Retirement is a significant life milestone, and choosing the right state to settle in can have a major impact on your finances, healthcare access, and overall quality of life. With the rising cost of living in urban areas, more seniors are looking for affordable and comfortable places to spend their golden years.
A recent analysis by WalletHub has ranked the best and worst states for retirement in 2025. The study considered key factors such as cost of living, healthcare services, tax benefits, and quality of life. This article provides a detailed look at the top states for retirees, as well as those that may not be ideal choices.
Key Factors in Ranking the Best States for Retirement
WalletHub used 46 different indicators to evaluate the retirement-friendliness of each state. The rankings were based on three primary categories:
1. Affordability
Affordability is crucial for retirees living on a fixed income. The study assessed:
- Cost of living (housing, food, transportation, and utilities)
- Tax policies, including state income tax, estate tax, and inheritance tax
- Costs of in-home care and adult day health services
2. Quality of Life
A good quality of life is essential for a fulfilling retirement. Factors considered in this category included:
- Availability of recreational activities such as parks, beaches, and golf courses
- Air and water quality
- Safety and protections against elder abuse
- Social engagement opportunities for seniors
3. Healthcare
Access to quality healthcare is a top priority for retirees. This category included:
- Number of healthcare facilities and specialists per capita
- Quality of hospitals and elder care services
- Availability of geriatricians
- Life expectancy rates
Top U.S. States for Retirement in 2025
Based on WalletHub’s analysis, these states offer the best combination of affordability, healthcare, and quality of life for retirees.
1. Florida – The Best State for Retirees
Florida has long been a top choice for retirees, and in 2025, it continues to lead the rankings. The state offers:
- No state income tax, estate tax, or inheritance tax
- Warm, sunny weather year-round
- A wide range of recreational activities, including beaches and golf courses
- Strong funding for senior support services like transportation and nutrition programs
2. Minnesota – Top-Rated for Healthcare
Minnesota ranks second due to its excellent healthcare system. It has:
- The highest number of healthcare facilities per capita
- Some of the best hospitals for geriatric care and nursing homes
- A low senior poverty rate, ensuring better financial support for retirees
3. Colorado – Best for Active Retirees
Colorado is ideal for retirees who enjoy outdoor activities and a healthy lifestyle. The state offers:
- A high percentage of physically active seniors
- Low rates of social isolation among retirees
- Affordable healthcare services
4. Wyoming – Cost-Effective Choice for Retirees
Wyoming is one of the most affordable states for retirees, thanks to:
- Low cost of living
- No state income tax
- A strong healthcare system despite its smaller population
5. South Dakota – Affordable and Senior-Friendly
South Dakota stands out for:
- Affordable housing and living costs
- High-quality healthcare services
- A tax-friendly environment for retirees
6. Pennsylvania – Affordable Living with Rich History
Pennsylvania is a great choice for retirees who want a mix of affordability and cultural richness:
- Low cost of living and affordable housing options
- No state income tax on retirement income such as Social Security and pensions
- Access to world-class healthcare facilities in cities like Philadelphia and Pittsburgh
7. New Hampshire – No State Income Tax
New Hampshire is an attractive option for retirees because:
- No state income tax or sales tax
- Beautiful natural landscapes for outdoor enthusiasts
- High-quality healthcare and safety ratings
8. Delaware – Tax-Friendly and Coastal Beauty
Delaware is gaining popularity among retirees due to:
- No state sales tax and low property taxes
- Coastal living with access to beautiful beaches
- Proximity to major cities like Philadelphia, Baltimore, and Washington, D.C.
9. North Dakota – Low Cost of Living and Excellent Healthcare
North Dakota is an underrated retirement destination with:
- A low cost of living and affordable housing
- Some of the best-rated healthcare facilities in the country
- A strong sense of community and low crime rates
10. Wisconsin – Healthcare and Outdoor Recreation
Wisconsin is a good choice for retirees who enjoy nature and quality healthcare:
- Highly ranked hospitals and elder care facilities
- Beautiful lakes, parks, and recreational opportunities
- Affordable housing and cost of living
Final Thoughts
Retirement is a time to relax and enjoy life, so choosing the right state is important. Florida remains the best overall state for retirees, while Minnesota and Colorado stand out for their healthcare and active lifestyle opportunities. On the other hand, states like Massachusetts and Hawaii may be less ideal due to high living costs.
Before making a decision, consider your personal priorities, such as weather preferences, healthcare needs, and budget. By choosing the right state, you can enjoy a comfortable and fulfilling retirement.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Filza specializes in simplifying financial topics for everyday readers. Whether breaking down Canada’s tax guides or U.S. benefits like SNAP and VA Disability, Filza’s relatable writing style ensures readers feel confident and informed. Follow her insights on LinkedIn or reach out via email at [email protected].