The best state to spend your retirement in is Florida, and the worst state is New Mexico. As retirement approaches, one of the biggest decisions people face is where to live.
The purpose of this study is to help retirees make that choice with confidence. In today’s economy, choosing the right state for retirement is more important than ever.
| Rank | Best States to Retire | Worst States to Retire |
|---|---|---|
| 1. | Florida | New Mexico |
| 2. | Nebraska | California |
| 3. | Maryland | New York |
| 4. | Minnesota | Arkansas |
| 5. | Wisconsin | Nevada |
| 6. | New Hampshire | Kentucky |
| 7. | Utah | Alaska |
| 8. | Iowa | Louisiana |
| 9. | New Jersey | West Virginia |
| 10. | South Dakota | Mississippi |
To rank each state, our team used reliable data from The Motley Fool and scored the states across seven major categories: housing affordability, healthcare quality, crime rates, tax burdens, weather, cost of living, and quality of life. Our report offers a clear look at the best and worst states to retire in 2025.
Top Five Best States to Retire in 2025
These states stand out because they support both the financial and lifestyle needs of today’s retirees. This top five shows that a great retirement isn’t just about sunshine; it’s about living well, feeling safe, and making the most of your next chapter.
The main benefits of retiring in these states include:
- Balanced affordability: Home prices and everyday costs that don’t strain a fixed income.
- Strong public health systems: Access to hospitals, doctors, and wellness programs.
- Desirable weather: Mild or enjoyable climates that support active living.
- Low crime rates: Peace of mind and personal safety for older adults.
1. Florida
Florida remains a retirement favorite, thanks to its warm climate. The state also offers low taxes and a strong quality-of-life score, with many communities designed specifically for retirees.
Access to beaches, golf, healthcare, and social activities makes it easy to enjoy an active retirement.
2. Nebraska
Nebraska earns high marks for its affordable housing and moderate cost of living. It also has strong ratings in safety and healthcare. Nebraska provides a grounded lifestyle with modern conveniences.
3. Maryland
Maryland combines a high quality of life with excellent healthcare access and a wealth of cultural attractions. Its urban-suburban blend appeals to retirees who want variety and easy access to both city living and outdoor escapes.
4. Minnesota
Despite its cold winters, Minnesota shines in other key areas. It has one of the top-rated healthcare systems in the country and maintains low crime rates.
Retirees benefit from the state’s support services, affordability, and a community-oriented lifestyle.
5. Wisconsin
Wisconsin rounds out the top five with its focus on healthcare quality, safety, and affordable housing. The state offers rich community life and access to natural beauty, making it a well-rounded option for retirees looking to stay active and connected.
Top Five Worst States for Retirement in 2025
While these states may appeal to some retirees for specific reasons (such as climate or cultural experiences), the overall data suggests they present more risks than rewards for retirees.
Common challenges in the worst states for retirement include:
- High taxes: Reduced income flexibility for retirees.
- Expensive living: Rising costs in housing, healthcare, and daily needs.
- Poor healthcare access: Limited services and lower health outcomes.
- Safety concerns: High crime rates and public safety issues.
1. New Mexico
Ranked last overall, New Mexico struggles with the highest crime rate in the country and the second-lowest quality-of-life score. Retirees face challenges in both healthcare access and community safety.
2. California
While California boasts beautiful weather and scenic living, it ranks near the bottom due to its extremely high cost of living, elevated tax rates, and skyrocketing housing prices.
3. New York
New York has the heaviest tax burden of any state and faces issues with expensive housing and overall affordability. Despite its cultural appeal, many retirees find it hard to maintain financial security, especially outside of major metro areas where healthcare access and safety are also concerns.
4. Arkansas
Arkansas struggles with a low quality–of–life score, poor healthcare rankings, and a high crime rate. While housing may be more affordable, the lack of essential services and overall safety makes it less appealing for retirement living.
5. Nevada
Nevada ranks poorly in crime rates and doesn’t make up for it with healthcare or cost-of-living advantages. Its mid-tier affordability is offset by lower health scores.
Key Retirement Factors: Category Breakdowns
When choosing where to retire, no single factor tells the whole story. Retirees must balance many different aspects, including financial security, health needs, personal safety, and overall lifestyle preferences.
Housing Affordability
Housing is often the largest expense for retirees. Affordable housing translates directly into more flexibility for healthcare, leisure, and travel, essentials for a fulfilling retirement.
- Top performers: Iowa and Louisiana offer some of the most affordable housing markets in the country. With median home prices significantly below the national average, retirees can often downsize or relocate without draining their savings.
- Struggling states: California and Hawaii rank worst in this category. With median home prices well over $700,000 in California and even higher in Hawaii, many retirees find it financially impossible to buy or maintain property in these locations.
Healthcare Access and Quality
As people age, access to quality healthcare becomes more vital than ever. The quality of a state’s healthcare system can directly influence a retiree’s longevity, independence, and daily quality of life.
- Top performers: Rhode Island and Hawaii lead with strong healthcare systems, offering reliable access, well-rated hospitals, and preventive care services.
- Struggling states: Mississippi and Alabama fall short, with limited access to medical professionals and lower overall health outcomes for seniors.
Crime and Safety
A safe and secure environment is a top priority for retirees who want to enjoy their freedom without fear. Safety influences everything from where retirees feel comfortable walking at night to how much they rely on community support.
- Top performers: Maine and Vermont rank among the safest states, with low crime rates and a strong sense of community trust.
- Struggling states: New Mexico and Louisiana consistently report high crime rates, which can affect not only personal safety but also real estate values.
Tax Burdens
Taxes can quietly chip away at fixed incomes, so retirees often seek states that allow their money to go further. Tax-friendly policies allow retirees to better manage medical costs, travel plans, and lifestyle choices without added financial stress.
- Top performers: Wyoming and South Dakota offer low or no state income tax and favorable tax conditions on retirement income.
- Struggling states: New York and New Jersey impose some of the highest state tax burdens in the nation, reducing disposable income and long-term savings.
Weather
For many, weather plays a huge role in daily happiness and mobility. A pleasant climate can improve mental health, encourage outdoor activity, and reduce seasonal depression among older adults.
- Top performers: Florida and Arizona consistently attract retirees with mild winters and ample sunshine.
- Struggling states: Alaska and North Dakota offer harsh winters, which can isolate seniors and increase health risks.
Cost of Living
Beyond housing, daily expenses like groceries, transportation, and utilities also shape retirees’ financial well-being. The more affordable the state, the more breathing room retirees have to enjoy their lifestyle without financial anxiety.
- Top performers: Mississippi and Arkansas offer low overall living costs, allowing retirees to live comfortably even on modest budgets.
- Struggling states: Hawaii and Massachusetts demand higher spending in almost every category, from food to healthcare services.
Quality of Life
A great place to retire supports overall well-being. Quality of life speaks to the full retirement experience: social connections, purpose, access to services, and day-to-day fulfillment.
- Top performers: Massachusetts and Florida shine in this area by providing access to vibrant communities, recreational opportunities, and senior services.
- Struggling states: Louisiana and Mississippi rank low due to limited community support, poor infrastructure, and weaker healthcare and safety scores.
Choosing the Right State for Your Next Chapter
Choosing where to spend your retirement is one of the most important decisions you’ll make. By using comprehensive data that looks at housing, healthcare, taxes, safety, and overall quality of life, you can make a choice that aligns with your needs, goals, and budget.
This report by our Marietta nursing home abuse lawyers shows that no single state is perfect for everyone, but the right state for you is out there.
Whether you value affordability, climate, healthcare access, or community, at Jones & Swanson, we can help you make an informed move.
