Retirement is all about making your savings last while enjoying a comfortable and stress-free lifestyle. While warm weather and scenic views often top the list of retirement dreams, affordability plays a big role in making those dreams come true. A recent Zippia study ranked the most and least expensive states to retire in, based on five key factors:
- Median house cost
- Monthly homeowner cost
- Cost of living
- Medicare Advantage cost
- State Medicare spend per person
Each state was given a ranking in all five areas, and their median score determined the final results. Below, we take a look at the 25 most expensive states for retirees, based on those findings.
Top 25 Most Expensive States for Retirees
1. Hawaii
- Median home cost: $587,700 (highest in the U.S.)
- Cost of living: Nation’s highest
- Ideal for vacationers, but out of reach for most retirees.
2. Colorado
- Median home price: $313,600
- Low Medicare spending = high healthcare costs
- Beautiful but budget-busting mountain lifestyle.
3. Oregon
- High living costs and minimal Medicare support
- Less expensive homes, but healthcare and daily expenses add up.
4. Washington
- Low Medicare spending
- Homes priced above $311,000
- Living near Seattle? Expect a higher price tag.
5. Massachusetts
- Annual living cost: $59,560
- High snowfall and expensive homes make it harder for retirees to settle here.
6. Vermont
- Nearly 27% of seniors spend 30%+ of income on housing
- Ideal for New England lovers, but affordability is limited.
7. New Jersey
- Median home cost: $327,900
- Annual cost of living: Over $56,000
- Coastal perks come with a heavy price.
8. Connecticut
- Third highest cost of living in the U.S.
- Scenic but best suited for well-funded retirees.
9. New Hampshire
- Over 25% of seniors spend a third of income on housing
- Coastal charm and mountain views don’t come cheap.
10. Minnesota
- Healthcare costs skyrocket due to low Medicare funding
- Affordable homes, but expensive doctor visits.
States Ranked 11–20: Also High in Cost, With Some Trade-Offs
11. Rhode Island
- High living costs paired with pricey homes
- A small state with big bills.
12. Virginia
- Low Medicare spending and a moderately high cost of living
- Coastal living comes cheaper than Hawaii, but still pricey.
13. New York
- Predictably expensive living costs
- Slight relief from higher Medicare support.
14. Wisconsin
- Lower home prices, but cold winters and high living expenses challenge affordability.
15. Maryland
- Costly housing but high Medicare spending balances some of the burden.
16. California
- High expenses offset by strong Medicare funding
- Healthcare may be more accessible, but homes are not.
17. Nevada
- Moderate living costs
- Limited shoreline and desert heat might deter some retirees.
18. Illinois
- Affordable homes, but higher living expenses
- Medicare helps keep medical costs in check.
19. Delaware
- Median home cost: $244,700
- Moderate Medicare benefits, but not low enough for true savings.
20. New Mexico
- Budget-friendly lifestyle, but poor Medicare funding drives up healthcare bills.
States Ranked 21–30: Mixed Costs & Conditions for Retirees
21. Idaho
- Low cost of living but snow and medical expenses could be deal breakers.
22. Maine
- Average home prices but high healthcare and living costs.
23. Arizona
- Warm climate appeals to many, but costs are creeping up due to popularity.
24. Montana
- Low cost of living at $47,083
- Healthcare funding lags behind.
25. Alaska
- High living costs and harsh winters
- Remote but scenic, if you can afford it.
While places like Hawaii, Colorado, and Oregon offer natural beauty and unique retirement experiences, they come with high price tags. Whether it’s home costs, healthcare expenses, or daily living, these states may strain your retirement budget more than others.
That’s not to say retiring in these areas is impossible—it just means careful financial planning is essential. If your dream retirement involves one of these states, working with a financial advisor and budgeting for future healthcare costs will be critical.
