Best and Worst States to Retire (2025)

Living in the right place after you retire can make your money go a lot further. That’s important considering the fact that 66% of non-retired adults say their retirement savings aren’t on track. To determine the best states to retire, WalletHub compared the 50 states across 46 key indicators of retirement-friendliness, from financial factors like tax rates and the cost of living to things like access to quality medical care and fun activities.

Top 5 States to Retire (2025)

1. Florida
2. Minnesota
3. Colorado
4. Wyoming
5. South Dakota

You can see the full rankings and some additional commentary below.

“Retirement is supposed to be relaxing, but it can also be incredibly stressful given that it typically puts people on a fixed income, which may not be enough for them to live comfortably. As a result, the best states for retirees are those that have low taxes and a low cost of living to help retirees’ budgets stretch as far as possible. Having access to excellent medical care and homemaking services is also crucial, especially for people who don’t plan to retire in close proximity to their families.”

Chip Lupo, WalletHub Analyst

Main Findings

Best & Worst States to Retire

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

Adjusted Cost of Living

Lowest

• 1. Alabama
• 2. Oklahoma
• 3. West Virginia
• 4. Arkansas
• 5. Mississippi

Highest

• 46. New York
• 47. Alaska
• 48. Massachusetts
• 49. California
• 50. Hawaii

Best State vs. Worst State: 2x Difference

Alabama vs. Hawaii

Annual Cost of In-Home Services

Lowest

• 1. Mississippi
• 2. Arkansas
• 3. Oklahoma
• 4. Pennsylvania
• 5. Alabama

Highest

• T-45. Iowa
• T-45. Maine
• 48. Washington
• 49. New Mexico
• 50. Montana

Best State vs. Worst State: 3x Difference

Mississippi vs. Montana

WalletHub 'Taxpayer' Ranking

Best

• 1. Alaska
• 2. Delaware
• 3. Wyoming
• 4. Idaho
• 5. Montana

Worst

• 46. Pennsylvania
• 47. New Jersey
• 48. Connecticut
• 49. New York
• 50. Illinois

% of Workforce Aged 65 & Older

Highest

• 1. South Dakota
• 2. New Jersey
• 3. Massachusetts
• 4. Maryland
• 5. New Hampshire

Lowest

• 46. Idaho
• 47. Arkansas
• 48. Arizona
• 49. Mississippi
• 50. West Virginia

Best State vs. Worst State: 2x Difference

South Dakota vs. West Virginia

Museums per Capita

Most

• T-1. New York
• T-1. California
• 3. Kansas
• 4. Maine
• 5. Massachusetts

Fewest

• 46. New Jersey
• 47. Nevada
• 48. Hawaii
• 49. West Virginia
• 50. Utah

Best State vs. Worst State: 6x Difference

New York vs. Utah

Theaters per Capita

Most

• T-1. New York
• T-1. California
• T-1. Illinois
• T-1. Minnesota
• 5. Florida

Fewest

• 46. Louisiana
• 47. New Mexico
• 48. Arkansas
• 49. West Virginia
• 50. Mississippi

Best State vs. Worst State: 31x Difference

New York vs. Mississippi

% of Population Aged 65 & Older

Highest

• 1. Maine
• 2. Vermont
• 3. Florida
• 4. West Virginia
• 5. Delaware

Lowest

• 46. Colorado
• 47. Georgia
• 48. Alaska
• 49. Texas
• 50. Utah

Best State vs. Worst State: 2x Difference

Maine vs. Utah

Property-Crime Rate

Lowest

• 1. Idaho
• 2. New Hampshire
• 3. Massachusetts
• 4. Maine
• 5. Rhode Island

Highest

• 46. Oregon
• 47. Louisiana
• 48. Colorado
• 49. Washington
• 50. New Mexico

Best State vs. Worst State: 4x Difference

Idaho vs. New Mexico

Life Expectancy

Highest

• 1. Hawaii
• 2. California
• 3. Massachusetts
• 4. New York
• 5. Minnesota

Lowest

• 46. Louisiana
• 47. Kentucky
• 48. Alabama
• 49. West Virginia
• 50. Mississippi

Show More

In-Depth Look at the Best States to Retire

Florida

There’s a reason Florida is known as a retirement paradise – it ranks as the best state to retire due to its relatively low taxes for retired people, including no estate, inheritance or income taxes. Plus, Florida receives more funding per senior from the Older Americans Act than all but two other states. This funds things like transportation, homemaker assistance and nutrition programs for seniors.

In addition to financial factors, Florida provides an ideal environment for retirees. It has the second-most shoreline miles of any state, allowing for plenty of relaxing at the beach. It also has the second-most adult volunteer activities, fifth-most theater companies, and seventh-most golf courses and country clubs. There are plenty of ways for seniors to stay healthy and happy, which is reflected in the fact that Florida has the third-lowest death rate in the country for people ages 65+.

Unfortunately, the overall cost of living is pretty high in Florida compared to many other states, but that doesn’t stop the Sunshine State from taking the top spot for retirees.

