5 Best and Worst States for Retirement

There is a growing fear about retirement in the United States. 55% of Americans are worried they will not reach financial security in retirement.

Instead, they are moving to more retirement-friendly states to avoid these concerns. 

To help you decide which state is best for your retirement years, we gathered and calculated key data points, such as quality of life, affordability, and healthcare, from trustworthy sources to rank all 50 states accordingly. 

Below, we highlight the best and worst states for retirement so you can make more informed decisions about the state that most suits your needs.

Best and Worst States for Retirement in 2024

5 Best States	5 Worst States
Florida	Colorado
Pennsylvania	Alaska
Wyoming	Vermont
Alabama	Utah
South Dakota	North Carolina

5 Best States for Retirement

1. Florida

Florida is well-known as a premier retirement state due to its warm climate, comfortable lifestyle, and growing senior communities.

In fact, 21.3% of Florida’s population is made up of adults age 65 or older. That’s the second-highest percentage in the United States. 

The data shows it is the best retirement state because it offers residents a high quality of life and a low tax burden.

There is no state income, estate, or inheritance taxes. Even better, retirees won’t pay any taxes on Social Security or retirement income like pensions, IRAs, or 401(k)s.

However, the cost of living in Florida has risen in recent years primarily due to its fast-growing population and increased demand in the real estate market.

But with the lower taxes, an abundance of shoreline miles, and plenty of sunshine, it remains the number one state to retire in.

2. Pennsylvania

Despite a higher cost of living, Pennsylvania is the second-best state for retirement, largely due to the state’s lower healthcare costs for seniors, low retirement tax burden, and high quality of life scores. 

The state’s appeal to retirees is further shown by the growth of its senior population, which has a growth rate 20 times higher than the entire population.

U.S. News recently released a report of the 150 best cities to retire in, and PA cities held seven of the top 10 spots. 

Older Pennsylvania residents can benefit from the state’s lottery, which uses all proceeds to fund new and existing programs for retirees.

The state invests in creating a quality life for seniors relocating here for their retirement years.

3. Wyoming

Wyoming’s low cost of living and exceptionally friendly tax policies are what bring this state into the top three.

The state has no income tax, meaning Social Security benefits, pension income, and retirement account withdrawals are tax-free. 

Other benefits include no estate or inheritance taxes, one of the lowest property tax rates in the country, and additional property tax breaks for retirees.

The overall cost of living is below the national average and quite affordable for senior citizens. 

Wyoming’s natural beauty and abundance of outdoor activities are one of its biggest draws. If you can handle the cold winters, you’ll benefit from the state’s affordability and extremely low crime rates.

4. Alabama

Coming in at number four is Alabama due to the low cost of living and affordable senior housing. The state offers attractive tax breaks for seniors, including no tax on Social Security benefits and limited taxation on other retirement income.

Affordability carries the largest weight in our ranking, explaining Alabama’s high ranking. The state’s warm climate is ideal for retirees who enjoy outdoor activities year-round.

However, this state has some issues with healthcare quality, crime, and natural disasters.

5. South Dakota

South Dakota ranks as the fifth best state for retirement, primarily due to its low cost of living and tax-friendly policies for retirees.

These include no tax on Social Security benefits, pensions, and other forms of retirement income. 

While the winters can be harsh, the state offers access to iconic attractions like Mount Rushmore, Badlands National Park, and the Black Hills.

Low population density contributes to a peaceful, laid-back lifestyle that many retirees find appealing. 

While South Dakota ranked in the top three for senior healthcare services, the one area it suffered in was healthcare costs.

5 Worst States For Retirement

Multiple Western states found themselves in the bottom five for retirement because of high costs of living, poor weather rankings, or low quality of life scores.

In 2024, Colorado held the last spot because it was not affordable for seniors and had one of the smallest retirement-age populations in the country. 

Alaska was not far behind, at 49, because of its harsh weather conditions, high crime rates, and expensive healthcare. The next three worst states for retirement included:

• Vermont (48)
• Utah (47)
• North Carolina (46)

2024 State Retirement Rankings: Full Comparison

We analyzed dozens of data points and key metrics to calculate each state’s weighted cumulative ranking for three primary categories: affordability, quality of life, and healthcare. 

Our findings of the best and worst states to retire are below.

Overall Rank	State	Affordability Rank	Quality of Life Rank	Healthcare Rank
1	Florida	13	2	40
2	Pennsylvania	24	6	16
3	Wyoming	5	34	23
4	Alabama	3	25	42
5	South Dakota	4	35	27
6	Montana	23	19	7
7	Delaware	20	3	41
8	New Hampshire	26	11	18
9	Missouri	10	24	39
10	West Virginia	9	20	48
11	Nevada	17	29	15
12	Iowa	15	33	14
13	North Dakota	11	46	6
14	Michigan	12	36	21
15	Kansas	22	26	12
16	Tennessee	1	40	45
17	South Carolina	18	15	49
18	Hawaii	45	1	5
19	Rhode Island	41	5	9
20	Oregon	40	7	10
21	Texas	6	45	38
22	Oklahoma	2	48	46
23	Massachusetts	44	8	2
24	Illinois	30	18	22
25	Georgia	7	42	44
26	New Mexico	25	31	20
27	Arkansas	14	38	37
28	Mississippi	8	44	43
29	Arizona	33	10	32
30	Washington	35	27	3
31	Wisconsin	29	23	30
32	Ohio	31	22	29
33	Virginia	34	21	25
34	Minnesota	38	30	4
35	Kentucky	21	41	33
36	California	49	17	1
37	Connecticut	43	4	36
38	New Jersey	48	9	17
39	Louisiana	16	43	47
40	Maryland	46	16	13
41	Indiana	19	47	35
42	Maine	42	14	28
43	Idaho	32	49	8
44	Nebraska	36	28	31
45	New York	50	13	19
46	North Carolina	27	32	50
47	Utah	39	39	11
48	Vermont	47	12	34
49	Alaska	28	50	26
50	Colorado	37	37	24

Our Ranking Criteria

Affordability – Total Weight: 50%

Our affordability index was calculated using the following data points at the state level:

• Cost of Living (Source: Missouri Economic Research and Information Center)
• Total Tax Burden (Source: WalletHub)
• Retirement Tax Burden (Source: Kiplinger and Thomson Reuters)
• Cost of Long-Term Care (Source: Genworth)
• Homeowner Insurance Costs (Source: Insurance.com)

Quality of Life – Total Weight: 30%

Our quality of life index was calculated using the following data points at the state level:

• Population Age (Source: Population Reference Bureau)
• Well-Being Index (Source: Sharecare) 
• Weather (Source: Current Results)
• Violent Crime Rate (Source: CSG Justice Center)
• Air Quality (Source: AirNow)

Healthcare – Total Weight: 20%

Our healthcare index was calculated using the following data points at the state level:

• Healthcare Costs: (Source: Forbes)
• Life Expectancy: (Source: World Population Review)
• Senior Healthcare Services: (Source: Senior Living)
• Health System Performance: (Source: Commonwealth Fund)

Next Steps

Now that you know which are the best and worst states for retirement, you can make the decision to live in a state that matches up with the quality of lifestyle you desire.

Get ready to spend this next chapter of your life in total bliss and harmony.