I still remember the conversation I had with my uncle in 2019.
He had just retired from his software job in California. Forty years in the US. Two kids settled there. And now he wanted to come back.
But here’s what surprised me. He didn’t want Bangalore or Pune.
He wanted peace. Good weather. Access to decent healthcare. And a place where his dollars would stretch far.
“Mani, I don’t want traffic jams in my retirement,” he told me.
That conversation changed how I think about retirement destinations for NRIs. The big cities everyone talks about? They’re often the wrong choice for retirees.
In this article...
Why Small Towns Make Sense for Retirement
Let me be direct about this.
When I moved back to Chennai in 2017, I saw firsthand what the metro life demands. The traffic alone can test your patience daily. Air quality is a real concern. Cost of living keeps climbing.
My mom, who lives alone now, often talks about how different life was in smaller places. Less noise. More community. Better pace.
For retirees, these things matter more than job opportunities or startup ecosystems.
Here’s what small towns typically offer:
Better air quality and cleaner environment Lower cost of living for your pension or savings Stronger sense of community Less stressful pace of life Often better weather conditions More personal space and privacy
The catch? You need to choose wisely. Not every small town works for NRI retirees.
What Makes a Town Retirement Ready
Before I share my top picks, understand what you actually need.
Healthcare access is non negotiable. You need quality hospitals within an hour’s drive.
Infrastructure matters. Reliable electricity, water supply, and internet connectivity.
Banking and financial services should be easily accessible.
Weather plays a huge role in daily comfort.
Community is critical. You don’t want to feel isolated.
Safety and security for your property when you travel back to visit kids abroad.
Top Small Towns for NRI Retirement
I’ve broken this down based on conversations with hundreds of returnees in our community. Real data. Real experiences.
The Hill Station Cluster
Coonoor, Tamil Nadu
Population around 50,000. Located in the Nilgiris.
I visited Coonoor last year while researching retirement destinations. The weather alone sold me. Year round pleasant temperatures between 15 to 25 degrees Celsius.
The tea estates create a beautiful landscape. British era bungalows are available for rent or purchase.
Healthcare: Wellington has a military hospital. Ooty is just 19 kilometers away with multiple hospitals.
Cost of living is reasonable. A comfortable 2BHK house rents for 15,000 to 25,000 rupees monthly.
The Nilgiri Mountain Railway connects to Mettupalayam. Coimbatore airport is about 3 hours away.
Strong Badaga community creates a welcoming environment. Many Anglo Indian families have lived here for generations.
Dehradun, Uttarakhand
This one surprises people because Dehradun has grown significantly. But it still maintains a small town feel outside the main city area.
Population around 800,000. Spread out across the Doon Valley.
My friend Ramesh moved here from New Jersey in 2022. He specifically chose the Rajpur Road area.
Climate is temperate. Summers are mild. Winters can get cold but nothing unbearable.
Major advantage: Excellent healthcare infrastructure. Max Hospital, Synergy Hospital, and several other quality facilities.
Jolly Grant Airport connects to major cities. Delhi is 5 to 6 hours by road.
Education hub means good bookstores, cultural activities, and an educated population.
One challenge: Real estate prices have climbed. Budget accordingly.
Kodaikanal, Tamil Nadu
Smaller than Coonoor. Population around 36,000.
The “Princess of Hill Stations” tag isn’t marketing hype. This place genuinely feels special.
Set at 2,133 meters above sea level. Cool climate throughout the year.
Strong expat community already exists here. Many foreigners have retired in Kodai.
Healthcare is limited locally. But Dindigul and Madurai are 2 to 3 hours away.
Cost of living is moderate to high for a small town. Tourism drives up some prices.
Internet connectivity has improved significantly in recent years.
The lake, forests, and hiking trails offer plenty of outdoor activities.
The Coastal Options
Gokarna, Karnataka
This is my personal favorite for a specific type of retiree.
Population just 25,000. Located on the Arabian Sea coast.
