Best and Worst States to Retire 2023
Retirement is a glorious thing. You’re finally able to revel in your hard work and do what you’ve been planning to do for all these years. Whether you’re counting down the days until you’re done, or planning ahead, it’s important to consider where you will spend your golden years.
There are plenty of factors to consider when picking your location and many options when deciding the best state to retire from inside of the United States. In this article, we’ll review the different frameworks for information on retirements such as healthcare, cost of living, and weather. It is important to look to data when planning your retirement so you understand exactly what you are getting yourself into, how to manage your investments, and what variables may stand in the way of you and your retirement. Through these frameworks on how to measure different aspects that affect retirement, we can see which states would be best to retire in 2023.
What To Look For
In The Best State To Retire
There are plenty of things to consider when planning for the best state to retire from, and some of these factors may be more important than others to some individuals. Also, while one aspect may be an essential thing to a specific individual, it might not even be the last thought on someone else’s mind.
Keep in mind, that no state is going to be the outright best state to retire in for everyone, some may have features that you prefer over others. For example, Michigan may have the most forgiving taxing system in America, but it’s very cold most of the year and has a decent amount of crime/identity theft. Overall, you’ll want to take personal considerations into what it is you want out of your retirement. Do you want a close-knit community or are you okay with being alone? What is your ideal weather and climate? Are you in good or poor health? These are a few questions you may want to consider when looking for the best state to retire.
Top 5 Best States to Retire In
Florida
With its agreeable weather, no income tax, and no tax on benefits like social security it is no wonder that Florida makes the “Best States to Retire” list every year. Its diversity is also some of the best in the nation making it a hub for culture, food, and language. If you are looking to make some retiree friends then you are in the right place. Florida has the second-highest population of people who are 65+. Healthcare costs tend to be on the lower side as well for people who made need more medical treatment as they age which is the best state to retire in.
Maine
Maine is amongst the best states to retire for its low cost of living compared to the excellent quality of life. However, if you are more into the urban style of living this may not be an option for you. Maine has a number of great outdoor recreational opportunities for seniors but you may find the culture and diversity of the state to be lacking unless you stay in Portland.
Wisconsin
If you do not mind the cold and are comfortable with your retirement income being taxed, then Wisconsin is can be considered the best state to retire. Its natural beauty makes it a serene and relaxing place to call home. You will never be bored with a number of outdoor recreational activities and the overall low cost of living and healthcare allows you to enjoy life without fear of breaking the bank.
Wisconsin is among the best states to retire in primarily because of how well elderly folks fair socio-economically. Seniors can live in relative comfort knowing that they will not have to pay much. Especially for their healthcare costs as Wisconsin also has lower-than-average annual healthcare costs. Wisconsin also offers beautiful forests and lakes making it an ideal place to reconnect with nature during retirement. If you are an urbanite then the city of Milwaukee will help fill your needs for culture and excitement. If this all sounds appealing, then Wisconsin is the best state to retire.
Iowa
Iowa is among the best states to retire in for its affordability. While there may not be as much to do as in other states, the price cannot be beaten. Living in the city of Des Moines can afford you amenities for a convenient living while still giving you that hometown feeling. Iowa is ideal for anyone looking for a quiet place to retire where the locals are friendly and everyone knows everyone.
Iowa makes it onto our list of one of the best states to retire for its incredibly low cost of living. The cost of housing, utilities, transportation, healthcare, and groceries are all very affordable making your retirement dollars stretch further. Social security is exempt from the state income tax and has deductions on retirement income. The crime rate in Iowa is also lower than the national average making it an ideal place to retire.
If you are looking to pass on your wealth to your family, be warned that Iowa is among the few states to have an inheritance tax and property taxes are higher than the national average. Iowa has four seasons, which in itself is not a bad thing. What is bad, however, is that Iowa rests at the northern end of tornado valley. In fact, Iowa averages roughly 48 tornadoes per year. The rapid winds during the winter months can also contribute to whiteouts and blizzard conditions.
Idaho
Idaho has the potential to be a great retirement spot where you can save money and build your wealth. The majestic mountains and seasons provide the best backdrop for a cozy and modest retirement. It is best to make sure you either have family or friends in Idaho to stave off loneliness since the natives of Idaho tend to keep to themselves. Loneliness can be detrimental to mental health so it is important to keep and make strong connections.
Idaho claims its spot as one of the best states to retire due to its many retirement-friendly tax breaks and healthcare costs are lower, making this state friendly for seniors who are moving in. Crime rates are relatively low in Idaho, much lower than the nation’s national average. Idaho enjoys all 4 seasons with a mild climate in each season and paired with the gorgeous mountain scenery makes Idaho a natural beauty. For folks looking for diversity and culture, Boise offers a much more dynamic and energetic environment and lifestyle.
Unless you move to the city, public transportation in Idaho is near nonexistent. You will need to be able to drive yourself around in order to get anywhere in the state. With crumbling infrastructure, it can be difficult for seniors to build a community, especially in Idaho where the state culture is one of solitude. Folks in Idaho tend to live simply so there is no massive shopping culture. Lastly, with the 4 seasons come cold and snowy winters. Temperatures tend to dip below freezing and snow is common.
