Best and Worst States to Retire in 2026

Nearly two of every three Americans are more worried about outliving their retirement savings than they are about dying, according to a recent survey by life insurance company Allianz. Where you live can play a significant role in how long your savings last because it can cost twice as much to live in an expensive state versus a low-cost one.

The absolute lowest-cost states are Oklahoma and Arkansas, with Alabama, Mississippi and West Virginia also among the best places to limit retirement spending. But those states are all below average when it comes to two other factors that mean a lot to retirees—quality of life and health care. So, which are the best states to retire in 2026 when you consider all three factors?

Best Retirement States

Here are the five states that offer the most appealing balance of the three key retirement factors—affordability, health care and quality of life…

1. Wyoming

If you’re a fan of wide-open spaces but not taxes, the nation’s least-populated state is worth considering. Wyoming has no state income tax, no estate or inheritance taxes and low sales taxes, and it does not tax Social Security benefits. Property taxes are above average in Wyoming and energy costs can be steep in this cold-weather state, but when everything is tallied up, this is the most affordable state for seniors in the US. Wyoming’s crime rates are among the lowest in the country, and the state has impressively strong protections against elder abuse. While Wyoming’s population density is very low, its communities are tightly knit, with low rates of social isolation among seniors and very high rates of volunteerism, all of which contribute to excellent quality of life. As in many rural states, Wyoming’s health-care quality is below average, with few public hospitals earning high ratings and a low number of top-rated geriatric hospitals and geriatricians relative to the estimated needs of retirees. Wyoming’s air quality is among the best in the country.

2. Florida

Retiring to Florida might be a cliché, but it can also be a great choice…and not just because of the warm weather. Florida has no state income tax and no state estate or inheritance tax, and it does not tax Social Security benefits or retirement-plan distributions. Florida’s overall tax burden—a figure that includes income, property, sales and excise taxes—is sixth lowest in the US according to a 2025 analysis. The cost of key late-life services that can break retirement budgets, such as adult day care and in-home help, are among the lowest in the US, too

Florida’s relatively high costs of housing and homeowners’ insurance are legitimate concerns, but an empty-nest retiree shopping for a small condo or bungalow can minimize housing expenses. Still, it’s wise to avoid regions of Florida that are particularly prone to hurricanes or floods to keep insurance bills under control and also to steer clear of condos that have very steep HOA fees.

The Sunshine State also shines when it comes to quality of life. The huge number of retirees in Florida means that there are lots of social and recreational options available for seniors and the risk for social isolation is very low. Florida’s extensive retirement social networks are probably part of the reason why Floridians’ life expectancy at age 65 is among the highest in the country. The quality of Florida’s health care is solid, though not among the nation’s very best.

3. South Dakota

Sparsely populated South Dakota provides proof that it is possible for rural states to have excellent senior health care—it has some of the best geriatrics hospitals in the country and a very high ratio of family medicine practitioners per capita, among other impressive health-care-related stats. South Dakota’s strong community values are a big plus for retirees, too. People who aren’t from the region might worry that its low population densities and wide-open spaces will lead to isolation, but the state’s seniors actually are among the least isolated in the US South Dakotans tend to be community-minded folks who look out for each other, and South Dakota’s cities aren’t so large as to become impersonal. South Dakota’s taxes are low, with no state income tax and below-average property taxes, though sales taxes are somewhat above average. Real estate tends to be affordable—retirees often can sell a home elsewhere in the country, buy a similar home in South Dakota, and have money left over to supplement their retirement savings. The job market for seniors is strong.

4. Colorado

Retirees in search of a state that combines elite health care with solid affordability and quality of life should consider Colorado. It’s home to some of the country’s top geriatric hospitals, and retirement-age Coloradans are significantly more likely than their peers elsewhere in the US to be physically active and healthy. Social-isolation rates are low for Colorado seniors. Colorado’s overall tax burden is below the US average. The state does tax Social Security benefits, but residents ages 65 and up qualify for an annual retirement income deduction of up to $24,000. Colorado has no estate or inheritance tax, and its property taxes are well below the national average. Overall cost of living is near the national average.

