Top 10 US States to Retire in 2025

Retirement is a magical time when you finally trade in your alarm clock for leisurely mornings, your office chair for a hammock, and your work emails for — well, hopefully, nothing. But before you start dreaming of sipping piña coladas on a beach or hiking through scenic mountain trails, there’s one big question to answer: Where should you retire?

Picking the right place to retire is one of the most important decisions you’ll make. Retirees must weigh several factors that vary greatly from state to state — living costs, medical care access, and tax advantages. The decision process can be daunting, and it’s better to plan out a change of residence before retirement comes lurking around the corner.

It’s not just about the weather (though let’s be honest, no one’s retiring to a place with six months of snow unless they’re a polar bear). It’s about affordability, healthcare, lifestyle, and yes, taxes. So let’s dive into the 15 best states to retire in 2025 and explore what questions to ask your financial advisor when discussing relocation as a retirement hack.

1. Florida

Florida is the land of endless sunshine, palm trees, and retirees zipping around in golf carts like they’re auditioning for Fast & Furious: Senior Drift. It’s no secret that Florida has long been synonymous with retirement, and for good reason. 

But is the Sunshine State still the golden ticket for retirees in 2025? Let’s dive into the latest data, weigh the pros and cons, and see if Florida deserves its spot as one of the best states to retire.

Why Retirees Flock to Florida

Florida continues to be a top choice for retirees, and the numbers back it up. In 2023, the state attracted 11% of all interstate retiree moves, making it the most popular retirement destination in the U.S. This isn’t just a coincidence — it’s a combination of tax perks, warm weather, and a lifestyle that feels like a permanent vacation.

One study found that retirees need an annual income of $73,646 to live well in Florida. This means having a nest egg of $2.2 million to last through 30 years of retirement. Plus, Florida is home to some of the most vibrant retirement communities in the country. Whether you’re looking for luxury living or a more budget-friendly option, there’s something for everyone.

Tax-Friendly Policies

• No State Income Tax: Florida doesn’t tax your Social Security benefits, pensions, or withdrawals from retirement accounts like IRAs and 401(k)s. This is huge for retirees looking to stretch their savings.
• No Estate or Inheritance Tax: Planning to leave a little something for the grandkids? Florida won’t take a cut.
• Property Tax Perks: While property taxes aren’t the lowest in the nation, Florida offers exemptions like the Homestead Exemption, which can significantly reduce the taxable value of your primary residence.

Florida’s climate is a major draw. With an average of 237 sunny days per year, you can trade in your snow shovel for sunscreen. The state’s warm weather makes it perfect for outdoor activities like golfing, fishing, and beachcombing. And let’s not forget the stunning natural beauty, from the Everglades to the Gulf Coast beaches.

Florida’s robust healthcare system is highly appealing to retirees, with a high density of physicians (252 per 100,000 people) and specialized care for seniors. The state also boasts top-ranked hospitals and a growing focus on home health care, despite the state ranking last in the nation for home healthcare availability.

The Challenges of Retiring in Florida

Of course, no paradise is perfect. While Florida has plenty of perks, it also comes with its fair share of challenges.

• Housing Costs: The average home value in Florida is $399,807, with cities like Miami reaching $575,859. Rental prices are also steep, with a median rent of $1,719—higher than the national median of $1,406.
• Grocery Prices: Food costs have risen by 5.8% as of mid-2023, with the average monthly grocery bill per person at $324.
• Utilities: Monthly utility bills average around $400, with electricity alone costing $130 per month.

Florida’s popularity comes with a downside: crowding. The state gained over 126,000 new residents in 2023, and while that’s down from previous years, it still means more competition for housing, healthcare, and other resources.

If you’re planning to buy a home in Florida, brace yourself for sky-high property insurance premiums. The average annual premium is $4,218, compared to the U.S. average of $2,777. In hurricane-prone areas, costs can soar even higher, reaching up to $6,000 annually for a median-sized home.

Is Retiring in Florida Still Worth It?

The answer depends on your priorities. If you’re looking for tax savings, warm weather, and an active lifestyle, Florida checks all the boxes. But if you’re concerned about rising costs and insurance premiums, you might want to crunch the numbers—or better yet, consult a financial advisor.

Navigating the financial complexities of retirement is no small feat, especially in a state like Florida where the pros and cons are so closely balanced. A financial advisor can help you…

• Optimize your retirement income to take full advantage of Florida’s tax benefits.
• Budget for high living costs, including housing and insurance.
• Plan for healthcare expenses and long-term care needs.

Our free advisor match quiz hooks you up with a financial advisor who will make your relocation to Florida a breeze.

Florida remains a top contender for retirees, offering a mix of financial perks, sunny weather, and vibrant communities. But it’s not without its challenges. Rising costs and insurance premiums are real concerns, and retirees need to plan carefully to make the most of what the Sunshine State has to offer.

2. Colorado

Colorado, with its breathtaking landscapes and vibrant lifestyle, is a retirement destination that appeals to those seeking an active and fulfilling golden age. Known for its outdoor recreation, high-quality healthcare, and tax-friendly policies, the Centennial State offers a unique blend of opportunities and challenges for retirees. Let’s explore what makes Colorado a standout choice — and where it might fall short.

Why Retirees Love Colorado

Colorado consistently ranks high in healthcare quality, making it a strong choice for retirees prioritizing medical access. The state is home to nationally ranked hospitals and offers a high density of healthcare providers, with an average annual healthcare expenditure of $7,364 per person. 