Minnesota

Minnesota is the second-best state for retirement, in large part due to health reasons. Minnesota has the most health care facilities, the second-most nursing homes, and the third-most home health care aids per capita. Its geriatrics hospitals also rank as the fifth-best in the nation. Due to the great health care conditions within the state, Minnesota has the third-lowest percentage of seniors with a disability, the fourth-lowest percentage with poor mental health, and the fifth-highest percentage who are in good physical health.

When it comes to overall quality of life in Minnesota, the state has the 10th-best elder abuse protections in the country, which guard elderly residents against physical and financial harm. The state also has the 15th-lowest violent crime rate, and the fifth-highest percentage of people who do favors for their neighbors.

On the financial side, Minnesota has the 10th-lowest share of residents ages 65+ who are in poverty and the fifth-lowest percentage who went hungry in the last 12 months.

Colorado

Colorado is the third-best state for retirees, offering taxpayer-friendly conditions with no estate or inheritance taxes. In addition, it has the seventh-lowest poverty rate for residents ages 65+ and the 10th-lowest percentage of seniors who have faced hunger in the past 12 months.

Colorado is a great state for retirees’ physical and mental health. It has one of the lowest rates of social isolation for seniors, and it boasts the 10th-best geriatrics hospitals in the country. It also has the fourth-highest percentage of seniors who are in good health and the third-highest percentage who are physically active.

On top of all that, Colorado has plenty to keep seniors active and engaged. For example, it has the sixth-most volunteer opportunities, the ninth-most scenic byways and the 11th-most theaters per capita.

Ask the Experts

In order to choose the best state to retire for you, you must carefully consider various factors such as your finances, health and how you plan to spend your time. For advice on these choices, we turned to a panel of experts in fields such as aging and taxes. Click on the experts’ profiles to read their bios and responses to the following key questions:

1. What is the most common mistake that retirees make when choosing where to live?
2. What are some tips for living on a fixed income in retirement?
3. What are the top factors retirees should consider when choosing a state for retirement?
4. The financial impact of high inflation has many Americans reevaluating their retirement plans. What are some new points of concern for future retirees in considering where to retire?
5. How might changes to the tax code influence retirement security?

Ask the Experts

Suzanne B. Shu
Ph.D. – Dean of Faculty and Research, SC Johnson College of Business; John S. Dyson Professor in Marketing, The Charles H. Dyson School of Applied Economics and Management – Cornell University
Read More

Dr. Michael E. Bitter
Ph.D., CPA, CGMA – Retired Rinker Distinguished Professor of Accounting and Chair of the M.E. Rinker, Sr. Institute of Tax and Accountancy – Stetson University
Read More

Juan E. Gallardo
Ph.D. – Texan Smart Financial Education Center, Director; Dr. Sam Pack College of Business, Instructor – Tarleton State University
Read More

Karen Magruder
LCSW-S – Assistant Professor of Practice, School of Social Work – University of Texas at Arlington
Read More

Steve Benton
Elder Financial Safety Center Financial Counselor – The Senior Source
Read More

Barbara O'Neill
Ph.D., CFP®, CRPC, AFC®, CFEd, CPFFE – Distinguished Professor Emerita, Rutgers University and Owner/CEO, Money Talk: Financial Planning Seminars and Publications, Author of Flipping a Switch: Your Guide to Happiness and Financial Security in Later Life
Read More

More Experts

Methodology

In order to identify the most retirement-friendly states, WalletHub compared the 50 states across three key dimensions: 1) Affordability, 2) Quality of Life and 3) Health Care.

We evaluated those dimensions using 46 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for retirement. For metrics marked with an asterisk (*), we used the square root of the population to calculate the population size in order to avoid overcompensating for minor differences across states.

We then calculated each state’s weighted average across all metrics to determine its overall score and used the resulting scores to rank-order our sample.

Affordability – Total Points: 40

• Adjusted Cost of Living: Double Weight (~10.00 Points)
• General Tax-Friendliness: Full Weight (~5.00 Points)
  Note: This metric is based on WalletHub’s "States with the Highest & Lowest Tax Rates" ranking.
• Retired Taxpayer-Friendliness: Full Weight (~5.00 Points)
  Note: This metric measures taxation on retirement income, property and purchases, as well as special tax breaks for seniors.
• Tax-Friendliness on Estate or Inheritance Tax: Full Weight (~5.00 Points)
• Annual Cost of In-Home Services: Full Weight (~5.00 Points)
• Annual Cost of Adult Day Health Care: Full Weight (~5.00 Points)
• Share of Population Aged 65 and Older Who Could Not Afford a Doctor Visit: Full Weight (~5.00 Points)
  Note: This metric measures the share of the population aged 65 and older who needed to see a doctor in the past 12 months but were restricted due to cost.

Quality of Life – Total Points: 30

• Share of Population Aged 65 and Older: Double Weight (~2.50 Points)
• Risk of Social Isolation: Full Weight (~1.25 Points)
  Note: This metric considers the following six risk factors of social isolation in population aged 65 and older: a) Divorced, separated or widowed; b) Never married; c) Poverty; d) Disability; e) Independent Living Difficulty and f) Living alone.
  
