If you’re planning your retirement or are already retired, the state you live in matters.
Because individual states have different tax laws, varying affordability levels, and a range of benefits (and drawbacks) for retirees — where you retire will have a dramatic impact on your life.
Wallethub recently ranked the top five states to retire based on 31 indicators of retirement-friendliness, including affordability, health-related factors, and overall quality of life.
Here are the top five states to retire, in descending order:
Colorado has the highest cost of living on this list, but it also provides retirees with an appealing outdoorsy lifestyle. With 78% of Colorado seniors reporting being physically active, it has the highest senior citizen life expectancy of the five states on this list, at 80 years!
Iowa is one of the least tax-friendly states for retirees, but it counters that with a low cost of living and senior-friendly job market. Iowa also has one of the most healthcare facilities per capita and an above average life expectancy.
3. South Dakota
South Dakota is an excellent state for retirees. It has no state income tax and offers the most nurses and healthcare facilities per capita of any U.S. state.
Along with having no state income tax, Wyoming offers a property tax rebate to senior citizens 65 and older. It also has beautiful landscapes, and the best air quality of any state, low crime levels, and an extremely low poverty rate.
In addition to its beautiful weather and no state income tax, Florida also ranks highest in affordability for retirees. Housing prices are lower than many regions, and Florida’s cost of in-home care services is near the lowest in the U.S.
Think carefully about where you plan to retire
As you can see, states in different regions have varying benefits and characteristics for retirees. If it’s possible, try to plan your retirement location based on your own unique needs, finances, desired lifestyle.