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.

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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