How To Choose a State To Retire In
When deciding where to retire, it’s important to think about what you want your retirement to look like.
Climate might be your main consideration, making southern states with year-round sunshine particularly appealing. Alternatively, if finances are your priority, you may prefer to retire in a location where your savings can stretch further.
No single state is perfect for everyone, but identifying your most important factors can help you narrow down your options.
Common State Retirement Factors To Consider
- What is the state’s climate like?
- How are the state’s taxes?
- What is the cost of living like in the state?
- Does the state’s health care system rank well?
You may also consider factors like whether a state has a high population of seniors or is known for its retirement communities.
How soon are you retiring?
What is your goal for purchasing an annuity?
Select all that apply
The Best States To Retire In
Remember, there is no one right answer to which state is best for retirement. However, some states stand out due to their diverse lifestyles, financial benefits, and high senior populations.
Trying to decide the best place to retire is often thought of in financial terms, with taxes probably the biggest concern. Climate is also a consideration, particularly for residents living in the more northern parts of the country. But one of the most significant factors retirees often consider is proximity to family, particularly grandchildren. Sometimes, paying more in taxes is more than worth it if more time can be spent with loved ones.
Toby Walters, CFA®, CFP®Senior Financial AnalystToby Walters, CFA®, CFP® is a senior financial analyst with over 25 years of experience in financial research. His knowledge spans researching and analyzing financial data to developing a one-of-a-kind viewpoint on money-related topics.
Florida
It should come as no surprise that Florida, one of the premier retirement destinations in the country, makes an appearance on this list. The state boasts warm weather year-round, with average highs in the mid-70s in January, making it an appealing destination for those who spent their careers in colder states.
Florida is also a popular retirement spot due to its diverse lifestyles. The state offers everything from wildlife and beaches to major cities and theme parks. Additionally, Florida has no state income tax and ranks a respectable No. 26 for its health care system, according to U.S. News & World Report.
Moreover, Florida is home to numerous retirement communities, which can be attractive to those looking to spend their golden years with other retirees.
Arizona
Another warm climate known to attract retirees is Arizona. This desert state offers everything from great weather to vast wilderness options and bustling cities. Nearly 19% of the state’s population is 65 or older, and sprawling retirement villages like Sun City are available.
Arizona boasts the 20th best health care system in the country. Its cost of living rank of No. 32 is a bit lower than some other common retirement states, but the mild winters, strong retirement communities and abundant activities make it an intriguing choice for soon-to-be retirees seeking a warm destination.
South Dakota
Unlike Florida and Arizona, South Dakota is not a state commonly thought of as a retirement destination.
The truth is, though, that not all retirees are looking for a mild climate above all, and South Dakota presents a lot of potential perks worthy of consideration.
As opposed to constant warm weather, the state offers beautiful seasons that give retirees the ability to really live in each portion of the year. According to Travel South Dakota, common activities include hiking, fishing, hunting and boating.
For those interested in an outdoors-focused retirement, the state can make a lot of sense.
There is also no state income tax, and South Dakota ranks at an impressive No. 4 nationally for cost of living.
The one major drawback to consider is the state’s health care system, which comes in at No. 43.
Colorado
Another colder-weather option to consider is Colorado, the Mountain State. It offers a diverse range of appealing living situations for retirees, from outdoor activities to charming small towns. Major cities like Denver cater to those who desire a mountainous climate while still being close to a major metropolitan area.
Colorado’s cost of living ranks No. 39, similar to Arizona, and the state impressively ranks No. 12 for health care. Additionally, Colorado is home to over 800,000 residents aged 65 or older.
