Retirement in the United States 2025
Choosing the right state for retirement represents one of the most consequential financial and lifestyle decisions Americans face as they approach their golden years. In 2025, retirement location selection has become increasingly complex, with multiple authoritative studies revealing surprising shifts away from traditional Sun Belt retirement havens toward New England and Western states offering superior quality of life factors. Bankrate’s 2025 Best and Worst States to Retire Study names New Hampshire as America’s top retirement destination, unseating previous leaders and challenging conventional wisdom about ideal retirement locations. Meanwhile, WalletHub’s comprehensive 2025 analysis across 46 key indicators identifies Florida as the best retirement state, demonstrating how different weighting methodologies and priorities produce varying results for prospective retirees.
What distinguishes the 2025 retirement landscape is the increasing emphasis on comprehensive quality-of-life factors beyond traditional considerations like warm weather and low taxes. Modern retirees prioritize neighborhood safety, healthcare access and quality, walkability, recreational opportunities, and natural disaster risk alongside financial considerations. The fact that 66% of non-retired adults report their retirement savings aren’t on track makes affordability paramount, yet studies reveal that focusing exclusively on low costs often means sacrificing healthcare quality, safety, and lifestyle amenities that significantly impact retiree well-being. This comprehensive approach to retirement state selection reflects the reality that retirees may spend 20-30 years in their chosen location, making it essential to consider factors affecting long-term health, happiness, and financial security rather than simply seeking the lowest tax burden or warmest climate.
Key Retirement State Rankings and Statistics 2025
| Ranking Source | #1 Best State | #2 Best State | #3 Best State | #4 Best State | #5 Best State | Methodology |
|---|---|---|---|---|---|---|
| Bankrate 2025 | New Hampshire | Maine | Wyoming | Vermont | Idaho | 15 metrics, survey-weighted |
| WalletHub 2025 | Florida | Minnesota | Colorado | Wyoming | South Dakota | 46 indicators across 3 categories |
| Empower 2025 | Wyoming | Florida | Nebraska | Maryland | Minnesota | Tax focus + quality of life |
| Motley Fool 2025 | Florida | Nebraska | Maryland | Minnesota | Wisconsin | 7 key retirement factors |
| Common Top States | Florida, Wyoming, New Hampshire, Minnesota, Colorado | — | — | — | — | Consistently ranked high |
Data Sources: Bankrate Best States to Retire 2025; WalletHub Retirement Study 2025; Empower Retirement Analysis 2025; Motley Fool Research 2025
The 2025 retirement state rankings reveal significant variation depending on which factors receive priority weighting, though several states consistently appear across multiple authoritative studies. Bankrate’s 2025 study places New Hampshire first, emphasizing the Granite State’s exceptional performance in neighborhood safety (1st nationally), healthcare (5th), taxes (6th), and concentration of similarly-aged residents (7th). This methodology weights affordability most heavily at 28%, followed by weather (18%), neighborhood safety (17%), and healthcare (16%), with remaining factors including local taxes, arts and entertainment, and community well-being comprising the balance. WalletHub’s comprehensive analysis across 46 specific metrics crowns Florida as the retirement champion, with the Sunshine State scoring particularly high in affordability (2nd) and quality of life (2nd), though falling to 27th in healthcare.
The rankings demonstrate how methodology dramatically influences outcomes. Four New England states (New Hampshire, Maine, Rhode Island, Vermont) rank in Bankrate’s top 10, while eight of the 10 worst states for retirees are in the Sun Belt, including traditional retirement magnets like Florida (#41 in Bankrate), Texas (#49), and California (#44). This represents a fundamental shift from decades of conventional wisdom suggesting warm-weather states automatically offer superior retirement conditions. States appearing consistently across multiple rankings include Florida, Wyoming, New Hampshire, Minnesota, and Colorado, each offering distinct advantages: Florida provides tax benefits and warm weather; Wyoming delivers low taxes and affordability; New Hampshire offers safety and healthcare; Minnesota excels in healthcare infrastructure; and Colorado balances quality of life with outdoor recreation. The variation in rankings underscores the importance of prospective retirees identifying their personal priorities—whether emphasizing financial considerations, healthcare access, climate preferences, cultural amenities, or safety—and selecting states aligning with those specific values rather than defaulting to traditionally popular retirement destinations.
