2025 Studies Say These 5 States Are Now The Best To Retire In America

2025 Studies Say These 5 States Are Now The Best To Retire In America

Elizabeth Williams

Mon, December 8, 2025 at 6:00 PM UTC

10 min read

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Choosing where to retire has never been a one-size-fits-all decision, but recent research is offering clearer insight into which states are doing it best. A 2025 study from the financial planning company Retirable takes a fresh look at what makes a state truly retirement-friendly, evaluating everything from cost of living and per capita income to average home values and the population of older adults. With more Americans planning bespoke retirements in new locations rather than sticking with traditional ones, the report aims to help older adults identify places where their money — and their time — will stretch the farthest.

What sets Retirable's findings apart is its holistic approach. Instead of focusing solely on the number of retirement communities or sunshine in a state, the study blends practical financial metrics with everyday quality-of-life factors such as outdoor recreation and access to healthcare services. We also looked at the financial advice site WalletHub, the management magazine Kiplinger, and a 2025 article published by The New York Times, which pulled data from trusted sources like the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and the Centers for Disease Control and Prevention.

While classic retirement destinations continue to appeal, several states earned high marks for strengths such as affordable housing markets and lifestyle amenities that cater to active aging. Others stand out for tax policies that support financial wellness, enabling retirees to stretch their savings without sacrificing the experiences they care about most. Using recent data as a guide, this list breaks down five states that rank as some of the best places to retire in America, and why so many older adults are setting their sights on them.

Colorado

Colorado continues to rise in national retirement rankings, and both the 2025 Retirable study and reporting by The New York Times place it among the top states for older adults. With a population of nearly 5.8 million, Colorado is not among the largest states in the country, yet it offers the cultural amenities, outdoor recreation, and healthcare access of a much bigger one. Residents aged 65 and older account for roughly 15% of the population.

While Colorado's cost of living for retirees is about 5% higher than the national average, many older adults find the higher expenses a reasonable trade-off for the state's strong social, environmental, and health infrastructure. A typical home value around $605,000 reflects both demand and desirability, though the variety of terrain gives retirees flexibility in finding a place that fits both their vibe and budget.

From a financial standpoint, Colorado offers several advantages to retirees. The state allows deductions on certain types of retirement income and provides property tax relief programs for older residents, making day-to-day expenses more manageable. Pair that with a per capita income of about $42,800, and retirees here often find themselves with sufficient means to enjoy the state's quality of life. But what truly elevates Colorado is its lifestyle. Access to world-class hiking, wellness communities, and a thriving arts scene creates an environment where retirees can stay active and engaged. With an emphasis on outdoor living, Colorado blends beauty, longevity, and positivity — earning its reputation as one of America's top retirement destinations. Looking for a specific town to retire to? Check out Colorado's cozy, underrated mountain town with outdoor fun and scenic streets.

Michigan

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Michigan offers a bevy of affordable retirement destinations with scenic views of the Great Lakes. In addition to the low cost of buying a home here, data from Retirable helps explain why the Great Lakes State is becoming increasingly attractive to those planning their golden years. With a population of just over 10 million, roughly 18% of residents are 65 or older, indicating both a sizable community of peers and an infrastructure that supports retirement living.

One of Michigan's biggest draws is affordability. The cost of living for retirees is about 9% below the national average, and typical home values remain accessible, with the median property listed at around $234,000. This combination makes it easier for retirees to stretch their savings without compromising lifestyle, whether they're considering lakeside cottages, small-town homes, or urban apartments in cities like Grand Rapids or Ann Arbor.

Income considerations also favor Michigan. With a per capita income of about $34,800 and a relatively tax-friendly structure for retirees, the state offers a steady balance between earning potential, Social Security benefits, and state tax policy. Residents often cite this as a key factor in choosing Michigan over higher-tax alternatives. Beyond numbers, Michigan offers lifestyle benefits that appeal to retirees. From boating and fishing on the Great Lakes to hiking in state parks and vibrant college towns, the state combines natural beauty with amenities that make everyday life enjoyable. For those seeking a retirement destination where affordability, community, and recreational options come together, Michigan stands out as a strong option.

Georgia

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Georgia has long ranked as a retirement-friendly state, and recent data from Retirable underscores why the Peach State continues to attract older adults. With a population approaching 11 million, about 14% of residents are ages 65 and older, meaning retirees will find established communities, social networks, and resources geared toward older adults.

Affordability remains a major draw. The cost of living for retirees is about 11% below the national average, making it easier to enjoy a comfortable living without overspending. Housing is particularly accessible, with the median home value at around $318,000, offering a range of options from charming small-town homes to modern city residences in Atlanta, Savannah, or Athens. For those more interested in wildlife scenes than city living, the charming city of Waycross is a top spot for retirement, offering soulful food and Southern hospitality.

