Whether you want to settle in a lakeside cabin at the edge of the woods or in a home right by the golf course, there are endless possibilities for enjoying retirement. Of course, you want to make your retirement savings last to truly enjoy it, and where you live plays a big part in your retirement experience. You can maintain a high quality of life even on a fixed income if you choose the right retirement destination.
We judged all 50 states on factors like average home cost, tax burden, senior population, and senior health to find the best states for retirement. The top spots offer more pros than cons, and some states on our list may come as a surprise. Read on to find out which states made the cut.
How To Choose the Best State for Retirement
The best state for retirement varies depending on your situation and goals. Consider factors like healthcare, housing costs, taxes, enjoyment, wellness, and accessibility to find the best state to retire in. Think about your family bonds, too. While moving to one state could save you money, moving to another (or staying where you are) might mean getting to enjoy more time with friends, kids, and grandkids.
Let’s say you do want to move somewhere less costly. Some states don’t charge income tax, which can be helpful when withdrawing from an annuity or 401(k). Moving to these areas can help you maximize your retirement funds so you can travel, try new activities, or make your home a retiree oasis.
Other states have a great reputation for healthcare, which could be at the top of your list. Or, you might want to move somewhere with great senior communities to choose from. A financial advisor can help if you’re deciding between a few different cities for retirement.
Top 10 States To Retire In
Below, you can compare our picks for the 10 best states for retirees. We chose these states based on five main characteristics:
- Average home cost (15% weight)
- Tax burden (15% weight)
- Cost of living (15% weight)
- Senior population percent (20% weight)
- Senior health rank (35% weight)
We weighed popularity with seniors and senior health heavier than the three other financial scores since there’s more to retirement than finances.
| State | Average Home Cost* | Senior Health Rank** |
| 1. Michigan | $250,534 | 18 |
| 2. South Dakota | $311,866 | 19 |
| 3. North Dakota | $265,896 | 15 |
| 4. New Hampshire | $485,943 | 4 |
| 5. Wisconsin | $312,369 | 11 |
| 6. Vermont | $402,217 | 3 |
| 7. Iowa | $223,348 | 23 |
| 8. Delaware | $389,714 | 9 |
| 9. Maine | $410,347 | 13 |
| 10. Pennsylvania | $270,780 | 24 |
*Average home price is according to the Zillow Home Value Index for All Homes in July 2024
**Senior health rank is according to the 2024 Senior Report from America’s Health Rankings
1. Michigan
Tax burden: Low
Cost of living: Medium
Residents’ favorite season: Summer
Population percentage of seniors: 18.7%
Michigan is our top pick for retirees overall. It offers reasonable home prices and a low tax burden and is one of the more popular states for seniors to live in. America’s Health Rankings (AHR) notes Michigan performs well in clinical care for seniors, too. It ranks the state 11th overall for access to care, preventative services, and quality of care in its 2024 Senior Report.
2. South Dakota
Tax burden: Low
Cost of living: Low
Residents’ favorite season: Summer
Population percentage of seniors: 18%
If saving money is your top priority, South Dakota is a great option for retirement. It has a low cost of living with a price parity index of 88. This means prices in South Dakota are about 22 percent lower than the national average. South Dakota is also a tax-friendly state for retirees. You don’t have to pay taxes on long-term capital gains or personal income in the state, either. Considering health, South Dakota offers plenty of fresh air and clean water—AHR ranks it second in the physical environment category.
3. North Dakota
Tax burden: Low
Cost of living: Low
Residents’ favorite season: Summer
Population percentage of seniors: 16.7%
Next on our list of the best states to retire is North Dakota. While this state is less popular for seniors than our other top picks, it offers affordable real estate on average and a low cost of living. Plus, the AHR study ranks the state first for physical environment considering its clean air and water. AHR also highlights seniors in North Dakota report low rates of mental distress, physical distress, or insufficient sleep.
4. New Hampshire
Tax burden: Low
Cost of living: High
Residents’ favorite season: Fall
Population percentage of seniors: 20.2%
New Hampshire frequents lists of best states to retire and for good reason. It has incredible natural beauty, especially in the fall. It doesn’t have the lowest cost of living or housing costs, but it ranks seventh for states with the most seniors and fourth for senior health. Seniors have good access to medical care and enjoy good nutrition and physical activity according to AHR’s study. New Hampshire also doesn’t tax personal income or long-term capital gains.
5. Wisconsin
Tax burden: Medium
Cost of living: Medium
Residents’ favorite season: Summer
Population percentage of seniors: 18.7%
Wisconsin is another good choice if you want to retire in a state with affordable living and housing costs plus reliable access to healthcare. AHR’s study found that only 1.8% of seniors in Wisconsin avoided medical care due to the cost—the lowest portion of any state. It also found the state has a low internet crime rate and a low risk of social isolation.
6. Vermont
Tax burden: High
Cost of living: Medium
Residents’ favorite season: Summer
Population percentage of seniors: 21.6%
Vermont stands out for having the third-largest senior population plus being the third-healthiest state for seniors in the country. In particular, Vermont seniors have low food insecurity, volunteer often, and get good exercise according to the AHR study. The study also ranked the state’s clinical care 16th overall.
7. Iowa
Tax burden: Medium
Cost of living: Low
Residents’ favorite season: Summer
Population percentage of seniors: 18.3%
Iowa’s average home price of $223,348 makes it the most affordable state for housing in our top 10 list. It’s also the fifth cheapest for cost of living. This means it’s easy to save money and make your retirement stretch in the state. Iowa performed well for its environment (water and air) plus clinical care in the AHR study.
8. Delaware
Tax burden: High
Cost of living: Medium
Residents’ favorite season: Fall
Population percentage of seniors: 20.8%
Delaware is another popular state for retirement even though it has higher-than-average housing prices, tax burdens, and cost of living. The state has a great climate and is especially enjoyable in the fall. Retirees are also drawn by its charm and proximity to other travel destinations. Beyond all that, the AHR study ranked Delaware ninth for senior health. The state has good levels of safety and access to care with a low risk of isolation.
9. Maine
Tax burden: High
Cost of living: Medium
Residents’ favorite season: Summer and Fall (tie)
Population percentage of seniors: 22.5%
Maine’s the place to go if you want peace and quiet. The state has the largest senior population in the nation and draws visitors with its beautiful summer and fall climates. However, it’s not the cheapest state to retire in, so be sure you’ve planned a good retirement income through annuities and other savings options. Maine is also one of the best states for senior medical care, according to the AHR study.
10. Pennsylvania
Tax burden: Medium
Cost of living: Medium
Residents’ favorite season: Summer
Population percentage of seniors: 19.6%
Our last pick for the best states to retire is a good all-around choice. Pennsylvania offers lower-than-average housing costs and good proximity to other East Coast destinations. The state has a good number of geriatricians and home health care workers according to the AHR study. AHR also found the state spends more than average on senior community support programs.
Why Choosing a Good Place To Retire Is Important
Where you choose to retire impacts your quality of life, and each place has its pros and cons. State lines can make a difference in taxes, cost of living, and the healthcare you can access. A tax-friendly state can add months or even years of longevity to your retirement accounts. That said, you might choose to pay a bit more in taxes to move somewhere beautiful and meaningful.
The best city to retire for you depends on what you want to get out of life. The important thing is to plan your retirement to make the most of your golden years. And while location is important, it isn’t everything. Building an income strategy with annuities and other investments can be just as important. Reach out to one of our trusted annuity experts today to learn how you can get the most out of an annuity no matter where you retire.
