Ideal Retirement Locations in America
As the population of retirees in the United States continues to grow, many are seeking out the best places to spend their golden years. According to a study by WalletHub, several states stand out as ideal retirement destinations, taking into account factors such as tax rates, cost of living, access to quality medical care, and fun activities.
Top Contenders for Retirement
North Dakota
North Dakota offers unique benefits for retirees looking for a quieter and more affordable lifestyle. With a relatively low cost of living compared to many other states, North Dakota is an attractive destination for retirees on a fixed income. The state's three main cities, Bismarck, Fargo, and Grand Forks, are some of the top locations for retirees living in North Dakota.
Minnesota
Minnesota, known for freezing temperatures and snowdrifts, comes in at number two in the list of best states to retire in 2025, according to WalletHub. The state, located in the Upper Midwest, is a popular retirement destination due to its good health care, moderate cost of living, and variety of year-round festivities, parks, and lakes. Minnesota also ranks among the states with the lowest tax burdens for retirees; the state has no estate or inheritance taxes.
Wisconsin
Wisconsin is another Midwest state that appeals to retirees. The state has one of the lowest sales tax rates in the country and does not tax Social Security or Railroad Retirement benefits. Military pay that is exempt from federal taxation is also exempt in Wisconsin.
Pennsylvania
Pennsylvania offers a blend of rural and urban life, strong community spirit, and a rich history dating back to the American Revolution. The cost of living in Pennsylvania is higher than the national average, but the state does not tax any traditional types of retirement income, such as IRAs and 401(k)s. Social Security and pensions are also not taxed.
Florida
For the second year in a row, Florida ranks as the best state to retire in. Known for its warm climate, beautiful beaches, and numerous golf courses, Florida is a popular retirement destination. The state also boasts a low cost of living, making it an attractive option for retirees.
Colorado
Colorado is the third-best state for retirees, with one of the lowest rates of social isolation for seniors and boasts the 10th-best geriatric hospitals in the country. The state has plenty to keep seniors active and engaged, with the sixth-most volunteer opportunities, the ninth-most scenic byways, and the 11th-most theaters per capita.
South Dakota
South Dakota is the fifth-best state to retire in 2025, with very few residents above age 65 who live in poverty. The state does not tax any traditional types of retirement income, such as IRAs and 401(k)s. Social Security and pensions are also not taxed. The largest city in South Dakota, Sioux Falls, offers many amenities retirees look for like restaurants, shopping, and entertainment venues.
Wyoming
Wyoming, home to Yellowstone National Park, has it all - gorgeous parks, low crime rates, affordable housing, and a slower pace of life for retirees. The state also ranks among the states with the lowest tax burdens for retirees; the state has no estate or inheritance taxes.
Delaware
Delaware ranks as the eighth-best state for retirement, boasting one of the lowest overall tax burdens in the country, including no estate or inheritance taxes. The state also has the lowest rate of poverty among people age 65 and older.
New Hampshire
New Hampshire doesn't charge a sales tax or levy Social Security benefits, retirement income, or pensions. However, the state has one of the highest property tax rates in the country.
Other Notable Mentions
Lancaster, Pennsylvania, is known for its blend of rural and urban life and strong community spirit, making it a favored destination for retirement due to quality of life, access to nature, and amenities. Tampa, Florida, is praised for its relaxed atmosphere, safety, and cultural diversity.
Conclusion
With more adults aged 65 years or older than children under 18 expected by 2030, according to the U.S. Census Bureau, and about 94.7 million Americans projected to be 65 or older by 2060, the demand for suitable retirement destinations will only continue to grow. The states listed above offer a range of options for retirees, each with its unique advantages and attractions. Whether you're seeking a quieter lifestyle, warm weather, or a vibrant cultural scene, there's a state out there that's perfect for you.