Assisted living and nursing home options are plentiful, though costs can be significant, averaging $5,073 per month for assisted living and $7,663 for a semi-private nursing home room.

Tax-Friendly Policies

• Retirement Income Subtraction: Residents 65 and older can exclude up to $24,000 of retirement income, including pensions and Social Security, from state taxes.
• Property Tax Exemptions: Seniors who have owned and lived in their home for at least 10 years can benefit from a property tax exemption on 50% of the first $200,000 of their home’s value.
• Low Sales Tax: The state’s base sales tax is 2.9%, though local jurisdictions may add additional taxes.

Colorado is a haven for outdoor enthusiasts. The state boasts over 40 state parks, 11 national forests, and iconic destinations like Rocky Mountain National Park and Garden of the Gods. Retirees can enjoy hiking, biking, fishing, golfing, and even skiing, with trails and activities catering to all fitness levels. 

The state’s mild climate, with four distinct seasons, allows for year-round outdoor activities. Summers are warm but not oppressive, and winters, while snowy in the mountains, are often sunny and manageable in lower elevations. For those who prefer a more relaxed pace, scenic drives and wildlife watching are abundant, offering a chance to soak in the state’s natural beauty year-round.

Challenges of Retiring in Colorado

Colorado’s stunning landscapes come at a price. The state ranks 34th in cost-of-living affordability, with housing being a significant expense. The average home price is $529,219, and monthly rents range from $1,282 to $2,309 depending on location. Utilities and groceries also add up, with average monthly utility bills at $331 and grocery costs at $342 per person.

As Colorado’s population grows, traffic congestion and overcrowding in popular areas have become common complaints. This can detract from the tranquility many retirees seek.

Colorado’s high altitude can also pose challenges for retirees, particularly those with heart or lung conditions. The thin air at higher elevations may exacerbate health issues, making it less ideal for some.

Is Colorado Right for You?

Colorado has become a hot spot for retirees, especially those who love outdoor activities while staying close to city life. The state’s tax-friendly policies make it an attractive choice for seniors who want to protect their retirement savings.

Colorado offers a dynamic retirement experience for those who value outdoor activities, excellent healthcare, and a vibrant community. However, the high cost of living and potential health challenges related to altitude require careful consideration. 

Retirees with a solid financial plan and a love for nature will find much to enjoy in the Centennial State, but those on a tighter budget or with specific health concerns may want to explore other options. Ultimately, Colorado is a retirement destination for the adventurous at heart—those ready to trade the beach for the mountains and embrace an active, fulfilling lifestyle.

3. Virginia

Virginia is often called the “Mother of Presidents,” with charming historical cities like Williamsburg and Charlottesville serving as popular retirement spots. But Virginia is more than just a historical treasure trove — it’s a top-tier retirement destination that blends scenic beauty, cultural richness, and modern amenities. 

Whether you’re drawn to its charming small towns, vibrant cities, or stunning natural landscapes, Virginia offers retirees a balanced lifestyle with plenty of perks. But like any state, it comes with its own set of challenges. Let’s explore why Virginia is a compelling choice for retirees and what you should consider before making the move.

Why Retirees Love Virginia

Virginia ranks ninth nationwide for healthcare quality, offering retirees access to top-tier medical facilities like the University of Virginia Medical Center and Inova Fairfax Hospital. The state also supports seniors through programs like the Virginia Long-Term Care Ombudsman Program, which ensures quality care in assisted living and nursing homes. 

For those seeking independent living, the average cost is $3,153 per month, while assisted living averages $6,050 — higher than the national average but reflective of the state’s high standards.

Tax-Friendly Policies

• No Tax on Social Security Benefits: Retirees can breathe easy knowing their Social Security income is exempt from state taxes.
• Retirement Income Deductions: Residents aged 65 and older can deduct up to $12,000 of retirement income annually, though this phases out for higher-income earners.
• No Estate or Inheritance Tax: Virginia doesn’t impose these taxes, making it easier to pass wealth to heirs.

Virginia ranks third in the nation for senior safety, thanks to strong elder protection laws and a high number of geriatrics-focused healthcare providers. Additionally, the state’s vibrant retirement communities, such as Colonial Heritage in Williamsburg and Heritage Hunt in Gainesville, offer luxurious amenities and active social calendars 8.

From the Blue Ridge Mountains to the Chesapeake Bay, retirees can enjoy hiking, fishing, golfing, and even wine-tasting in the state’s renowned vineyards. With 375 golf courses and thousands of miles of shoreline, Virginia caters to active seniors looking to stay engaged.

Challenges of Retiring in Virginia

While Virginia’s cost of living is manageable in many areas, it can be high in regions like Northern Virginia. The average home value statewide is $389,500, but prices in cities like Fairfax and Alexandria can soar well above that. Assisted living costs are also higher than the national average, which could strain retirees on fixed incomes.

Virginia’s major cities, particularly those near Washington, D.C., are notorious for traffic congestion. The I-95 corridor is a well-known bottleneck, and public transportation options are limited outside urban areas.

Virginia enjoys a mild climate with distinct seasons, but coastal areas are vulnerable to hurricanes and flooding. Summers can also be humid, which may be uncomfortable for some retirees.

Is Virginia Right for You?

