Best and Worst States to Retire in 2020

401k, retirement, health care, affordability,
Beautiful Utah is ranked high.

We know that some states are good—and some (really) bad—at fostering a friendly, inviting and sustainable environment for retirees. One locale’s exodus in very often to another’s advantage, and WalletHub is out with its ranking of the top to bottom.

The consumer finance website helpfully compared the 50 states across 47 key metrics, with data sets ranging from adjusted cost-of-living to weather to the quality of its public hospitals.

Topline results include:

  • Mississippi has the lowest cost-of-living index for retirees at 84.51, which is 2.4 times lower than in Hawaii, where it is highest at 200.27.
  • Louisiana has the lowest annual cost of elderly housekeeping at $38,621, which is 1.8 times lower than in Washington, where it is highest at $68,640.
  • Vermont has the highest share of the population aged 65 and older still working, 24.39 percent, which is 1.8 times higher than in West Virginia, where it is lowest at 13.84 percent.
  • Maine has the highest share of the population aged 65 and older at 20.60 percent, which is 1.9 times higher than in Utah, where it is lowest at 11.10 percent.

“If retirement is still a big question mark for you because of finances, consider relocating to a state that lets you keep more money in your pocket without requiring a drastic lifestyle change,” the website notes.

Even in the most affordable areas of the U.S., it adds, “most retirees cannot rely on Social Security or pension checks alone to cover all of their living expenses. Social Security benefits increase with local inflation, but they replace only about 39 percent of the average worker’s earnings.”

Read on for the best and the worst, and where each state falls.

Florida (Best)


Anyone at all surprised? Anyone? The Sunshine State is taking maximum advantage of high-tax areas (especially in the Northeast) to attract retirees looking for warmth.

Colorado (Best)


Honestly, we thought it was the marijuana (bud, pot, kind, dank, reefer) but the Centennial State’s affordability, quality of life and health care made for a more reality-based score.

New Hampshire (Best)


“Live free or die” is the Granite State’s motto, if its license plates are any indication. The state rings in at No. 3 on the list.

Utah (Best)


“Busy as bees” is particularly apropos for the Beehive State, the only one not to sink into an economic depression in the 1930s and 1940 due to the industriousness of its citizens. That hard work deserves a comfortable retirement.

Wyoming (Best)


“Out ridin’ fences” takes a toll on any cowboy, and while its health care rank wasn’t so great, its affordability was able to balance it out.

West Virginia (Worst)


Health care in the Mountain State hit dead last.

New Jersey (Worst)


The Garden State is truly expensive, ranking almost last in affordability (quality of life wasn’t great either).

Rhode Island (Worst)


The Ocean State is drowning in debt, making the high-tax mecca majorly problematic. Its flag reads “Hope,” but not for retirees.

New Mexico (Worst)


The Land of Enchantment? Not even (at least not in quality of life).

Kentucky (Worst)


Kentucky? More like Can’t-tucky. Both health care and quality of life spelled trouble for the Bluegrass State.

John Sullivan
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.

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