“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,” WalletHub analyst Chip Lupo said. “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.”
States with higher living costs can still perform well if they score highly for health care access or quality-of-life measures, the report explained.
Wyoming sets nationwide pace
Wyoming earned the highest overall score largely due to affordability and tax friendliness.
Adjusted for retirees’ needs, its cost of living falls within the more affordable half of states. Wyoming also has no estate or inheritance tax, and it ranks among the lowest in the nation for annual homemaker service costs, helping seniors maintain independence.
Beyond finances, Wyoming scored well on safety and community measures. The state ranked 10th for elder abuse protections, had the fifth-lowest violent crime rate and placed 14th for the share of residents who help neighbors.
Financial security for Wyoming residents is also stronger than average, according to the report, with one of the lowest poverty rates among residents 65 and older and high levels of federal aging-related funding.
Florida’s familiar appeal
Florida placed second, reinforcing its long-standing reputation as a retirement destination.
The state levies no estate, inheritance or income taxes, and it receives some of the highest per-senior funding under the Older Americans Act — supporting services such as transportation, nutrition programs and homemaker assistance.
Lifestyle factors also boosted Florida’s ranking.
The state has extensive shorelines, abundant volunteer opportunities and a large number of golf courses, theater companies and recreational outlets.
These amenities correlate with Florida’s low death rate among residents 65 and older, although its overall cost of living remains higher than many competing states, research showed.
South Dakota health care top notch
South Dakota ranked third, driven by tax advantages and strong health outcomes.
The state has no estate or inheritance taxes, a low senior poverty rate and one of the smallest shares of older adults reporting hunger.
Health care access stands out as a key strength. South Dakota has some of the nation’s top geriatrics hospitals, a high number of family medicine physicians per capita, and low levels of social isolation or frequent mental distress among seniors, data showed.
“While weather and scenery are important considerations, retirees should prioritize evaluating cost of living and tax burdens for that state,” tax attorney Lauren Haddad Washburn said in the report. “Overlooking these factors can cause retirees to run into higher costs than anticipated. Retirees should also consider access to quality health care, as healthcare needs generally increase with age, access to social services and public transportation.
“The proximity of family and availability of caregivers are also important factors when considering long term care needs.”
Environmental quality also plays a role, with strong air quality and few drinking water violations. WalletHub’s data reveal stark contrasts nationwide.
Oklahoma ranked lowest for cost of living, while Hawaii ranked highest — representing a two-fold difference in expenses. Similar gaps exist for the cost of in-home services, with Louisiana the least expensive and South Dakota the most costly.
Kentucky finished last overall, highlighting how limited affordability, weaker health care access and lower quality-of-life metrics can combine to challenge retirees’ financial security.