If you want a spiritual vibe without the chaos of Rishikesh, Gokarna delivers. Ancient Shiva temple. Beach town atmosphere. Yoga culture.
Weather is tropical. Hot and humid in summer. Pleasant monsoons. Comfortable winters.
Mangalore is 140 kilometers away for major medical needs. Local clinics handle routine care.
Real estate is still affordable. You can find properties near the beach.
The crowd is international. Lots of long term travelers and spiritual seekers.
One downside: Limited healthcare infrastructure locally. This matters as you age.
Pondicherry (Auroville Area)
I’m including this because Auroville specifically attracts many international returnees.
Pondicherry city itself has grown. But the Auroville area maintains a distinct character.
Population of Auroville township is around 3,000. Mixed Indian and international residents.
French colonial heritage creates unique architecture and culture.
Healthcare in Pondicherry city is decent. JIPMER is a premier medical institution.
Weather is hot and humid except during winter months.
The Auroville community offers a ready made social network. Cultural activities, talks, workshops happen regularly.
Beach access. Chennai is just 150 kilometers away for international flights.
Property prices have increased but are still reasonable compared to metros.
One consideration: Auroville has its own culture and philosophy. Visit first to see if it fits you.
The Heritage Towns
Udaipur, Rajasthan
Population around 475,000. But feels smaller due to its layout around lakes.
I spent a week here doing research for planning your move back to India. The city won me over immediately.
The City of Lakes lives up to its name. Pichola Lake, Fateh Sagar Lake create stunning views.
Weather is dry and pleasant most of the year. Summers are hot but bearable.
Healthcare has improved significantly. Several multi specialty hospitals now operate here.
Maharana Pratap Airport connects to Delhi, Mumbai, and other major cities.
Rich cultural scene. Classical music, dance, art galleries are common.
Expat community exists, though smaller than coastal towns.
Real estate varies widely. Old city properties are expensive. Suburbs are more affordable.
Tourism can be overwhelming in peak season. Choose your location carefully.
Mysore, Karnataka
I’m stretching the definition of small town here. Population is around 1 million.
But Mysore maintains a very different character from Bangalore despite being close.
The palace, the cleanliness, and the pace of life set it apart.
Weather is pleasant year round. Slightly cooler than Bangalore.
Excellent healthcare infrastructure. Apollo, Columbia Asia, and other chains operate here.
Bangalore is just 140 kilometers away. International airport access is easy.
Education hub means cultural vibrancy. Libraries, bookstores, concerts are regular.
Cost of living is significantly lower than Bangalore.
Well planned city. Wide roads. Maintained parks and public spaces.
Strong Kannada culture. Learning the language helps integration.
Several NRIs have already retired here. Community support exists.
The Emerging Options
Nashik, Maharashtra
Population around 1.5 million. Growing steadily.
Known for its vineyards and religious significance.
Someone in our Facebook group recently moved here from Texas. His feedback has been positive.
Weather is moderate. Hot summers, mild winters, good monsoons.
Healthcare infrastructure is improving. Several new hospitals have opened.
Mumbai is 165 kilometers away. Nashik has its own airport now with limited connectivity.
Wine tourism has brought international exposure. Several boutique hotels and restaurants.
Cost of living is reasonable. Real estate is affordable compared to Pune or Mumbai.
Spiritual significance due to Godavari River and Kumbh Mela.
Coorg Region, Karnataka
Not a single town but a region worth considering.
Madikeri is the main town. Population around 35,000.
Coffee plantations dominate the landscape. Misty hills. Waterfalls.
Weather is fantastic. Cool and pleasant throughout the year.
Healthcare is basic locally. Mangalore is 135 kilometers for serious medical needs.
This is where having a car becomes essential. Public transport is limited.
Homestays and plantation stays are common. You could even buy a small estate.
Strong Kodava culture. Warm and hospitable people.
Limited shopping and entertainment options. You need to enjoy nature and simplicity.
Internet connectivity can be patchy in remote areas.
