Many people worry about the financial impact of retirement. That concern is understandable, especially considering that 20% of Americans aged 50 and older have no retirement savings, according to AARP. Choosing the right place to retire can significantly impact both affordability and quality of life.
According to a recent WalletHub study, certain states stand out as the 3 Best and 3 Worst States to Retire in 2025 based on factors like affordability, healthcare access, and overall quality of life.
The 3 Best States to Retire in 2025
WalletHub ranked all 50 states on key retirement factors. These three states came out on top:
Florida
Florida has long been a haven for retirees thanks to its warm climate and lack of a state income tax. The state also receives more funding per senior than almost every other state from the Older Americans Act, which supports transportation and nutrition programs. However, homeowners insurance costs have soared in Florida in recent years due to major storms, making housing more expensive for retirees.
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Minnesota
If you can handle Minnesota’s harsh winters, you might enjoy a high quality of life there as a retiree. The state excels in healthcare access, boasting the most healthcare facilities per capita, the second-most nursing homes, and the third-most home health aides.
Colorado
Spending time outdoors has been shown to offer both physical and mental health benefits, so it’s no surprise that Colorado ranks highly. The state’s many parks and trails make it easy for retirees to stay active and engaged without spending a fortune. Notably, Colorado has the fourth-highest percentage of seniors in good health.
The 3 Worst States to Retire in 2025
Not all states offer the same benefits for retirees. Based on affordability, healthcare, and quality of life, these three states ranked the lowest in 3 Best and 3 Worst States to Retire in 2025 rankings.
Kentucky
Poor overall scores in affordability, quality of life, and healthcare access make Kentucky the lowest-ranked state to retire. In 2023, it had the sixth-highest poverty rate in the country, with an estimated 13.1% of residents aged 65 and older living below the poverty line.
Louisiana
Louisiana’s moderate cost of living and warm climate may appeal to some retirees, but it ranks near the bottom for quality of life (47th) and healthcare access (49th). Additionally, 14.8% of adults 65 and older live below the poverty line.
Mississippi
Mississippi may be affordable, but it ranks last in quality of life and 47th in healthcare access. Despite the state’s relatively low cost of living, the poverty rate among adults aged 65 and older increased by 20% in Mississippi between 2016 and 2022.
Check out more benefits for Mississippi- Thousands of Social Security Beneficiaries in Mississippi in 2025
Comparison of Retirement Factors by State
| State | Affordability Rank | Healthcare Rank | Quality of Life Rank |
| Florida | 7 | 28 | 5 |
| Minnesota | 35 | 1 | 3 |
| Colorado | 32 | 4 | 9 |
| Kentucky | 46 | 43 | 50 |
| Louisiana | 41 | 49 | 47 |
| Mississippi | 48 | 47 | 50 |
How to Retire Comfortably No Matter Where You Live
Regardless of where you decide to retire, the right amount of planning can help you maintain a comfortable and fulfilling lifestyle. Here are some key strategies:
- Invest in Income-Generating Assets: Consider options like dividend stocks, CDs, and bonds—especially municipal bonds, which offer tax-exempt interest at the federal level.
- Maximize Social Security Benefits: Delaying Social Security until your full retirement age (FRA) can increase your monthly benefit for life. As of 2025, the average monthly Social Security benefit is $1,976.
- Choose the Right Medicare Plan: Your Medicare Advantage or Part D drug plan will impact healthcare costs. Selecting the right coverage can help keep expenses low while ensuring quality care.
FAQs
What factors make a state a good place to retire?
A good retirement state should offer affordable living, quality healthcare, and a strong support system for seniors, including social and recreational opportunities.
Why is Florida consistently ranked as one of the best states for retirees?
Florida has no state income tax, a warm climate, and strong senior support programs, making it financially and socially appealing for retirees.
Which state ranks the worst for retirees in 2025?
Kentucky ranks as the worst state for retirees in 2025 due to low affordability, limited healthcare access, and poor overall quality of life.