Retirement is a dream stage of life many work decades to enjoy. Whether it’s relaxing on a quiet beach, tending to a garden in the countryside, or finally traveling without work limits, where you retire matters — especially when it comes to cost.
Zippia conducted a study analyzing median house cost, monthly homeowner cost, cost of living, Medicare Advantage cost, and Medicare spend per person to determine the most and least expensive states for retirees. Here’s a breakdown of the top and bottom-ranked states based on affordability for retirees.
Most Expensive States to Retire
1. Hawaii
Hawaii tops the list as the priciest retirement destination. With the highest median home cost ($587,700) and cost of living, paradise comes with a price tag. While it offers stunning beaches and scenery, retirees might prefer more affordable beach states like Alabama or Florida.
2. Colorado
Retirees dreaming of the Rockies will need deep pockets. High home costs and low Medicare spending make Colorado the second most expensive state to settle down in.
3. Oregon
Oregon might look appealing with its lush forests and coastal towns, but it suffers from high living expenses and low Medicare support, making it tough for retirees on a budget.
4. Washington
Despite no state income tax, Washington’s high housing prices and low Medicare contributions put it firmly in the top tier of expensive retiree destinations.
5. Massachusetts
Snowy winters and an average living cost near $60,000/year make retiring in Massachusetts a luxurious affair — and not in a good way.
Least Expensive States to Retire
50. Mississippi
The cheapest state to retire in the U.S., with a median home cost of just $114,500. High Medicare spending adds even more value, making it a top choice for retirees looking to stretch their savings.
49. Arkansas
Affordable housing and a low cost of living make Arkansas great for budget-conscious retirees. However, it ranks lower in Medicare support, which may increase healthcare costs.
48. Oklahoma
Known for its extremely low cost of living, Oklahoma also offers decent Medicare spending, making it a well-rounded choice for retirement.
47. West Virginia
If you’re looking for peace in the mountains, West Virginia combines a low cost of living ($44,823) and affordable housing, making it a scenic and frugal retirement choice.
46. Indiana
With high Medicare support and low home costs, Indiana is a solid, affordable retirement destination — especially for those who don’t mind moderate winters.
Mid-Range States to Consider
Florida (Ranked 34): Despite its popularity, Florida offers moderate affordability, a high retirement population (19.1%), and solid Medicare spending, though rising living costs might affect lower-income retirees.
Texas (Ranked 36): Known for no income tax and high Medicare spending. However, extreme weather events might be a concern.
North Carolina (Ranked 31): From mountains to beaches, retirees here enjoy a variety of settings and moderate healthcare and living costs.
Where you retire is about more than just sunshine and scenery — it’s about stretching your money without sacrificing comfort. While states like Hawaii and Colorado offer beauty, they may not suit a retiree on a budget. On the other hand, Mississippi, Arkansas, and Oklahoma prove you don’t need a fortune to enjoy your golden years.