New Hampshire: America’s Top Retirement State 2025
| New Hampshire Retirement Metric | State Ranking | Score/Details | National Context |
|---|---|---|---|
| Overall Bankrate Ranking | #1 | Top retirement state 2025 | Unseats Delaware from 2024 |
| Neighborhood Safety | #1 | Lowest violent crime | Safest state for retirees |
| Healthcare Quality | #5 | Excellent facilities | Top-tier medical access |
| Local Taxes | #6 | Low tax burden | 3% on interest/dividends only |
| People of Similar Age | #7 | Strong senior population | Active retiree community |
| Affordability | #14 | Moderate costs | Mid-range cost of living |
| Weather | #40 | Limited sunshine | Significant drawback |
| Arts & Entertainment | #15 | Good cultural amenities | Theaters, museums accessible |
Data Source: Bankrate Best and Worst States to Retire 2025 Study
New Hampshire earned the #1 ranking in Bankrate’s 2025 Best States to Retire study, marking a dramatic shift in retirement destination preferences away from warm-weather states toward quality-of-life priorities. The Granite State’s exceptional performance stems from its first-place national ranking in neighborhood safety, offering retirees the lowest violent crime rates in America and creating secure environments for aging populations. This safety advantage proves particularly valuable as retirees may be more vulnerable to crime and value peace of mind in their daily activities. New Hampshire’s 5th-place healthcare ranking provides retirees access to high-quality medical facilities, crucial as healthcare needs typically increase with age. The state’s 6th-place tax ranking reflects its unusual tax structure: New Hampshire charges only a 3% tax on interest and dividends, meaning Social Security benefits, pension income, and most retirement account distributions face no state taxation, allowing retirees’ fixed incomes to stretch further.
However, New Hampshire presents trade-offs that prospective retirees must carefully consider. The state ranks 40th in weather, experiencing cold winters, limited sunshine exposure compared to southern states, and weather conditions challenging for individuals with mobility limitations or those sensitive to cold temperatures. Despite this significant drawback in the second-most weighted category, New Hampshire’s exceptional performances in other areas overcame this deficit in the comprehensive analysis. The state scored 14th in affordability, indicating moderate but not bargain-level living costs, with housing prices in desirable areas like Portsmouth, Hanover, and the Lakes Region potentially stretching retirement budgets. New Hampshire’s 15th-place ranking in arts, entertainment and recreation establishments demonstrates adequate cultural amenities without the extensive offerings of major metropolitan areas. The state’s 7th-place finish in concentration of similarly-aged residents creates strong peer communities where retirees find social connections with others in their life stage. New Hampshire’s combination of safety, healthcare, tax advantages, and quality of life makes it ideal for retirees prioritizing security and well-being over year-round warm weather, particularly those who enjoy four distinct seasons and outdoor recreation including skiing, hiking, and fall foliage viewing.
Florida: Traditional Retirement Leader 2025
| Florida Retirement Metric | Ranking/Score | Details | Comparison |
|---|---|---|---|
| WalletHub Overall Ranking | #1 | Total score 62.76 | Top retirement state |
| WalletHub Affordability | #2 | Excellent cost value | Second-best nationally |
| WalletHub Quality of Life | #2 | Strong lifestyle factors | Second-best overall |
| WalletHub Healthcare | #27 | Mid-range medical access | Area needing improvement |
| Bankrate Overall Ranking | #41 | Lower than expected | Sun Belt decline |
| State Income Tax | $0 | No income tax | Retiree-friendly |
| Estate/Inheritance Tax | $0 | No estate taxes | Protects wealth transfer |
| Population 65+ | 23%+ | Third-highest concentration | Strong retiree community |
Data Sources: WalletHub Best States to Retire 2025; Bankrate Retirement Study 2025; Florida Department of Revenue
Florida ranks #1 in WalletHub’s 2025 comprehensive retirement study, affirming its decades-long status as America’s premier retirement destination for millions of seniors. The Sunshine State’s top ranking stems from its #2 affordability score and #2 quality of life rating, demonstrating Florida successfully balances financial considerations with lifestyle amenities retirees value. Florida’s tax-friendly environment includes no estate, inheritance, or income taxes, allowing retirees to keep more of their Social Security benefits, pension payments, and retirement account withdrawals compared to high-tax states. The state receives more funding per senior from the Older Americans Act than all but two other states, financing transportation services, homemaker assistance, and nutrition programs specifically benefiting elderly residents. Florida possesses the second-most shoreline miles of any state, enabling countless beach activities, waterfront living options, and recreational opportunities that attract retirees seeking coastal lifestyles.
