Are you someone who is very much looking forward to the day you can finally retire? You may be wondering which place is the best for spending your twilight years in. Well, you are in luck because we have made a list of the best places you can relocate to based on factors like cost of living, tax laws, healthcare, and the weather. The information is taken from Bureau of Labor Statistics, National Association of Realtors, Milken Institute, and Kiplinger. Keep reading to see which places best match your priorities!
Here Are The Best States To Retire, Ranked From Most Expensive To Cheapest
Hawaii
It is stated on Niche.com that most retirees in the state prefer to reside in Maunawili, O’ahu. The tropical state is really attractive to passionate people because it boasts of a seemingly ethereal natural beauty. There are 1.4 million people living in the state and the average income of people 65 years and older is more than $71,000. However, the cost of living in Hawaii is much higher than the average in the U.S. – higher by 87 percent to be specific, which makes the state not the best choice for people looking to make their savings last for a long time.
Hawaii
California
If a sunny place is what you have in mind, then California is a good choice as well. In terms of cost of living, prices in the state are 52 percent higher compared to the national average. If you want solitude, you might want to rethink your decision to move to the Golden State since there are 39.56 million people living there. According to retirees, the best zip code is in Beverly Hills but the costs can get prohibitive. In fact, 19 percent of the state’s population live below the poverty line, as revealed by the U.S. Census Bureau, so having a job lined up prior to making the big move might be best.
California
Massachusetts
For retirees, the Bay State is also worth considering and according to Forbes, the best city in it is Northampton. The state comes with a lot of history, so culture lovers will not run out of things to do. As of 2018, its population reached 6.902 million but the cost of living in the state is still higher by 38 percent compared to the average in the U.S. Also, healthcare is expensive here and the place is not really tax-friendly. If you are someone who hates the cold, perhaps you need to consider another place.
Massachusetts
Alaska
The Last Frontier is really tax-friendly for retirees, though not a lot take advantage of this. According to Yahoo! Finance, it is best to live in Anchorage. Kiplinger says the living costs in Alaska is 32 percent higher than the national average in the U.S. Health care costs are quite important to a senior citizen, this might make you think again. The population in this state is 730,000, which makes it ideal for those looking to live the quiet life and get away from the big city lifestyle.
Alaska
New Jersey
New Jersey is a wonderful place, especially for people in their Golden Years, and Long Beach Township is a place worth considering if you want to move to the state. From Ocean City, you can catch amazing views of the water and if you are a history buff, you will enjoy New Jersey since it has a rich history. There are 8.909 million people in New Jersey and the living costs are 27 percent higher compared to the U.S. average, with property taxes and medical care tending to cost more. For low-income retirees, there are other better places to live in than the Garden State.
New Jersey
Connecticut
With 3.573 million people living here, this state on the East Coast is also worth considering and AreaVibes.com reports that Darien is a great choice. However, the real estate taxes in Connecticut are among the highest in the U.S. and compared to the national average, the cost of living here is 24 percent higher. If you are thinking of getting a retirement job, it is not really bad, though. Just remember that the entire retirement income is taxed and residents might have their Social Security benefits taxed as well.
Connecticut
New York
New York City is not only walkable but also offers just about every service and necessity you might need! There are 19.54 million people living in the Empire State, which offers people of all ages great experiences. While tiny apartments are the norm, it is good for those who want something manageable. The living costs are higher than the national average by 22 percent. In addition, New York is not tax-friendly and the poverty rates among senior citizens are high.
New York
Rhode Island
According to Niche.com, Jamestown is an excellent choice if you are considering this small state on the East Coast, which has a population of 1.057 million. History buffs will love the great deal of culture this original colony offers and nature lovers will enjoy the ocean views as well. Unfortunately, Rhode Island is not very tax-friendly and the living costs are 22 percent over the national average. However, if you have plenty of savings already, this state is a great choice.
Rhode Island
Washington
While Washington might not be very economical, the prices are not that bad for the Pacific Northwest. Vancouver offers a good lifestyle without needing to spend extravagantly, so keep this in mind. The cost of living in this state is higher than the national average by 21 percent, but it is still much cheaper than California and Hawaii. There are 7.1 million people living in Washington and there is no state income tax here, which is very appealing. Since the average income of households over 65 years old is more than $55,000, a job will surely make things easier.
