(MONEY Magazine) – Let the applause begin. The best places to retire are, in order: Prescott, Ariz.; Fairhope, Ala.; Mount Dora, Fla.; Las Vegas; and Chapel Hill, N.C. That is the consensus of a board of seven experts (see the box at the bottom of page 64) who helped MONEY choose the top 20 retirement locations in the U.S. We first asked the experts what retirees want when they relocate. From the answers, we drew up a wish list of 10 attributes, led by low crime rate, mild climate, affordable housing, attractive environment, proximity to cultural and educational activities, strong economic outlook and excellent health care. We then asked the experts to rank the 20 towns in America that best fulfilled the wishes. With their final responses, we awarded points on a sliding scale of 20 for a No. 1 choice down to one point for a No. 20. You'll find our 20 choices ranked in the table on page 69, along with vital information about each, such as cost of living, average home price, tax rates and weather. What these 20 places have in common is an abundance of available activities, since our experts find today's retirees to be as energetic as when they had full-time jobs. Indeed, as more people leave the work force younger (the median retirement age is now 62.6, down from 67 in the early 1950s) and stay healthy longer, their idea of retirement is changing. "Retirement used to be viewed as an extended vacation," says Mark Fagan, a professor in social work at Alabama's Jacksonville State University who has studied retirees for a decade. "These days it's seen as an opportunity to pursue neglected hobbies, take a part-time job or become involved in community activities." Each year about half a million Americans in their sixties make the move to new hometowns. For many this is the first time they have been able to choose a community they actually like, rather than one that is merely close to work, the right schools or a convenient commuter train. And the choice can be most invigorating. "By making a complete change of venue, we could start fresh," says Hugh Chapin, 68, who left Lexington, Mass. last year with his wife Joan, 62, for a village outside Chapel Hill, N.C. "Retirement wouldn't have been this exciting if we had stayed in the community we had lived in for 40 years." Of course, cautions Peter A. Dickinson, a member of our panel, a place must suit your personal style. He advises that before you put down cash for a new house, you should spend six months to a year visiting your prospective new community -- in as many seasons as possible. You can meet potential neighbors, shop in local markets, sample recreational facilities, get a sense of local politics and feel the fluctuations in the weather. Clear, mild days in Las Vegas, for instance, might seem lovely in February when there are 10 inches of ice and snow back home, but a summer of temperatures consistently over 100 degrees might make you long again for your northern environs. For a start in helping you learn what to look for, here are detailed reports, in order of rank, on the five retirement places at the top of our list:

1. PRESCOTT, ARIZ. The mild climate and laid-back lifestyle attract more than 600 retirees a year to this mile-high mountain town.

Bordered by 1.25 million acres of national forest and the 1,400-acre Yavapai Indian Reservation, Prescott (pop. 28,211) is an ideal spot if you love outdoor activities. Its high elevation and mountain breezes keep temperatures from reaching the grueling levels of low-lying Phoenix, 90 miles to the south. In summer they rarely exceed 85 degrees, and in winter's sun-filled days they average about 50 degrees. Humidity stays a moderate 45% year round. Practically every day, you can play tennis, golf on two city courses, one created by famed designer Gary Panks, or hike the many trails on nearby Granite Mountain. The Grand Canyon is a roughly two-hour drive away. Because Prescott is the county seat, many services are conveniently located in town. They include the regional Social Security office, motor vehicles department and 129-bed Yavapai Regional Medical Center. No wonder retirees favor this quiet mountain community. About 23% of the population is over 65, half of them relocated from California and the Rocky Mountain states. The living in Prescott, though bountiful, is not cheap. Dickinson estimates that a retired couple need at least $25,000 of annual income to live comfortably. Studies compiled by SCORE, a business association, reveal the annual median income of those over 55 is $40,000 to $45,000 -- more than three times the national median. Founded in 1864 as the territorial capital of Arizona, Prescott still has the distinct feel of a wild West town. Historic Whiskey Row once had 20 raucous saloons; today, many of the original buildings house boutiques, hotels and gift shops. The town also had its genteel side, which can be seen in Mount Vernon Street's graceful Victorian homes, many of them on the National Register of Historic Places. "This is a town that attracts individuals," says Dickinson, 67, who moved here in 1988. "There is nothing cookie cutter about it -- not the people, not even the homes." Indeed, most of the houses are custom-built into the rough and hilly terrain, where javelinas (wild boars) sometimes wander across the yards at night. And in many residential developments, builders are required to make each house one of a kind. As a result, the typical home costs about $154,000, 26% above the national average. Newcomers often become involved in the community through the Volunteer Center of Yavapai County, which steers people to programs with 135 different local agencies; the Sharlot Hall Museum, for example, enlists more than 150 volunteers to greet and guide visitors through exhibits on the town's first settlers. The local college, Yavapai, offers senior citizens hundreds of courses, including challenging classes in genealogy and environmental chemistry, for about $35 each. The college also conducts 190 weeklong trips a year through the Elderhostel Network; the most popular are a houseboat excursion on Lake Powell, 225 miles to the northeast, and a 200-mile trip to the Hopi Reservation, also in Arizona's northeast corner.