However, Florida’s retirement supremacy faces growing challenges reflected in divergent rankings across studies. Bankrate’s 2025 study ranks Florida just #41, a surprisingly low placement that reflects poor rankings in healthcare, home insurance costs, and natural disaster risk. The state’s #27 healthcare ranking in WalletHub’s analysis indicates adequate but not exceptional medical infrastructure despite Florida’s massive retiree population. Hurricane risks along coastal areas create ongoing concerns about property damage, insurance availability and affordability, and evacuation challenges for elderly residents with limited mobility. Florida has the third-lowest death rate nationally for people ages 65+, suggesting overall positive health outcomes despite mid-range healthcare system rankings. The state offers exceptional cultural and recreational amenities, including the second-most adult volunteer activities, fifth-most theater companies, and seventh-most golf courses and country clubs nationally. Florida’s concentration of retirees creates built-in peer communities, age-friendly services, and specialized healthcare providers experienced with geriatric patients. For retirees prioritizing tax savings, warm weather year-round, beach access, and active social scenes, Florida remains an excellent choice, though prospective residents should carefully research specific locations to balance hurricane risk, insurance costs, and healthcare access against the state’s undeniable lifestyle and financial advantages.
Best Western States for Retirement 2025
| Western State | Bankrate Rank | WalletHub Rank | Key Advantages | Potential Drawbacks |
|---|---|---|---|---|
| Wyoming | #3 | #4 | Best taxes, no income tax, affordability | Limited healthcare (#38 Bankrate) |
| Idaho | #5 | #24 | Low crime, safety (#3), affordability | Limited arts (#37), growing population |
| Utah | #7 | #18 | Low crime, family-friendly, outdoor recreation | Limited senior population |
| Colorado | #9 | #3 | Healthcare (#3), outdoor activities | Higher costs, affordability concerns |
| Montana | #14 | #22 | Natural beauty, low population density | Remote healthcare, harsh winters |
| South Dakota | #10 | #5 | Low taxes, affordability, quality of life | Limited cultural amenities |
Data Sources: Bankrate Best States 2025; WalletHub Retirement Rankings 2025
Western states dominate the top tier of 2025 retirement rankings, with three of Bankrate’s top 10 (Idaho, Utah, Wyoming) located in the Mountain West. Wyoming ranks #3 in Bankrate’s study, earning first place for taxes due to its zero income tax and 4th overall in affordability. The Cowboy State offers retirees substantial financial advantages, allowing retirement savings to stretch significantly further than high-tax coastal states. Wyoming also scored 7th in neighborhood safety and 10th in arts, entertainment and recreation, demonstrating solid quality-of-life despite its sparse population. However, Wyoming placed 39th in healthcare, reflecting limited medical facilities and specialist availability across its vast, rural geography—a critical consideration for retirees with chronic health conditions requiring regular specialist care.
Idaho ranks #5 in Bankrate’s 2025 study and distinguishes itself with exceptional safety metrics. The Gem State scored 3rd nationally in neighborhood safety and possesses the lowest property crime rate in America, creating secure environments for retirees concerned about theft and personal safety. Idaho performed well financially, ranking 9th in affordability and 11th in taxes, making it accessible for retirees on fixed incomes. Colorado claims the #3 position in WalletHub’s comprehensive analysis, excelling particularly in healthcare infrastructure. The state offers no estate or inheritance taxes, the seventh-lowest poverty rate for residents 65+, and features the 10th-best geriatric hospitals nationally. Colorado provides retirees abundant outdoor recreation including world-class skiing, hiking, and mountain activities, though affordability presents challenges in popular areas like Denver, Boulder, and resort communities. South Dakota ranks #5 in WalletHub’s study, offering low taxes, strong quality of life metrics, and excellent healthcare access despite its rural character. These Western states appeal particularly to retirees valuing natural beauty, outdoor activities, lower population density, and financial advantages over warm weather and extensive cultural amenities, though careful consideration of healthcare access proves essential given the specialized medical needs common among aging populations.