Comparing Your Top Options
Let me put the key factors side by side for easier comparison.
| Town | Cost of Living (Monthly for Couple) | Healthcare Access | Climate | Airport Distance |
|---|---|---|---|---|
| Coonoor | ₹40,000 – ₹60,000 | Good (via Ooty) | Excellent | 90 km (Coimbatore) |
| Dehradun | ₹50,000 – ₹80,000 | Excellent | Good | 25 km (Jolly Grant) |
| Kodaikanal | ₹45,000 – ₹70,000 | Moderate | Excellent | 120 km (Madurai) |
| Gokarna | ₹35,000 – ₹55,000 | Basic | Good (humid) | 140 km (Mangalore) |
| Pondicherry/Auroville | ₹45,000 – ₹75,000 | Good | Hot & Humid | 150 km (Chennai) |
| Udaipur | ₹50,000 – ₹75,000 | Good | Hot summers | 22 km (Udaipur) |
| Mysore | ₹45,000 – ₹70,000 | Excellent | Pleasant | 140 km (Bangalore) |
| Nashik | ₹40,000 – ₹65,000 | Good | Moderate | 8 km (Nashik) |
| Coorg | ₹40,000 – ₹70,000 | Basic | Excellent | 135 km (Mangalore) |
These numbers assume a comfortable middle class lifestyle. Eating out twice a week. Occasional travel. Help at home. Basic entertainment.
The Healthcare Reality Check
This is critical. I cannot stress this enough.
My uncle I mentioned earlier? He eventually chose Mysore over Gokarna. Healthcare access was the deciding factor.
When you’re in your 60s and 70s, proximity to quality healthcare isn’t optional. It’s essential.
Here’s what you need within reasonable distance:
Multi specialty hospital with emergency care Cardiac care facilities Orthopedic specialists Diagnostic centers with modern equipment Pharmacy with reliable medicine supply
Some towns I’ve mentioned have this. Others don’t.
Gokarna, Kodaikanal, and Coorg require travel for serious medical needs. Beautiful places. But factor this in.
Dehradun, Mysore, and Pondicherry have strong healthcare infrastructure.
The middle ground towns like Udaipur and Nashik are improving rapidly.
Visit before you decide. Meet local doctors. Check hospital facilities.
Don’t rely on online reviews alone.
The Financial Math You Need to Do
Your retirement corpus needs different calculations for small towns versus metros.
Housing costs drop significantly. A property that costs 2 crores in Bangalore might cost 80 lakhs in Coonoor.
Monthly expenses can be 30 to 40 percent lower.
But here’s what increases:
Travel costs if you need to visit metro cities regularly Healthcare can be expensive without good insurance Home maintenance if you buy an independent house Transportation if public transit is limited
I recommend this approach:
Calculate your current monthly expenses in your home country. Convert to rupees at a conservative exchange rate.
Reduce by 30 percent for small town living.
Add a 25 percent buffer for healthcare and travel.
That gives you a realistic monthly budget.
Then factor in property purchase or long term rent.
Don’t forget: Property taxes, society maintenance, and utility costs vary significantly.
What About Your Foreign Pension and Social Security
This trips up many NRIs. I’ve written extensively about NRI tax issues before.
But here’s the quick version for retirees:
Your US Social Security or UK pension will be taxed in India if you become a resident.
Tax treaties exist to prevent double taxation. But you need to file returns in both countries.
Bank account conversion from NRE to resident account is mandatory after you become a resident.
DTAA benefits require proper documentation and filing.
Hire a good CA who understands NRI taxation. Worth every rupee.
Repatriation of funds gets complicated. Plan your cash flow carefully.
Some retirees maintain NRI status by spending less than 182 days in India. But this has its own complications.
The Social Connection Question
Here’s something nobody talks about enough.
Retirement in a small town can be isolating if you don’t prepare.
When I visit these towns, I specifically ask retirees about their social life.
The successful ones share common traits:
They joined local clubs (Rotary, Lions, hobby groups).
