7 Best and Worst States for Retirement in 2025

Prepare for retirement: Best and worst states for retirement this year. 

Same as getting married, expecting the first kid, or buying a house, retirement is another important and nice milestone in our lives. Some of us are eager to enter this chapter ASAP because we’re tired of work, and all we want to do is chill and enjoy things at a slower pace, while others are dead worried about how inflation, not having a salary, and other things will negatively impact their retirement.

Will it be that bad? We tend to disagree, but not to encourage our readers simply because you can relocate to a more affordable place that can assure your retirement years will be safe and sound.

Since there is an ongoing debate all over the internet about the best and worst states to relocate to in retirement, we’ve updated the list for this year, and in the following lines, we will approach this topic in depth.

Delaware

We start the list of the best and worst states for retirement on a positive note with Delaware. You’re probably surprised, but this year, Delaware was ranked as the best state in which to retire. The First State has a lot to offer retirees, despite not being widely viewed as a retirement haven.

First and foremost, it is tax-friendly for retirees, which is particularly advantageous, and it does not impose taxes on Social Security benefits. In terms of overall well-being, the number of arts and entertainment venues per 100,000 residents, and racial and ethnic diversity, the state scores highly. Additionally, a large proportion of its population is 62 years of age or older.

The climate is temperate, and there aren’t many hurricanes, tornadoes, or earthquakes which is a big plus for those who want to live in a place with nice weather. Despite being more expensive to live in, Delaware does well on all other affordability metrics that we looked at when ranking states, including property taxes, homeowners insurance, and the combined state and local sales tax.

Georgia

According to citizens’ statements and a ton of other statistics, the Peach State moved up from 15th to third place because it has become much more affordable since last year. The increase is primarily due to a slight decrease in average homeowners insurance rates and a significant decline in the cost of living in Georgia.

Georgia’s overall well-being and crime scores remained low this year, despite a slight improvement in the quality and cost of healthcare. As with Delaware, Georgia helps retirees in plenty of ways. Social Security isn’t taxed, which is great news for those living solely on this income type.

Georgia has a sizable retiree population in some places, which promotes a feeling of community and provides senior-focused benefits. Georgia is a fantastic place to consider for your next move, but just a heads up—especially in Atlanta, it can get a bit crowded since it’s one of the busiest cities in America. It’s definitely worth keeping that in mind as you plan your relocation!

South Carolina

When it comes to the best and worst states for retirement, South Carolina was voted as a good one for seniors. Compared to 2023, the good “reviews” regarding retirement life increased considerably, especially because of their amazingly affordable cost of healthcare. And this is a huge factor to consider whenever one is thinking about relocating to another state or city.

West Virginia

Due to its low cost of living, low property taxes, and reasonably priced homeowners insurance, this small state has the best affordability in the country. In terms of wellness, the state was ranked in the middle. Because it has the highest healthcare costs, inadequate health system performance, and the lowest number of healthcare facilities per 100,000 residents, it unequivocally received the lowest score in the quality and cost of healthcare category among all states.

Missouri

Fifth position Missouri excels at affordability, scoring highly on both property taxes and cost of living. Missouri is ranked highly on our list because affordability is given a 40 percent weight in the ranking. However, this state faces challenges related to crime, natural disasters, general well-being, and the quality of healthcare.

California

There is no surprise that California is among the most expensive states in America to live in as a retiree (and not only!). California is abundant in outdoor activities and breathtaking scenery, but these things are for tourists, not for average people who want to live a chill and frugal retirement.

Furthermore, while Social Security benefits are not taxed in California, pensions are. The state is famous for having some of the highest rates of sales tax and personal income tax in the nation. Out of all 50 states, California has the second-highest housing costs, the third-highest cost of living, and the fifth-highest tax burden.

Arkansas

Same as California, if you’re an outdoor enthusiast, you will love Arkansas. But if you’re an outdoor enthusiast retiree who also wants to be more savvy, Arkansas is a no-no for you. While Social Security benefits are excluded from state taxes, other retirement income sources are. In addition, Arkansas ranks quite low in terms of healthcare, which is crucial for senior citizens.

Now that we established what are the best and worst states for retirement, let’s also discuss a few more important things that should determine whether you’re ready or not to settle down in a completely different place. 

Think about the cost of living

It seems you’ve completed the list and have already considered the possibility of relocating. You have a couple of ideas in mind, but before saying “That’s it!” think about the cost of living.

Due to inflation and rising homeowners insurance rates, the cost of living has also increased dramatically in areas that have historically been popular retirement destinations in recent years. One of these examples is Florida; once a great destination for retirees in search of a low cost of living and friendly retirement communities, now it has become a pretty expensive place to live in.

Financial experts advise taking a look at the prospective future costs of living in the area if you intend to relocate for retirement and be certain it will be sustainable and affordable for you and your partner in the long run.

The taxing system

Oh, taxes! A terrible subject that gives each American citizen goosebumps is something that you must think of before relocating to a different city or state. Talking to a tax expert in the state and city where you plan to retire is the best way to get your questions answered.

Don’t believe those headlines that say, “There are no taxes for retirees in X state!” That’s a lie. There are no tax-free states. For example, you might want to move to Florida because it doesn’t tax income, but your home insurance might cost a lot more.

Try renting first

Consider renting for a few months at the place you want to live before selling your house and moving. In this manner, you can assess the advantages and disadvantages of residing there. You can also begin establishing your community so that you will have a network of people to move with.

Try and be in proximity to a health care center

It’s crucial to take into account the out-of-pocket medical expenses following Medicare wherever you retire because medical and healthcare costs differ greatly across the nation. Seek locations with affordable health care costs, as these expenses can result in significant retirement savings.

Additionally, you ought to be well aware of whether the region offers the caliber of medical care you require. Western states with the highest health care costs and quality include Colorado, Washington, Utah, and Oregon.

Having access to quality medical care is also important. If you plan to visit the hospital often, consider its proximity to your retirement home.

List your priorities and things that will not work for you

Without a doubt, no state or city is flawless. However, be sure to consider what is most important to you. If you can easily access your favorite pastimes, you might be able to cope without a beach house. Or perhaps you’re prepared to put up with less-than-ideal weather because you’ll be near friends and family.

You get to choose what is important to you because it’s your retirement.

Are you planning on moving for retirement? Would you like to stay in America or there is another particular country that you like? Leave your thoughts in the comments section below.

Are you new around? Here’s an interesting article for you to check out Social Security Check: What Is the First Thing You Should Do With It? (9 Tips).