WalletHub says these are the best states for retirees
Top 5 States to Retire (2025)
Personal finance website WalletHub this week released its rankings of the best and worst states to retire in 2025. It determined that Florida, Minnesota and Colorado are the friendliest states for retirees, while Mississippi, Louisiana and Kentucky are at the opposite end of the spectrum.
The company compiled its rankings through 46 metrics, including living expenses, tax rates, access to quality medical care and the availability of leisure activities.
“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,” WalletHub analyst Chip
said in the report.
“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.”
The report builds on other recent evidence that America’s fast-growing senior population is having trouble preparing for retirement and staying financially healthy once they get there.
Survey data from Clever Real Estate found that among Americans ages 62 and older, nearly half are concerned about outliving their retirement savings. One in four say they are burdened by housing costs. The survey cited $600,000 as the recommended savings for retirement, but the average respondent indicated they had about half this amount in the bank.
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Florida was No. 1 on the list due to its low tax rates, which outweighs its relatively high cost of living, according to the most recent data from the Missouri Economic Research and Information Center. The Sunshine State has no taxes on estates, inheritances or incomes. WalletHub also noted that Florida gets the third most funding per senior from the Older Americans Act, which pays for transportation, home assistance and nutrition programs for seniors.
Minnesota ranked No. 2 as it has the most health care facilities, second-most nursing homes and third-most home health care aides per capita among all states, according to WalletHub. It also has low shares of seniors with disability and mental health issues, as well as strong protections against elder abuse.
Colorado was the third-best state for retirees as it has relatively low poverty rates and hunger rates among seniors. It also has high shares of seniors who are physically active and socially engaged, and the state’s geriatric hospitals rank among the top 10 nationally, WalletHub found.
The Southern states of Mississippi, Louisiana and Kentucky were at the bottom hub of the company’s rankings. Mississippi ranked last among all states for its quality of life, while Louisiana scored exceptionally low for its health care services. Kentucky had similar issues in these categories and ranked last overall due to much higher living expenses than Mississippi or Louisiana.
WalletHub solicited feedback from experts in fields such as aging, taxes and personal finance. Steve Benton, an elder financial safety counselor for The Senior Source, said in the report that the most common mistake when retirees choose where to live is “not understanding the importance of matching income to expenses in this lifestyle change. You are probably not going to maintain the status quo of spending habits.”
Gary Burtless, a senior fellow emeritus in economic studies at the Brookings Institution, said that many people who relocate for retirement purposes “downplay the social aspects” of such a move.
“When you or a spouse stops working, friends at work will almost certainly begin to become more socially distant,” Burtless told WalletHub. “Moving away from where you have lived before retirement will accelerate your social separation from former work pals. Have you thought hard about the implications for your post-retirement social life?”