If retirement is around the corner, you should definitely consider the place you are planning on spending your golden years. There are many things to take into consideration when coming up with the right decision. While your friends and family members might have their own theories and ideas, the internet will reveal everything that you need to know about a place. Here we ranked the best 25 states to retire in, all left for you is to pick the one that suits you!
25. Hawaii
Cost of living: 87 percent above U.S. average
Population: 1.4 million
Best city: Maunawili
PRO: Niche.com recommends the city of Maunawili on the island of O’ahu, in the tropical state of Hawaii, as a wonderful place to retire. Hawaii is generally known for its stunning nature and water sports life, and Manuawilli has many popular hiking trails and it isn’t too far from Honolulu, the state capital. You might feel a bit homesick living far away from the mainland, but the feeling will soon disappear.
Hawaii
CON: The cost of living in Hawaii is high. In fact, it is 87 percent higher than average in the U.S., higher than California, the other state renowned for the year-round sunshine and liberal lifestyle. According to Kiplinger, the average income for over 65’s is roughly $71K, and not many of the population meet U.S. poverty guidelines.
24. Massachusetts
Cost of living: 38 percent above the U.S. average
Population: 6.902 million (as of 2018, U.S. Census Bureau)
Best city: Northampton, says Forbes
PRO: Massachusetts is a state with a lot of interesting history; it was one of the original 13 colonies, the landing spot of the Mayflower, the original Boston Tea Party, and more!
Massachusetts
CON: The state is also known as the Bay State and, according to Kiplinger, has high living costs, at 38 percent higher than the U.S. average. The cost of healthcare is also high, and so are taxes. And if you are not a fan of the cold then beware of the East Coast winters.
23. Rhode Island
Cost of living: 22 percent above U.S. average
Population: 1.057 million (as of 2018, says U.S. Census Bureau)
Best city: Jamestown, says Niche.com
PRO: As one of the original 13 colonies in the U.S., Rhode Island is full of interesting history, with stunning views of the ocean and beautiful beaches. It is situated near to big metropolitan tourist areas, giving you the opportunity to choose if you prefer the quiet of nature or the bustle of the city.
Rhode Island
CON: According to Kiplinger, the small eastern state has high tax rates as well as a cost of living which is 22 percent higher than the U.S. average. So Rhode Island can work for you, but most likely only if you have been saving for a good number of years, have a family that supports you financially, or you won the lottery!
22. New Hampshire
Cost of living: 18 percent above the U.S. average
Population: 1.3 million
Best city: Gilford
PRO: New Hampshire is relatively tax-friendly, according to Kiplinger. The state doesn’t tax any retirement income, as well as ranking fifth in senior healthcare (United Health Foundation). It also has beautiful picturesque New England scenery.
New Hampshire
CON: Those beautiful landscapes are costly though! The cost of living in New Hampshire is not exactly low, and in fact, is quite high when compared to the national average living costs in the U.S. but it may even out with the tax breaks. Also worth considering are the humid summers and the cold winters.
21. New Jersey
Cost of living: 27 percent above U.S. average
Population: 8.909 million (as of 2018, says U.S. Census Bureau)
Best city: Long Beach Township, Ocean County says NJ.com
PRO: This state is full of things to do and see during your retirement years. Also known as The Garden State, you can walk the boardwalk and enjoy the views of the ocean in Ocean City, as well as loads of history to explore, and New York City is only a short train ride away.
New Jersey
CON: New Jersey has higher costs of living compared to states such as Montana and South Dakota. Property taxes and medical care is expensive according to Kiplinger, so it is not the best option for those who want to save money or for low-income retirees.
20. California
Cost of living: 52 percent above the U.S. average
Population: 39.56 million (as of 2018, U.S. Census Bureau)
Best city: Beverly Hills, says Yahoo! Finance (if you can afford it!)
PRO: There is pretty much a consensus in regards to California’s natural beauty. This state is rich in the diversity of the surrounding nature; there are lush forests, some of the country’s largest natural parks, beaches, deserts, and a whole lot more. California also includes a number of big cities for those who like the fast pace of city life.
California
CON: California is second place, after Hawaii, in terms of high living costs. It looks like if you want good weather you have to pay for it! According to the U.S. Census Bureau, 19 percent of the population in California lives under the poverty line.
19. New York
Cost of living: 22 percent above U.S. average
Population: 19.54 million (as of 2018, says U.S. Census Bureau)
Best city: Great Neck, says Yahoo! Finance
PRO: Living in New York can be very convenient for retirees. Always plenty to do, you can walk all over the city, delivery services are abundant, and you never have to go too far for your necessities, and all that in a place where small apartments are the norm which are easiest to manage.
New York
CON: Even though it is a fun and lively city that is pretty much walkable, New York State is probably most recommended for retirees who are comfortable financially. The state is not retiree-tax-friendly, and many over 65s suffer high poverty rates in this state.
