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Are you looking forward to your golden years and planning where you’ll spend your retirement? Well, I have some bad news for you: not all places are the same when it comes to living in retirement. In some states, your retirement savings could be gone faster than you can say “fixed income.” “.
As someone who’s researched retirement destinations for years, I can tell you that choosing the right state can make or break your retirement experience Today, I’m breaking down the worst states to retire in for 2025, based on the latest data and real-life considerations that matter to retirees
What Makes a State Bad for Retirement?
Before diving into the list. let’s understand what factors make a state unsuitable for retirees
- High cost of living – Housing, food, utilities, and healthcare costs
- Heavy tax burden – Income, property, and sales taxes
- Poor healthcare access and quality
- Crime rates and safety concerns
- Severe weather conditions or natural disasters
- Limited activities and amenities for seniors
- Transportation challenges
Now, let’s look at the states that consistently rank at the bottom for retirement living in 2025.
The 10 Worst States to Retire In (2025)
1. Kentucky
Kentucky consistently ranks at the bottom of retirement-friendly states, landing at #50 on Kiplinger’s 2025 ranking. Even though the area is beautiful and has a history of bourbon, there are some major problems:
- Natural disaster prone – Frequent floods and tornadoes
- Healthcare challenges – Ranked 44th for healthcare quality
- High humidity and bugs – Climate issues that can be uncomfortable for seniors
Kentucky’s cost of living is about 2019% less than the national average, and the state doesn’t tax Social Security benefits. However, these pros aren’t enough to make up for its major cons for retirees.
2. Louisiana
The Bayou State offers amazing culture, food, and music, but retirement here comes with significant challenges:
- Extreme insurance costs – Car insurance averages $3,953 per year (45% above national average)
- Natural disaster risks – Hurricanes have caused over $115 billion in damage since 2020
- Insurance premium increases – Expected $2,974 increase in home insurance premiums in 2025
- Healthcare concerns – Limited access to quality healthcare in many areas
There are some benefits, like not having to pay taxes on Social Security benefits and relatively low housing costs (the average home price is $209,589), but these are quickly outweighed by other costs.
3. Mississippi
Mississippi consistently ranks poorly for retirement living despite its low cost of living (22% below national average) and affordable housing (average home price around $187,882). The drawbacks include:
- Poor healthcare access – Ranked 48th for healthcare
- High crime rates – Well above national averages in many areas
- Natural disaster risks – Hurricanes and tornadoes are common
- Hot, humid climate – Can be uncomfortable for many seniors with health concerns
4. New Jersey
New Jersey might surprise you on this list, but the Garden State has several issues that make it problematic for retirees:
- Extremely high cost of living – 19.8% higher than US average
- Highest property taxes in the nation
- Traffic congestion – Among the worst in the country
- Weather extremes – Hot, humid summers and harsh winters
- Tax concerns – Most retirement income is taxed (except Social Security)
Despite excellent healthcare (ranked 12th nationally), these financial burdens make New Jersey a difficult place to stretch retirement dollars.
5. New Mexico
The Land of Enchantment has beautiful landscapes and rich culture, but retirees face:
- Poor infrastructure – Estimated 30% of rural roads in poor condition
- High crime rates – Over 3% higher than national average
- Limited healthcare access – Especially in rural areas
- Harsh weather – Extreme heat, strong winds, dust storms, and wildfires
On the positive side, Social Security isn’t taxed for most retirees, and taxpayers 65+ can deduct up to $8,000 from taxable income (residents 100+ years old pay no state income tax!).
6. Washington
The Evergreen State offers stunning natural beauty but presents challenges for retirees:
- High cost of living – Average home prices around $595,271
- Excessive rainfall – Up to 120 inches annually in some areas
- Expensive everyday expenses – Groceries, healthcare, utilities all above national average
Washington does offer excellent healthcare systems and no state income tax, which helps offset some costs. But the rainy climate and high expenses make it difficult for many retirees.
7. West Virginia
The Mountain State ranks poorly for several key retirement considerations:
- Healthcare challenges – Ranked 50th for healthcare quality
- Geographic isolation – Limited access to amenities in rural areas
- Transportation difficulties – Winding mountain roads make travel challenging
- Tax concerns – Taxes retirement account withdrawals (though Social Security is exempt)
The affordability of West Virginia isn’t enough to overcome these significant quality-of-life issues for many retirees.
8. Rhode Island
This small New England state presents big challenges for retirees:
- High cost of living – 13% above national average
- Expensive housing – Average home price of $490,597 (up 3.4% from last year)
- High taxes – Above average tax burden across categories
- Traffic congestion – Significant for such a small state
- Limited healthcare facilities – Fewer options than larger states
Good healthcare quality (ranked 22nd) isn’t enough to offset the financial challenges of retiring in the Ocean State.