Washington
New Hampshire
A tax-friendly state, New Hampshire is a great option since retirement income is not taxed here. Gilford is a great choice if you want to live in this small state, which has 1.3 million people. According to the United Health Foundation, New Hampshire is the fifth-best state for senior health. The living cost is 18 percent over the U.S. average, but the tax conditions alleviate concerns. Also, it has awe-inspiring landscapes, though some people might not like the cold winters and humid summers.
New Hampshire
Oregon
Oregon has 4 million people and most retirees appear to prefer settling in Gold Beach. There are plenty of outdoorsy activities that senior citizens can do, but the rainy season in September can be a problem. At 2.6 percent below the national average, healthcare costs are quite good. Social Security is tax-exempt, but most retirement income is not. As a matter of fact, the state income tax is 9.9 percent, one of the highest in the country. The living costs are higher than the national average by 18 percent, but the average income of senior citizens is around $45,000, which is on the lower end.
Oregon
Maryland
Maryland has 6 million people, and its retiree population prefers living in Chevy Chase Village. For seniors, the average household income is $70,874, which is the second highest in the U.S. and might be enough to compensate for the cost of living that is higher than the national average by 17 percent. You can also take a trip to Baltimore or Washington D.C., so there are many things to do in the state and around it. Individuals get paid more here compared to many places in the U.S., but remember that they also get taxed heavily. While Social Security is tax-free, individual retirement account distributions are not, and there is also an estate and inheritance tax.
Maryland
Colorado
There are 5.4 million people living in Colorado and the living costs are higher than the U.S. average by 17 percent. Colorado Springs is the nicest city. The United Health Foundation ranked the state fourth in senior health. The real estate market in Denver and other cities in the state is quite competitive. While you have to adjust to the state’s high altitude, the weather is nice in general.
Colorado
Vermont
If you want to remain healthy in your twilight years, you should consider the Green Mountain State. It has a small populations at only 626,000 people. A good place to live in is Hartford. The living costs are 12 percent higher over the U.S. average, but it is not that bad. Vermont has great senior healthcare and unparalleled natural beauty, but Kiplinger has actually listed it as one of the states that are “Least Tax-Friendly”.
Vermont
Delaware
According to the U.S. Census Bureau, Delaware’s population in 2018 reached 967,000. Rehoboth Beach, is a nice place to settle down. In Delaware, Social Security benefits are not taxed, and particular amounts of pension investments and income for senior citizens are also tax-exempt. These things might offset the cost of living that is 11 percent over the national average. However, it would be better if you have saved a lot already as senior citizens have incomes lower than the average.
Delaware
Virginia
Virginia has 8.3 million people and a cost of living that is higher than the national average by 7 percent. It seems that many retirees like Roanoke. Since the incomes are quite high here, the living costs might be negligible. Aside from that, healthcare is quite affordable and Social Security are tax-free. Senior citizens can deduct $12,000 from their income as well! However, you would have to say goodbye to big city living.
Virginia
Utah
2.9 million people live in Utah, which is the second-best state for senior health care as reported by the United Health Foundation. There are also a lot of outdoorsy things that can be done in the area since the state boasts of 5 national parks, 5 national forests, and 43 state parks. Salt Lake City is recommended for living the best quality of life. Unfortunately, it is not really tax-friendly for retirees as Social Security is taxed. The living costs are not too bad, though, at 4 percent over the U.S. average.
Utah
Nevada
In terms of taxes, Nevada offers some pretty great deals. There is no state income tax here, which definitely helps senior citizens, and the poverty rates among the older generation are quite low. The living costs are not too high at 4 percent over the national average. For retirees, Winchester is a great choice. Some people might not like the extreme temperatures in the state owing to the semi-arid desert climate despite the fact that the state is home to Las Vegas.
Nevada
Minnesota
If health is your top priority, you should know that it was called the “healthiest in the country for seniors” by the United Health Foundation. While Osseo is a great city, Rochester does have Mayo Clinic. The state has a population of 5.5 million, and the living costs are higher than the national average by 4 percent. Unfortunately, the yearly income is below average. Social Security is taxed and retirement incomes are not tax-exempt either.