FAIRHOPE, ALA. Newcomers are heartily welcomed to this balmy town, where flowers bloom in window boxes year round and crime is practically nonexistent.

On the eastern shore of Mobile Bay, tiny Fairhope (pop. 9,000) is a congenial and lively community in a splendid setting. Majestic live oaks line the streets, and Spanish moss hangs languidly from the telephone wires. Many homes have a view of the placid bay, and the 1,425-foot town pier serves as a local gathering spot. One of the first communities in Alabama to put a horticulturist on the city payroll, Fairhope is lush with flora. More than 110 flower baskets adorn the streetlights and telephone poles; each year 200 to 250 new trees are planted along city streets and in parks. Unlike many small, century-old communities, Fairhope heartily welcomes newcomers. "We have a saying here," says Mayor James P. Nix. "If you've been here a year, you're already a native." Perhaps that is why so many retirees have settled here; 23.3% of the population is over 65. Many artists and writers are also drawn to Fairhope's open-minded community. Fannie Flagg wrote her best-selling novel, Fried Green Tomatoes at the Whistle Stop Cafe, here. The Eastern Shore Arts Center draws on residents to teach classes in pottery, figure drawing and painting. And for more than 42 years, Fairhope has been home to an arts and crafts festival that attracts more than 450 exhibitors from 25 states. You can quickly become immersed in the community by joining the 1,200-member Adult Recreation Center ($10 a year), which has a daily roster of activities that range from video exercise classes to t'ai chi to bridge. The center's Big Band dances attract folks from as far away as Mobile and Pensacola, Fla. If you're travel-minded, you can join the ambitious Baldwin Senior Travelers, which organizes 30 to 40 trips a year to places as far away as New York City and San Juan, Puerto Rico. And of course, there is always golf; the town has three scenic courses. James, 73, and Evelyn Robb, 72, who moved here from Florida's West Palm Beach last August, found relief in Fairhope's friendly residents and safe streets. "What you hear in the news about crime in southern Florida is just a fraction of what goes on," says James. "Five women we knew were mugged over the past few years, and burglaries were common." Home prices range from $75,000 for a small two-bedroom bungalow to $500,000 for a three- to four-bedroom house on the bay. The Robbs built a 1,850-square- foot, three-bedroom house for $150,000 in Homestead, a community for people over 55, with its own village square, medical center, fitness club, bakery and bed-and-breakfast inn. Fairhope has an excellent medical facility, Thomas Hospital, with 56 staff doctors, including specialists in neurology and orthopedic surgery. True evidence of Fairhope's civic-minded citizens: Thomas has a volunteer staff of 300, the largest of any hospital in the state. You have to like balmy weather to be happy in Fairhope. The town gets 66 inches of rain a year, and the humidity can reach an oppressive 90% or more in the summer. But the average temperature is only about 60 degrees in winter, and the flower boxes are in colorful bloom year round.

