Which US States Are Worst and Best to Retire In? Ranked From Worst to Best
One of the United States’ greatest features is the diverse range of experiences it offers. There’s something for everyone, from quaint coastal towns with pristine beaches to secluded mountain cabins just a state away. This diversity also means retirees are spread across the country, each finding their niche where they can enjoy their golden years.
But, naturally, some destinations stand out more than others for the retired life. In our comprehensive ranking, we consider various factors such as population size, tax rates, economic health, and the benefits available to senior citizens, to identify the best states in the U.S. for retirement.
50. Hawaii
Regarded as a slice of paradise, Hawaii’s allure for retirees is unmistakable, with its warm climate, stunning beaches, and vibrant cultural life. However, its position as the least favorable retirement destination is primarily due to the high cost of living, which is approximately 87% above the mainland’s average. This financial barrier has significant implications, notably pushing some residents to leave.
With a population of 1.4 million, a notable portion of whom are seniors, the islands offer a rich community life. Yet, retirees must navigate the economic challenge presented by an approximate 4% sales tax and the overarching costliness of island living, from housing to everyday expenses.
49. California
California remains an iconic retirement dream for many, thanks to its diverse geography that promises everything from serene beaches to bustling urban centers. However, it ranks near the bottom due to its high cost of living, second only to Hawaii, and its substantial population, which can lead to overcrowded conditions in certain areas.
Despite these drawbacks, the state’s appeal is undeniable, offering a wide range of cultural, recreational, and natural amenities. Retirees can explore everything from the arts and cuisine to outdoor activities. However, with a 7.25% sales tax and significant expenses on housing, retirees must weigh the state’s vibrant lifestyle against its financial demands.
48. Massachusetts
Massachusetts presents a compelling mix of historical significance and modern innovation, making it an attractive option for retirees drawn to the East Coast. The state boasts renowned historical sites, cultural institutions, and educational opportunities, nestled within iconic cities like Boston. Nevertheless, it faces challenges, such as high healthcare costs and a 6.25% sales tax, which can strain retirees’ budgets.
Additionally, the New England climate, characterized by cold winters, may not suit everyone. With a population of 6.9 million, including nearly a million seniors, Massachusetts offers a strong sense of community. Still, it requires careful financial and lifestyle planning for retirement.
47. Alaska
Alaska is unique among retirement destinations, offering unparalleled natural beauty, vast wilderness, and a sense of adventure for those seeking less ordinary retirement. The state’s cost of living is above the national average by 32%, but this is somewhat mitigated by the absence of sales tax and state income tax, appealing to those looking for tax-friendly retirement options.
With a relatively small population, including about 110,000 seniors, Alaska offers a close-knit community feel amidst its expansive landscapes. However, the cold climate and potential for isolation are significant considerations, making Alaska a choice for the hearty and adventurous retiree.