Minnesota
South Dakota
The cost of living in South Dakota is higher than the national average by 4 percent. There are only 882,000 people living in the state and Hot Springs seems to be popular among senior citizens. South Dakota is the “Most Tax-Friendly” state and on top of that, nature lovers will have plenty of things to do here. The cold and blizzards make the state less than ideal in terms of the weather and big cities are not found around the area.
South Dakota
Montana
Montana has a cost of living that lies 3 percent above the U.S. average and a population of 1.062 million, as reported by the U.S. Census Bureau. Retirees seem to like Glasgow. The state is definitely beautiful, which is evident from the natural wonders it has, such as the Glacier and Yellowstone National Parks. Kiplinger reports that the state has one of the country’s highest senior populations, but it is “Not Tax-Friendly.” The levels of income are lower than average and the state imposes taxes on most retirement incomes, including Social Security!
Montana
Arizona
The cost of living in Arizona is higher than the national average by 3 percent. There are 6.7 million people living in the state, with many retirees choosing Green Valley. If you don’t like icy winters, this state is great for you since it offers amazing views and plenty of sunshine, though the dry heat can become unbearable during the summer. For seniors, this place is not the most affordable since the average income for older generation households is 10.8 percent below the national average.
Arizona
North Dakota
Kiplinger reports that North Dakota is a tax-friendly state for retirees as income taxes are just 1.1 to 2.9 percent. While retirement income is taxed, this should not be a big problem as the cost of living rests only a percent above the U.S. average. On top of that, the natural landscapes are amazing! If you are not keen on big city living, its population of 760,000 makes the state ideal. Rugby is a great city to live in.
North Dakota
Florida
The Sunshine State is actually among the most tax-friendly states and a lot of retirees flock to Florida, thanks to this and the sunshine. Jacksonville is quite popular. The benefits are fiscally secure as well, and there are 19.9 million living in the state, making it appealing to those who prefer big city living. Just remember that the humidity and heat will not suit everyone, and there might be better choices if your health is poor. Lightning and thunderstorms and hurricanes happen as well.
Florida
Wyoming
Wyoming has a small population of 577,000, so nature lovers can probably appreciate it more than city dwellers. According to SmartAsset, the best city in Wyoming is Cody. Mercatus Center reports that when it comes to fiscal health, the state ranks high. The fact that there is no income tax here and the living costs are average in the U.S. makes things lighter on the wallet too.
Wyoming
Maine
There are 1.3 million people living in Maine, where the living costs are lower than the U.S. average by 2 percent. Retirees seem to be fascinated by the awesome city Portland, and if you are someone who likes lobster and seafood, then this state is for you. The costs of healthcare are below the national average, so your savings and retirement income can give you a good life. The tax situation is not bad, with most retirement income getting taxed but Social Security is exempt. Keep in mind, however, that senior households earn lower than the national average by 25.2 percent.
Maine
Pennsylvania
The cost of living in Pennsylvania is 3 percent lower than the U.S. average. With 12.8 million people living in it, the state is ideal for city dwellers. Pittsburgh is highly recommended – as a matter of fact, it was named the best U.S. city to retire in by Forbes! Healthcare is inexpensive, in general, and tax breaks definitely make things even easier. However, the financial condition in Pennsylvania is not that great, so in the future, things might change.
Pennsylvania
Wisconsin
Wisconsin has a cost of living that rests 4 percent below the national average and a population of 5.8 million. For retirees, the best city is Madison and if you like cheese, the state can give you your fix. In general, the state has low living costs, and low-income retirees can have certain tax breaks here, but it is not really tax-friendly when it comes to income. Social Security is exempt but the state taxes most retirement income. On top of that, the household income of senior citizens is the lowest in the country and the costs of healthcare are pricier than usual.
Wisconsin
Illinois
There are 12.9 million living in Illinois, where the cost of living is 4 percent below the national average. Niche.com reports that for retirement living, a good choice is Leland Grove. However, the state’s fiscal standing has been going down for a while and sadly, the state is the second-lowest when it comes to fiscal security. Various retirement incomes do not have guaranteed tax breaks, and sales taxes are quite high.
