery, Birmingham and Fairhope offer Southern hospitality and more arts and culture than some might expect.

Among the highlights for many retirees is the Robert Trent Jones Golf Trail, a collection of 11 different sites with 26 championship-quality courses within about 100 miles of each other, which The Wall Street Journal said “may be the biggest bargain in the country.”

But it’s not just the golf that’s affordable here. The state’s overall cost of living is 10.1% below the national average, and even living along the coastline is reasonable. Gulf Shores, along the Gulf of Mexico, costs only 1.6% more than average to live in, compared with 33% for Hilton Head, S.C., 92% for Palm Beach, Fla., and 105% for Santa Barbara, Calif.

The natural-bridge rock arch in Natural Bridge, Alabama (population: 50 or less). Shutterstock

Nicknamed the “Heart of Dixie,” Alabama offers residents an environment with a distinct southern flair (expect a lot of “yes ma’ams”), often anchored in a rabid love of college football (Alabama and Auburn games leave the cities that host their games awash in red and orange, respectively).

The state has several top-notch health-care facilities, including the University of Alabama Hospital in Birmingham, the Southeast Alabama Medical Center in Dothan and the Baptist Health System statewide. And Alabama’s assisted living and nursing homes are notably affordable. A private room in a nursing home in Alabama has a median daily cost of $191, compared with $230 for the nation as a whole; and families faced a $2,600 median monthly rate for assisted living, compared with $3,450 for the rest of the country, according to a 2013 study by Genworth Financial, Inc.

Although residents pay income taxes here, the rate tops out at 5%, and Social Security and pension income are exempt. Plus, homeowners over 65 don’t pay property taxes and there is no estate tax. State gas taxes and cigarette taxes are among the nation’s lowest at 21 cents per gallon and 43 cents per pack respectively. But while Alabama has one of the nation’s lower statewide sales tax rates at 4%, add to that one of the highest average local sales tax at 4.48% and you may be paying more than 8 cents per dollar in some locations, according to the Tax Foundation.

Alabama does have some significant downsides that retirees may wish to consider. The state ranks fourth worst on the Gallup-Healthways State Health Index, based on 2013 health information from 176,000 Americans on physical and emotional health, healthy behaviors, work environment, social and community factors, financial security, and access to necessities such as food, shelter and health care. Alabama has one of the highest obesity rates in the nation, and 18.1% of residents live in poverty compared with 14.9% for the nation, according to the Census Bureau. Many residents in rural areas don’t have a lot of health-care options, as there are just 208 physicians per 100,000 people in Alabama, compared with 261 in the U.S. as a whole, according to Sperling’s Best Places.

Still, residents say the lost cost of living and pleasant climate more than make up for those downsides. These four places give retirees some of the best Alabama has to offer:

Downtown Huntsville. Shutterstock

Huntsville

Vincent Boles, a New York native, retired U.S. Army major general, and full-time consultant, author and speaker, says he and his wife Cheryl moved 18 times during his 33 years of military service. But when he retired from active duty in 2009, they opted to live in Huntsville. Thanks to NASA’s Marshall Space Flight Center, a large aerospace industry presence, many Fortune 500 company offices and the HudsonAlpha Institute for Biotechnology, the north Alabama city attracts a diverse range of residents. “Huntsville also gets so much energy from the tech sector, and there’s a can-do spirit,” Vincent says, noting that some of the key technology for the Apollo moon landings was developed here.

A popular spot for military retirees, Huntsville offers an interesting melding of southern hospitality and high-tech culture at a lower-than-average cost of living, says Charles Winters, the executive vice president of the Huntsville/Madison County Convention & Visitors Bureau. Unlike many small cities in the South, its residents hail from all over the world, and Huntsville has one of the highest concentrations of Ph.D.s in the nation. Still, there’s no sense of snobbery. “You can’t expect to go the grocery store and be out in five minutes,” says Vincent; everywhere he goes, it’s easy to strike up a conversation.

Because of its location in the foothills of the Appalachians, miles of hiking and biking trails are just minutes away from Huntsville; boaters can head a few minutes south of town to the Tennessee River, and golfers can hit up one of Huntsville’s seven courses, including the Hampton Cove courses, which are part of the Robert Trent Jones trail. Huntsville also boasts the state’s oldest symphony orchestra, vibrant performing and visual arts communities, a variety of dining options, quality medical care and an international airport, says Winters.

By the numbers

Population: 180,105

Median home cost: $127,800

Cost of living: 3.8% lower than the national average

Unemployment: 6.9%

Source: Sperling’s Best Places

Quality time with the fishes near Orange Beach. Shutterstock

Orange Beach/Gulf Shores

Orange Beach and its neighbor Gulf Shores offer 32 miles of fine white sand and emerald-green waters, perfect for boating, fishing, swimming and other water sports. Most permanent retirees here come from around the southeast, attracted to the Alabama beaches for their affordability compared with some hot spots in Florida and elsewhere, says Wayne Walker, an agent with Keller Williams Realty based in Orange Beach. The cost of living in Gulf Shores is just 1.6% higher than the national average, compared with 61.3% higher for Naples, on Florida’s gulf coast.

The area attracts a lot of snowbird retirees who live here in colder months and head to other homes when the weather warms up, says Joanie Flynn, the vice president of marketing for Gulf Shores & Orange Beach Tourism. This group has a vibrant social network, including well-developed clubs; the group is the driving force behind the annual Brat Fest fundraiser for local fire departments and a theater company that performs at the South Baldwin Community Theatre.

