Retirement is one of the last large steps you’ll take in life. You’ll be stepping back from your working career to enter a new phase of your life filled with travel, relaxation, and hobbies.
While it can be nice to look forward to retirement, it’s time to face the fact that the state you currently live in may not be the one you want to retire in. This could be because it’s too expensive, too cold, or maybe it’s car-centric, and you would rather live somewhere more walkable.
Either way, before you head to a new state, you should familiarize yourself with the best and worst states for retirees. Read on to learn more about the best states to retire in as well as the worst states to live in so you can make an informed decision.
How States Are Chosen as the Best/Worst
When you prepare to retire, your needs for everyday life are going to change. Things you might use to value, like living close to activities or a children’s school, are no longer a factor.
Here are the main factors that retirees care about as they consider places to live during retirement:
1. Affordability
2. Safety
3. Healthcare Quality/Availability
4. Weather
5. Ease of Living
As you read this list, you probably agree that many of these factors are at the top of your personal list as well. After all, during retirement, most people live on a fixed income and want to live somewhere where it’s warm enough for them to spend time outside each day.
Of course, your personal needs might vary slightly, but our rankings are based on the above factors.
The Best States to Retire
1. Iowa
You might be a little surprised to see Iowa at the top of the list, but the reality is Iowa scores highly in all of the aforementioned categories. It’s affordable, the healthcare is fantastic, and it’s one of the safest states in the US. Add in the fact that Iowa does not tax social security benefits, and you’ll find you are easily able to keep more of your income than you would in any other state.
As of 2023, 20% of the state of Iowa is older than 65, so you won’t be retiring here alone. The only problem is that Iowa is not a warm state. You’ll have some decent summers, but the winters can be long and cold.
That being said, Iowa is warmer than some other states like Alaska, Minnesota, and North Dakota, so if you are living in one of those states now, moving to Iowa might feel like moving somewhere much warmer.
2. Missouri
Missouri is another excellent state to consider for retirement. It’s affordable, much like Iowa, and slightly warmer, although the Midwest winters can still be long and cold.
One of the reasons Missouri didn’t rank higher is because of its problems with crime, especially in the big cities. While living out in the countryside might be safer, you then lose a lot of your connection to healthcare facilities, and you’ll need to continue to drive every day–which is something you may not want to do.
It’s important to note that while Tennessee didn’t quite make our list (it would have been 6th or 7th), it is comparable to Missouri. Tennessee is also affordable, especially in the countryside, though you may find yourself away from healthcare facilities.
But when comparing Tennessee vs Missouri, you will find the weather is a bit warmer and more agreeable as you age.
3. Mississippi
Third on the list is Mississippi, which is just as affordable as Missouri but notably safer. You’ll also find warm weather here almost year-round, and those in the southern part of the state likely won’t see snow at any point during the year.
The problem? Well, Mississippi ranks very low for healthcare quality and services. This means you may not be able to get the care you need as you age, or it may be expensive if you do find a place near the services you need.
Some retirees remedy this by living in Mississippi near the border with other states. This way, they can cross over for higher quality care in another state. But as your ability to drive goes down, you may need to relocate somewhere else.
Also, keep in mind that Mississippi is one of the most conservative states in the US, so you may not like the political tension and be unable to receive certain services you desire.
4. Florida
Florida is considered a premium place to retire, and thousands of retirees head there every year. There is warm weather year-round, and the state is considered to be relatively safe.
Plus, Florida is rife with small communities where you don’t need a car to get around and has great healthcare facilities thanks to the population, which is largely over the age of 60.
The issue most retirees run into is the cost. Florida is not cheap. While you can find affordable housing outside of the large cities, you’ll find insurance costs against hurricanes and flooding are expensive. You might also need to check your pool for alligators from time to time, something some seniors don’t want to deal with.
5. West Virginia
Another odd state, West Virginia, comes in 5th on our list, and why it’s here might surprise you. West Virginia is extremely affordable, thanks to its low cost of living and tax benefits. It is also mostly safe, but unfortunately, the healthcare services in this state leave much to be desired.
While the weather isn’t Florida, it is a little warmer than Iowa and Missouri, making it an excellent option for retirees in Illinois and Minnesota who don’t want to do the freezing cold winters any longer.
West Virginia is also close to the northeast, making it an excellent choice for those looking for something a little cheaper than New York or Pennsylvania without heading all the way to Florida.
The Worst States to Live in as a Retiree
1. Alaska
It probably isn’t a surprise to see Alaska is ranked as the worst state to live in as a retiree–as there’s a reason the US government pays people to live there. The weather is poor year-round, and many individuals report regular feelings of isolation and depression due to the darkness, which is common all winter.
Healthcare is also ranked poorly, and Alaska has a high crime rate, so there really is no redemption for this state. It is also expensive to live there, despite the tax breaks given by the government, therefore, we don’t recommend anyone retire in Alaska.
2. New York
Second on our list of worst states is, unsurprisingly, New York, which is the most expensive state in the US. Most retirees find it unaffordable on a fixed income even though the healthcare options are decent and it is easy to get around with public transport.
This is probably due to the fact that the weather is ranked the worst in the nation, with cold winters and hot summers and a high crime rate, which isn’t high but isn’t low either.
3. California
California can be the dream of many retirees due to its excellent year-round weather and the high quality of available healthcare. The issue is California is the most unaffordable state.
It is unlikely you will be able to find a home in California to buy due to the housing shortage, and if you do find one, it will likely be out of your price range. Not to mention the sky-high taxes that many retirees find eating their savings.
To top it all off, the crime rate is pretty high, actually coming in with more crime than in New York. So unless you already live in California before retirement, we don’t recommend considering this state for retirement.
4. Washington
You might be surprised to see Washington here, but it didn’t rank very highly for a number of reasons. The first reason is affordability, as it costs almost just as much to live here as it does in California. There’s a housing shortage, and the migration of young people to the area for jobs with Google and Microsoft has exasperated the problem.
The weather in Washington also isn’t very warm, and there’s a fair amount of crime. That being said, Washington has excellent healthcare and can be a good option if you already live in the state and don’t want to move elsewhere. We just don’t recommend moving here for the purpose of retiring.
5. Massachusetts
Last on our list of the worst states to live in is Massachusetts, which is mostly here due to its low affordability and cold weather. Massachusetts is middle of the pack when it comes to everything else, offering decent healthcare and a reasonably low crime rate.
The main issue with Massachusetts is the same one that plagues New York and California, as you will have a tough time finding a place here.
Overall, the best state for your retirement will depend on your personal needs and desires. While many retirees are happy in the states on our best list, others are happier when they can stay closer to family and watch grandchildren grow. At the end of the day, you’ll want to do your own research and ensure the state you choose to retire in is the best one for your budget, your health, and your well-being.
Not sure what you need to do to prepare for retirement? Take a look at our retirement preparation checklist to ensure you are ready to take the next step in life!