Best New England States for Retirement 2025
| New England State | Bankrate Rank | Key Strengths | Healthcare Ranking | Tax Environment |
|---|---|---|---|---|
| New Hampshire | #1 | Safety (#1), Healthcare (#5) | #5 | Low taxes (#6) |
| Maine | #2 | Safety (#2), Healthcare (#3), Arts (#4) | #3 | Moderate taxes |
| Vermont | #4 | Arts (#1), Healthcare (#1), Senior population (#2) | #1 | Higher taxes |
| Rhode Island | #6 | Healthcare access, cultural amenities | Mid-range | Moderate-high taxes |
| Massachusetts | #21 | Top healthcare (#2 WalletHub), universities | #2 | Very high costs (#49 affordability) |
| Connecticut | #27 | Healthcare (#6 WalletHub), proximity to NYC | #6 | High taxes, costs |
Data Sources: Bankrate Best States to Retire 2025; WalletHub Retirement Study 2025
New England’s unprecedented dominance in 2025 retirement rankings represents a fundamental shift in American retirement patterns. Four New England states rank in Bankrate’s top 10, with New Hampshire #1, Maine #2, Vermont #4, and Rhode Island #6—an extraordinary regional concentration suggesting these states share characteristics valuable to modern retirees. Maine ranks #2 nationally in Bankrate’s 2025 study, distinguished by having 23% of residents age 65 or older, the highest senior concentration nationally. This demographic reality creates communities specifically attuned to retiree needs, with age-appropriate services, healthcare infrastructure, and social opportunities designed for older adults. Maine achieved 2nd place nationally in neighborhood safety, thanks partly to the state’s lower violent crime rate, alongside strong rankings in healthcare (#3) and arts, entertainment and recreation (#4).
Vermont ranks #4 in Bankrate’s 2025 study, earning #1 nationally in both arts/entertainment venues per capita and healthcare quality. The Green Mountain State offers exceptional medical facilities despite its small population, with teaching hospitals affiliated with the University of Vermont providing specialized care typically found only in larger metropolitan areas. Vermont showed the second-highest concentration of similarly aged residents, creating peer communities for retirees, and scored 12th in affordability, surprisingly competitive given its reputation as an expensive state. However, Vermont placed 43rd in weather with the second-lowest sunlight exposure nationally, making it unsuitable for retirees intolerant of long, dark winters. Massachusetts ranks #23 in WalletHub’s study despite #2 nationally in healthcare, reflecting how 49th place affordability due to extremely high costs limits its appeal despite world-class medical facilities concentrated in Boston. New England states excel in healthcare quality, safety, cultural amenities, walkability, and community well-being—factors increasingly prioritized by educated, affluent retirees willing to trade warm weather for superior quality of life. These states particularly suit retirees with adequate savings to manage higher costs, those who enjoy or tolerate cold weather, and individuals prioritizing healthcare access, cultural engagement, and outdoor activities like skiing, hiking, and fall foliage viewing over year-round swimming and golf.
Worst States for Retirement 2025
| State | Bankrate Rank | WalletHub Rank | Primary Weaknesses | Key Issues |
|---|---|---|---|---|
| Louisiana | #50 (worst) | #49 | Safety (#48), Healthcare (#37), Affordability (#43) | Crime, hurricanes, poor services |
| Texas | #49 | #26 | Healthcare (#50), Affordability (#42), Weather (#47) | Natural disasters, costs rising |
| Oklahoma | #48 | #33 | High insurance costs, Limited arts (#46) | Tornado risk, quality of life issues |
| Arkansas | #47 | #42 | Crime (#46), Healthcare (#42), Limited arts (#48) | Poor healthcare access |
| Alabama | #44 | #37 | Healthcare (#49), Quality of life issues | Limited senior services |
| Kentucky | #46 | #50 (worst) | Life expectancy, Healthcare quality | Poor health outcomes |
| Mississippi | #43 | #48 | Life expectancy (#50), Quality of life (#50) | Worst healthcare outcomes |
Data Sources: Bankrate Best States to Retire 2025; WalletHub Retirement Study 2025
The lowest-ranked retirement states in 2025 share common challenges that significantly impact retiree quality of life and financial security. Louisiana ranks #50 (last place) in Bankrate’s 2025 study, with poor showings in affordability (#43rd), neighborhood safety (#48th), and healthcare (#37th). The Bayou State faces particularly severe crime challenges, with property crime and violent crime rates higher than most states. Despite expectations that Louisiana should excel in weather given its southern location, the state ranked only 39th in weather due to 12 hurricanes between 2002-2023 plus frequent tornadoes that offset warm temperatures and sunshine. Louisiana finished below 36th place in every major category, indicating systematic challenges across multiple dimensions affecting retiree well-being.