Virginia offers a compelling mix of history, natural beauty, and modern conveniences, making it an excellent choice for retirees who value a high quality of life. Its tax benefits, top-notch healthcare, and vibrant communities are significant draws, but the higher cost of living and traffic challenges may require careful planning.

For retirees seeking a balance of cultural enrichment, outdoor activities, and financial stability, Virginia is a strong contender. However, those on tighter budgets or looking for a quieter lifestyle may want to explore more affordable states. As always, consulting a financial advisor can help you determine if Virginia aligns with your retirement goals.

4. Delaware

Often called the “First State,” Delaware is making a name for itself as a top-tier retirement destination on the East Coast. With its tax-friendly policies, strategic location, and high quality of life, it’s no wonder retirees are flocking to this small but mighty state.

Enough small talk, Jack. Let’s dive into what makes Delaware an appealing choice for your golden years.

Why Retirees Love Delaware

While Delaware’s cost of living is slightly above the national average, it remains more affordable than neighboring states like New Jersey and Maryland. Housing costs are reasonable, with the average home value at $359,000 as of 2023. For renters, two-bedroom apartments range from $491 to $3,785 monthly, depending on location.

Tax-Friendly Policies

• No State or Local Sales Tax: Everyday purchases, from groceries to clothing, are tax-free, which can lead to substantial savings over time.
• No Tax on Social Security Benefits: Retirees relying on Social Security income won’t see a dime of it taxed at the state level.
• Retirement Income Deductions: Residents aged 60 and older can exclude up to $12,500 of retirement income, including pensions and IRA withdrawals, from state taxes.
• Low Property Taxes: Delaware boasts one of the lowest property tax rates in the U.S., with an average effective rate of just 0.58%. Seniors aged 65 and older can also benefit from a school property tax credit of up to $500 annually.

Healthcare costs, while higher than average, are offset by the state’s high-quality medical facilities, such as ChristianaCare, which ranks among the nation’s best. Assisted living averages $7,425 per month, and in-home care costs range from $24 to $30 per hour.

Delaware’s small size fosters a strong sense of community, with welcoming towns like Wilmington, New Castle, and Milton offering a mix of historical charm and modern amenities. The state also supports seniors through programs like the Diamond State Health Plan-Plus, which provides managed long-term care services, including adult day care and home modifications.

Delaware offers a balanced lifestyle with a mix of natural beauty, cultural amenities, and recreational opportunities.

• Moderate Climate: Delaware enjoys four distinct seasons without extremes, making it comfortable year-round.
• Outdoor Activities: From the beaches of Rehoboth and Bethany to the hiking trails in state parks, Delaware is a haven for nature lovers. Water sports, birdwatching, and golf are popular pastimes.
• Cultural Richness: The state is steeped in history, with landmarks like Old New Castle and the Hagley Museum. Its vibrant arts scene and proximity to major cities like Philadelphia and Baltimore provide endless cultural experiences.

Challenges of Retiring in Delaware

• Healthcare Costs: Despite high-quality facilities, healthcare in Delaware is expensive, with drug costs 39% above the national average.
• Natural Disasters: Coastal areas are vulnerable to hurricanes and flooding, which could impact property and insurance costs.
• Limited Urban Amenities: As a small state, Delaware may lack the metropolitan buzz some retirees seek.

Is Delaware Right for You?

Delaware’s combination of tax benefits, affordability, and quality of life makes it a standout choice for retirees looking to maximize their savings while enjoying a fulfilling lifestyle. 

However, potential residents should weigh the higher healthcare costs and consider their proximity to coastal areas. For those seeking a peaceful, tax-efficient retirement with access to both nature and culture, Delaware might just be the perfect fit.

5. North Carolina

South Carolina offers a mix of affordability, natural beauty, and cultural richness that’s hard to beat. Whether you’re a beach bum, a mountain lover, or someone who just wants a good healthcare system and a low tax bill, North Carolina has something for everyone. Let’s dive into what makes this state a retirement haven — and where it might fall short.

Why Retirees Are Flocking to North Carolina

North Carolina’s cost of living is about 10% lower than the national average, making it an attractive option for retirees on a budget. Housing is particularly affordable, with a median home price of $345,300 as of late 2023 — more than $30,000 below the national median. 

Even in popular retirement hubs like Asheville and Wilmington, housing costs are reasonable compared to other coastal or mountain destinations. For renters, the median rent in North Carolina is $1,875, which is also below the national average. Utilities and groceries are similarly affordable, with annual costs for housing and utilities averaging $7,350 and food expenses around $3,630.

Healthcare is a critical consideration for retirees, and North Carolina delivers. The state is home to world-class medical facilities. For long-term care, North Carolina offers a range of options, from adult care homes to family care homes, all regulated to ensure quality.

The state also has wellness programs like the Duke Health & Fitness Center, which offers fitness classes and health education tailored to seniors. However, it’s worth noting that healthcare costs in North Carolina are about 12% higher than the national average, so retirees should budget accordingly.

Tax Benefits of North Carolina

• No Tax on Social Security Benefits: This is a big win for retirees who rely on Social Security as a primary income source.
• Flat Income Tax Rate: The state has a flat income tax rate of 4.75%, which applies to most other retirement income, including pensions and 401(k) withdrawals.
• Property Tax Relief: Seniors aged 65 and older with an income below $36,700 can qualify for the Homestead Exemption, which reduces property taxes by either $25,000 or 50% of the home’s appraised value, whichever is greater.
• No Estate or Inheritance Taxes: If you’re planning to leave a financial legacy, North Carolina won’t take a cut.

