Being able to comfortably retire is a key goal for many Americans. And while you should always check your retirement readiness from a top-down view, it’s also a good idea to delve into where you should consider living out your golden years.
Not to cast aspersions on any particular state, but there are definitely ones that are better for retirees than others. Consider living costs, health care, weather, and so on.
Since the average monthly Social Security income is $1,772 per month or $21,264 annually, you should understand your shortfall — or how much additional money beyond Social Security you’ll need to live in that state.
Here are the top states for retirees.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Delaware
Delaware is America’s first state and takes the first slot when it comes to states good for retirees. It’s tax-friendly, with no state or local sales tax and no tax on Social Security benefits. There are also no estate or inheritance taxes.
There are other taxes to consider though, including on gas and cigarettes. The cost of living is just on the high side, with the national average being 100, according to data from the Missouri Economic Research and Information Center.
Cost of living index: 100.9
Weather: Generally moderate with some fluctuations
Average retirement age: 63
How much you’ll need per year for a comfy retirement: $58,418
Shortfall: $37,154
West Virginia
West Virginia gets high marks for affordability thanks to its low cost of living, property taxes, and homeowner insurance.
While it performs moderately in wellness, it scores the lowest in health care quality and cost. High health care expenses, poor system performance, and a limited number of health care centers might make it dicey for older Americans.
Cost of living index: 83.8
Weather: Cold winters with toasty, humid summers.
Average retirement age: 61
How much you’ll need per year for a comfy retirement: $49,439
Shortfall: $28,175
Georgia
Georgia’s big selling point is affordability. The Peach State’s cost of living has decreased significantly.
While the quality and cost of health care have seen modest improvements, Georgia's overall well-being and crime ratings remain low this year. These factors contribute to making it a more attractive option for retirees.
Cost of living index: 91.3
Weather: Humid, subtropical, but generally mild
Average retirement age: 63
How much you’ll need per year for a comfy retirement: $50,066
Shortfall: $28,802
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.49%, 24.49%, or 29.49% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
South Carolina
Like Georgia, South Carolina gets big points for affordability, though the cost of living is a bit on the upper end.
It’s also got generally nice weather and you won’t find it lacking in terms of well-being — and health care quality and costs.
Cost of living index: 97.6
Weather: Humid and subtropical. Beware of tropical cyclones.
Average retirement age: 63
How much you’ll need per year for a comfy retirement: $53,207
Shortfall: $31,943
Missouri
The Show Me State shows up well in terms of affordability, with a strong score in cost of living.
However, the state faces challenges in health care quality, overall well-being, crime, and natural disasters. The past 40 years have seen droughts, floods, freezes, severe storms, tropical cyclones, and winter storms.
Cost of living index: 88.5
Weather: Varies, but expect chilly winters and hot summers
Average retirement age: 63
How much you’ll need per year for a comfy retirement: $50,247
Shortfall: $28,983
Trending Stories
Mississippi
Mississippi has some great perks for retirees — largely in terms of taxes and retirement income.
It exempts all retirement income, including Social Security, IRA, 401(k), and pensions, from taxes. In addition, Mississippi offers low property taxes and moderate sales tax rates.
Cost of living index: 88.3
Weather: Humid, subtropical. Moderate winters and long, hot summers.
Average retirement age: 63
How much you’ll need per year for a comfy retirement: $46,993
Shortfall: $25,729
Pennsylvania
Pennsylvania might have a steep cost of living index compared to some other states, but it does very well by being tax-friendly.
Your pension, 401(k) and 403(b) plans, and IRAs are all tax-exempt.
Cost of living index: 95.6
Weather: Diverse — it’s a big state
Average retirement age: 64
How much you’ll need per year for a comfy retirement: $57,941
Shortfall: $36,677
Florida
The Sunshine State is a popular destination for retirees due to its tax-friendly policies. While property and state tax rates are around the national average, the overall tax burden is low.
However, the cost of living is a bit above average, with high costs for groceries, housing, and utilities. And don’t forget homeowners insurance, which may be unaffordable in Florida, depending on where you live.
Cost of living index: 103.1
Weather: Expect long, hot summers and mild winters … and hurricanes
Average retirement age: 64
How much you’ll need per year for a comfy retirement: $56,382
Shortfall: $35,118
Iowa
Iowa offers a host of benefits for retirees — largely in its balance between cost of living, health care, and tax-friendliness. Housing in particular is well below the national average.
Cost of living index: 90.1
Weather: Humid, warm summers and chilly winters.
Average retirement age: 65
How much you’ll need per year for a comfy retirement: $52,399
Shortfall: $31,135
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Wyoming
Wyoming offers lower-than-average sales (an average of 5.44% in state and local sales taxes) and property taxes. Taxes and affordable housing contribute to a cost of living below the national average.
The state relies on special taxes, but it doesn't rank very well in terms of quality of life. The cost of health care is quite a bit above average, which can be a particular drain for older people.
Cost of living index: 95.1
Weather: On average, a pretty cool climate
Average retirement age: 64
How much you’ll need per year for a comfy retirement: $52,330
Shortfall: $31,066
Bottom line
Location, location, location — that’s a big part of the retirement puzzle. Some states may work better for you than others, so take a gander at living costs, health care, and what weather you’d like to spend your days in.
If you choose a state that will require a higher income in order to live comfortably, you may have to consider supplementing your Social Security with a part-time job. And don’t forget, in some states, you may owe taxes on that Social Security income.
Ultimately, it’s up to personal preference and what matters most to you.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.