04:57 GMT - Monday, 03 March, 2025

Why Florida still tops list

Home - Old Stories - Why Florida still tops list

Share Now:

Posted January 31, 2025 by inuno.ai

Category:


Happy senior couple on the beachHappy senior couple on the beach

(Photo by Darren Baker on Shutterstock)

NEW YORK — As retirement planning becomes increasingly complex, with 66% of non-retired adults reporting their savings aren’t on track, choosing the right location for your golden years has never been more crucial. The latest study from WalletHub comparing 46 key metrics across all 50 states reveals that Florida maintains its reputation as America’s retirement haven – but with some surprising contenders rising in the rankings.

The analysis, which examined everything from tax burdens to healthcare quality, shows that while Florida claims the top spot overall, states like Minnesota and Colorado are emerging as strong alternatives, particularly for retirees prioritizing healthcare access and active lifestyles. The study’s findings challenge traditional assumptions about retirement destinations, with some unexpected states cracking the top five.

Florida’s first-place finish stems from a combination of tax-friendly policies and quality-of-life factors. The state imposes no estate, inheritance, or income taxes, making it particularly attractive for retirees on fixed incomes. Additionally, Florida receives substantial funding through the Older Americans Act, ranking third nationally in per-senior funding for essential services like transportation and nutrition programs.

Beyond financial considerations, Florida’s extensive coastline – second-longest in the nation – provides ample opportunities for recreation. The state also boasts the second-highest number of adult volunteer activities, fifth-most theater companies, and seventh-most golf courses and country clubs per capita. Perhaps most notably, Florida maintains the third-lowest death rate nationally for residents aged 65 and older, suggesting its healthcare system effectively serves its senior population despite ranking 27th in overall healthcare metrics.

Jacksonville Beach, FloridaJacksonville Beach, Florida
Jacksonville Beach, Florida (Photo by Lance Asper on Unsplash)

Minnesota’s second-place ranking might surprise sunbelt-seeking retirees, but the state’s exceptional healthcare infrastructure makes a compelling case. Minnesota leads the nation in healthcare facilities per capita and ranks second in nursing home availability. The state’s medical excellence is further reflected in having the third-lowest percentage of seniors with disabilities and the fourth-lowest rate of poor mental health among older adults.

Colorado, securing third place, demonstrates how western states are becoming increasingly attractive to retirees. The state maintains a tax-friendly environment with no estate or inheritance taxes and boasts the seventh-lowest poverty rate for residents aged 65 and older. Colorado particularly shines in promoting active lifestyles, with the third-highest percentage of physically active seniors and some of the lowest rates of social isolation nationwide.

Wyoming and South Dakota round out the top five, with Wyoming claiming the top spot for affordability and South Dakota showing particular strength in healthcare quality, ranking fourth in that category.

Maroon Bells in ColoradoMaroon Bells in Colorado
Maroon Bells in Colorado (Photo by Mike Scheid on Unsplash)

The study reveals some concerning trends as well. States traditionally associated with retirement, such as Arizona and Hawaii, ranked surprisingly low – 30th and 41st respectively. Hawaii’s last-place ranking in affordability metrics highlights how paradise comes at a premium that many retirees simply cannot afford.

“Retirement is supposed to be relaxing, but it can also be incredibly stressful given that it typically puts people on a fixed income, which may not be enough for them to live comfortably,” explains Chip Lupo, WalletHub analyst. “As a result, the best states for retirees are those that have low taxes and a low cost of living to help retirees’ budgets stretch as far as possible. Having access to excellent medical care and homemaking services is also crucial, especially for people who don’t plan to retire in close proximity to their families.”

Some of the study’s most striking findings involve the disparities between states. For instance, the difference in annual cost of in-home services between Mississippi (lowest) and Montana (highest) represents a three-fold gap. Similarly, there’s a six-fold difference in museums per capita between New York (highest) and Utah (lowest), highlighting how cultural amenities can vary dramatically by location.

Full List: Best States For Retirement In America

Rank State Total Score Affordability Rank Quality of Life Rank Health Care Rank
1 Florida 62.76 2 2 27
2 Minnesota 62.74 27 6 1
3 Colorado 61.71 15 18 3
4 Wyoming 60.79 1 3 38
5 South Dakota 60.76 18 19 4
6 Pennsylvania 60.44 22 5 9
7 New Hampshire 58.64 23 8 14
8 Delaware 58.62 4 35 18
9 North Dakota 58.45 14 30 13
10 Wisconsin 57.75 17 20 21
11 Virginia 57.08 21 14 19
12 North Carolina 56.72 7 16 36
13 Missouri 56.44 13 31 32
14 Alaska 56.23 16 37 15
15 Maine 55.83 33 1 20
16 Iowa 55.52 28 9 29
17 Vermont 55.04 37 7 10
18 Utah 54.80 25 22 25
19 Ohio 54.17 26 12 34
20 South Carolina 53.45 8 38 39
21 California 53.38 39 24 5
22 Montana 53.17 35 11 16
23 Massachusetts 53.06 49 4 2
24 Idaho 53.04 29 26 30
25 Michigan 52.69 32 13 31
26 Texas 52.37 20 34 35
27 Nebraska 51.85 43 21 8
28 Nevada 51.53 5 42 43
29 Connecticut 51.52 45 17 6
30 Arizona 51.41 34 29 23
31 Kansas 50.85 30 28 37
32 Georgia 50.24 19 39 40
33 Oklahoma 50.04 10 47 42
34 Illinois 49.66 41 15 28
35 New York 49.58 47 10 11
36 Maryland 49.54 44 25 17
37 Alabama 48.93 3 43 49
38 Tennessee 48.58 6 48 46
39 Oregon 48.33 42 32 26
40 Indiana 48.29 31 33 41
41 Hawaii 47.75 50 27 7
42 Arkansas 47.70 12 49 44
43 West Virginia 47.48 11 44 50
44 Rhode Island 47.02 40 40 22
45 New Jersey 46.36 46 36 12
46 New Mexico 45.99 38 45 33
47 Washington 45.81 48 23 24
48 Mississippi 45.33 9 50 47
49 Louisiana 44.54 24 46 48
50 Kentucky 42.46 36 41 45