North Carolina’s climate is like Goldilocks’ porridge—not too hot, not too cold, but just right. The state enjoys a humid subtropical climate, which means warm summers and mild winters. Coastal areas like Wilmington rarely see snow, while the mountainous regions, such as Asheville, offer cooler temperatures and even a dusting of snow in the winter for those who like a little seasonal variety.

For retirees who dread shoveling snow or sweating through triple-digit summers, North Carolina’s climate is a happy medium. Plus, the state’s regional climate diversity means you can pick your preferred weather.

From the breezy beaches of the Outer Banks or the crisp mountain air of the Blue Ridge Mountains, North Carolina’s geography is a retiree’s dream. The state is divided into three distinct regions.

• The Coastal Plain: Perfect for beach lovers, with destinations like the Outer Banks and Wilmington offering sandy shores and ocean breezes.
• The Piedmont: Home to cities like Raleigh, Durham, and Charlotte, this region offers a mix of urban amenities and rolling hills.
• The Mountains: The Blue Ridge and Great Smoky Mountains provide stunning vistas, hiking trails, and a cooler climate.

This geographical diversity means you can choose a retirement setting that matches your lifestyle, whether you’re into kayaking on the coast, golfing in the Piedmont, or hiking in the mountains.

The Challenges of Retiring in North Carolina

While North Carolina is generally affordable, some areas — like Asheville and Chapel Hill—are seeing rising housing costs due to their popularity. Retirees on a tight budget might find these areas less accessible.

North Carolina’s beauty comes with a price: hurricanes. Coastal areas are particularly vulnerable, and flooding is a common concern. Retirees considering the coast should invest in robust insurance and have an emergency plan in place.

Issues like water pollution and deforestation are growing concerns in North Carolina. These environmental challenges could impact the state’s natural beauty and quality of life over time.

Outside of major cities like Charlotte and Raleigh, public transportation is limited. This can be a challenge for retirees who prefer not to drive, especially in rural areas.

Is North Carolina Right for Your Retirement?

North Carolina is a state of contrasts. Its mild climate, affordable cost of living, and rich cultural and recreational offerings make it a top choice for many retirees. But it’s not without its challenges, from natural disasters to rising costs in certain areas.

If you’re looking for a state that offers a little bit of everything — beaches, mountains, culture, and community — North Carolina might just be your perfect match. Just make sure to do your homework, visit potential locations, and weigh the pros and cons carefully.

6. Tennessee

Tennessee stands out as a “halfback” retirement destination that perfectly balances northern and southern living. The state attracts many retirees and ranks highly for new residents aged 60 and older. 

If you’re looking for a place where your Social Security checks stretch further, the music is calling. With its low taxes, affordable living, and a cultural scene that’s as rich as its barbecue sauce, the Volunteer State has a lot to offer retirees. Let’s break it all down.

Why Retirees Are Flocking to Tennessee

Tennessee’s cost of living is about 10% below the national average, making it one of the most affordable states in the country. Housing is particularly budget-friendly:

• Median Home Price: As of 2024, the median home value in Tennessee is $301,000, significantly lower than the national median of $416,100.
• Popular Retirement Areas: Cities like Chattanooga and Maryville offer affordable housing options, with median home prices of $283,277 and $374,066, respectively.

Utilities, groceries, and healthcare are also reasonably priced, making Tennessee a great option for retirees looking to stretch their savings. Healthcare is another critical consideration for retirees, and Tennessee delivers—mostly. 

For those needing long-term care, programs like TennCare CHOICES provide Medicaid-funded services to help seniors live independently or in nursing homes.

However, access to healthcare can be inconsistent in rural areas, so retirees with specific medical needs might want to stick closer to urban centers.

Tax Benefits of Tennessee

• No State Income Tax: Tennessee doesn’t tax your Social Security benefits, pensions, or retirement account withdrawals. That’s right—your hard-earned retirement income is yours to keep.
• Low Property Taxes: The state’s effective property tax rate is just 0.65%, which is 41% below the national average. This makes homeownership more affordable for retirees.
• No Estate or Inheritance Taxes: If you’re planning to leave a financial legacy, Tennessee won’t take a cut, which is a big win for your heirs.

While Tennessee does have a high sales tax rate (around 9.55% when you combine state and local taxes), essentials like groceries are exempt, which helps keep everyday costs manageable.

Tennessee’s humid subtropical climate means hot summers and mild winters, which is a big draw for retirees fleeing harsh northern winters. However, the state’s weather isn’t without its quirks — more on that later.

If you’re an outdoor enthusiast, The state is home to some of the most stunning natural attractions in the country. Whether you’re into hiking, camping, or just enjoying a scenic drive, Tennessee’s natural beauty is hard to beat. 

But Tennessee isn’t just about nature — it’s also a cultural powerhouse. From live music to art galleries, Tennessee offers a rich cultural experience that retirees can enjoy year-round.

The Challenges of Retiring in Tennessee

While urban areas like Nashville and Knoxville offer excellent healthcare, rural parts of the state can be a different story. Limited access to specialists and longer wait times are common issues.

Tennessee has a higher-than-average crime rate, particularly in urban areas like Memphis and Nashville. Retirees should research neighborhoods carefully to ensure they choose a safe community. Another threat is Mother Nature herself as the state is prone to extreme weather.

