More than 338,000 Americans moved to retire in 2023. That’s a huge increase of 44% compared to 2022, according to a newly released survey of U.S. retirement migration trends.
Yet another new study found Americans are moving south and east in droves for retirement, often settling down in areas that are less expensive than where they moved from.
What follows are the findings from both studies, shedding light on where Americans want to retire.
Retiree Migration Study
HireAHelper’s 3rd annual retiree migration study, which analyzes Census Bureau data to determine how many retirees moved in the last year, where they moved to/from, and why, found that 2023 saw the biggest wave of retiree moves in three years.
Interestingly, nearly a quarter (23%) of all Americans who said they were moving to retire were early retirees under the age of 55. “The 2023 crop of retirees on the move was significantly younger…37% of them were under the age of 65,” the report states.
Similarly to the findings in its previous studies of moving for retirement, this year’s study found Americans who moved at this stage of their lives were more likely to relocate to a different state. A quarter (25%) of retirement moves in the U.S. in 2023 crossed state lines, compared to 18% of moves overall.
Where they’re going
For those Americans choosing to retire out of state, Florida was again the No. 1 destination in 2023. The Sunshine State attracted around one in 10 (11%) of all retirement moves that went to a different state.
South Carolina gave Florida a good run for its money as the destination for 10% of all cross-state retirement moves in 2023. Meanwhile, New Jersey and Texas each accounted for roughly 6% of such moves, respectively.
Next up were Washington (5.3%), Tennessee (3.8%), Wisconsin (3.6%), Pennsylvania (3.2%), Oregon (3.2%), and North Carolina (3%).
Where they’re leaving
As for the states retirees are leaving, the greatest share of relocating retirees came from California, with 18% of all retirement moves that crossed state lines originating in California. New York contributed a further 11% of retirees seeking a new place to live outside their home state.
There was a big dip to the next states on the list, which included Virginia (6.5%), Ohio (4.9%), Pennsylvania (4.8%), New Jersey (4.1%), and Illinois (4%). Texas, Oregon and Georgia rounded out the list, all at 3.1%.
Curiously enough, New Jersey and Pennsylvania appear on both receiving and leaving lists. This has to do with the fact that while many people do move to these two states for retirement, a similar amount of people are leaving these states too.
Top retirement destination cities
The survey found Miami-Fort Lauderdale was the top destination for retirement moves in 2023 by percentage of total retirement moves with a commanding 12.3%.
Highland Beach—one of Fort Lauderdale’s suburbs—ranks No. 3 as the best place to retire according to Niche.com, while Miami is in the fourth spot of Conde Nast Traveler’s ranking of best retirement destinations.
While Miami-Fort Lauderdale’s top ranking may come as no surprise, the next destination on the list might raise some eyebrows. El Paso, Texas was second with 8.2% of retirement moves.
North Port-Sarasota-Bradenton, Florida was third on the list with 6% of moves.
Other destinations on the list included Houston-Baytown-Sugar Land, Texas (5.6%), Myrtle Beach-Conway-North Myrtle Beach, S.C. (4.8%), Mount Vernon-Anacortes, Wash. (4.5%), Santa Rosa-Petaluma, Calif. (4.1%), San Luis Obispo-Paso Robles, Calif. (3.2%), Cleveland-Elyria, Ohio (3%) and Kansas City, Mo. (3%).
The report noted the fact that two Californian metros feature on the top 10 list of retirement move destinations in 2023 suggests two parallel trends within retirement moves. Retirees with a good amount of savings and high pensions are likely moving to metros like Miami-Fort Lauderdale, and San Luis Obispo-Paso Robles. Folks looking to save money in retirement, on the other hand, are more likely to choose El Paso, Cleveland and Kansas City—areas where settling down for retirement won’t cost a fortune.
See HireAHelper’s 3rd annual retiree migration study here.