18. Connecticut
Cost of living: 24 percent above the U.S. average
Population: 3.573 million (as of 2018, U.S. Census Bureau)
Best city: Darien, says AreaVibes.com
PRO: Kiplinger says that this state provides some of the highest incomes in the U.S. for seniors. Despite the high living costs, it can be affordable for retirees, and you can even boost your income with a retirement job.
Connecticut
CON: It is not the friendliest place for retirees in terms of taxes. Kiplinger says that this state has one of the worst real-estate tax rates in the country. Nearly all the retirement income is fully taxed, and some may get taxed on their Social Security benefits.
17. Colorado
Cost of living: 17 percent above U.S. average
Population: 5.4 million
Best city: Colorado Springs
PRO: According to the United Health Foundation’s senior health rankings, Colorado ranks fourth place. There are also low rates of obesity and high rates of physical activity amongst its senior populations. Maybe those living in the Centennial State will also reach 100?
Colorado
CON: Buying a house in Colorado is not easy as the market is extremely competitive in cities like Denver. There is also high altitude in the state which can take some adjusting too but once adjusted the weather is extremely enjoyable.
16. Vermont
Cost of living: 12 percent above the U.S. average
Population: 626,299 (as of 2018, says U.S. Census Bureau)
Best city: Hartford, says Niche.com
PRO: Otherwise known as The Green Mountain State, Vermont is ranked quite high, according to the United Health Foundation, for its senior healthcare. There is much to love here if you are into nature and incredible scenic views, with an abundance of wildlife, lakes, mountains, and forests.
Vermont
CON: According to Kiplinger, Vermont is thought to be one of the least tax-friendly, as well as having high living costs.
15. Delaware
Cost of living: 11 percent above U.S. average
Population: 967,171 (as of 2018, U.S. Census Bureau)
Best city: Rehoboth Beach, says Niche.com (A+ score!)
PRO: Rated tax-friendly by Kiplinger, Delaware gives exemptions from tax for a certain amount of investment and pension income for the over 60s, as well as no tax on Social Security benefits. Also known as The Diamond State, there are dune-backed beaches bordering Delaware River, Delaware Bay, and the Atlantic Ocean.
Delaware
CON: Seniors in Delaware have below-average incomes for the U.S., and living costs are definitely pretty high here. According to Kiplinger, the cost of living in Delaware is 11 percent above the average, which may make it difficult to manage for some seniors.
14. Virginia
Cost of living: 7 percent above U.S. average
Population: 8.3 million
Best city: Roanoke
PRO: Although the cost of living in Virginia is not cheap, incomes are generally high in this state too. A major financial concern for seniors is healthcare, which in this state is generally not too expensive. Additionally, there is no tax on Social Security, and residents over 65 can deduct $12K of their income.
Virginia
CON: Seniors with less dispensable incomes may find living in Virginia too expensive. Although there are cool cities to check out in Virginia, like Lexington, Roanoke, and Richmond, it is no ‘big city life’ in the way of L.A. or New York City.
13. Alabama
Cost of living: 13 percent below U.S. average
Population: 4.8 million
Best city: Orange Beach
PRO: Alabama, otherwise known as the Heart of Dixie is very budget-friendly. The average retired couple here spend 4.4 percent less than those elsewhere in the U.S. on healthcare, Social Security benefits are exempt from tax, and incomes are only taxed at 2 to 5 percent.
Alabama
CON: Spring and November are known here for the intense storms which can occur, and like most southern states, Alabama can get seriously hot during the summer.
12. Illinois
Cost of living: 4 percent below U.S. average
Population: 12.9 million
Best city: Leland Grove
PRO: Illinois has been in financial decline for a while now, and although this does mean instability in some ways, it also means that living costs are lower than the national average, making it more affordable. Leland Grove was ranked as the best place to retire in Illinois by Niche.
Illinois
CON: However, the fragility of its’ fiscal standing has put the state in the second-to-last place in the ranking of fiscal stability. All that means that tax breaks on an assortment of retirement incomes are not secure, as well as high sales taxes.
11. Washington
Cost of living: 21 percent above U.S. average
Population: 7.1 million
Best city: Vancouver
PRO: Washington is certainly not one of the cheapest places to live in the U.S., but those who fancy the Pacific Northwest lifestyle at lower costs could head for Vancouver, where it is more affordable for retirees as well as a welcome lack of state income tax.
Washington
CON: Although less than California and Hawaii, the living costs in this state are still 21 percent higher than the national average which may serve as a problem for some seniors. That being said, the average income for those over 65 is about $55K, which could be of some help.
10. Alaska
Cost of living: 32 percent above U.S. average
Population: 737,438 (as of 2018, U.S. Census Bureau)
Best city: Anchorage, says Yahoo! Finance
PRO: Kiplinger actually rates Alaska as a good state to retire in, as it is quite tax-friendly, but it seems that not that many retirees take advantage of this as Alaska’s senior population is quite small.
Alaska
CON: According to Kiplinger, living costs are quite high here; at 32 percent higher than the national average, as well as high healthcare costs. And if you want to retire in a lively big city, then Alaska is not the state for you.
