5 Best States for Retirement
5. Mississippi
Retirement Living cites the Magnolia state’s small-town charm as alluring to retirees while acknowledging the poverty rate is substantial, “which bumps it low on our ‘quality of life’ ranking, but its growing senior population suggests a suitable retirement environment,” the report notes.
Survey respondents praised Mississippi so highly that it earned the highest RL Score of all 50 states.
Crime in Mississippi is one of the lowest in the nation, according to the report. And when comparing home prices against average annual incomes, the state, once again, lands in the top 10—no state other than West Virginia has more affordable housing than Mississippi.
4. Idaho
With a population increase of 5.4%, the report says more people (by percentage) have moved to Idaho than any other state. The boom has caused housing costs to spike, but with a median home price of $331,600, houses are still well below the national average of $412,000, according to the Federal Reserve Bank of St. Louis.
Crime is low, and for retirees, a good portion of their Social Security benefits, pensions, and property taxes are exempt from income tax.
3. Iowa
Affordability (ranked fifth) propelled the Hawkeye State toward the top of the rankings. Home prices average just $181,600—much lower than the national average. For tax year 2023, Iowans age 55 and older are exempt from paying state taxes on retirement income (the state also doesn’t tax Social Security benefits).
More than 18% of residents are age 65 and older. With low crime and even lower levels of poverty, Iowa is known as one of the safest places to live, the report says.
2. Maine
Retirement Living said Maine barely misses the top spot “because it levies higher income and property taxes than our best retirement state below.” However, Maine has no local sales taxes, considered this one of its biggest benefits.
“Maine also earns our praise for great access to healthcare professionals and low—really low!—crime rates,” the report says. “Plus, at 22.5%, Maine has the highest population of seniors in the country.”
Maine tied with the No. 1 Best State for Retirement below in ranking first for affordability.
1. New Hampshire
For the second year in a row, New Hampshire takes Retirement Living’s top spot for U.S. retirement destinations. “This four-season state allows residents to participate in various outdoor activities year-round. Seniors will have little issue building a network of retirement-age friends with similar interests—more than 20% of New Hampshire residents are 65 and older,” the report says.
Despite having one of the country’s highest real estate transfer taxes, many people are willing to overlook that metric in exchange for no tax on retirement income and no sales taxes, which helps keep the Granite State affordable for all residents.
Housing prices rose year-over-year, but so did the average annual income, so New Hampshire’s affordability ranking actually improved this year.
View the full report here.
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