Would Austin be a good city of retirement? If so, what would be the best part of the city for someone with a modest pension to retire on?

I think Austin is one of the desired place to retire in US because of the following reason:

- Cost of living is below US average (94 Vs US average of 100)http://www.kiplinger.com/tools/b...
- Warm climate
- Vibrant culture (live music, University of Texas, cuisine, etc..)

Therefore, between 2000 and 2008, Austin had 37% growth in 65+ population ----- one of the highest growth rate among US cities.

On the other hands, the challenge of retiring in Austin is:

- Brutally hot summer weather (105+ days with 90F+ temperature)http://ggweather.com/camelot.htm
- Automotive dependence and traffic jam (Ranked worst 10)http://money.bundle.com/content/...
- Entry price for housing in prime central Austin is $200K+ or $1500 a month.

While I am big fan of Walkable neighborhoods, I recommend the following neighborhoods with high walkability score. http://www.walkscore.com/TX/Austin 

(Walk Score/Rent/Condo Purchase /SFR Purchase)
- Downtown (89/$1500/$250K/NA)
- West University (86/$1200/$200K)
- University Of Texas (86/$1200/$200K/$300K)
- Triangle State (84/$1000/150K/$250K)
- North University (83/$1200/$200K/$300K) 
- Hyde Park (80/$1200/$200K/$300K)
- Bouldin (80/$1200/$200K/$300K)
- Dawson (79/$1000/$150K/$250K)
- Hancock (78/$1200/$200K/$300K)
- Old West Austin (76/$1200/$200K/$300K)
- North Loop (75/$1000/$150K/$250K)
- Zilker (73/$1000/$150K/$250K)
- Brentwood (73/$800/$120K/$200K)


So, if you have cash to buy condo or Single Family House in above neighborhood, I trust you can make decent life with "moderate" pension in above neighborhood.