• Tornadoes: Particularly in the spring and fall.
• Flooding: Heavy rains can lead to flash floods, especially in low-lying areas.
• Hot, Humid Summers: If you’re not a fan of sticky weather, Tennessee’s summers might be a dealbreaker.

Finally, public transportation options are scarce outside of the big cities. This can be a challenge for retirees who prefer not to drive or who are used to the convenience of robust transit systems.

Is Tennessee Right for Your Retirement?

Tennessee is a state of contrasts. Its low taxes, affordable living, and rich cultural and natural attractions make it a top choice for many retirees. But it’s not without its challenges, from inconsistent healthcare access to severe weather and high crime rates in certain areas.

If you’re looking for a state where your money goes further, the music never stops, and the mountains are always calling, Tennessee could work as your home in retirement. 

7. New Hampshire

When it comes to retirement, New Hampshire might not be the first state that springs to mind. But for those who value natural beauty, a strong sense of community, and a tax-friendly environment, the Granite State has plenty to offer. 

The “Live Free or Die” state has its quirks and challenges that retirees should consider before packing up and heading north. Let’s break it all down.

Why Retirees Love New Hampshire

New Hampshire’s small-town charm is one of its biggest selling points. Towns like Portsmouth, Peterborough, and Exeter offer a mix of historical charm, cultural amenities, and friendly neighbors. 

The state’s focus on creating elder-friendly communities ensures that retirees can find meaningful ways to connect with others, whether through volunteer opportunities, local events, or simply chatting with neighbors at the farmer’s market.

New Hampshire punches above its weight when it comes to healthcare. The state is home to top-notch facilities like Dartmouth-Hitchcock Medical Center and offers a range of senior-specific services. That said, access to specialized care can be limited in rural areas, so retirees with specific medical needs should plan accordingly.

Tax Benefits in New Hampshire

• No State Income Tax: New Hampshire doesn’t tax your Social Security benefits, pensions, or withdrawals from retirement accounts like 401(k)s and IRAs. This is a huge win for retirees looking to stretch their savings.
• No Sales Tax: Everyday purchases like groceries, clothing, and electronics are tax-free, which can lead to significant savings over time.
• No Estate or Inheritance Tax: Retirees concerned about passing on their wealth can rest easy knowing New Hampshire won’t take a cut.
• Interest and Dividends Tax: While the state does tax interest and dividends, this tax is being phased out and will be completely eliminated by 2027. For 2024, the rate is a manageable 3%.

However, there’s a catch: property taxes. New Hampshire has some of the highest property taxes in the country, with an average effective rate of 2.09%. While there are rebates for low-income homeowners, this is something to keep in mind if you’re eyeing that dream lakeside cabin.

Challenges Retirees Should Consider

While New Hampshire’s lack of income and sales taxes is a major perk, its property taxes are among the highest in the nation. This can be a significant financial burden, especially for retirees on a fixed income. However, programs like the “circuit breaker” rebate can help offset these costs for eligible seniors.

The housing market in New Hampshire has seen significant price increases in recent years, with the median home price now hovering around $470,000. While this is still more affordable than some neighboring states, it’s a notable jump that could impact retirees looking to buy property.

Let’s not sugarcoat it: New Hampshire winters are no joke. With heavy snowfall and freezing temperatures, the state’s winters can be a dealbreaker for retirees who prefer warmer climates. Snowbirds—those who migrate south for the winter—might find this a manageable compromise, but year-round residents will need to embrace the cold.

Retirees used to big-city living might find the state’s cultural and entertainment options lacking, especially in more rural areas. Proximity to Boston can help fill this gap, but it’s something to consider if you’re a fan of Broadway shows and Michelin-starred restaurants.

Is New Hampshire Right for You?

New Hampshire is a fantastic retirement destination for those who value natural beauty, a strong sense of community, and a tax-friendly environment. Its outdoor activities and quality healthcare make it an excellent choice for active retirees, while its lack of income and sales taxes can help stretch your retirement savings.

However, the state’s harsh winters, high property taxes, and rising housing costs are important considerations. Retirees should weigh these factors against their personal preferences and financial situation before making the move.

If you’re ready to trade urban sprawl for mountain views and don’t mind shoveling a little snow, New Hampshire might just be the perfect place to spend your golden years. Just make sure to invest in a good pair of snow boots—and maybe a snowblower while you’re at it.

8. Pennsylvania

Pennsylvania isn’t exactly Florida with its endless sunshine or Arizona with its dry heat. But don’t let the lack of palm trees fool you — Pennsylvania has a lot going for it as a retirement destination. 

From its tax-friendly policies to its rich history and cultural offerings, the Keystone State might just be the hidden gem retirees are looking for. That said, it’s not without its challenges. Let’s break it all down.

Why Retirees Are Drawn to Pennsylvania

The cost of living in Pennsylvania is about 4% lower than the national average, which is great news for retirees looking to make their dollars go further. 

Housing costs are particularly attractive, with the median home price sitting at $298,400 as of May 2024 — significantly lower than the national median. Even in cities like Lancaster and Philadelphia, where prices are slightly higher, the cost of living remains reasonable compared to other urban areas.

However, it’s worth noting that utility costs in Pennsylvania are about 7% higher than the national average, so you might want to budget a little extra for heating during those chilly winters.