10 states drawing most retiree movers
The other recent survey showing state-to-state retiree migration patterns also has Florida coming out on top. The source this time is United Van Lines’ latest annual National Movers Study, released earlier this month.
The study, based on 2023 data, found that when people move from one state to another, the prime motivation for doing so is to find a place to retire. More than one-quarter—27%—of people making moves cited retirement as the reason for relocation. It also revealed Americans are moving eastbound and southbound—and relocating to less expensive areas with comparable amenities to larger metropolitans.
Where are those folks headed? United Van Lines says these are the 10 states attracting newbie retirees in the biggest percentages:
10. Montana
• Inbound movers who cited retirement as their top reason for moving here in 2023: 18.5%
• Share of the population age 65 and older: 20%
• Why: If you love the thought of retiring to the great outdoors, it is tough to top Montana. The state also has no sales tax and low property tax rates although income tax rates can climb to 6.75%.
9. Nevada
• Inbound movers who cited retirement: 18.8%
• Share of the population age 65 and older: 16.9%
• Why: Nevada offers everything from quiet desert life to the excitement of Las Vegas and Reno. There is no income tax here, and property taxes are among the lowest in the nation.
8. North Carolina
• Inbound movers who cited retirement: 19.7%
• Share of the population age 65 and older: 17.4%
• Why: Retiring to North Carolina gives you access to three big metro areas—Charlotte, Raleigh and Winston-Salem. You can also travel to the mountains in the west and the Atlantic Ocean in the east. The state has a flat income tax rate of 4.75% and relatively low property taxes.
7. Arizona
• Inbound movers who cited retirement: 21.1%
• Share of the population age 65 and older: 18.8%
• Why: Arizona long has been a magnet for retirees, especially northerners who are eager to leave their snow shovels behind for good. The state’s income tax rate is a flat and low 2.5%.
5. New Mexico (tie)
• Inbound movers who cited retirement: 21.3%
• Share of the population age 65 and older: 19.1%
• Why: New Mexico offers retirees the open spaces of the West plus a low cost of living and more than 300 days of sunshine annually. Income taxes here top out at 5.9%.
5. Mississippi (tie)
• Inbound movers who cited retirement: 21.3%
• Share of the population age 65 and older: 17.3%
• Why: Mississippi is among the most affordable places to retire in the nation. From the college town of Oxford to Biloxi on the Gulf Coast, retirees have a range of places to settle down. The iIncome tax rate is a flat 5%.
4. Maine
• Inbound movers who cited retirement: 25%
• Share of the population age 65 and older: 22.5%
• Why: Maine can get cold in the winter, but anyone who loves the outdoors—particularly the New England variety—will feel at home here. Taxes are on the high side, however, with a top income tax rate of 7.15% and relatively high property taxes.
3. South Carolina
• Inbound movers who cited retirement: 26.8%
• Share of the population age 65 and older: 17.3%
• Why: South Carolina has become a popular retirement destination, especially along the Atlantic coast. The cities of Charleston and Myrtle Beach are here, as is Hilton Head Island. The top income tax rate is 6.5%.
2. Delaware
• Inbound movers who cited retirement: 28.1%
• Share of the population age 65 and older: 20.8%
• Why: In Delaware, the climate is mild and the taxes are low. In particular, property taxes are among the most affordable in the U.S. and there is no sales tax. The income tax rate climbs to 6.6%.
1. Florida
• Inbound movers who cited retirement: 29%
• Share of the population age 65 and older: 21.6%
• Why: As the southernmost state in the continental U.S., Florida is the ultimate retirement destination. The weather is warm throughout the year, senior communities are everywhere, and the ocean is all around. If you love to golf, there are around 1,250 courses. All of that and no state income tax.
See the complete United Van Lines National Movers Study here.
SEE ALSO:
• Retiring on the Cheap: 5 Countries, 7 U.S. Cities Where You Can Retire on $2,000 a Month
• 5 Best and Worst States for Retirement 2024
• 2024’s 10 Best Places in the World to Retire
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
