Early retirement used to feel like a fantasy—something only available to celebrities, entrepreneurs, or people who struck gold with investments. But in recent years, a growing number of Americans have realized that with the right preparation, mindset, and location, early retirement is within reach. One place that continues to rise to the top of the list is Tennessee. So if you’re exploring how to retire early in Tennessee, you’re looking in the right direction.
With no state income tax, affordable housing, and scenic small towns that feel like postcards come to life, Tennessee is a powerful backdrop for anyone dreaming of more freedom, fewer expenses, and a slower pace of living.
Why More People Are Choosing Tennessee for Early Retirement
Retiring early isn’t just about money—it’s about lifestyle. Tennessee offers both. The cost of living is consistently below the national average, especially outside its major cities. That means your money goes further, whether you’re renting, buying, or building a home. Utilities, groceries, and transportation costs also tend to be lower, making it easier to maintain a simple but comfortable lifestyle.
But financials are only half of the story. Tennessee is also rich in outdoor beauty, community traditions, and a culture that values time spent with family and nature. From the mountain towns of East Tennessee to the rolling hills of Middle Tennessee, the state invites you to live life more intentionally.
For those looking to build a long-term early retirement plan, Tennessee creates space for more than just savings—it creates space to actually live.
Starting with the Numbers: Your Early Retirement Plan
When it comes to any retirement—especially an early one—your numbers need to be airtight. Your early retirement plan should factor in your projected expenses, income sources, healthcare costs, and a realistic buffer for the unknown.
Start with how much you’ll need each year. Then multiply that by the number of years you expect to be retired. Add in inflation. And don’t forget to consider healthcare. If you’re retiring before age 65, you won’t qualify for Medicare yet, so private insurance or alternatives like healthcare sharing programs should be part of your strategy.
It’s also smart to break your plan into stages: pre-Medicare, early years of retirement, and later life planning. Doing so helps you anticipate shifts in spending and lifestyle. And since Tennessee allows your dollar to stretch further, your financial independence number may be closer than you think.
Finding Your Version of “Home” in the Volunteer State
Once you’ve mapped out your finances, the next step is choosing where you’ll land. The best early retirement destinations, meaning towns or regions with fewer people but more lifestyle value, are often the sweet spot.
Consider towns like:
Greeneville – A quiet East Tennessee town with historic charm, low property taxes, and views of the Appalachian Mountains. It’s perfect for those who want slower mornings and a community-oriented pace.
Paris – Located in West Tennessee, this small town is close to Kentucky Lake and offers affordable lakefront living without the coastal price tag.
Tullahoma – Nestled between Nashville and Chattanooga, it’s a lesser-known gem with access to greenways, wineries, and a surprisingly rich cultural scene.
Choosing the right town isn’t just about affordability. It’s about aligning with your lifestyle vision. Want space for a garden? Look rural. Want access to live music and good restaurants? A smaller city might fit. Tennessee gives you both options.
Building a Life Beyond the Paycheck
The biggest question most early retirees face isn’t “How will I afford it?”—it’s “What will I do with all this time?”
That’s where Tennessee shines again. The state is packed with natural escapes, historical sites, community events, and creative hubs. You can spend a Tuesday morning kayaking, a Thursday afternoon volunteering, and a weekend exploring music festivals or local food trails.
Many early retirees also pursue passion projects, remote part-time work, or launch small-scale businesses. Tennessee’s low business taxes and relaxed regulatory environment make it easy to experiment without risk.
And because so many others are now retiring early, especially in the wake of remote work, there are growing communities built around connection, hobbies, and shared interests.
Healthcare and Long-Term Living Considerations
For many, the question of how to retire early in Tennessee comes with concerns about access to healthcare and long-term living options. Fortunately, Tennessee is home to a network of respected hospitals and clinics. Cities like Nashville, Memphis, and Knoxville have major medical centers, while rural areas are increasingly served by regional healthcare systems.
If you’re retiring early, it’s essential to bridge the gap between now and Medicare age. That might mean enrolling in a marketplace health plan, budgeting for higher premiums, or using an HSA to offset medical costs. Some retirees also explore concierge healthcare or medical cooperatives for more personalized care.
In the long run, Tennessee also supports aging in place, with many communities offering senior programs, in-home support, and tax relief for older adults.
Taxes, Legacy, and Simplified Finances
Let’s talk tax strategy—because retiring early often means relying on non-traditional income sources like brokerage accounts, Roth IRAs, and rental properties. Tennessee’s no income tax policy makes this process much simpler.
Withdrawals from retirement accounts, capital gains, and even Social Security won’t be taxed at the state level. That creates more flexibility in your drawdown strategy and simplifies year-to-year budgeting.
The state also does not have an estate or inheritance tax, which makes Tennessee a smart option for those thinking ahead about legacy planning and generational wealth transfer.
For those with assets to protect, working with a local estate attorney can help you set up trusts, living wills, and property protections that align with Tennessee law.
Retire Early, Live Fully
The truth is, early retirement isn’t about escape—it’s about intention. It’s about choosing how to spend your days before the clock forces your hand. And in Tennessee, that decision feels less risky and more rewarding.
You don’t need millions in the bank or a complicated investment portfolio. You need a clear vision, a smart plan, and a place that supports your goals. Tennessee offers that place—whether it’s a cabin in the hills or a craftsman bungalow in a tight-knit neighborhood.
How to retire early in Tennessee isn’t just a question. For many, it’s already the answer.
