The idea of a single “number one” state for retirement is more complex than it appears, as different surveys weigh factors differently, leading to varied results. For example, a 2025 Bankrate study ranked New Hampshire first due to high scores in safety, taxes, and healthcare. Conversely, a 2025 WalletHub report placed Florida in the top spot based on its methodology that emphasized different metrics. This disparity highlights that the perfect retirement location is a personal choice, not a consensus. For some, a tax-friendly warm climate is paramount, while others prioritize affordability, access to excellent healthcare, or low crime rates.
Factors that determine the best state for retirement
Several key factors influence a state's appeal to retirees. A detailed look at these areas can help you decide which are most important for your golden years.
- Affordability: This is often the most significant factor for retirees on a fixed income. It includes the overall cost of living, housing prices, groceries, and transportation. West Virginia, for example, often ranks as the most affordable state, while Hawaii is consistently the most expensive.
- Taxes: Taxes can significantly impact a retirement budget. Some states have no state income tax, which is particularly beneficial for those with significant retirement income from pensions and 401(k)s. Other states exempt Social Security benefits or offer favorable property tax exemptions for seniors.
- Healthcare: Access to quality and affordable healthcare is a top concern for many seniors. This includes the availability of medical facilities, quality of care, and cost. States like Minnesota, Massachusetts, and Colorado often receive high marks for healthcare quality and access.
- Safety and Crime: Feeling safe in your community is a critical component of quality of life in retirement. Studies consider both violent crime rates and property crimes, with states like North Dakota, South Dakota, and New Hampshire typically ranking among the safest.
- Quality of Life and Weather: This category is highly subjective. For many, it means a warm, sunny climate, while others prefer four distinct seasons. Quality of life also encompasses access to recreation, cultural amenities, and a community of peers. Florida, Arizona, and Nevada are known for warm weather, while states like Maine offer beautiful scenery and four seasons.
Top contenders for the number one state for retirement
While no single state is the definitive best, several consistently rank high in different categories. Here are a few top contenders:
- New Hampshire: Despite colder weather, Bankrate's 2025 study named New Hampshire the top retirement destination, citing high rankings for safety, healthcare access, and favorable taxes. It offers no state income or sales tax, which is a major financial draw.
- Florida: A perennial favorite for a reason, Florida boasts no state income tax, warm weather, and ample recreational opportunities. However, it may rank lower on certain lists due to rising housing costs, high home insurance rates, and vulnerability to natural disasters.
- Iowa: According to a 2025 Choice Mutual analysis, Iowa was named the best state to retire overall, scoring well in affordability, healthcare, and safety. The state is also tax-friendly for seniors, with Social Security and most retirement income going untaxed.
- Wyoming: For those prioritizing finances, Wyoming is a top contender. It features no state income tax and low property taxes. This Western state also offers a low population density and access to nature, though it scores lower on healthcare access.
- Delaware: Recognized as a top contender, Delaware offers retirees several key advantages. It has no state sales tax and low property taxes, plus a significant income exclusion for those over 60. Its coastal location is also a major draw.
Comparing top states for retirement: a table
| Feature | New Hampshire | Florida | Iowa | Wyoming | Delaware |
|---|---|---|---|---|---|
| Taxes | No state income tax or sales tax; high property tax. | No state income, estate, or inheritance tax. | No tax on Social Security or retirement account withdrawals. | No state income tax; low property tax. | No state sales tax; low property tax; pension income exclusion. |
| Affordability | Below average in affordability rankings. | Affordability can vary significantly by location; rising home insurance costs. | Strong affordability ratings, particularly low cost of living. | Strong affordability ranking, particularly for taxes. | Mixed ratings on affordability, but favorable taxes help. |
| Weather | Four distinct seasons; cold, snowy winters. | Warm weather year-round, but hot, humid summers and hurricane risk. | Four distinct seasons, with cold winters. | Four seasons, but cold and snowy winters in some areas. | Mild winters, but high humidity in summer. |
| Safety | Consistently high rankings for low crime rates. | High crime ratings on some lists, particularly in urban areas. | Lower crime rates for seniors compared to national average. | High safety ratings, ranking in the top ten for seniors. | Lower crime rates compared to higher-density states. |
| Healthcare | High-quality care and access. | Mixed reviews on overall healthcare quality and access. | Good access and quality, with notable medical facilities. | Poor healthcare access and quality ratings. | Strong access to healthcare facilities and preventative care. |
Making the right choice for your retirement
Choosing a retirement location is a deeply personal decision that should be based on your individual needs, preferences, and financial situation. While some studies might declare a single "winner," these rankings often fail to capture the nuances that matter most to you. For example, if you have family in one area, that may outweigh tax benefits elsewhere. If outdoor recreation is a priority, climate becomes a crucial consideration. Consider creating a weighted list of your priorities, from taxes to hobbies, and use that to compare states. Visiting potential retirement spots for an extended stay can also provide valuable insight into the local community and lifestyle.
Ultimately, there is no single number one state for retirement. The search is not for a universally best option, but for the place that best aligns with your vision for your future. The data available from various reputable sources serves as a guide, helping you to research and explore the options that fit your personal retirement dreams.
Conclusion
Defining a single "number one state for retirement" is misleading, as the ideal location varies dramatically depending on individual priorities. Different reputable studies, like those from Bankrate, WalletHub, and Choice Mutual, highlight different states each year based on factors such as affordability, taxes, healthcare, and quality of life. For retirees who value financial benefits above all, a low-tax state like Wyoming or Florida might be best. If top-tier healthcare is the priority, a state like Minnesota or New Hampshire could be the optimal choice. Meanwhile, retirees prioritizing a lower cost of living may prefer states like Iowa or West Virginia. A balanced approach, considering personal preferences alongside financial and health-related data, is the most effective way to identify the best retirement destination for your specific needs.
