I Asked ChatGPT Where Retirees Should Live in 2025 for Maximum Savings

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Retirement looks different for everyone, but one thing is universal: you want your savings to last. Where you choose to live plays a big role in how far your money goes. Taxes, housing, healthcare and everyday expenses vary widely across the country, and moving to the right state or even the right city can free up thousands of dollars each year.

I asked ChatGPT where retirees should live in 2025 for maximum savings, and here’s what it told me.

What Makes a Place Affordable for Retirees?

Before naming states and cities, ChatGPT pointed out the factors that actually stretch retirement savings:

• Taxes: States that don’t tax Social Security or retirement income let you keep more.
• Housing: Downsizing helps, but choosing a low-cost housing market stretches savings further.
• Cost of living: Groceries, utilities, gas and insurance vary widely from state to state.
• Healthcare access: Low costs don’t matter if you have to travel hours for decent medical care.
• Lifestyle fit: A low cost of living isn’t worth it if you hate the weather or feel isolated.

The Best States for Saving in Retirement

According to ChatGPT, these states stand out in 2025 for retirees who want to maximize savings:

Florida

• No state income tax
• Retirement-friendly policies
• Plenty of sunshine and retiree communities
• Downside: Home insurance costs are rising, especially in coastal areas

South Dakota

• No tax on Social Security or retirement income
• Low overall tax burden
• Affordable housing in cities like Sioux Falls
• Downside: Harsh winters in some regions

Tennessee

• No state tax on retirement income
• Low housing costs compared to national averages
• Mild climate in many areas
• Downside: Higher sales taxes than some states

Missouri

• Affordable housing in both rural and suburban areas
• Access to healthcare in mid-sized cities
• Moderate cost of living
• Downside: Higher property taxes than states with no income tax

Wyoming

• Very low tax burden
• Wide open spaces and scenic living
• Affordable small towns
• Downside: Limited healthcare access in rural areas

Cities That Stretch Retirement Dollars

ChatGPT also highlighted a few specific cities where retirees can save more without giving up too much quality of life:

• Orlando, Florida: Warm weather, active retiree communities and no state income tax.
• Toledo, Ohio: Very affordable housing, lower everyday expenses and decent healthcare options.
• Poplar Bluff, Missouri: A small-town feel with affordable housing and access to nature.
• Decatur, Alabama: Low cost of living, mild winters and access to healthcare in nearby Huntsville.

Trade-Offs to Keep in Mind

Even in the cheapest states, ChatGPT reminded me that there are trade-offs. Lower housing costs often mean fewer amenities. Plus, states with no income tax sometimes have higher sales taxes or insurance premiums. And finally, extreme weather, like hurricanes in Florida or snow in South Dakota, can add hidden costs.

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