Tennessee has quietly become one of the smartest retirement choices in the country. While everyone else is fighting over beachfront property in Florida or desert communities in Arizona, retirees who’ve done their homework are discovering what Tennessee has to offer—and many of them are ending up around Tellico Lake.
The numbers tell part of the story. Tennessee doesn’t tax retirement income. Property taxes run lower than most states. Healthcare costs won’t break the bank. But there’s more to it than just saving money. Tennessee gives you actual seasons (without the harsh winters), mountains and lakes that rival anywhere in the country, and communities where people still wave at strangers.
What Makes Tennessee Work for Retirement
The financial piece matters, obviously. When your Social Security, pension, and IRA withdrawals aren’t getting hit with state income tax, that adds up fast. Property taxes in most Tennessee counties run well below the national average, which means your housing costs stay manageable even if you’re buying something nice.
But ask retirees who’ve moved here what sealed the deal, and they’ll talk about other things. The fall colors in the Smoky Mountains. Being able to golf in March. Sitting on a dock watching the sun set over a pristine lake. Having enough cultural life to stay engaged without dealing with big-city traffic and crime.
Tennessee also has excellent healthcare infrastructure, particularly in cities like Knoxville and Nashville. The University of Tennessee Medical Center is a major teaching hospital, and most areas have good access to specialists and quality care.
Tellico Lake: Where Smart Retirees Are Landing
Here’s where things get interesting. About 45 minutes south of Knoxville, there’s a 16,000-acre lake called Tellico with more than 370 miles of shoreline. The Tennessee Valley Authority created it, and unlike some TVA lakes, this one stayed relatively undeveloped for years. That’s changing now, but in a controlled way that’s actually made it better.
The Tellico Lake area has become a retirement hotspot because it manages to be both serene and active at the same time. The lake itself offers everything you’d want—clean water, good fishing, plenty of room for boating without feeling crowded. The surrounding area has that classic East Tennessee beauty: rolling hills, mountain views, hardwood forests.
What really distinguishes this area is that several top-tier planned communities have developed around the lake. These aren’t your typical subdivision-with-a-clubhouse developments. They’re full-scale resort communities designed specifically for people who want an active retirement lifestyle.
Tellico Village: The Community That Started It All
Tellico Village opened in 1986 and has grown steadily into one of the Southeast’s largest active adult communities. More than 5,000 people live here now, which tells you something about how well they’ve executed the concept.
The centerpiece is golf—three championship courses that consistently get high marks from golf publications. Jack Nicklaus designed one of them. If golf is part of your retirement plan, this place delivers. But what’s impressive is how much they’ve built beyond golf.
There are multiple recreation centers with fitness facilities, pools, tennis courts, and pickleball courts (because of course there are pickleball courts now). The yacht club and marinas handle the water activities. Over 250 clubs and organizations cover everything from photography to woodworking to sailing. Walking and biking trails connect different parts of the community.
The housing options run the full spectrum. Condos for people who want minimal maintenance. Single-family homes in various sizes. Lakefront properties with private docks. The prices vary accordingly, but there’s generally something for most budgets.
One advantage of Tellico Village being the oldest and largest of these communities is that it functions like a small town. They have their own public works department, recreation staff, and even a community church. The infrastructure is mature, the landscaping is established, and the social scene is well-developed. Some people prefer being pioneers in a new community, but others want to move somewhere that’s already figured things out.
Rarity Bay: For Those Who Want Something More Exclusive
Rarity Bay takes a different approach. This is a gated community focused on upscale lakefront living with tighter architectural controls and higher-end amenities. The community is smaller and more exclusive than Tellico Village.
Tom Fazio designed the golf course here, and it’s consistently ranked as one of Tennessee’s best. The clubhouse matches the quality level—you’ll find fine dining alongside the casual grill, and everything is designed to impress. The fitness center and wellness programs are comprehensive, and the lakefront marina caters to serious boaters.
What sets Rarity Bay apart is the emphasis on preserving natural beauty while delivering luxury. The homes are custom-designed to work with the landscape rather than dominate it. There are strict architectural guidelines to maintain aesthetic harmony. This isn’t a place where someone’s going to plop down a McMansion that ruins everyone else’s view.
The trade-off is price and exclusivity. Rarity Bay costs more than Tellico Village, both in terms of real estate and membership fees. But for retirees who can afford real estate in Rarity Bay and want that elevated experience, it delivers a lifestyle that’s hard to match.
WindRiver: The Modern Option
WindRiver is the newest player in the Tellico Lake area, and it brings a contemporary feel that appeals to retirees who aren’t ready for the country club aesthetic.
The clubhouse and amenities are brand new, which means modern design, current fitness equipment, and up-to-date technology throughout. The pool complex looks like something from a resort. The homes feature energy-efficient construction and smart home capabilities that older communities can’t easily retrofit.
Being new also means the community is still developing its personality. For some people, that’s a drawback—they want to move into an established place with a proven track record. But others like the opportunity to be early adopters, to help shape the community culture, and to grow alongside neighbors who are in the same boat.
The home styles at WindRiver lean contemporary—clean lines, open floor plans, lots of glass to capture those lake and mountain views. If the traditional country club architecture doesn’t appeal to you, WindRiver might be a better fit.
Beyond Tellico Lake
Tennessee has other solid retirement options worth mentioning. Knoxville itself attracts plenty of retirees who want urban amenities, university town culture, and easy access to the Smokies. Chattanooga has reinvented itself as a tech-forward city with outdoor recreation literally in the backyard. Franklin, near Nashville, offers sophisticated living for those who don’t mind paying more.
But the Tellico Lake area—and specifically Tellico Village, Rarity Bay, and WindRiver—offers something these cities can’t quite match. It’s the combination of resort-style amenities, natural beauty, lower costs, and purpose-built communities designed around how active retirees actually want to live.
Making the Decision
Choosing where to retire comes down to what matters most. Some people need to be near family. Others prioritize golf or boating or hiking. Budget matters. Climate matters. Access to healthcare matters.
The Tellico Lake area checks a lot of boxes. No state income tax helps the budget. The location gives you four seasons without brutal winters. Knoxville is close enough for medical care, shopping, and flights, but far enough away that you’re not dealing with city problems. The communities offer amenities that would cost significantly more in other parts of the country.
Most importantly, these are communities designed for active adults who want to stay engaged. The social calendars are packed. The recreational facilities are first-rate. The natural setting encourages outdoor activity. This isn’t a place where retirees disappear into their homes and gradually disengage from life.
Anyone seriously considering Tennessee for retirement should spend time in the Tellico Lake area. Visit during different seasons if possible. Play golf at each community. Eat at the clubhouses. Talk to residents and ask the hard questions about what works and what doesn’t. The right community becomes obvious pretty quickly when you experience it firsthand.
Tennessee might not have the brand recognition of traditional retirement destinations, but the retirees moving to places like Tellico Village, Rarity Bay, and WindRiver aren’t worried about brand recognition. They’re worried about quality of life, financial security, and having the kind of active retirement they’ve worked their whole lives to achieve. And they’re finding it on the shores of Tellico Lake.
If you’re interested in exploring the Tellico Lake area, start by working with local real estate agent Rick Smenner of Tellico Lake Home Team. Rick can introduce you to the area and show you neighborhoods and homes that are in your budget.
