TOP 5 BEST STATES TO RETIRE IN

Retirement is the perfect time to reimagine where and how you want to live. With 50 states to choose from, selecting the right retirement destination can feel overwhelming. But when you prioritize the essentials – tax benefits, health care access, cost of living and community and lifestyle – a few standout states emerge as ideal choices.

To help you consider this important decision, we’ve rounded up the top five best states to retire in for 2025, based on these critical factors.

1. FLORIDA

Florida has long been considered a retirement haven and for good reason. Its tax-friendly policies, excellent health care options and vibrant lifestyle make it a top choice for retirees across the United States. Whether you’re looking to maximize your savings or enjoy endless sunshine, Florida offers something for everyone.

TAX BENEFITS

Florida is one of the few states with no state income tax, allowing retirees to retain more of their Social Security benefits, pension payments and other retirement income. There are also no estate or inheritance taxes, making wealth transfer to family members more straightforward. Additionally, seniors can benefit from homestead exemptions, which reduce property taxes and lower annual housing costs significantly.

HEALTH CARE ACCESS

Florida excels in health care, offering top-tier medical facilities specializing in geriatrics and senior care. It also has a high concentration of providers and specialists catering to retirees, helping ensure easy access to services.

COST OF LIVING

While housing prices in popular cities like Miami can be higher, many parts of Florida provide affordable housing options below the national average. From cozy condos to spacious suburban homes, there’s something to fit virtually every budget.

COMMUNITY AND LIFESTYLE

Florida offers retirees a vibrant lifestyle with endless recreational activities, from golf courses to sandy beaches. Seniors can also choose from a range of retirement communities where they can stay active and socially engaged.

2. ARIZONA

Known for its breathtaking landscapes and warm climate, Arizona is a fantastic retirement destination. It offers retirees a balance of affordability, tax advantages and opportunities for an active lifestyle.

TAX BENEFITS

Arizona has no tax on Social Security benefits, helping ensure your fixed income goes further – plus, they have reasonable property taxes and some deductions are available for certain retirement income.

HEALTH CARE ACCESS

Arizona has a robust health care system, anchored by renowned facilities such as the Mayo Clinic in Phoenix. Retirees benefit from specialized geriatric care and wellness programs, and accessible health care services in both urban centers and smaller communities.

COST OF LIVING

Ranked as the third most affordable state, Arizona is an excellent option for retirees seeking a reasonable cost of living, offering plenty of options for those on a fixed income.

COMMUNITY AND LIFESTYLE

Arizona is perfect for those who love outdoor adventures and cultural experiences. Whether it’s stunning hiking trails and golf courses or vibrant arts scenes, Arizona has a welcoming community atmosphere with plenty to do.

3. TENNESSEE

Tennessee combines low living costs with a rich cultural heritage, making it an attractive option for retirees. From the music-filled streets of Nashville to the scenic beauty of the Great Smoky Mountains, this state has it all.

TAX BENEFITS

Tennessee’s tax structure is among the most retiree-friendly in the country. There’s no state income tax, so your Social Security benefits and retirement income will be untouched, and low property taxes can help you stretch your savings even further.

HEALTH CARE ACCESS

Facilities in Tennessee’s major cities, like Nashville and Chattanooga, are well-regarded for their care for older adults.

COST OF LIVING

Tennessee has one of the lowest costs of living in the United States, at 10% below the national average. Everyday expenses such as utilities and groceries are budget-friendly, and housing is affordable, with options ranging from suburban homes to retirement communities priced below the national average.

COMMUNITY AND LIFESTYLE

Retirees will find plenty to love about Tennessee, from the rich cultural scene, especially in cities like Memphis and Nashville, to the many outdoor activities in the mountains and along the Mississippi River.

4. DELAWARE

Delaware may be small in size, but it offers big advantages for retirees. With its favorable tax policies, serene environment and proximity to major metropolitan areas, Delaware is a hidden gem for those looking to enjoy their golden years.

TAX BENEFITS

Delaware is consistently ranked as one of the most tax-friendly states for retirees, thanks to:

• No state or local sales tax, saving you money on everyday purchases.
• Tax exemptions that allow residents over 60 to exclude up to $12,500 of investment and qualified pension income, including out-of-state government pensions, from state taxes.
• No estate or inheritance taxes, ensuring you can leave a legacy without additional state tax burdens.

HEALTH CARE ACCESS

Delaware is home to many respected healthcare providers, which can offer easy access to comprehensive, high-quality care for both routine and specialized health needs.

COST OF LIVING

While Delaware’s cost of living can vary, its smaller towns and communities often provide affordable housing options. Retirees can enjoy suburban charm without sacrificing financial security.

COMMUNITY AND LIFESTYLE

Delaware offers a relaxed and peaceful environment with charming coastal towns perfect for enjoying a quieter lifestyle. At the same time, residents get easy access to urban amenities in nearby Philadelphia and Baltimore.

5. SOUTH CAROLINA

South Carolina’s scenic coastlines, historic towns and friendly communities make it a standout for retirees. Whether you’re looking for tranquility or a lively cultural scene, this state delivers.

TAX BENEFITS

South Carolina offers significant tax advantages. Not only is there no tax on Social Security income, ensuring more of your benefits can stay in your bank account, but the state also offers deductions on other retirement income and low property taxes.

HEALTH CARE ACCESS

There are well-equipped hospitals and senior care facilities throughout the state, and South Carolina is continuing to expand its health care infrastructure to cater to its growing senior population.

COST OF LIVING

With a cost of living of 6% below the national average, South Carolina is one of the most affordable states for retirees: Housing costs are particularly appealing, with a range of affordable options in cities like Charleston and Greenville.

COMMUNITY AND LIFESTYLE

South Carolina combines natural beauty with rich history. Coastal towns like Myrtle Beach offer relaxation and recreation, while historic Charleston provides a cultural haven with vibrant arts and dining scenes.

PLANNING FOR A SECURE, FULFILLING RETIREMENT

Choosing the best state to retire in is about balancing financial priorities with your personal aspirations. The states listed here – Florida, Arizona, Tennessee, Delaware and South Carolina – excel in tax benefits, health care access, cost of living, and community and lifestyle, offering the benefits you need to help make the most of your retirement years. In weighing potential options for retirement living, the benefits we’ve outlined here make these five states great candidates for your consideration.

As you consider these important factors, a trusted financial advisor can help you create a retirement strategy that aligns with your aspirations. Edelman Financial Engines is here to support you in making informed decisions that reflect both your personal values and financial priorities so you can find the right balance. Together, we’ll craft a personalized retirement strategy that aligns with your goals and values, helping ensure you’re well-prepared to enjoy this next chapter of life.

For personalized guidance on selecting your ideal retirement location, talk with an Edelman Financial Engines planner today. We’ll help you craft a plan so you can be confident that your golden years can bring comfort, security and fulfillment.