Top 5 Worst States to Retire
Arkansas
While Arkansas may boast natural beauty and even climate, it is absolutely not a place for retirees. You may enjoy a visit to Arkansas but living in it may be costly in more ways than one. We highly recommend not retiring in this state as it is one of the worst states to retire.
It is not all bad on the worst states to retire list. Arkansas has a very low cost of living and the weather is typically mild with the exception of humid summers. Arkansas is an inexpensive state to live in has is home to over 50 state parks and 3 National Forests. Arkansas is also centrally located and you would be able to visit places like Dallas, New Orleans, Nashville, and Kansas City with ease.
Arkansas has some of the highest crime rates in the nation and paired with a high number of seniors who live in poor socio-economic conditions, it ranks easily as one of the worst states to retire. Arkansas also has the third highest state and local sales tax and the high cost of rent will really eat away at your retirement savings. Elders will be upset to learn that Arkansas is subpar when it comes to its healthcare. There are not enough doctors to help the population and this can cause you to get low-quality care when you need it most.
New Mexico
You truly would never be bored in New Mexico whether it is from a lovely outing or from keeping on your toes from the rampant crime rate. If you already have an established social circle in New Mexico, it may be an okay place to retire. Seniors who do not, though, can find a similar quality of life in Florida while being near peers to keep them company. New Mexico has earned its spot as one of the worst states to retire.
New Mexico boasts a relatively low cost of living and some tax relief for seniors in retirement. The weather is rather temperate with little rain and no winters. New Mexico is also lively with a vibrant art scene, rich history, and culture. There is always something to do whether it is an outdoor recreational activity, a festival hosted by a heritage foundation, or several historical locations to visit.
California
The Golden State is large enough to offer you a wide variety of climates and scenery. From incredible mountains to beautiful beaches, California has a lot to offer in that regard. California also has excellent quality healthcare, although it is very costly. Seniors on Medicare can find affordable rates, however.
Everyone knows that living in California can become extremely expensive. Between having some of the highest cost of living in the entire country and having both pensions and other retirement incomes taxes, we advise that retirees steer clear of Calfornia. California is on our list of worst states to retire simply because it would be incredibly difficult to afford a comfortable retirement lifestyle.
Alaska
As gorgeous as Alaska is, it is hardly a retirement destination. The constant inclement weather would be enough to keep most people away but the high crime rate and cost of living make it incredibly hard to live in normally. Alaska easily makes the worst states for retirement for these reasons.
Alaska’s slow pace of life and friendly people make living a softer lifestyle much more achievable. The gorgeous scenery is unparalleled giving it that “wild and rugged” feel to it. Between the Northern Lights, glaciers, and abundant wildlife it can be easy to get swept away by the beauty that is Alaska. There are a number of outdoor recreational activities to keep you entertained. If you managed to stay more than a year, you are entitled to a stipend by the government as well.
Alaskan weather is not know for being moderate and pleasant. The harsh winters and cool summers are due to its arctic climate and the sun does not always rise some weeks in the winter. It being on “The Ring of Fire” does not help either as the tectonic plates below are prone to earthquakes constantly. To make matters worse, Alaska has an incredibly high cost of living and the costs for elderly care are also astronomical. Alaska is among the worst states to retire also for its startingly high crime rate. Isolation depression is also a very common occurrence, especially for seniors who are disconnected from their neighbors and the other 48 states.
Mississippi
We highly DO NOT recommend Mississippi as a state to retire. If you are looking for a low cost of living, there are plenty of other options available. Mississippi is typically on the top of “worst states to retire” lists and for good reason. Between the high senior mortality rate, food insecurity, and senior isolation, we cannot recommend this state for retirement.
Mississippi is home to quality southern cooking and souther hospitality with a slower pace of life. People are friendly and the winters are mild. Mississippi is one of the lowest cost states to live in compared to the rest of the nation and exempts all retirement income from taxation including Social Secity benefits, income from 401ks and IRAs.
Mississippi is probably the worst state to retire in, hands down. Mortality rates among seniors is incredibly high and access to quality healthcare can be scarce depending on where in Mississippi that you live. It has the second highest poverty rate in the country and the socio-economic conditions for seniors are very poor. Food insecurity and social isolation for seniors is a major concern that can lead to depression. The climate in Mississippi gets very rainy and humid and is among the top 10 states for twisters, which does not help the situation. The economic situation in Mississippi is also not great; unemployment rates are high, which can be a problem if you were looking to make side money in addition to your benefits.
Final Thoughts
Overall, there is no one best state to retire for everyone – it will depend heavily on what you choose to look for in a place of living. We hope that in reading this article, you may feel more informed when debating your options for retirement.
Here at Final Expense Benefits, we specialize in making sure the senior community is prepared for retirement and all end-of-life finances life funeral costs, and debt. We help you to prepare for anything that life has in store.
Call (866) 311-4338 for a hassle-free consultation on final expense insurance.
Frequently Asked Questions
Is Florida The Best State To Retire In?
It’s certainly up there, at least top 5.
Best State To Retire For Military?
There’s a lot of options for military veterans, but our vote goes to Iowa, Texas, or Maryland.
Best State To Retire On A Fixed Income?
This goes into the cost of living debate as well as how prevalent taxes are, but some of our picks are Mississippi, Alaska, or anywhere in the midwest.
