2025’s 3 Best and Worst States for Retirement: WalletHub
Personal finance website WalletHub this week released its report on 2025’s Best and Worst States to Retire, intended to help retirees and near-retirees find a safe, enjoyable and wallet-friendly place to live out their golden years.
To determine the rankings, WalletHub compared the 50 states across 46 key indicators of retirement-friendliness, from financial factors like tax rates and the cost of living to things like access to quality medical care and fun activities.
“Retirement is supposed to be relaxing, but it can also be incredibly stressful given that it typically puts people on a fixed income, which may not be enough for them to live comfortably,” said Chip Lupo, WalletHub Analyst. “As a result, the best states for retirees are those that have low taxes and a low cost of living to help retirees’ budgets stretch as far as possible. Having access to excellent medical care and homemaking services is also crucial, especially for people who don’t plan to retire in close proximity to their families.”
So what states did WalletHub’s analysis determine are the best—and worst—for retirement this year? Read on in the next two pages for closer looks at the top and bottom three as well as some key insights, and check out the interactive map below for complete state rankings.
Next page: Top 3 States for Retirement 2025
Top 3 States for Retirement 2025
1. Florida
“Florida is the best state for retirees due to its relatively low taxes for retired people, including no estate, inheritance or income taxes,” said Chip Lupo, WalletHub Analyst. “Florida also provides an ideal environment for retirees, with the second-most shoreline miles of any state, the second-most adult volunteer activities per capita, and the seventh-most golf courses and country clubs per capita. There are plenty of ways for seniors to stay healthy and happy, which is reflected in the fact that Florida has the third-lowest death rate in the country for people ages 65+.”
Plus, Florida receives more funding per senior from the Older Americans Act than all but two other states. This funds things like transportation, homemaker assistance and nutrition programs for seniors.
WalletHub notes the overall cost of living is pretty high in Florida compared to many other states—without mentioning annual hurricane risks that boost insurance costs—but that doesn’t stop the Sunshine State from taking the top spot for retirees. It still finished second overall for both affordability and quality of life, and 27thfor healthcare on the way to an overall score of 62.76.
2. Minnesota
Minnesota is the second-best state for retirement, in large part due to health reasons. Minnesota has the most health care facilities, the second-most nursing homes, and the third-most home health care aids per capita. Its geriatrics hospitals also rank as the fifth-best in the nation. Due to the great health care conditions within the state, Minnesota has the third-lowest percentage of seniors with a disability, the fourth-lowest percentage with poor mental health, and the fifth-highest percentage who are in good physical health.
When it comes to overall quality of life in Minnesota, the state has the 10th-best elder abuse protections in the country, which guard elderly residents against physical and financial harm. The state also has the 15th-lowest violent crime rate, and the fifth-highest percentage of people who do favors for their neighbors.
On the financial side, Minnesota has the 10th-lowest share of residents ages 65+ who are in poverty and the fifth-lowest percentage who went hungry in the last 12 months.
Earning a 62.74 overall score to barely miss out on the top overall spot, Minnesota ranked first for healthcare, sixth for quality of life and 27th for affordability.
3. Colorado
Colorado is the third-best state for retirees, offering taxpayer-friendly conditions with no estate or inheritance taxes. In addition, it has the seventh-lowest poverty rate for residents ages 65+ and the 10th-lowest percentage of seniors who have faced hunger in the past 12 months.
Colorado is a great state for retirees’ physical and mental health. It has one of the lowest rates of social isolation for seniors, and it boasts the 10th-best geriatrics hospitals in the country. It also has the fourth-highest percentage of seniors who are in good health and the third-highest percentage who are physically active.
On top of all that, Colorado has plenty to keep seniors active and engaged. For example, it has the sixth-most volunteer opportunities, the ninth-most scenic byways and the 11th-most theaters per capita.
With an overall score of 61.71, Colorado ranked 3rd for healthcare, 15th for affordability and 18th for quality of life.
Next page: Bottom 3 States for Retirement 2025
Bottom 3 States for Retirement 2025
48. Mississippi
Mississippi maintains its place near the bottom of WalletHub’s rankings thanks to placing last (50th) for quality of life and 47th for healthcare, and despite placing 9th for affordability. Mississippi’s total score was 45.33.
49. Louisiana
A 48th-place rank for healthcare and a 46th-place rank for quality of life led Louisiana to the next-to-last place in WalletHub’s latest rankings with a total score of 44.54. The state did manage to finish in the top half for affordability (24th).
50. Kentucky
Kentucky once again retained its spot at the very bottom of WalletHub’s annual rankings, also placing there each of the past two years. The Bluegrass State placed 45th for health care, 41st for quality of life, and 36thfor affordability on its way to the lowest overall score at 42.46.
Here are a few other notable takeaways from WalletHub’s 2025 analysis:
• Quotable: “The financial impact of inflation has introduced several new concerns for future retirees as they reconsider where to retire. Rising housing costs, even in traditionally affordable areas, are making long-term affordability a significant challenge. Additionally, healthcare expenses are increasing at a rate that outpaces general inflation, forcing retirees to allocate more of their budgets to medical care. Compounding these issues is the erosion of purchasing power, as fixed incomes often struggle to keep up with the rising costs of essentials like food, utilities, and transportation. These factors underscore the importance of careful financial planning and selecting a retirement location that balances affordability, access to quality healthcare, and overall cost of living stability.” — Juan E. Gallardo, Ph.D. – Director, Texan Smart Financial Education Center; Instructor, Tarleton State University
• Alabama (ranked 37th overall) has the lowest adjusted cost-of-living index for retirees, 2.2 times lower than in Hawaii (ranked 41st), where it is highest.
• Mississippi (ranked 48th) has the lowest median annual cost of elderly housekeeping, 3.3 times lower than in Montana (ranked 22nd), where it is highest.
• South Dakota (ranked 5th) has the highest share of the population aged 65 and older still working, 1.8 times higher than in West Virginia (ranked 43rd), where it is lowest.
• Maine (ranked 15th) has the highest share of the population aged 65 and older, which is 1.9 times higher than in Utah (ranked 18th), where it is lowest.
• To view the full report, please visit: https://wallethub.com/edu/best-and-worst-states-to-retire/18592
SEE ALSO:
• 5 Best and Worst States for Retirement 2024
• Best and Worst U.S. Cities to Retire in 2024: WalletHub
• 2025’s Best Places in the World to Retire