9. Maryland
Cost of living: 17 percent above U.S. average
Population: 6.0 million
Best city: Chevy Chase Village
PRO: This state’s average household income for over 65s is ranked second highest in the U.S., averaging at about $70,874. The big city Baltimore lies in Maryland, and it is not far at all from the exciting sights of Washington D.C.
Maryland
CON: Although it is true that individuals earn more money here than in the rest of the U.S., that income is heavily taxed in this state. Although social security is not taxed here, distributions from individual retirement accounts are, as well as there being an inheritance and estate tax.
8. Oregon
Cost of living: 18 percent above U.S. average
Population: 4 million
Best city: Gold Beach
PRO: A retired couple in this state will usually pay 2.6 percent less than the nation’s average for healthcare. As long as you don’t mind the eight-month rainy season, there is a lot of beautiful nature to enjoy here.
Oregon
CON: Oregon is not particularly tax-friendly, and although Social Security is exempt, retirement income is not, and seniors’ income is not very high at about $45K. At 9.9 percent, the state also has one of the highest state income tax rates in the United States.
7. South Carolina
Cost of living: 7 percent below U.S. average
Population: 4.8 million
Best city: Bluffton
PRO: South Carolina is another state which has pretty mild weather throughout the year, beautiful beaches and scenery. It is pretty affordable with living costs at 7 percent less than the national average, and taxes that are friendly to retirement incomes; this state is a pretty attractive retirement destination.
South Carolina
CON: Although the weather is generally pretty mild, summers can get rather hot with high levels of humidity in this Southern state. The standard of health in the state is not particularly great, with many smokers, high levels of obesity, and low consumption of vegetables.
6. Texas
Cost of living: 10 percent below U.S. average
Population: 27.0 million
Best city: San Marcos
PRO: The cost of living here is below the national average, and seniors’ average income is pretty good too. There is not a high-income tax in Texas, and there are a number of pretty cool cities such as Dallas and Austin.
Texas
CON: Texas is pretty affordable overall, except when it comes to healthcare, which is obviously an important consideration for most retirees. There are also extremely high poverty rates in Texas, coming in 6th highest (10.8 percent!) in a ranking of senior poverty rates in the U.S.
5. Louisiana
Cost of living: 10 percent below U.S. average
Population: 4.6 million
Best city: Baton Rouge
PRO: There are lots of things to do and see in Louisiana, which can keep you quite active in your retirement years if that is what you are looking for, as well as low living costs which makes things much more affordable. New Orleans and Baton Rouge are great music and tourist attractions, the famous cuisine, and the wonder of nature here such as the swamps, make it a place full of adventures.
Louisiana
CON: Although the cost of living is low here, the incomes are too. For the 65 plus the average income is $50,744, making things like healthcare – set at 2.1 percent above the national average – difficult to afford for some.
4. Minnesota
Cost of living: 4 percent above U.S. average
Population: 5.5 million
Best city: Osseo
PRO: If you are a health-conscious retiree, then this state could be for you! It was ranked as the “healthiest in the country for seniors” by the United Health Foundation, as well as home to the well-known Mayo Clinic in Rochester, which is great for dealing with complex health issues.
Minnesota
CON: This state has a less than desirable combination of below-average annual income and higher than average living costs, as well as taxes on Social Security and retirement incomes.
3. Kentucky
Cost of living: 14 percent below average
Population: 4.4 million
Best city: Lexington
PRO: Although not the healthiest place for retirees, also known as the Bluegrass State, Kentucky has low living costs as well as quite a few tax breaks. Social Security plus $41,110 of income are exempt from tax.
Kentucky
CON: Senior health costs are neither cheaper nor more expensive than other states – about average for the U.S., however it ranks badly for senior health. There are high rates of physical inactivity, smoking, and poverty here, as well as low numbers of quality nursing homes for senior care.
2. New Mexico
Cost of living: 5 percent below U.S. average
Population: 2.095 million (as of 2018, says U.S. Census Bureau)
Best city: Taos, says SmartAsset
PRO: Some recent television series, such as Breaking Bad and Better Call Saul, may have given this state a bit of a bad name. But don’t be fooled! New Mexico is extremely peaceful, as well as a very beautiful place to live.
20. New Mexico
CON: While its gorgeous golden sunsets and beautiful deserts may be wonderful, it was the rated “Least Tax-Friendly” state by Kiplinger. There is a tax on retirement income here, however, low-income seniors may be eligible for benefits.
1. West Virginia
Cost of living: 17 percent below U.S. average
Population: 1.806 million (as of 2018, says U.S. Census Bureau)
Best city: Lewisburg, says Niche.com
PRO: Living costs here are quite good (17 percent below the national average!), and the state is well-known for its’ rich history, scenic views, and grand resorts.
West Virginia
CON: According to Kiplinger, the Mountain State is not what one would call retiree tax-friendly. West Virginia is also ranking low for fiscal stability according to the Mercatus Center at George Mason University, and there is low-quality healthcare for those over 65.