Texas, traditionally considered a retirement haven, ranks #49 in Bankrate’s 2025 study, a stunning decline for the Lone Star State. Texas ranks dead last (50th) in healthcare and 49th in people of similar age, indicating inadequate medical infrastructure for its large geographic area and growing retiree population. Despite ranking 7th in taxes due to no state income tax, Texas placed 42nd in affordability and 47th in weather. Hurricane risks along the Gulf Coast, tornado frequency in North Texas, and extreme heat create ongoing challenges. Mississippi ranks #48 in WalletHub’s study with the #50 (worst) life expectancy and #50 (worst) quality of life, reflecting profound healthcare and social challenges. Kentucky claims #50 (last place) in WalletHub’s rankings despite moderate costs, indicating severe healthcare and quality-of-life deficiencies overwhelming financial advantages. Eight of the 10 worst states concentrate in the Sun Belt, demonstrating that warm weather and low taxes alone cannot overcome deficiencies in healthcare access, public safety, natural disaster risks, and overall quality of life. Retirees considering these low-ranked states should conduct extensive research on specific communities, healthcare facility proximity, insurance costs and availability, and realistic assessment of how ranking factors align with personal priorities before committing to relocation.
Tax Considerations for Retirement States 2025
| Tax Factor | Most Favorable States | Least Favorable States | Impact on Retirees |
|---|---|---|---|
| No State Income Tax | Wyoming, Florida, Texas, Tennessee, Nevada, Washington, South Dakota, Alaska, New Hampshire (limited) | Varies | Social Security and pensions untaxed |
| No Estate/Inheritance Tax | Most states (38 total) | Maryland, Massachusetts, Connecticut, New York, Oregon, others | Protects wealth transfer |
| Overall Tax Friendliness | Wyoming (#1), Alaska (#2), Delaware (#3) | Illinois (#50), New York (#49), Connecticut (#48) | Total tax burden |
| Property Tax Burden | Hawaii, Alabama, Louisiana (lowest rates) | New Jersey, Illinois, New Hampshire (highest) | Annual housing costs |
| Sales Tax Impact | Alaska, Delaware, Montana, New Hampshire, Oregon (no sales tax) | Tennessee, Louisiana, Arkansas (highest combined rates) | Daily purchase costs |
| Retirement Income Taxation | Mississippi (no taxation on any retirement income) | California, Vermont (tax most income) | Fixed income protection |
Data Sources: Tax Foundation; WalletHub Taxpayer Rankings 2025; Kiplinger Tax Guide 2025
Tax considerations profoundly impact retirement financial security, with state tax policies creating thousands of dollars in annual differences for retirees on fixed incomes. Nine states impose no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, allowing retirees to keep 100% of Social Security benefits, pension payments, and traditional IRA/401(k) withdrawals without state taxation. New Hampshire uniquely taxes only interest and dividends at 3%, leaving wage income, pensions, and Social Security completely untaxed—particularly advantageous for retirees whose income sources predominantly include pensions and Social Security rather than investment income. Wyoming ranks #1 nationally in overall tax friendliness for retirees, combining zero income tax with reasonable property taxes and no estate tax, creating optimal conditions for retirement savings preservation.
However, evaluating state tax burdens requires comprehensive analysis beyond income tax alone. States without income taxes often impose higher property taxes, sales taxes, or fees to generate revenue. New Hampshire’s property taxes rank among the nation’s highest, potentially offsetting income tax savings for retirees owning expensive homes. Tennessee and Louisiana maintain the highest combined state and local sales tax rates, increasing costs for retirees’ daily purchases of goods and services. Estate and inheritance taxes deserve consideration for retirees with substantial assets: only 12 states plus Washington D.C. impose estate or inheritance taxes, with exemption thresholds varying widely from $1 million to over $10 million. States including Maryland, Massachusetts, Connecticut, and New York maintain estate taxes potentially consuming significant portions of inheritances intended for heirs. Some states specifically exempt retirement income from taxation: Mississippi exempts all retirement income regardless of source; Pennsylvania doesn’t tax pension income; and many states exclude Social Security benefits from taxation even when they tax other income sources. Retirees should calculate comprehensive tax burdens including income, property, sales, estate, and specialized taxes or fees to determine true after-tax income potential, recognizing that a state advertising “no income tax” may impose heavy property and sales taxes potentially exceeding income tax obligations in states with moderate income taxes but lower property and sales tax burdens.
