3 Financial Pros and 3 Cons of Moving To Arizona for Retirement, According to Experts
Written by
Alan Joseph
Edited by
Rebekah Evans
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The appetite to save is lacking based on a Charles Schwab survey, which revealed that only one-third of Americans feel confident about accomplishing their savings goals — down from 43% last year. The primary reason for this downward trend is inflation as well as other smaller factors.
For those looking to stretch their wallets further and save more of their hard-earned money, Arizona offers numerous benefits to prospective retirees. GOBankingRates spoke to an expert to discuss the pros and cons of retiring in the Grand Canyon State — below is what they had to say.
Also here are four Arizona housing markets that are plummeting for retirees to keep an eye on.
Advantages
Keep Your Full Social Security Check
As the timeless proverb goes: “Two things are guaranteed in life: death and taxes.” But that doesn’t mean you can’t legally pay Uncle Sam less. According to Linda Jensen, certified financial fiduciary specializing in retirement income planning, Arizona grants a wide array of unique tax advantages for those exploring their options. “[The two primary benefits are] no tax on Social Security benefits and relatively low state income tax rates compared to California or New York,” Jensen said.
Why is this important? The National Reverse Mortgage Lenders Association found that approximately 67% of seniors are dependent on Social Security for more than half of their income. For Americans aiming to relocate to a state that doesn’t levy taxes on Social Security, they can count on getting a complete paycheck without the state government taking a portion of it. “For retirees relying on a fixed income, this can lead to meaningful annual savings,” Jensen said. Over the course of a year, this benefit could help cover essentials like groceries, utility bills and property taxes.
Affordable Housing
Owning a home is as American as apple pie and the goal for most Americans is home ownership. This was enacted under President Dwight D. Eisenhower with the Housing Act of 1954. “The American dream of good homes for everyone is much closer to becoming a reality,” declared Elliott Spratt, a remark later captured by the New York Times. Sadly, the dream of owning a home is not as viable as before due to the exorbitant prices of today.
But not all hope is lost. If you’re willing to compromise on coastal living, inland states offer attractive prices relative to states like New York and California. The most recent data from Homebuyer.com ranked Arizona No. 32 for single-family homes, with the median price costing $460,600 (as of Sept. 3, 2025). For comparison, single-family homes in California cost $907,100.
Great Weather and Great Outdoors
U-Haul’s annual end-of-the-year report ranked Arizona the sixth most popular state for relocation, as reported by The Arizona Republic. The state’s picturesque deserts, mountains and the iconic Grand Canyon provide plenty of outdoor activities for those seeking to soak in the sun. For instance, according to Cronkite News, there are over 370 golf courses to play a round amid the fairway’s greenery while being surrounded by the serene desert landscape.
Disadvantages
Rising Insurance Costs
Like other states, Arizona has also seen an increase in wildfires, especially since 2022. As the number of claims goes up, so do premiums. The Arizona Department of Insurance & Financial Institutions assessed that the scale and intensity of recent natural disasters have been more acute in the region as a consequence of the dry climate. Other drivers included higher construction costs and higher home values.
High Electricity Bills in Summer
Unsurprisingly, Arizona is hot. Maybe a little too hot during some months. According to the U.S. Energy Information Administration (EIA), the most recent average American household electricity cost in summer is $178. But the hottest months in Arizona are a different story. Last year, from June throughout August, Arizona households paid an average of $235, as reported by AZCentral.
Lack of Doctors in Rural Areas
The American Hospital Association estimated there are 68 doctors per 100,000 residents in rural communities nationally, a stark contrast to 80 in urban metropolitan areas. Unfortunately, Arizona is not insulated from this trend. Jensen cautioned anyone moving into rural areas to be mindful of this, especially if they require specialized care. “While cities like Phoenix and Tucson have excellent care, less populated regions may lack medical specialists,” Jensen added.
However, on the bright side, the University of Arizona has taken some steps to address this shortage through a series of programs, including allowing some students to graduate a year early to get more hands-on training and practice sooner.
Ultimately, the Grand Canyon State is an intriguing choice for individuals seeking a quieter life in their post-work years, while reaping the benefits of favorable state tax policies and affordable housing. Despite the intense summer heat, factors such as keeping your full Social Security check, modest home prices and ample access to outdoor opportunities make Arizona an appealing consideration.
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