Illinois
Idaho
Nature lovers will love Idaho, which boasts of rugged landscape, mountains, canyons, and lakes. There are 1.6 million living in the state, which has a cost of living that is 5 percent lower than the national average. For retirees, Sandpoint is a great choice, but not if a big city lifestyle is what you want. Senior citizens will find the tax-friendliness a mixed bag, since state tax is 6 percent but state income tax is over 7 percent. On the other hand, Social Security is tax-exempt and there is no inheritance or estate tax.
Idaho
New Mexico
Do not get fooled by what Beter Call Saul and Breaking Bad might tell you – New Mexico is actually a great and peaceful place. The living costs are 5 percent below the U.S. average and the population is at 2.095 million as of 2018. According to SmartAsset, Taos is the state’s best city. However, the tax situation is not the best and Kiplinger says it is the state that is the “Least Tax-Friendly” since retirement income is taxed here. Low-income seniors can expect benefits to offset the fact!
New Mexico
North Carolina
North Carolina has a mild weather in general, so nature lovers will love it here. The living costs are 5 percent lower than the national average, but you might want to skip the Kill Devil Hills area and go for Asheville instead. The state has 9.9 million people, which might appeal to those who are fond of big cities. Social Security is not taxed, but other retirement income gets taxed at 5.9 percent. In addition, seniors have pretty low income levels at $43,616.
North Carolina
South Carolina
The cost of living in South Carolina is 7 percent below the national average and the population is at 4.8 million. Varied options can be found in the area, Bluffton is great if you ask us. The state has weather that is mild all year round and it is really tax-friendly, things that make South Carolina great for seniors. However, the summer in the state can be hot and humid, and health is not that great since obesity and smoking levels are high while veggie consumption is low.
South Carolina
Georgia
The cost of living in this Southern state is 7 percent below the U.S. average. There are 10.1 million living in the state, with Athens being the most popular with retirees. Georgia has low living costs, warm weather, and pretty low state taxes. The summers are quite hot and humid in these parts, and the mosquitos can also get annoying.
Georgia
Missouri
For retirees, the low living costs in Missouri is certainly a plus, since the costs are lower than the national average by 10 percent! Bookworms love the fact that a lot of famous writers come from the state. There are 6.1 million people living in the Show Me State, with Columbia being the best city to live in. It may be cheap to live in Missouri, but keep in mind that the income levels for seniors are low at just a little over $43,000. Besides that, the healthcare for senior citizens is poor and the tax situation is less than ideal.
Missouri
Texas
27 million live in Texas, which has a cost of living that is affordable at 10 percent lower than the U.S. average. Dallas and Austin might be appealing to city dwellers, but many retirees prefer San Marcos. You will find folks 65 years old and above that have quite a good average income. Incomes are not heavily taxed either, but the downside is that healthcare is not that affordable and the poverty rates are high. Its senior poverty rate is at 10.8 percent, which is the sixth-highest in the country.
Texas
Louisiana
The cost of living in this southern state is 10 percent lower than the average. A great city for retirees is Baton Rouge, but New Orleans is also a fascinating place. With a population of 4.6 million, the state is known for its music, cuisine, and swamps, so you can find plenty of adventures here! However, the incomes are on the low side, with the average for senior citizens at $50,744. Besides that, healthcare costs are 2.1 percent higher than the national average.
Louisiana
Nebraska
Nebraska has a cost of living that is very affordable – at 12 percent below the U.S. average. The good fiscal health here should also be noted. It has a population of 1.9 million and Niche.com gave O’Neill an “A” for retirees. However, it is not particularly a tax-friendly state for senior citizens as retirement income is generally taxable. For Social Security, the exemption is only for those who make $43,000 or less and for a joint filing, $58,000 or less.
Nebraska
Tennessee
For retirees, Tennessee is quite affordable because of its cost of living that is 12 percent lower than the U.S. average. The state has a population of 6.5 million and is tax-friendly for retirees. State income taxes are not levied and the big cities are quite affordable as well. For many retirees, Lookout Mountain is ideal. The summer in Tennessee can get hot and humid and the traffic can get quite bad in metro areas, like Memphis and Nashville.