Pennsylvania’s healthcare system is robust and well-suited to the needs of its senior population. The state is home to numerous assisted living facilities and personal care homes, many of which offer comprehensive medical support, social activities, and chef-prepared meals.

Programs like Geisinger 65 Forward take senior care to the next level, offering integrated healthcare services, same-day appointments, and even fitness classes and social events. And with top-notch hospitals like the University of Pennsylvania Health System and UPMC, retirees can rest easy knowing they’ll have access to quality medical care when they need it.

Tax Benefits of Pennsylvania

• No Tax on Retirement Income: Social Security benefits, pension income, and distributions from retirement accounts like IRAs and 401(k)s are all exempt from state taxes. This is a huge win for retirees looking to stretch their savings.
• Property Tax Rebates: Eligible retirees can receive property tax rebates ranging from $380 to $1,000, which can help offset the state’s relatively high property taxes in some areas.
• Flat Income Tax Rate: While Pennsylvania does have a state income tax, it’s a low flat rate of 3.07%, and retirement income is exempt, making it one of the most tax-friendly states for retirees.

If you’re a history buff or a lover of the arts, Pennsylvania has you covered. The state is steeped in American history, with iconic sites like Gettysburg National Military Park and Independence Hall in Philadelphia. But it’s not all about the past — Pennsylvania also boasts a vibrant cultural scene, from the Fulton Theatre in Lancaster to the world-class museums in Pittsburgh and Philadelphia.

And let’s not forget the festivals. Whether it’s the Pennsylvania Farm Show (the nation’s largest indoor agricultural event) or the Kipona Festival celebrating local arts and crafts, there’s always something happening to keep retirees engaged.

For retirees who love the great outdoors, Pennsylvania is a dreamscape that’s home to 124 state parks. The Rails to Trails program is converting old railway lines into scenic walking and biking paths, and snow sports are available in places like Dauphin County. But if you’re more of a gardener than a skier, Longwood Gardens in Kennett Square is one of the premier botanical gardens in the U.S.

The Challenges of Retiring in Pennsylvania

While Pennsylvania offers property tax rebates for eligible seniors, the state’s property taxes can be high in certain areas, particularly in suburban regions. This can be a significant financial burden for retirees on a fixed income, so it’s worth doing your homework before settling down.

If you’re planning to retire in a city like Philadelphia or Pittsburgh, be prepared for traffic. Urban centers in Pennsylvania often experience significant congestion, which can be frustrating for retirees who value convenience and ease of travel.

While Pennsylvania’s rural areas offer peace and quiet, they can also come with drawbacks like limited access to healthcare, transportation, and social activities. If you’re considering a rural retirement, make sure you’re comfortable with the potential isolation and lack of amenities.

Pennsylvania winters can be harsh — snow, ice, and freezing temperatures are par for the course, especially in the northern and western parts of the state. If you’re not a fan of shoveling snow or navigating icy roads, this could be a dealbreaker.

You should also know about Pennsylvania’s demographic shift: the number of retirees is increasing faster compared to younger residents. This could lead to a shrinking workforce and increased demand for healthcare and senior services.

Is Pennsylvania Right for Your Retirement?

Pennsylvania is a state of contrasts. Its tax policies are incredibly friendly to retirees, but its property taxes can be a burden in some areas. Its cost of living is generally affordable, but utility costs are higher than average. Its winters are harsh, but its summers are beautiful. And while its rural areas offer peace and quiet, they can also feel isolating.

Ultimately, whether Pennsylvania is the right retirement destination for you depends on your priorities. If you value tax savings, cultural attractions, and access to quality healthcare, Pennsylvania might just be the perfect place to spend your golden years. But if you’re dreaming of year-round sunshine and zero snow, you might want to keep looking.

9. South Carolina

South Carolina is known for its sweet tea, southern charm, and beaches that stretch as far as the eye can see. But is it the perfect place to hang your hat in retirement? Well, that depends on what you’re looking for. 

South Carolina has a lot going for it — tax perks, a warm climate, and a cost of living that won’t make your wallet cry. But like any state, it’s not all sunshine and magnolias. Let’s dive into the nitty-gritty of what makes South Carolina a retirement hotspot, and what might make you think twice.

The Pros of Retiring in South Carolina

South Carolina’s cost of living is about 11.5% lower than the national average, making it an attractive option for retirees looking to stretch their savings. Housing is particularly affordable, with a median home price of $374,000 as of early 2024. Even in popular areas like Myrtle Beach, you can find homes for around $300,000, which is a steal compared to other coastal states.

Utilities and groceries are also reasonably priced, and food costs are about 5% cheaper than the national average. So, whether you’re buying a beach bungalow or just stocking up on grits, your dollars will go further here.

Though South Carolina’s healthcare system isn’t perfect (more on that later), it’s improving. The state is home to reputable facilities like the Medical University of South Carolina (MUSC) and Prisma Health. Many retirement communities also offer integrated healthcare services, from basic checkups to advanced medical care.

Tax Benefits of South Carolina

• No Tax on Social Security Benefits: Your Social Security checks are untouched by the state’s taxman.
• Generous Retirement Income Deductions: Residents aged 65 and older can deduct up to $15,000 of taxable income, and there’s an additional $10,000 deduction for other retirement income like pensions or 401(k) withdrawals.
• Military Retirement Pay Exemption: As of 2022, all military retirement pay is fully exempt from state income tax, making it a top choice for veterans.
• Property Tax Relief: Seniors aged 65 and older can qualify for a homestead exemption, which knocks $50,000 off the fair market value of their primary residence for property tax purposes.

