Retirement is an exciting phase of life, but planning where to live can make all the difference in how far your savings and Social Security go. While the average Social Security payment is $1,976 per month ($23,712 annually), some states make it easier to live comfortably on that income. Let’s explore the top ten states where retirees can make the most of their money.
Table of Contents
1. Delaware
Delaware, America’s first state, is a retiree friendly destination. It offers significant tax advantages including no sales tax, no Social Security benefit tax and no estate or inheritance taxes.
- Cost of Living Index 100.2
- Weather Moderate, with mild variations
- Average Retirement Age 63
- Annual Retirement Cost $58,418
- Shortfall $34,706
2. West Virginia
With a low cost of living and affordable property taxes, West Virginia is a budget friendly option for retirees. However it has room for improvement in healthcare quality and availability.
- Cost of Living Index 84.8
- Weather Cold winters, humid summers
- Average Retirement Age 61
- Annual Retirement Cost $49,439
- Shortfall $25,727
3. Georgia
The Peach State stands out for its low living costs. However retirees should weigh its modest healthcare improvements against its below average well being scores.
- Cost of Living Index 91.5
- Weather Mild and subtropical
- Average Retirement Age 63
- Annual Retirement Cost $50,066
- Shortfall $26,354
4. South Carolina
South Carolina combines affordability and good healthcare quality making it a solid choice. But beware of occasional tropical cyclones.
- Cost of Living Index 95.2
- Weather Humid and subtropical
- Average Retirement Age 63
- Annual Retirement Cost $53,207
- Shortfall $29,495
5. Missouri
Missouri offers an affordable cost of living but it faces challenges like severe weather events and average healthcare quality.
- Cost of Living Index 89
- Weather Hot summers and chilly winters
- Average Retirement Age 63
- Annual Retirement Cost $50,247
- Shortfall $26,535
6. Mississippi
Mississippi shines with its tax benefits exempting all retirement income including Social Security, 401(k), and pensions. It also boasts low property taxes.
- Cost of Living Index 87.5
- Weather Hot, humid summers and mild winters
- Average Retirement Age 63
- Annual Retirement Cost $46,993
- Shortfall $23,281
Check out Good News for Mississippi: Thousands of Social Security Beneficiaries in Mississippi in 2025 for insights.
7. Pennsylvania
While Pennsylvania has a slightly higher cost of living it offers generous tax exemptions for pensions and retirement accounts making it attractive for retirees.
- Cost of Living Index 94.9
- Weather Varies widely across the state
- Average Retirement Age 64
- Annual Retirement Cost $57,941
- Shortfall $34,229
8. Florida
Florida’s sunny weather and tax friendly policies attract many retirees. While the cost of living is slightly above average, it is a small tradeoff for its low tax burden.
- Cost of Living Index 102.4
- Weather Warm winters, hot summers, and hurricane seasons
- Average Retirement Age 64
- Annual Retirement Cost $56,382
- Shortfall $32,670
Read Good News for Florida: Minimum Wage Increase Florida Residents Will See in 2025 for insights on wage growth and its impact.
9. Iowa
Iowa balances affordable living costs, decent healthcare quality, and tax friendly policies. It’s particularly great for those who prioritize housing affordability.
- Cost of Living Index 90.4
- Weather Cold winters and warm summers
- Average Retirement Age 65
- Annual Retirement Cost $52,399
- Shortfall $28,687
10. Wyoming
Wyoming offers retirees low taxes and affordable housing. However its high healthcare costs may offset its overall affordability for some.
- Cost of Living Index 95.4
- Weather Cool and temperate
- Average Retirement Age 64
- Annual Retirement Cost $52,330
- Shortfall $28,618
State by State Breakdown Table
| State | Cost of Living Index | Average Retirement Age | Annual Cost of Retirement | Shortfall |
| Delaware | 100.2 | 63 | $58,418 | $34,706 |
| West Virginia | 84.8 | 61 | $49,439 | $25,727 |
| Georgia | 91.5 | 63 | $50,066 | $26,354 |
| South Carolina | 95.2 | 63 | $53,207 | $29,495 |
| Missouri | 89 | 63 | $50,247 | $26,535 |
| Mississippi | 87.5 | 63 | $46,993 | $23,281 |
| Pennsylvania | 94.9 | 64 | $57,941 | $34,229 |
| Florida | 102.4 | 64 | $56,382 | $32,670 |
| Iowa | 90.4 | 65 | $52,399 | $28,687 |
| Wyoming | 95.4 | 64 | $52,330 | $28,618 |
FAQs
1. What factors should I consider when retiring in another state?
Look at cost of living, taxes, healthcare, and weather to find the best fit for your lifestyle.
2. How can I offset the shortfall in Social Security?
Consider working part-time, using savings, or downsizing your home to close the gap.
3. Why is healthcare cost important in retirement planning?
As you age, medical expenses can become a significant portion of your budget.
Final Thoughts
Choosing the right state for retirement involves balancing affordability, taxes, healthcare, and climate preferences. Whether you prioritize low taxes in Mississippi or warm winters in Florida, make a choice that aligns with your personal needs and financial goals.