Tennessee
Ohio
The cost of living in Ohio is 12 percent below the U.S. average and there are 11.6 million living here. It is in central U.S., so it is fairly easy to travel around the country. If you are thinking of living in the Buckeye State, Bellbrook is worth considering. Retirees will be happy to know that Social Security is not taxed in the state, but the average household income for senior citizens is not that high. Ohio is recommended if you have saved a lot because the average income of senior citizens is $42,667.
Ohio
Michigan
The Great Lakes State has a population of 9.9 million. The low living costs (12 percent below the national average!), as well as the low poverty rates, makes it appealing. Farmington is the best choice for many retirees here. The tax situation might become worse in the next few years, though.
Michigan
Iowa
Iowa also has living costs that lies 12 percent below the U.S. average and it has a population of 3.1 million. You should check out Iowa City, a UNESCO “City of Literature” that has a great cultural scene. Social Security is not taxed and pension income also has a state income tax break. Unfortunately, taxes are not that lenient since retirement income might be taxed as high as 8.89 percent! However, people who are 55 years old and above have the option to exclude in their taxable retirement income as much as $6,000.
Iowa
Alabama
Alabama has living costs that are 13 percent lower than the national average and a population of 8 million. Orange Beach seems to be the go to place for retirees! This state is budget-friendly for retirees since senior healthcare costs 4.4 percent less than average. Income taxes are from 2 to 5 percent but Social Security is tax-exempt. Alabama gets intense storms during the spring and in November, and expect hot summers since it is located in the South.
Alabama
Kansas
The cost of living in the Sunflower State 14 percent below the U.S. average. With a population of 2.9 million, Kansas boasts of scenic natural landscapes, which will appeal to people who appreciate gorgeous plains and prairies. The suitable city for a lot of retirees is Eureka. The downside is that the financial situation of the state is not the best, so it has decided to raise taxes. Many retirement incomes and even Social Security will be taxed from 3.1 to 5.7 percent.
Kansas
Kentucky
The Bluegrass State has 4.4 million residents and a cost of living that is 14 percent below the national average. Many retirees like Lexington City. Social Security and $41,110 of income get exempted from taxes, but the healthcare costs for seniors are not that cheap as it is the average in the country. Senior health is quite bad because of high rates of poverty, smoking, and physical inactivity. It might also be difficult to find a good nursing home.
Kentucky
Mississippi
Mississippi offers great tax breaks and living costs that are 15 percent below the U.S. average. The Magnolia State has a population of 3 million and the Hide-A-Way Lake area is ideal for retirees. The state offers tax exemptions on 401Ks, IRAs, and other Social Security incomes. Compared to the rest of the country, the property taxes here are lower than most but the senior poverty rate is high and the senior health ranking is pretty bad.
Mississippi
Indiana
Indiana is one of the top choices due to its affordable cost of living (15 percent lower than the U.S. average). It has a population of 6.6 million and for retirees, Meridian Hills is the best choice. However, Indiana is still better for seniors who have a lot of savings as the annual income is below the national average by 21.4 percent. Retirement income is also taxable, except Social Security.
Indiana
Oklahoma
With a population of 3.9 million, Oklahoma offers a good quality of life for many retirees. Nichols Hills is a great choice. The living costs are 16 percent lower than the national average, so retirement funds will likely go a long way. They do not tax Social Security and up to $10,000 of retirement income can be excluded. Unfortunately, the state is the third-worst when it comes to senior health because of high rates of physical inactivity and smoking, and the options for geriatric care and good nursing homes are limited as well.
Oklahoma
West Virginia
The second-best for retirement, West Virginia has a cost of living that is 17 percent below the U.S. average. The Mountain State also offers great sceneries, impressive resorts, and a rich history. Nichel.com reports that Lewisburg is the best choice for retirement. However, the state is not very tax-friendly according to Kiplinger. Fiscal soundness is less than ideal as well. Senior healthcare should also be improved.
West Virginia
Arkansas
The cost of living in Arkansas is 17 percent below the national average. Bella Vista is a great choice, but money will go a long way anywhere in the state. You can enjoy mountains, hot springs, and rivers. Health costs are the third-best for retirees, but state taxes are not that low. Luckily, they do not tax Social Security and retirement income of up to $6,000. Income tax rates can go as high as 6.9 percent if it is more than $75,000. The poverty rates are quite high.