South Carolina is home to some of the best retirement communities in the country. From the upscale vibes of Hilton Head to the laid-back charm of Beaufort, there’s a community for every lifestyle. Many of these communities offer amenities like golf courses, fitness centers, and social clubs, making it easy to stay active and engaged.

The state’s humid subtropical climate means mild winters and long, warm summers. For retirees fleeing the snow, this is a dream come true. The state’s average annual temperature hovers around 62°F, and you can enjoy outdoor activities year-round.

Speaking of outdoor activities, the Palmetto State is a playground for nature lovers. Whether you’re hiking in the Blue Ridge Mountains, kayaking through the Lowcountry, or birdwatching along the coast, there’s something for everyone. 

The Cons of Retiring in South Carolina

South Carolina ranks 35th in Medicare quality, which isn’t exactly a gold star. While larger cities like Charleston and Greenville offer excellent healthcare facilities, rural areas can be hit-or-miss. If you have specific medical needs, you’ll want to research healthcare access in your chosen area carefully.

South Carolina also has higher-than-average crime rates, particularly in urban areas like Columbia and Charleston. While many retirement communities are safe and secure, it’s something to consider if safety is a top priority.

But if you’re escaping the city to explore South Carolina’s lush landscapes, you may bump heads with another culprit: pollen. Springtime can be tough for those with allergies, so stock up on antihistamines if you’re planning to spend a lot of time outdoors.

While South Carolina is generally affordable, coastal regions are seeing rising housing costs. For example, homes on Hilton Head Island often exceed $800,000, which might be out of reach for some retirees.

Speaking of the coast, popular tourist destinations like Myrtle Beach and Charleston can get crowded during peak seasons, leading to traffic jams and higher prices. If you’re looking for peace and quiet, you might want to avoid these areas — or at least plan your outings carefully.

It’s also important to note that living in South Carolina means dealing with hurricane season. Coastal areas are particularly vulnerable, and you’ll need robust insurance and an emergency plan.

Is South Carolina Right for Your Retirement?

South Carolina is a state of contrasts. Its tax benefits, affordable cost of living, and outdoor recreation make it a top choice for many retirees. But it’s not without its challenges, from crime rates to hurricane risks.

If you’re looking for a warm climate, a friendly community, and a lifestyle that balances relaxation with adventure, South Carolina might just be your perfect match— just pack sunscreen and a couple of golf clubs and you’re ready to go. But if you’re not a fan of humidity, crowds, or the occasional hurricane, you might want to retire elsewhere.

10. Texas

Texas may bring to mind cowboy hats, barbeque, and wide-open spaces. But for retirees, Texas is a land of opportunity, offering a mix of financial perks, diverse climates, and recreational options that make it a top contender for your golden years. 

The state doesn’t impose a state income tax and offers various property tax exemptions for seniors, which allows retirees to keep more of their income and reduce the overall cost of living. 

That said, no place is perfect, and Texas has its quirks. So, let’s saddle up and take a deep dive into what makes Texas a retirement hotspot — and where it might leave you saying, “Yeehaw, but maybe not.”

Why Retirees Are Drawn to Texas

Texas is known for its relatively low cost of living, which is about 8% below the national average. However, Texas’s urban centers have seen rising costs in recent years, so retirees on a tight budget might want to explore smaller towns or rural areas.

• Housing: The median home price in Texas is $301,000, significantly lower than the national median of $416,100. Smaller towns like McAllen and Kerrville offer even more affordable options, while cities like Austin and Dallas are pricier but come with more amenities.
• Utilities: Thanks to Texas’ deregulated energy market, residents can shop around for competitive electricity rates, which helps keep utility costs in check.
• Healthcare: While healthcare costs can vary, Texas offers a range of Medicare Advantage plans and Medicaid programs to help retirees manage expenses.

Healthcare is a top priority for retirees, and Texas delivers — at least in its urban centers. The state is home to some of the best hospitals in the country. For long-term care, Texas provides a variety of options, from assisted living facilities to in-home care programs. 

The state also has 28 Area Agencies on Aging, which offer services like meal delivery, transportation, and Medicare counseling. However, access to healthcare can be uneven in rural areas, so retirees with specific medical needs might want to stick closer to cities.

Tax benefits of Texas

• No State Income Tax: That’s right — Texas doesn’t tax your Social Security benefits, pensions, or withdrawals from retirement accounts like 401(k)s and IRAs. This is a huge win for retirees looking to stretch their savings.
• Property Tax Exemptions: While Texas has relatively high property taxes (more on that later), retirees can take advantage of exemptions. The Homestead Exemption reduces the taxable value of your primary residence, and seniors aged 65+ can qualify for additional exemptions, including a tax ceiling on school district taxes.
• Sales Tax Perks: Texas exempts prescription medications, groceries, and medical equipment from sales tax, which helps keep everyday costs manageable.
• Veterans’ Benefits: Retired veterans can enjoy property tax exemptions and reduced vehicle registration fees, making Texas especially appealing for those who’ve served.

Texas is massive — like, bigger than France. This diversity means you can choose a climate that fits your lifestyle. Whether you’re a fan of dry heat or prefer a more temperate environment, t state offers a variety of climates to suit different tastes — just be prepared for occasional extreme weather. 