Healthcare Quality and Access by State 2025
| Healthcare Metric | Top-Ranked States | Bottom-Ranked States | Retirement Impact |
|---|---|---|---|
| Overall Healthcare Quality | Vermont (#1 Bankrate), Minnesota (#1 WalletHub) | Texas (#50 Bankrate), Mississippi (#47 WalletHub) | Medical care access |
| Geriatric Hospitals | Vermont, Massachusetts, Minnesota (top-rated) | Wyoming, Oklahoma, Arkansas (limited) | Specialized senior care |
| Geriatrician Availability | Vermont, Hawaii, Massachusetts | Texas, Oklahoma, Nevada (severe shortages) | Doctor-to-senior ratio |
| Health Care Facilities per Capita | Vermont, North Dakota, Minnesota | Nevada, Texas, Arizona | Hospital accessibility |
| Life Expectancy | Hawaii (#1: 82+ years), California, Minnesota | Mississippi (#50: 74.4 years), West Virginia | Overall health outcomes |
| Population 65+ in Good Health | Colorado, Utah, Vermont (highest percentages) | West Virginia, Kentucky, Mississippi | Active aging potential |
Data Sources: Bankrate Healthcare Rankings 2025; WalletHub Health Care Analysis 2025; CDC Life Expectancy Data 2024
Healthcare quality and accessibility represent critical retirement considerations as medical needs typically increase with age, making proximity to quality facilities potentially life-saving. Vermont ranks #1 nationally in healthcare quality in Bankrate’s 2025 study, offering exceptional medical facilities despite its small population of just 640,000 residents. Vermont’s healthcare excellence stems from teaching hospitals affiliated with the University of Vermont, comprehensive primary care networks, and the nation’s highest concentration of healthcare providers per capita. Minnesota claims the #1 healthcare spot in WalletHub’s 2025 comprehensive analysis, with the most healthcare facilities, second-most nursing homes, and third-most home health aides per capita. The state’s renowned Mayo Clinic in Rochester provides world-class specialized medical care, while Minneapolis-St. Paul hospitals consistently rank among America’s best.
Healthcare access disparities create significant quality-of-life differences for retirees across states. Texas ranks #50 (last place) in healthcare in Bankrate’s 2025 study, a shocking statistic for the nation’s second-most populous state. Mississippi, West Virginia, and Alabama consistently place in the bottom five for healthcare access and quality, with Mississippi suffering the nation’s worst life expectancy at just 74.4 years compared to Hawaii’s 82+ years—a nearly 8-year gap representing fundamental health outcome differences. Geriatrician shortages plague many states, with some requiring less than 50% of geriatricians needed to meet estimated senior population demands. Rural areas face particular challenges, with Wyoming ranking 39th in healthcare despite its small population, reflecting the difficulty of maintaining specialized medical facilities across vast, sparsely populated territories. Retirees with chronic conditions like diabetes, heart disease, or cancer should prioritize states offering robust healthcare infrastructure, recognizing that saving money through low taxes or cheap housing means nothing if quality medical care remains hours away or unavailable when emergencies arise. The healthcare ranking differences between top and bottom states prove so substantial that they should heavily influence retirement location decisions for anyone anticipating significant medical needs during their retirement years.
Cost of Living and Affordability Analysis 2025
| Affordability Metric | Most Affordable States | Least Affordable States | Retirement Budget Impact |
|---|---|---|---|
| Overall Cost of Living | Alabama, Oklahoma, West Virginia, Arkansas, Mississippi | Hawaii (#50), California, Massachusetts, New York, Alaska | Housing, goods, services |
| Median Home Price | West Virginia (~$145K), Oklahoma, Arkansas | Hawaii ($850K+), California ($650K+), Massachusetts | Retirement nest egg preservation |
| Average Rent (2-bed) | Mississippi ($850/mo), Arkansas, West Virginia | California ($2,500+/mo), Hawaii, Massachusetts | Fixed income sustainability |
The cost of living in the United States continues to vary dramatically across states in 2025, shaping where retirees and families choose to settle. States like Alabama, Oklahoma, and West Virginia remain among the most affordable, offering lower housing prices and overall expenses that allow retirement savings to stretch further. By contrast, states such as Hawaii, California, and Massachusetts rank as the least affordable due to soaring housing markets and high everyday costs, making them challenging for individuals relying on fixed incomes.
Housing is the single largest factor impacting affordability, with median home prices in affordable states like West Virginia averaging around $145,000, compared to over $850,000 in Hawaii. Rental markets show similar disparities, with Mississippi offering two-bedroom apartments for under $900 per month, while the same space in California costs more than $2,500. These differences highlight the importance of cost-of-living planning for retirees and working families alike, as affordability directly affects lifestyle, savings preservation, and long-term financial security.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