Expert insights: What to consider for retirement planning

As retirement planning becomes increasingly complex in today’s economic environment, understanding both the financial and lifestyle implications of where you choose to retire has never been more crucial. Two leading experts in retirement planning – Dr. Barbara O’Neill, Distinguished Professor Emerita at Rutgers University, and Steve Benton, Financial Counselor at The Elder Financial Safety Center – offer complementary insights on making these critical decisions.

Understanding common mistakes and challenges

Both experts emphasize that successful retirement planning requires careful forethought. O’Neill identifies several common errors, including insufficient savings, lack of investment diversification, and carrying significant debt into retirement. Benton adds a crucial perspective, quoting Benjamin Franklin: “If you are failing to plan, you are planning to fail.” He emphasizes that retirees often mistakenly assume they’ll maintain their pre-retirement spending habits, when in reality, a significant lifestyle change usually occurs.

Benton also makes an important observation about the diversity of retiree needs: “One cannot lump all the 65+ into one bucket. Different ages, desires, abilities, financial demands need to be understood, and that change is going to be continuous as you age.” This individualized approach to retirement planning aligns with O’Neill’s emphasis on comprehensive planning that considers both financial and non-financial aspects.

Managing fixed income: Practical strategies

Both experts offer concrete advice for living on a fixed income in retirement. O’Neill recommends considering part-time work or freelancing to maintain an income stream, while Benton suggests seasonal work as another viable option. They both emphasize the importance of debt reduction, with O’Neill specifically advising paying off mortgages and credit cards before retirement.

Benton provides a practical exercise for managing expenses: “Take 3 months of bank and credit card statements and highlight them in two different colors, wants vs needs. It is very revealing and helps you decide what needs to change. Rinse and repeat at least once a year.” He adds that while budgeting might be new to some retirees, it becomes critical in retirement, noting, “A budget is YOU telling your money where to go.”

Choosing the right location

When it comes to selecting a retirement location, both experts identify several crucial factors to consider:

  1. Family Proximity: Both experts place this at the top of their lists, with Benton noting its increasing importance as travel becomes more challenging with age. He observes a trend in North Texas where aging parents are following their adult children, often choosing independent living facilities nearby.
  2. Healthcare Access: O’Neill emphasizes the importance of high-quality hospitals, while Benton specifically mentions “quality medical access” as a critical factor.
  3. Tax Considerations: Both experts highlight state tax structures as crucial. O’Neill lists the nine states with no state income tax, while Benton adds that retirees should also consider local taxation levels.
  4. Cost of Living: Both experts stress the importance of understanding regional cost variations, with Benton noting that this factor has become even more crucial in the current inflationary environment.

The impact of inflation and economic changes

Both experts express significant concerns about inflation’s impact on retirement planning. O’Neill points to rising costs in areas like housing and insurance, while Benton describes inflation’s “extensive consequences” on monthly budgets, particularly affecting those on fixed incomes. He offers an innovative solution for homeowners: “If choosing to age in place and significant equity exists in their home, a carefully pursued reverse mortgage choosing the line of credit option only might supply a long-term subsidy of their monthly budget shortfall caused by inflation.”

Looking ahead: Tax considerations

The experts also address future tax concerns. O’Neill warns about potential changes if the Tax Cuts and Jobs Act expires in 2025, while Benton highlights a lesser-known issue regarding Social Security taxation. He explains that due to non-indexed tax brackets from 1984 legislation, an increasing percentage of retirees face taxation on their Social Security benefits – a situation that “must be fixed to reflect the reality of the dependence of so many on every dollar of their Social Security payments earned.”

Both experts emphasize that retirement planning should be viewed as an ongoing process rather than a one-time decision. As Benton notes, retirement needs evolve continuously with age, making regular reassessment of both financial and lifestyle choices essential for long-term security and satisfaction.

Ranking Methodology

WalletHub’s analysis examined all 50 states across three key dimensions: Affordability (40 points), Quality of Life (30 points), and Health Care (30 points). These dimensions were evaluated using 46 relevant metrics, each graded on a 100-point scale with 100 representing the most favorable conditions for retirees. The study incorporated data from 15 reputable sources, including the U.S. Census Bureau, FBI, Council for Community and Economic Research, and Centers for Medicare & Medicaid Services. For metrics marked with an asterisk, researchers used the square root of the population to calculate the population size to avoid overcompensating for minor differences across states. The data was collected as of December 20, 2024, providing a current snapshot of retirement conditions across America.

Highlighted Articles

Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Stay Connected

Please enable JavaScript in your browser to complete this form.