With 50 states to choose from, the retirement living world is your oyster. Think you don’t have the freedom or finances to explore all 50 options? Think again: affordable places are available coast to coast. It’s all in how you look at it — and what your priorities are.
With that in mind, here are two big questions to kick off your discussions around moving in retirement.
First, what does affordable mean to you?
Cost of living generally refers to expenses around the basic necessities of life, like clothing, food, and shelter.
A standard “cost of living” amount looks different for everyone. Imagine how a Californian looks at their monthly food expenses versus an Ohioan, or someone who was raised by Depression-era parents versus someone whose family had considerable wealth.
Also, there will always be changes in basic life costs — not all of which are in our control. Enter taxes and healthcare, which are vital expenses, but vary based on income, insurance, and other factors.
Mind the taxes…
That said, take a long, hard look at the state’s tax structure: Does the state tax pension income (including civil service or military pension income)? If so, by how much? What about Social Security income? And how high are the property tax rates?
It sounds complicated, but it doesn’t have to be. Just remember that in your search for the most affordable state, the lowest price tag isn’t the whole story. If you have your heart set on a certain place, don’t let the cost of living be the only reason you turn it down.
Second, what does the ideal retirement lifestyle look like?
Whether you’re deciding as a single, couple, or family (multigenerational households are still a thing), determining where to put retirement roots down is about more than the bottom line.
Some retirees are choosing life on the road instead of roots. In fact, half of the current 11.2 million RV owners are 55 and over, says this RV Industry Association report. Others opt for dual residency, like a beach house down south and a condo or apartment up north near the grandkids or aging parents.
If you’re moving across the country for affordable housing but leaving friends, relatives, and your long-time family doctor behind to do so, consider the “hidden” costs of uprooting.
New digs, new expenses?
Moving somewhere new can be exciting, but it might also be lonely — or more costly than you expected.
Your cost of living budget may be lower, but your travel budget will likely increase. If good healthcare isn’t close by, you may have to pay more for care, and pay to travel to it.
As you evaluate spending, take stock of how you plan to spend your time once you settle somewhere new. Want to volunteer? Take classes? Work in a bookstore? Start a new hobby? Hike or camp every weekend? Tinker in your workshop all night? Walk the dogs on the beach every morning?
Thinking about your time and activity budget is an equally important consideration in choosing your “where.”
The 5 “Cs” to Consider When Choosing Where to Retire
We’ve covered time and money as it relates to your ideal retirement place. Now, let’s dig into the details of what makes home, HOME.
1. Companionship
What good is an affordable home if you don’t have people or pets to share it with? If you love animals, check out whether a city is pet-friendly, or if the house has adequate outdoor space for animals to roam.
If you want to live in a remote cabin with no neighbors for miles, be prepared for the potential feelings of isolation and the massive transition, especially if you’re used to the hum of a city or close-knit neighborhood.
Hoping the kids, grandkids, and friends will come visit often? Make sure your new property has adequate guest space.
2. Convenience
From spotty cell phone reception to driving at least an hour to Costco, Starbucks, or whatever stores and restaurants you love frequenting, don’t forget the daily modern conveniences you’ve come to depend on.
Maybe you’re tired of small town life where stores and restaurants close at 5pm, and you’re eager for the adventures of a walkable city or busy metropolitan area.
Again, if you’re hoping for a steady stream of visitors, check out proximity to airports and activities they’ll enjoy.
3. Community
When it comes to things like engaging in community service opportunities, being part of a church or faith-based organization, and talking to people who share your values — community matters.
Banks and barber shops, libraries and parks, high school sporting events and greasy spoon diners: culture and community is hard to quantify, but without it, all the cost savings in the world can’t compete.
4. Care
This is a big one. And it goes beyond how far you’ll have to drive for a routine — or emergency — procedure. If you ever need home healthcare services, rural areas are severely understaffed. Nursing homes, assisted living communities, or other types of outpatient health centers (for things like infusions, physical therapy or occupational therapy) may be only a half hour away, but if you have to drive there regularly or even daily, the miles add up fast.
What if boomerang children or an aging relative needs to move in? What if you find yourself raising young grandchildren, or housing an older grandchild who wants to attend college close to you? While you can’t prepare for every curveball or contingency, the likelihood of you providing care — or needing to receive it — is high. Keep this in mind.
5. Climate
If you want to be as independent as possible in your new location, consider things like weather, emergency preparedness, and the nature of home maintenance due to the surrounding environment. Will you have to shovel snow often? Will you have to evacuate frequently for hurricanes or tornadoes? Is the home in a flood zone?
Think of your health too: will the warm weather aggravate your allergies, or will it alleviate them? Do you enjoy outdoor activities year-round, or just in the summer?
How the States Stack Up for Retirement
If you want the hard stats, these overall rankings from Bankrate are derived from a comprehensive collection of data in these 5 categories: affordability (40 percent), overall well-being (25 percent), the cost and quality of health care (20 percent), weather (10 percent) and crime (5 percent).
Lowest Rankings:
- North Dakota
- California
- Washington
- New York
- Alaska
Highest Rankings:
- Delaware
- West Virginia
- Georgia
- South Carolina
- Missouri
According to WalletHub’s 2024 best and worst report, Florida is at the top of the list due to its lack of estate or inheritance taxes, low cost adult day health care and homemaker services, and of course — the warm weather, beautiful beaches, and plethora of activities. Next on the list was Colorado, Virginia, Delaware, and Wyoming.
At the bottom of the list was Oklahoma, Rhode Island, Mississippi, New Jersey, and Kentucky.
The most and least affordable, then vs. now: “Well the times, they are a changin’…”
When we published a similar article in March of 2016, New Jersey was number 1 on the list of least affordable states to retire to, followed by Connecticut, California, Minnesota, and Vermont. On the most affordable list, Wyoming finished on top, followed by Alabama, Florida, Mississippi, and Alaska.
The Big Takeaway (Before You Decide to Go Away)
From sunny southern states to the most northern elevations, there’s a happy retirement somewhere for everyone. These lists are a good starting point: they might open your eyes to a state you would never have considered, or make you think twice about an idealized place. But remember, there’s a lot more to consider than lists, data, and dollar signs.
If you’re retired, how did you decide where to live? If you’re thinking about retirement, what factors are you considering most? Share stories and tips with our community in the comments!