9. Hawaii
Yes, paradise made the worst list! Hawaii’s stunning beauty comes with serious financial drawbacks:
- Extremely high cost of living – 71.5% higher than US average in Honolulu
- Isolation challenges – Limited access to mainland resources and family
- Transportation costs – Sky-high gas prices and limited public transit
- Pest problems – Cockroaches, spiders, and other critters are common
Despite excellent healthcare (ranked 7th) and no Social Security tax, the extreme costs make Hawaii impractical for most retirees without substantial savings.
10. Arkansas
Arkansas rounds out our top 10 worst states for retirement with:
- High crime rates – Both violent and property crime above national averages
- Healthcare access challenges – Limited facilities in rural areas
- Economic concerns – Lower education levels and economic opportunities
- Tax issues – Pensions, 401(k)s and IRA distributions are taxed
The state does offer a lower cost of living (19% below national average) and some excellent medical facilities, but these benefits aren’t enough to overcome the downsides.
Other States to Approach with Caution
According to the most recent data, these states also rank poorly for retirees:
- Oklahoma
- Connecticut
- Alaska
- Vermont
- New York
- Maryland
- Alabama
- Tennessee
- Oregon
- Indiana
- Kansas
- Georgia
- Illinois
What Should You Consider Instead?
So if these states aren’t ideal, where should you look? Some of the consistently top-ranked retirement states include:
- Florida – No state income tax, warm weather, abundant retirement communities
- Arizona – Dry climate, affordable housing in many areas
- South Carolina – Lower cost of living, mild winters
- Delaware – No sales tax, tax-friendly retirement income policies
- Pennsylvania – Doesn’t tax retirement income, moderate cost of living
Making Your Retirement Decision
Remember, everyone’s retirement needs are different. What matters most is finding a location that aligns with your specific situation:
- Assess your financial situation – Be realistic about your retirement budget
- Consider healthcare needs – Especially important if you have chronic conditions
- Think about proximity to family – Will you want to see grandkids often?
- Evaluate climate preferences – Do you hate humidity? Need sunshine? Can’t stand snow?
- Research tax implications – How will state taxes impact your specific retirement income?
Final Thoughts
We’ve covered the worst states for retirement in 2025, but I always tell my friends that retirement location is deeply personal. What’s terrible for one retiree might be perfect for another.
For example, if you have family in Kentucky and a strong support network there, the benefits of being near loved ones might outweigh the state’s retirement drawbacks. Or if you’ve always dreamed of living in Hawaii and have the financial resources to make it work, don’t let a list discourage you!
The most important thing is doing your homework before making any big moves. Visit potential locations during different seasons, talk to locals, and run the numbers with a financial advisor who specializes in retirement planning.
Have you been considering any of these states for retirement? Were you surprised by any entries on this list? I’d love to hear your thoughts and experiences!
Remember, the perfect retirement location is one that allows you to live comfortably within your means while enjoying the lifestyle you’ve worked so hard to achieve. Choose wisely, and your golden years will truly shine!
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Bankrate principal writer and editor James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more.
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Lisa Dammeyer is an investing editor at Bankrate. She has more than six years of experience distilling down complex topics for everyday people.
Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy. Bankrate logo.
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our content is written by professionals with a lot of experience and is edited by experts in the field to make sure it is fair, correct, and reliable.
Our reporters and editors focus on the points consumers care about most — how to save for retirement, understanding the types of accounts, how to choose investments and more — so you can feel confident when planning for your future. Bankrate logo.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. We want to give readers information that is both correct and fair, and we have editorial standards in place to make sure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
Top 5 states for retirees in 2025
Let’s run through some of the key reasons that states topped the rankings of Bankrate’s latest Best and Worst States to Retire Study.
The Granite State is the best state to retire in 2025, and it’s clear that the state offers a lot to like for future retirees. While it scored a dismal 40th in the second-most important category of weather, due to its lack of sunshine, it ranked 14th for affordability and then scored toward the top in other key categories such as:
- Neighborhood safety (1st)
- Health care (5th)
- Local taxes (6th)
- People of a similar age (7th)
- Miscellaneous/other category (8th)
- Arts, entertainment and recreation establishments (15th)
So, New Hampshire mixes an affordable lifestyle with strong quality-of-life in terms of safety, health care and the arts. As far as taxes, New Hampshire does charge income tax on individual incomes, though it charges a 3-percent tax only on interest and dividends. That means retirees’ Social Security dollars could stretch further here than in other tax-heavy states.
