10 Best States For Retirement in 2024
Written by
Vance Cariaga
Edited by
Nicholas Morine
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Choosing where you want to live in retirement is perhaps the biggest decision you’ll make because of its potential impact on your lifestyle and finances. While many Americans move nearby (mostly as a way to downsize), nearly one in four (22%) said they want to relocate to another state in retirement, according to a recent survey by financial services company Empower. Another 10% want to move abroad.
The survey of 1,000 U.S. adults found that top factors in choosing a retirement locale are cost of living (55% of respondents), climate (50%) and proximity to loved ones (41%).
Moving Away Can Actually Be a Good Thing
Moving to a different city, state or country in retirement can be a positive step — as long as you do your research. Depending on where you choose to retire, you can save a ton of money on housing, taxes and other expenses. But that shouldn’t be your only consideration. You also want to ensure a good quality of life, however you define it.
In that regard, Florida continues to reign supreme as the best state to retire, according to a new report from personal finance site WalletHub. This is the case even though other states have begun to cut into Florida’s lead as a favorite retirement destination.
The Sunshine State ranked high because of its “relatively low taxes” for retirees — including no estate, inheritance or income taxes, WalletHub noted. The costs of adult day health care and homemaker services are also lower in Florida than in most other states, and it boasts sunny weather and numerous beaches.
The Most Retirement-Friendly States, Ranked
To identify the most retirement-friendly states, WalletHub analyzed three factors — affordability, quality of life and healthcare — based on 46 different metrics. The analysis including data from organizations such as the U.S. Census Bureau, the FBI, the U.S. Bureau of Labor Statistics and the Centers for Disease Control and Prevention. WalletHub then calculated each state’s weighted average across all metrics to determine its overall score.
Here’s a look at the top 10 states for retirement this year, according to WalletHub:
- Florida (total score 62.19)
- Colorado (61.0)
- Virginia (60.85)
- Delaware (59.57)
- Wyoming (59.04)
- Idaho (58.46)
- New Hampshire (57.75)
- Minnesota (57.53)
- Montana (57.17)
- Pennsylvania (56.28)
On the other end of the spectrum, here are the five states that ranked lowest:
- Kentucky (43.30)
- New Jersey (43.69)
- Mississippi (44.01)
- Rhode Island (45.20)
- Oklahoma (45.57)
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