Arkansas
Panama
Panama is the third-largest economy located in Central. Panama City is the biggest city in the country. The weather in Panama is hot almost all year, and can be humid in some months. If you’re someone who loves summer and likes being in the sun all year, the country may be for you!
Panama
Costa Rica
This Central American country has the Pacific Ocean on the west, the Caribbean Sea on the east, Panama on the southeast and Nicaragua on the north. In short, there is no bad view from Costa Rica’s coast! The country is very near the equator, so it’s hot year-round, but it has a rainy season between May and November every year.
Costa Rica
Mexico
Mexico has some distinct seasons; summer in Mexico reach temperatures of about 83 degrees Fahrenheit (28 degrees Celsius) and in the winter average temperatures in Mexico are around 68 degrees Fahrenheit (20 degrees Celsius). It’s no snowy winter, but at least you can experience cooler temperatures!
Mexico
Ecuador
Ecuador is bordered by Peru, Colombia, and the Pacific Ocean…which is amazing! The best part about the country is how cheap it is; in Ecuador, the average couple can live on only around $1,500 per month. An upscale apartment will only cost you $600 per month! The average temperature is 78 degrees Fahrenheit (or 26 degrees Celsius).
Ecuador
Malaysia
The capital of Malaysia is Kuala Lumpur and it is the largest city. English may not be an official language in the country, but school children learn the language and it is used in business. Malaysia is a tropical country, but can often get quite humid. The temperature is anywhere between 68 degrees to 86 degrees Fahrenheit (20 to 30 degrees Celsius).
Malaysia
Colombia
High-quality housing in this country is very affordable in most cities. On average, the temperature in Colombia year-round is 74 degrees Fahrenheit (or 23 degrees Celsius), which might be perfect for most people. Spanish and English are the languages most commonly used in Colombia.
Colombia
Portugal
Portugal is known for its near-perfect weather. It also has some breathtaking views and amazing food. Its cost of living is one of the lowest in all of Western Europe. For just around $1,700 a month, a couple can have a comfortable life in Portugal’s interior or small cities.
Portugal
Peru
Like the other countries on this list, Peru is very affordable to live in; you can live comfortably in the country on only $2,000 per month on average. Spanish is the main language of Peru. The country tends to be warmer in the winter months, 79 degrees Fahrenheit (or 26 degrees Celsius) in January and just 72 degrees Fahrenheit (or 22 degrees Celsius) in May.
Peru
Thailand
Thailand’s climate is subtropical in most parts of the country, which leads to year-round weather that is hot and humid. In the hottest months, temperatures can reach 105 degrees Fahrenheit (or 40 degrees Celsius). Even during the cooler season, the daily temperatures can still be about 86 degrees Fahrenheit (or 30 degrees Celsius).
Thailand
Spain
Fun fact, the life expectancy in Spain is the highest in Europe. Living costs in many parts of Spain are some of the lowest when compared to other areas in Western Europe. With Spain’s amazing views, weather, and culture, it seems like the country is a great choice.
Spain
France
France is known for being one of the most elegant and romantic countries in the world. The downside of moving to Paris is that the city is notoriously expensive to live in. The cost of living here is much higher compared to many other European cities. You will likely even discover that gas and utilities are more expensive than anywhere else.
France
Italy
Just like most countries, Italy’s weather varies depending on the area. Living costs in Rome are pretty comparable to many other European cities, but it’s much cheaper than London, New York, or Tokyo. Some things are not as cheap in Italy as they are in the U.S. like energy costs; electricity, gas, heating, etc.
Italy
Cambodia
Cambodia is like most Southeast Asian countries – it is warm to hot year-round. Living in Cambodia is very cheap: about $350 a month will get you a centrally located apartment. Cambodia has a lot of tourist attractions which are definitely must-sees!
Cambodia
Belize
Belize can be gorgeous and sunny or very rainy. During the rainy season, a downpour can be expected at least once or twice in a week… but it’s a tropical paradise! On top of this, it is very affordable to live in Belize.
Belize
Malta
Malta has colder months in winter, but summers in Malta are amazing. Living in some other places is cheaper than Malta, but if you have great skills in budgeting properly, you’ll manage well. Best known for its tranquil and quiet islands, Malta makes for an amazing retirement destination after working hard for years.
Malta