“The vibe is casual; you don’t get dressed up to go anywhere,” Flynn says. That being said, of the two towns, Gulf Shores is less expensive and has a more touristy and party vibe with T-shirt shops, music festivals and public beaches, while Orange Beach is less densely populated with more expensive oceanfront homes on the bay and more upscale restaurants, Walker says. “As far as [access to] water goes, though, there’s not a nickel worth of difference,” he adds.

Retirees who like to fish will find one of the largest recreational charter boat fleets on this part of the Gulf of Mexico; one of the most expansive artificial reef programs in the country; and the long Gulf State Park Pier. Golfers can enjoy nine courses, among them the two Arnold Palmer courses that make up Craft Farms, and Kiva Dunes, which Golf Digest named the best course in Alabama. A regional medical center is just north of Gulf Shores in Foley, which also has a big outlet mall. Nearby Fairhope has a strong arts community with galleries, First Friday art walks and an annual arts festival, Walker says. For more entertainment and airports, Mobile, Ala., and Biloxi, Miss., are each two hours away and New Orleans about three.

By the numbers (Orange Beach / Gulf Shores)

Population: 5,441 / 9,741

Median home cost: $258,000 / $171,400

Cost of living: 18.6% / 1.6% higher than average

Unemployment: 7.4% (both towns)

Source: Sperling’s Best Places

The state capitol building in Montgomery. Shutterstock

Montgomery

For the retiree interested in culture and history, Alabama’s state capital offers it at an affordable price, with a cost of living 10.5% lower than the national average. The year-round, nationally acclaimed Alabama Shakespeare Festival produces 14 shows annually, including three Shakespeare plays, classics by other well-known playwrights, musicals and newly commissioned works. The 1,800-seat Montgomery Performing Arts Center hosts concerts, opera, comedy, dance and children’s shows. The Davis Theatre for the Performing Arts at Troy University, a renovated movie palace which opened in 1930, also stages theatrical events and concerts.

Montgomery has its own symphony orchestra, and the Montgomery Museum of Fine Arts hosts traveling exhibitions, has a sculpture garden and is known for its collections of American works on paper and Old Master prints. More cultural activities and continuing education opportunities abound with Alabama State University, a campus of Auburn University, Huntington College and Faulkner University all located here.

Literature-lovers will get a kick out of the city’s connection to F. Scott and Zelda Fitzgerald, who lived here in the early 1930s. Their residence is now home to the nation’s only museum devoted the couple. Other historical sites cover everything from the Civil War to the civil-rights movement. Montgomery being the state capital has helped fortify a strong economy, says Tommy Shaver, an agent with Aronov Realty. The city also has a zoo and lots of family-friendly activities. A vibrant international culture has been energized by a large Hyundai facility located here, says Dawn Hathcock, vice president of the Montgomery Area Chamber of Commerce, who adds, “People are very accepting to new people moving in.”

Montgomery’s recently redeveloped downtown is a hub for new restaurants and for lofts for retirees who want to live in the center of the action, Hathcock says. The Alabama River front area also is undergoing revitalization, with riverboat cruises and parks; right across the river is the Capitol Hill Golf Course in Prattville, featuring three 18-hole championship courses on the Robert Trent Jones trail.

Retired military may like the proximity to Maxwell Gunter Air Force Base and a veteran’s hospital in Montgomery. Other well-ranked hospitals here include Baptist Health and Jackson Hospital. The city has a regional airport with flights to Atlanta, Charlotte and Dallas-Fort Worth.

By the numbers

Population: 205,764

Median home cost: $86,600

Cost of living: 10.5% lower than average

Unemployment: 8.4%

Source: Sperling’s Best Places

Racing—and crashing—at the Talladega Superspeedway. Action Sports Photography/Shutterstock.com

Talladega

Talladega is perhaps most famous for its Superspeedway, but it offers much more — a cost of living 15% lower than the national average, proximity to natural beauty and a friendly attitude. Originally from Florida, Martha Jordan Drummer has lived in multiple places during her career with the U.S. Department of Justice, but two stints in Talladega convinced her to stay on after she retired from being warden of the federal correctional institution there. “There’s just a small Southern-town feeling here,” she says. “I’d lived in New York and Pennsylvania, and I wanted to be in a warmer place but not a large city.”

Talladega may not serve up many fine dining establishments or diverse shopping options, but anything it lacks isn't a long drive away, says Joe Porter, broker/owner of Porter and Porter Co. Real Estate. The town of about 15,000 dates back to the early 1800s, with historic homes in its Silk Stocking District. The Beaux-Arts style Heritage Hall hosts art exhibitions and classes, and Talladega College, Alabama’s oldest private historically black college, is also here. Jordan Drummer says she and her husband Lester Drummer, a retired military officer, never lack for things to do. He fulfills his favorite retirement pastime at the Timber Ridge Golf Club, while she volunteers for groups such as the Boys and Girls Clubs of East Central Alabama and the Rotary Club of Talladega, and sits on the board of the historic Ritz Theatre, an Art Deco theater dating back to 1936.

The Drummers go to Birmingham and Atlanta, both less than two hours away, for more upscale shopping, Broadway shows and concerts. Both cities’ international airports also make it easy to fly anywhere or access a cruise, Jordan says, adding that she also sometimes catches an Amtrak train in Anniston, about a half-hour away, to visit the Washington, D.C. area. Outdoor activities, such as hiking, hunting, fishing and boating, also abound in the area, which is in the Appalachian foothills. Nearby natural sites include Logan-Martin Lake; the Talladega National Forest, the starting point of the 335-mile Pinhoti Trail, and Cheaha Mountain, Alabama’s highest point. The Baptist Health System has a facility in Talladega, with visiting doctors from Birmingham.

By the numbers

Population: 15,676

Median home cost: $106,800

Cost of living: 15% lower than average

Unemployment: 8.9%

Source: Sperling’s Best Places

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