MOUNT DORA, FLA. Just one hour from congested Orlando, this community has small-town serenity and a ready supply of low-cost homes.

Mount Dora, 25 miles northwest of Orlando, may shatter many of your preconceived notions of Florida. First, unlike most of the tabletop-flat state, the town (pop. 7,500) sits on a small hillside above six-mile-long Lake Dora. Second, it has a historic downtown area with many landmark buildings, including the century-old Donnelly house, an exquisitely detailed steamboat gothic building that looks more like New Orleans than central Florida. Numerous small shops with attentive merchants and leafy parks add to Mount Dora's quaint, hometown feel. ^ Ask newcomers why they settled here, and they'll invariably get dreamy-eyed and say the town reminded them of where they grew up or where they would have liked to have grown up. Mount Dora bustles with activities. From October through April there are major events, such as a bicycle festival, an antique boat show, a sailing regatta and, most notably, an annual arts festival in February that draws 200,000 visitors. No wonder the town is called Festival City. The Lawn Bowling Association, with more than 300 avid members, plays host to local and regional tournaments. You have a choice of eight movies within a nine-mile radius, and Mount Dora also has its own resident theater company, the Ice House Players, which stages three to four productions a year (I Hate Hamlet and The Sound of Music were among the 1993 offerings) for just $12 a ticket. If you like water sports, you can sail, fish or water-ski on Lake Dora or on many of the 1,400 other nearby lakes. Serious boaters can navigate a series of canals from Lake Dora 175 miles to the Atlantic Ocean via the St. Johns River. Nearby, the 182-bed Florida Hospital Waterman in Eustis has a new emergency room and can provide helicopter service to the hospital's main facility in Orlando, which has one of the best cardiac-care units in the state. The cost of living in Mount Dora is comfortably below the national average. Floridians pay no state income taxes, and the first $25,000 of property value is exempt from taxation. Remarkably varied housing styles include not only Spanish, colonial and Victorian architecture, but even 1920s cracker-style homes with wraparound porches, clapboard siding and tin roofs. Small homes start at $50,000, with prices rising to the $200,000-to-$300,000 range for a three-bedroom house on the lake. "It's still a buyer's market here," says Bill Casey, an agent with Eastlake Realty in Mount Dora. Nearly one dozen new residents interviewed by MONEY agree.

LAS VEGAS Perpetual sunshine and no state income or inheritance taxes have made this city a mecca for retirees.

No longer little more than a neon-lit strip of casinos with the nation's highest serious-crime rate, Las Vegas is becoming downright wholesome. The crime rate is rapidly falling, and the population is exploding -- to nearly 1 million, double what it was in 1980, making Las Vegas the fastest-growing city in the country. Low taxes, a thriving economy and an arid climate with 293 sunny days a year have lured a monthly average of 1,000 to 2,000 new residents over age 55 to Vegas since 1990. About 40% of them are Californians fleeing economic stagnation and a collapsed real estate market. Thanks to the thriving gaming and entertainment industry, which contributes 33% of Nevada's revenues, residents pay no state income tax, and property taxes are among the country's lowest. To accommodate the newcomers, residential construction is booming. Most new homes, which cost as little as $50,000 for a two-bedroom condominium, are located in self-sufficient, planned communities with tennis courts, swimming pools and often shopping centers and libraries. One of the most popular, 22,000-acre Summerlin on a hill overlooking Vegas, includes Del Webb Sun City, a subdivision of 7,500 people over 55. Its stucco homes, most with desert landscaping, cost $91,500 to $240,000 and up. Residents have access to two championship-length golf courses, an indoor and outdoor swimming pool, and two recreation centers. "It's one of the most successful communities for seniors I've ever seen," says Robert Tillman, a member of MONEY's panel. In eclectic Las Vegas you can enjoy the scene on the strip: the slot machines, dazzling floor shows and $3.99 buffets with 45 or so choices of food at the casinos. Or you can ignore the action and explore the natural attractions of 110-mile-long, sparkling Lake Mead, just an hour's drive from the city, or 9,500-foot Mount Charleston, an hour to the north. In Las Vegas itself there are 20 golf courses, and nine more are planned. McCarran International Airport, a mere five minutes from the major casinos, has direct service to most major U.S. and European cities. Las Vegas has seven hospitals and 14 centers for urgent care, where you can drop in without an appointment for treatment of anything from a sprained ankle to strep throat. The basic cost for a visit is typically only $55, and you wait, on average, 15 minutes to see a nurse and about half an hour for a doctor. All this prosperity comes at a price, though. Residents must endure constantly congested roads, and the crime rate, although it has dropped from highest in the nation in 1979 to 80th in 1993, still ranks among the worst one-third of 250 cities of various sizes surveyed by the Federal Bureau of Investigation. And while the dry, sunny days will keep your spirits high in the winter, be prepared for temperatures that can soar as high as 105 degrees in July. On the other hand, locals offer a simple remedy for coping with the heat: They simply shrug and say, "That's what air conditioning is for."