Concerned about Colorado’s winter weather? Despite the state’s high elevation and significant snowfall, it enjoys more sunny days than virtually any other state outside the so-called “Sun Belt. ”It’s a solid choice for those who like sunshine but not 100-degree days.

5. Minnesota

Frigid Minnesota might not be the state that pops first to mind when people picture retirement destinations, but it’s an excellent option for retirees willing to endure long winters. The state’s biggest retirement selling point is its best-in-the-nation health care—not only is Minnesota home to elite health-care organizations, such as the famous Mayo Clinic, it has an impressive number of well-regarded geriatrics hospitals and nursing homes, and home health aide availability is excellent in the state as well. All of this contributes to favorable health outcomes for Minnesota retirees—the state’s seniors experience relatively low rates of physical and mental health problems. Minnesota’s elder abuse protections are among the best in the US, and its culture of neighborliness creates a desirable sense of community. Statewide, Minnesota’s crime rates are low, a big plus for retirees, and its strong part- and full-time job market for seniors is beneficial for those who aren’t ready to fully retire yet.

Worst Retirement States

It is possible to have a successful retirement in any state—even one that has poor quality of life or health-care scores, such as most of the states listed below. But if you retire in a state that fares  poorly in those categories, choose your hometown with great care. Pick one near the very best health-care facilities the state has to offer—states with generally poor health care usually have at least one or two well-regarded hospitals. Make sure your town is engaging and close-knit and/or near your friends or family—retiring near people you love can go a long way to overcoming low quality-of-life scores.

46. Hawaii

It might come as a surprise to find Hawaii this low in the retirement-state rankings—if you pick a retirement destination based entirely on sun, sand and superficial appeal during the occasional vacation, Hawaii could easily be at the very top of your list. But Hawaii is the second-least-affordable retirement state in the US, ahead of only New York, and its tax code isn’t especially retiree friendly—sales taxes are steep, and 401(k) and IRA distributions are taxed. Hawaii’s quality of life is only average despite its warm temperatures, with drawbacks including traffic congestion, limited cultural offerings and long travel distances to visit loved ones on the mainland.

47. West Virginia

West Virginia has the worst health care in the US, according to WalletHub’s study, and has the second-worst life expectancies, ahead of only Mississippi. West Virginia’s quality-of-life scores are low as well—the state is near the very bottom of WalletHub’s rankings when it comes to museums and theaters per capita, for example. Even if going to the theater isn’t something you do, these rankings provide a useful proxy for West Virginia’s overall lack of entertainment opportunities. Cost of living in the state is below average, but not low enough to make up for all of its drawbacks.

48. Mississippi

Mississippi might seem like an appealing retirement state at first glance—it is affordable, and it has warm weather. Unfortunately, it scores very near the bottom of the rankings in terms of both quality of life and health care. If affordability and warmth are key factors for you, North and South Carolina, plus parts of Florida, are also warm and affordable, but with better quality of life and health care than Mississippi.

49. Oklahoma

Oklahoma fares very poorly on measures of retirement quality of life and health care. The state does have the lowest “adjusted cost of living” in the US, and home prices and taxes in Oklahoma tend to be affordable—but homeowners’ insurance premiums have become very expensive in recent years, and the state isn’t sufficiently affordable overall to make up for its retirement drawbacks.

50. Kentucky

Kentucky scores poorly for retiree quality of life and health care, much like Tennessee, just to its south. But unlike Tennessee, Kentucky doesn’t make up for these shortcomings with elite affordability—it lands toward the middle of the pack in terms of taxes and other important cost-of-living factors. Kentucky and Oklahoma are the only states to land outside of the top 30 for all three key retirement factors in WalletHub’s recent rankings. If this part of the country holds appeal, consider settling on the Tennessee side of the border.