Maine turned in a fine performance, with strong scores in a number of categories. It was tops in the number of senior residents, with 23 percent of residents age 65 or older, and it ranked second overall in neighborhood safety, thanks in part to the state’s lower rate of violent crime. It also added on solid rankings in health care (3rd) and arts, entertainment and recreation establishments (4th).
However, like its neighbor New Hampshire, Maine scored poorly in the weather category (41st), with one of the lowest levels of sunlight exposure on average in the country.
Wyoming might be the retirement destination for those concerned about finances. The Cowboy State scored tops when it comes to taxes, in part because it has no individual income tax, and ranked 4th in overall affordability, too. It also performed strongly in neighborhood safety (7th) and arts, entertainment and recreation (10th).
But the state clearly did less well in one of the most important categories for seniors, health care, where it ranked 39th.
Next door to New Hampshire, Vermont also fared poorly on weather (43rd), and showed the second-lowest levels of sunlight exposure on average, but several strong categories turned things around for the state. Vermont topped the arts category with most venues per capita and was also the best state for health care.
It came in second for most similarly aged residents and turned in a solid but not overly compelling showing in the highest-weighted category, affordability (12th).
Idaho — which was the seventh-fastest-growing state in 2024 by percentage growth, according to data from the U.S. Census Bureau — showed solid performances in a few categories and mixed performances in others. The Gem State scored well in neighborhood safety (3rd) and had the lowest rate of property crimes in the country. Idaho also did well on financial issues, including affordability (9th) and taxes (11th).
While the state ran in the middle of the pack for weather (24th), it fell in the bottom third in the arts category (37th) and people of a similar age category(35th).
The Worst States to Retire In (And Why)…
FAQ
What is the least friendly state to retire in?
Important things to remember: Louisiana was ranked the worst state for retirees. It was ranked in the bottom third of all the study’s main categories, including 48th for crime. Eight of the 10 worst states for retirees are in the Sun Belt, including Alabama, Arkansas, Florida, Louisiana, Oklahoma, California, New Mexico and Texas.
What state is best financially to retire in?
The best financially for retirement are often those with low taxes, such as Florida, Texas, Nevada, Tennessee, and South Dakota, which have no state income tax or tax Social Security and retirement income. However, states like New Hampshire, Wyoming, and Maine also rank high due to overall lower taxes and a lower cost of living.
What is the happiest state to retire in?
Utah Ranks as the Happiest State for Seniors This state in the Western U. S. boasts the highest happiness score on the index: 7. 69/10. One reason that Utah is cited as the happiest state for older adults is its high number of elders who engage in volunteering.
Where can I retire on $2000 a month in the United States?
In some parts of the United States, like the Midwest and parts of the South, you can retire on $2,000 a month. These include Brownsville, Texas; Augusta, Georgia; Oklahoma City, Oklahoma; Knoxville, Tennessee; and different places in Ohio.
What is the worst state to retire?
Bankrate analyzed datasets from a number of sources, including the Council for Community and Economic Research, the U. S. Census Bureau, the Tax Foundation and the National Oceanic and Atmospheric Administration. Here are the 10 worst states to retire, according to Bankrate. Notably, Alaska ranks last in the weather category.
Is Alaska a good place to retire?
Alaska ranks as the worst state in the U. S. to retire for the third year in a row, according to Bankrate’s study of the best states to retire in 2024. To compile its list of the best and worst places to retire in the U. S. , Bankrate ranked all 50 states across five weighted categories:
Why is New Jersey the worst state to retire?
Unfortunately, New Jersey is the worst state to retire in because it is one of the most expensive places to live in the country, seniors are generally unhealthy (65% have three or more chronic conditions), and access to arts and recreation is below average. Alabama, Kansas, Georgia and Oklahoma also were in the bottom five.
Are some cities better suited for retirement than others?
All data was collected on and is up to date as of Jun. 24, 2024. Some cities are better suited for retirement than others. To determine the best and worst place in each U.S. state to retire, GOBankingRates used the U.S.
Is West Virginia a good place to retire?
West Virginia West Virginia creeps into the top 10 worst places in the US to retire for a variety of reasons. The state ranks poorly for health care, ranking as the 46th-best state in the nation for elderly health care, which combines outcomes, cost, and ease of access to healthcare facilities.
Is Hawaii a bad state to retire in?
Hawaii is considered to be the worst state to retire in. The annual spending for comfortable retirement in Hawaii is the highest of all 50 states at $117,724.18 per year. While the weather might be beautiful and the thought of an island retirement sounds ideal to many people, Hawaii is one of the most expensive states to both live and retire in.