CHAPEL HILL, N.C. With more than 50 activities a month to choose from, and access to free, or low-cost, classes at nearby universities, residents hardly have time for golf.

When Pat, 64, and Bob Goetz, 66, of Ridgewood, N.J. began searching for a place to retire, they considered only university towns. Says Pat: "We wanted a stimulating community where we could hear jazz concerts and take crafts classes." After looking at two towns, they chose Chapel Hill, home of the University of North Carolina, mainly because of the gentle four-season climate (the leaves stay on the trees through December), numerous cultural and educational activities and top-rate medical care. Chapel Hill is one corner of the University Triangle, which also includes Raleigh, 20 miles east, where North Carolina State University is located, and Durham, eight miles to the north, home of Duke. To share the intellectual stimulation, senior citizens can take free classes at UNC. Or they can become members of the Duke Institute for Learning and Retirement, where $65 entitles them to one class a semester or $110 gives them access to as many as five. Recent popular offerings included "Tarheel Geography," "History of Humor" and "Violence, War and Peace." Each month, Chapel Hill boasts more than 50 cultural activities, half of them free, including theater productions and jazz and blues concerts. The city has a wide selection of sporting events too, but you may have to pay scalper's prices to see UNC's basketball team, 1993's national champions. Outdoors enthusiasts can hike through rolling hills and dense forests or drive three hours to the foothills of the Blue Ridge Mountains or two hours to the North Carolina beaches. For longer trips, the Raleigh/Durham Airport, a quick 20 minutes from Chapel Hill, has 275 daily flights, including direct ones to Paris and, beginning in May, to London. With about 10 doctors for every 1,000 residents, four times the national average, Chapel Hill provides some of the country's best medical care. Not far from the heart of town are the 665-bed UNC Hospitals, with an excellent arthritis center and a new ambulatory-care center. And in Durham, the 1,125- bed Duke University Medical Center has highly esteemed cancer, heart and eye treatment. * One drawback: Chapel Hill's expensive and tight housing market. Real estate agent Norma Van Vleet of Century 21 recommends that house hunters allow at least two months to find their ideal home. The supply is diverse, however, ranging from stately Victorians near the university to converted condos on the edge of town. Most homes cost $200,000 to $300,000, but smaller two- to three- bedroom new houses and condos can be found for $100,000 or so. For more space at slightly less money, try neighboring towns. Last summer, Pat and Bob Goetz settled just 10 minutes from Chapel Hill in Fearrington Village, where about 65% to 75% of the residents are retired. Now in its 20th year, the planned community adds 50 mostly three-bedroom homes a year for $180,000 to $250,000 or so. The village also offers a swimming pool and courts for tennis, bocci and croquet. Probably most satisfying to Pat, however, are the 100 acres of undeveloped open space; Fearrington was built on a former dairy farm and still has a herd of belted Galloway cows that graze on the communal lawn. Says she, happy to be away from the congestion of the New York metropolitan area: "Not only can we see the stars at night, but we feel secure and live in a much more relaxed, friendly, personable community."