• West Texas: Dry and desert-like, with hot summers and mild winters.
• Central Texas: Temperate, with hot summers and cooler winters.
• East Texas: Humid and subtropical, with lush greenery and plenty of rainfall.
• South Texas: Warm and humid, especially near the Gulf Coast.
• North Texas: Continental, with hot summers and cold winters.

Texas isn’t just about cowboys and country music (though there’s plenty of that). The state offers a rich cultural tapestry. And if you love the great outdoors, Texas is your playground. Whether you’re into hiking, fishing, or just enjoying a scenic drive, Texas has something for everyone.

The Challenges of Retiring in Texas

While Texas doesn’t have a state income tax, it makes up for it with high property taxes. The average effective property tax rate is 1.8%, one of the highest in the nation. This can be a significant burden for retirees on a fixed income, though exemptions for seniors can help offset the cost.

While Texas is generally affordable, cities like Austin and Dallas have seen rising housing and living costs in recent years. Retirees looking for a budget-friendly lifestyle might want to explore smaller towns like Fredericksburg or Kerrville.

Texas’ weather is as big as its personality, and not always in a good way. If you’re not a fan of extreme heat or unpredictable weather (and we’re talking tornadoes, hurricanes, and flash floods), Texas might not be the best fit.

While urban centers offer excellent healthcare, rural areas can be a different story. Limited access to specialists and longer wait times are common issues, so retirees with specific medical needs should plan accordingly.

Is Texas Right for Your Retirement?

Texas is a state of contrasts. Its low taxes, affordable living, and diverse recreational opportunities make it a top choice for many retirees. But it’s not without its challenges, from high property taxes to extreme weather.

If you’re looking for a state where your money goes further, the BBQ is always smoking, and the sunsets are Instagram-worthy, moving to Texas is an adventure to embark on during retirement.

How to Plan Your Retirement with an Advisor

Retirement planning can feel like solving a Rubik’s Cube blindfolded — there are many moving parts, and one wrong twist can throw everything out of alignment. If you’re looking to retire in a different state, you must consider an entire new set of factors before making that decision But here’s the good news: you don’t have to figure it all out on your own. 

This is where the expertise of a trusted financial advisor becomes invaluable. A successful relocation and retirement strategy should encompass several key components:

• Social Security Benefits: Typically replacing about 40% of pre-retirement income, it’s crucial to understand the optimal timing and strategy for claiming these benefits to maximize your payout.
• Retirement Account Withdrawals: Adhering to a recommended 4% withdrawal rate from retirement accounts helps ensure a sustainable income stream throughout your retirement years.
• Pension Payments: If available, pension income provides a stable and predictable revenue source, enhancing your financial security.
• Investment Income: Diversifying your investments across various asset classes can generate additional income and grow your wealth during retirement.
• Tax Optimization: Different states offer unique tax advantages. Strategizing with a financial advisor can help you take full advantage of these benefits in your new retirement location.

Experts recommend consulting with a financial advisor about 10 years before your planned retirement. This timeframe allows ample opportunity to adjust your saving strategies, develop tax-efficient withdrawal plans, and ensure you’re on track to meet your retirement goals. 

Planning ahead with expert guidance can help you navigate the complexities of retirement and make the most of your resources in the years to come. To ensure you’re partnering with the right advisor, take our free Advisor Match Quiz. In just a few minutes, this will match you with a financial advisor who aligns with your unique retirement objectives and relocation plans. 

Whether you’re looking to maximize your retirement savings, create a tax-efficient strategy, or ensure a smooth transition to your new state, expert guidance is essential for making informed, confident decisions.

Don’t leave your retirement to chance. Take control of your future today by taking the Invested Better Advisor Matching Quiz and start building a retirement plan that meets your needs leverages the benefits of relocation. Your dream retirement is just a click away.

FAQs

1. What are the top states for retirement in 2025? 

According to our comprehensive analysis, the best states to retire in 2025 include Florida, Colorado, Virginia, Delaware, and Wyoming. These states offer a combination of tax benefits, affordable living costs, quality healthcare, and attractive lifestyle options for retirees.

2. Which state offers the best financial advantages for retirees? 

While several states offer financial benefits, Florida stands out for its overall financial advantages. It has no state income tax, no tax on retirement income, and extensive retirement communities. However, states like Wyoming, Tennessee, and New Hampshire also offer significant tax benefits that can be advantageous for retirees.

3. What factors should I consider when choosing a state for retirement? 

Key factors to consider include tax policies (especially on retirement income), cost of living, healthcare quality and accessibility, climate, recreational opportunities, and proximity to family. It’s also important to consider the overall quality of life and the availability of retirement communities or services tailored to seniors.

4. How can I plan effectively for retirement in my chosen state? 

Effective retirement planning involves starting early, ideally about 10 years before retirement. Consider consulting with a financial advisor who specializes in retirement planning. They can help you create a comprehensive strategy that takes into account the specific benefits and considerations of your chosen state, including tax implications, healthcare costs, and lifestyle factors.

5. What are some popular retirement destinations within the top-ranked states? 

Popular retirement destinations vary by state but include places like The Villages in Florida, Sun City in Arizona, Asheville in North Carolina, and Boise in Idaho. These locations often offer a combination of amenities, healthcare access, and lifestyle options that appeal to retirees.