America's best and worst states to retire revealed - and why Florida is no longer the obvious winner
Where you retire could make or break your finances.
With 65 percent of non-retired Americans admitting their savings are not on track, a new study shows that choosing the right state can dramatically stretch, or shrink, retirement dollars.
WalletHub compared all 50 states across 46 measures of retirement-friendliness, weighing everything from taxes and cost of living to health care access, safety and quality of life.
The result is a ranking that challenges some long-held retirement assumptions. The best state to retire in 2026 is Wyoming, narrowly beating Florida, followed by South Dakota, Colorado and Minnesota.
At the other end of the scale, Kentucky, Oklahoma, Mississippi, West Virginia and Hawaii ranked among the worst places to spend your later years.
Lauren Washburn, an adjunct professor at Bryant University, said: 'A common mistake retirees make is focusing too heavily on weather and scenery without fully evaluating long-term financial sustainability and lifestyle needs.'
Four of the top five states – Wyoming, South Dakota, Colorado and Minnesota – are cold-weather states, showing retirees are prioritising financial security, safety and services over sunshine.
Arizona, Texas and Tennessee all fall outside the top 15, further adding to the idea that warm weather alone is no longer enough to attract retirees.
A senior loads a surfboard onto a car in Delray Beach, Florida, which ranked second overall as a retirement destination, boosted by tax breaks and lifestyle perks but held back by rising living and insurance costs
WalletHub's analysis found that states ranking highest overall tended to combine low taxes and reasonable living costs with strong access to health care, senior services and in-home support.
'Retirement is supposed to be relaxing, but it can be incredibly stressful when people are living on a fixed income,' said Chip Lupo, a WalletHub analyst.
'The best states help retirees stretch their money through low taxes, reasonable living costs and strong access to health and homemaking services.'
In retirement, a 'fixed income' typically means relying on steady but limited sources such as Social Security, pensions and investment withdrawals, with little ability to increase earnings if costs rise.
WHY WYOMING WINS
Wyoming lacks Florida's beaches and Arizona's year-round sunshine, but it takes the top spot largely because it is cheaper and provides greater financial security for retirees.
The state has no estate or inheritance tax, ranks among the most retiree-friendly for taxes overall and has one of the lowest costs for in-home care services in the country, helping seniors remain independent for longer.
Beyond finances, Wyoming also scores highly for safety and community. It has one of the lowest violent crime rates nationwide, strong elder-abuse protections and a relatively small share of residents aged 65 and over living in poverty.
The state also ranks near the top for federal funding per senior resident, supporting programs that help older Americans age in place.
A senior woman stands by Taggart Lake in Wyoming's Grand Teton National Park, a state that topped WalletHub's retirement rankings despite lacking beaches, thanks to low taxes, safety and affordable in-home care
American bison roam in front of a motorhome in Yellowstone National Park, reflecting Wyoming's wide-open lifestyle, low cost of care and strong community support that helped it rank as the best state to retire
Chip Lupo, an analyst at WalletHub, said the best states for retirement combine low taxes, manageable living costs and access to health and homemaking services
Chip Lupo, an analyst at WalletHub, said: 'Wyoming performs well because it combines low taxes and reasonable living costs with strong protections and support for older residents, which is a powerful mix for people living on a fixed income.'
FLORIDA STILL DELIVERS – BUT AT A COST
Florida places second overall thanks to its lack of state income tax and generous funding for senior services like transportation, nutrition and home assistance.
The Sunshine State also offers abundant leisure options, from beaches and golf courses to volunteer programs and cultural activities, contributing to one of the lowest death rates among people aged 65 and older.
But its overall cost of living is higher than many retirees expect – a growing downside as housing, insurance and everyday expenses climb.
Chip Lupo, an analyst at WalletHub, said: 'Florida still offers many advantages for retirees, but rising housing and insurance costs are making affordability a bigger concern than it was in the past.'
SURPRISE STRONG PERFORMERS
South Dakota and Minnesota both crack the top five despite cold winters.
South Dakota stands out for senior health, with low rates of hunger, mental distress and social isolation, plus strong access to family medicine doctors and geriatric hospitals.
Minnesota ranks only 33rd for affordability, but still places fifth overall because it has the best health care ranking in the nation. Access to hospitals, family physicians and geriatric care consistently separates top-ranking states from bottom ones.
A couple walks through wildflower-filled meadows in Grand Teton National Park, highlighting Wyoming's appeal as the top state to retire for safety, affordability and quality of life rather than warm weather
THE STATES THAT STRUGGLE
Several traditionally 'cheap' states perform poorly overall because low living costs are outweighed by weak health care, safety concerns or limited quality-of-life amenities.
Kentucky ranks last in the country, dragged down by weak health care access and poor senior outcomes. Oklahoma and Mississippi follow closely behind.
While Oklahoma has the lowest adjusted cost of living for retirees, it falls near the bottom once health care and quality-of-life factors are included.
'Choosing a location with affordable housing costs can stretch retirement dollars, but overlooking health care access, insurance costs and long-term care needs can quickly erase those savings,' said Tamara L Wolske, assistant professor emerita at the University of Indianapolis,
In fact, the report shows that the cost of elderly housekeeping and in-home services varies dramatically by state. Louisiana has the lowest median annual cost for in-home services, while South Dakota has the highest – more than twice as expensive.
Hawaii and New York also rank near the bottom, driven largely by sky-high living costs. Hawaii's adjusted cost of living for retirees is more than twice that of Oklahoma.
CARE COSTS VERY WILDLY
The cost of in-home help, a key expense as people age, differs dramatically by state.
Tourists walk toward Mount Rushmore near Rapid City, South Dakota, a state that ranked third overall for retirees due to strong health outcomes and low rates of senior hunger and isolation
Visitors stroll past the historic Saloon No. 10 in Deadwood, South Dakota, a state that scored highly for retiree health care and clean living despite its cold winters.
Louisiana has the lowest median annual cost for elderly housekeeping, while South Dakota has the highest – more than double the price.
Lower-ranking states have significantly higher shares of seniors living in poverty, even when headline housing costs appear cheap. Wyoming, by contrast, has one of the lowest poverty rates among residents aged 65 and over.
TRY BEFORE YOU BUY
Experts also warned against relocating based on perception alone, urging retirees to test out a state before making a permanent move.
Jacquelyn B James, founder of the Sloan Research Network on Aging & Work at Boston College, said: 'People should never move to a different state before a trial period of living there. Fantasies about retirement locations don't always match the reality of daily life.'