• Elderly-Friendly Labor Market: Full Weight (~1.25 Points)
  Note: This metric takes into account both the share of population aged 65 and older working and the number of part time employees for every full-time employee for population aged 65 and older.
• Share of Population Aged 65 and Older in Poverty: Full Weight (~1.25 Points)
• Elderly Food Insecurity Rate: Full Weight (~1.25 Points)
  Note: This metric refers to the share of the population aged 60 and older who faced the threat of hunger in the past 12 months.
• Expenditures Captured by the Administration on Aging per Population Aged 60 and Older: Full Weight (~1.25 Points)
  Note: The Older Americans Act (OAA) is administered by the Administration on Aging. It funds “personal care, congregate meals, transportation and nutrition-education programs for seniors.”
• Access to Public Transportation: Full Weight (~1.25 Points)
  Note: This metric measures the share of commuters who use public transit as a proxy for the availability of public transportation.
• Mildness of Weather: Double Weight (~2.50 Points)
  Note: This metric is based on WalletHub’s "Cities with the Best & Worst Weather" ranking.
• Access to Scenic Byways: Full Weight (~1.25 Points)
  Note: This metric takes into account both the number of scenic byways and the length of scenic byways.
• Shoreline Mileage: Full Weight (~1.25 Points)
• Museums per Capita*: Full Weight (~1.25 Points)
• Theaters per Capita*: Full Weight (~1.25 Points)
• Golf Courses & Country Clubs per Capita*: Full Weight (~1.25 Points)
• Bingo Halls per Capita*: Full Weight (~1.25 Points)
• Access to Adult Volunteer Activities: Full Weight (~1.25 Points)
  Note: This metric measures the number of rated charity organizations per capita*.
• Elderly Volunteer Rate: Full Weight (~1.25 Points)
• Share of Residents Who Do Favors to Their Neighbors (proxy for Neighborhood Friendliness): Full Weight (~1.25 Points)
• Violent-Crime Rate: Full Weight (~1.25 Points)
• Property-Crime Rate: Full Weight (~1.25 Points)
• Quality of Elder-Abuse Protections: Full Weight (~1.25 Points)
  Note: This metric is based on WalletHub’s "States with the Best Elder-Abuse Protections" ranking.
• Air Quality: Full Weight (~1.25 Points)
• Drinking-Water Quality: Full Weight (~1.25 Points)
  Note: This metric measures the share of the population potentially exposed to water exceeding a violation limit.

Health Care – Total Points: 30

• Family Medicine Physicians per Capita: Double Weight (~3.16 Points)
• Dentists per Capita: Full Weight (~1.58 Points)
• Nurses per Capita: Full Weight (~1.58 Points)
• Home Health Aides per Capita: Full Weight (~1.58 Points)
  Note: Home health aides often help older adults who need assistance. In some states, home health aides may be able to give a client medication or check the client’s vital signs under the direction of a nurse or other healthcare practitioner.
• Share of Geriatricians Required to Meet Estimated Need (Geriatrician Shortfall): Double Weight (~3.16 Points)
• Top-Rated Geriatrics Hospitals: Double Weight (~3.16 Points)
• Health-Care Facilities per Capita: Full Weight (~1.58 Points)
• Quality of Public Hospitals: Full Weight (~1.58 Points)
  Note: This metric is based on Centers for Medicare & Medicaid Services’ ranking of public hospitals.
• Well-Being Index for Population Aged 55 and Older: Full Weight (~1.58 Points)
• Share of Population Aged 65 and Older with Good or Better Health: Full Weight (~1.58 Points)
• Share of Population Aged 65 and Older with Poor Mental Health: Full Weight (~1.58 Points)
  Note: This metric refers to the share of population aged 65 and older who reported their mental health was not good 14 or more days in the past 30 days.
• Share of Population Aged 65 and Older with a Disability: Full Weight (~1.58 Points)
• Share of Population Aged 65 and Older Who Are Physically Active: Half Weight (~0.79 Points)
• Share of Population Aged 65 and Older Who Are Obese: Half Weight (~0.79 Points)
• Share of Population Aged 65 and Older with Inadequate Sleep: Full Weight (~1.58 Points)
  Note: This metric refers to the share of adults aged 65 and older who reported sleeping less than seven hours in a 24-hour period on average.
• Life Expectancy: Full Weight (~1.58 Points)
• Death Rate for Population Aged 65 & Older: Full Weight (~1.58 Points)

 
Sources: Data used to create this ranking were collected as of December 20, 2024 from the U.S. Census Bureau, Federal Bureau of Investigation, Council for Community and Economic Research, U.S. Bureau of Labor Statistics, The Kiplinger Washington Editors, County Health Rankings, Genworth Financial, United Health Foundation, Centers for Disease Control and Prevention, Corporation for National and Community Service, Centers for Medicare & Medicaid Services, Great Nonprofits, American Board of Medical Specialties, Gallup Healthways, The Tax Foundation, America's Scenic Byways, Bingo Halls U.S.A., NOAA Office for Coastal Management, U.S. News & World Report and WalletHub research.

Supporting Video Files:

• YouTube - National (for web embedding)
• YouTube - Florida (for web embedding)
• Raw video files (for editing into clips)