Georgia's financial appeal goes beyond housing costs. With a per capita income of approximately $34,500, the state offers a balance between economic opportunity, accessibility, and cost-efficient living — factors that matter to anyone planning for the long term. Lifestyle in Georgia further enhances its appeal. From the scenic Blue Ridge Mountains and coastal beaches to cultural hubs and historic towns, retirees have access to a wide array of recreational, cultural, and community activities. Whether seeking a relaxed rural pace or an urban environment with amenities, Georgia offers a mix of affordability, tax considerations, and quality-of-life factors that continue to place it among the nation's leading retirement destinations.

Florida

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Multiple rankings agree that this is America's best retirement state in 2025. That's right — we're talking about the Sunshine State. Florida continues to be one of the most recognizable retirement destinations in the nation, appearing regularly in lists from the financial advice site WalletHub, Kiplinger, Retirable, and The New York Times. With a population exceeding 22 million people and more than 21% of residents aged 65 or older, retirees will find thriving communities, extensive services, and social networks tailored to older adults, from small coastal towns to bustling metro areas.

Affordability remains a consideration, as the cost of living for retirees is about 4% higher than the national average, and the median home value sits at roughly $416,000. Still, many retirees find the slightly higher costs worthwhile given Florida's climate, abundant recreational opportunities, and hopping cultural scene. Warm winters, sprawling beaches, and golf courses aplenty continue to make the state especially attractive to those both seeking active retirement and a slower-paced lifestyle.

Financial incentives is one of Florida's strongest draws. The state is fitting for retirees, with no state income tax and favorable policies for Social Security benefits and pension income. With a per capita income of about $35,000, many older adults benefit from both economic accessibility and strong quality-of-life factors, helping their retirement funds stretch further than in many higher-tax states. Beyond the numbers, Florida offers lifestyle advantages that are difficult to match. From boating and fishing on the Gulf Coast to cultural hubs like Miami and Sarasota County, the state combines beachy leisure, outdoor exploration, and urban amenities. For many retirees, Florida represents a balance of financial practicality, active living, and the quintessential American dream.

Wyoming

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It might not be the first place that comes to mind, but believe it or not, the sparsely populated state of Wyoming has emerged as a hotspot for retirees in 2025. It ranked in the top five in The New York Times' best-state list and received a shoutout from Kiplinger. Wyoming offers retirees a combination of wide-open spaces, low population density, and a lifestyle deeply connected to nature, making it a standout option for those seeking a quieter, more independent retirement. The state has a population of roughly 590,000, with over 19% aged 65 or older, indicating a substantial community of peers and services for older adults.

One of Wyoming's most appealing features for retirees is its sense of space and freedom. The state's expansive landscapes — from the snow-capped peaks of the Tetons to the Great Plains — provide endless opportunities for outdoor recreation, including hiking, fishing, wildlife spotting, and winter sports. Many retirees are drawn to the slower pace of life, small-town communities, and the opportunity to enjoy nature daily. Beyond its scenic advantages, Wyoming is also attractive for its practical benefits.

Wyoming may not have the coastal allure of other retirement hotspots, but for those seeking wide horizons, tranquility, and an active, nature-filled lifestyle, it offers a compelling option. Its mix of fiscal advantages, natural beauty, and a strong community of fellow retirees makes it a state worth considering for retirement planning. For something a bit more urban, check out this scenic Wyoming city that's an underrated retirement destination surrounded by mountains and trails.

Methodology

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To determine the five best states to retire in 2025, we relied on a combination of recent research and financial analysis to form a balanced picture of retirement-friendly living. Our primary source was Retirable, a financial planning site that evaluates states based on factors such as affordability, tax climate, income potential, and cost of living for retirees. Retirable's rankings served as a foundational framework for assessing which states offer the strongest financial conditions for retirement.

We also incorporated advice and findings from a range of additional sources, including the financial advice site WalletHub, the management magazine Kiplinger, and a 2025 The New York Times report. Drawing from multiple data sets allowed us to compare states across established retiree communities, the availability of senior services, and the presence of social networks that can enhance quality of life. Population size and density were also considered to gauge accessibility and the availability of healthcare, recreation, and cultural amenities.

Housing affordability and typical home values were included in our analysis using the most recent available real estate market data. We also reviewed the overall cost of living to assess how far retirement income can stretch in each state relative to the national average. Tax friendliness for retirees — covering income, pension, and Social Security taxation — was another crucial factor, as this can dramatically impact financial comfort in retirement. By cross-referencing multiple sources, we identified states that offer a well-rounded combination of affordability, lifestyle, and community support, creating a list to guide retirees toward the most desirable destinations.

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