They volunteered for local causes.
They learned the local language.
They hosted gatherings and made effort to connect.
They stayed intellectually engaged.
The struggling ones stayed isolated. Expected the community to reach out. Compared everything to their life abroad.
Your attitude makes the difference.
One couple in Coonoor started a book club. Now they have a thriving community of 20 plus readers meeting monthly.
Another retiree in Nashik volunteers at an old age home. Found purpose and friendship.
A third runs yoga classes in Pondicherry. Built her entire social network this way.
Think about what you can contribute. Not just what you can get.
The Trial Run Approach
Here’s my strongest recommendation.
Don’t buy property immediately. Don’t make permanent commitments right away.
Take a 3 to 6 month trial run first.
Rent a place. Live like a local. Experience the monsoons, summers, and winters.
Test the healthcare facilities. Shop for groceries. Use local services.
Meet other retirees. Ask about their experience.
Only then make your decision.
I’ve seen too many NRIs buy dream retirement homes after one vacation visit. Then realize the reality doesn’t match the vacation experience.
Your vacation self and your everyday self have different needs.
Questions to Ask Before Choosing
Walk through this checklist:
Can you access quality healthcare within an hour? Is the climate something you can handle year round?
Does reliable internet exist if you need to stay connected? Are banking and financial services adequate?
Can you build a social network here? Is the cost of living aligned with your budget?
How far is the nearest airport for international travel?
What happens during monsoons? Roads, electricity, supplies?
Is there an existing expat or NRI community?
Can you pursue your hobbies and interests?
How does local governance and civic infrastructure work?
What’s the law and order situation?
Visit during off season. Talk to locals. Join local Facebook groups before moving.
Research pays off hugely in retirement decisions.
The Documentation and Logistics
Once you choose your town, getting your paperwork right matters.
Your residential status for tax purposes.
Converting bank accounts from NRE/NRO to resident.
Updating your address on Aadhaar and other documents.
Getting a local driving license if needed. Registering with local authorities.
Setting up utilities and services. Finding reliable help for home maintenance.
Establishing relationship with local doctors and hospitals.
The bureaucracy doesn’t disappear in small towns.
Sometimes it’s more challenging due to fewer services.
Factor in time for all this. At least 2 to 3 months of active setup work.
My Final Take
Small towns offer something metros can’t. Peace, community, and quality of life.
But they demand realistic expectations.
You won’t get Amazon same day delivery. Restaurant choices will be limited. Entertainment options are fewer.
Healthcare requires planning. Travel requires effort. Building social connections requires initiative.
The tradeoff is worth it for many retirees. Lower stress. Better environment. Stronger community bonds.
But not for everyone.
If you need constant activity, diverse dining, and metro conveniences, stick to Bangalore or Pune.
If you value peace over excitement, nature over nightlife, and community over anonymity, small towns might be perfect.
My uncle finally chose Mysore. Three years later, he tells me it was his best decision.
Your mileage will vary.
Choose based on your personality, health needs, and financial situation. Not based on where someone else found happiness.
And remember: Nothing is permanent. You can always change your mind.
The beauty of retirement is you finally have the freedom to live where you want. How you want.
Use it wisely.
Have questions? Jump into our community groups and ask. Hundreds of returnees are there to help with real world insights.
Sources and Further Reading
Data and information for this article compiled from:
Census of India 2011 and projections: https://censusindia.gov.in/
Ministry of Health and Family Welfare hospital directory: https://nhm.gov.in/
Airport Authority of India: https://www.aai.aero/
Climate data from Indian Meteorological Department: https://mausam.imd.gov.in/
Property price data from 99acres, MagicBricks, and Housing.com
Personal interviews with 50 plus NRI retirees conducted 2022 to 2024
BacktoIndia.com community surveys and discussions: https://backtoindia.com/
Tax and financial information from Income Tax Department: https://www.incometax.gov.in/
Information is current as of October 2024. Always verify latest data before making retirement decisions.
