“Some Americans fear running out of money more than dying.” That stark reality, from recent retirement studies, underlines the importance location can have when planning for life after work. With inflation nibbling away at savings and healthcare costs climbing, where someone chooses to retire can make a difference between a nest egg that lasts for decades and one that disappears all too soon.
It’s not just a question of how much someone has saved for retirement but also where those savings are being spent. From states in which a couple can retire on less than $10,000 a year with Social Security to places that demand more than $2 million in savings, the financial landscape varies dramatically. Toss in taxes, healthcare quality, and lifestyle amenities, and the choice gets even more complicated.
Here are the most and least affordable states to retire in 2025, according to the latest data from Kiplinger, Bankrate, GOBankingRates, and AARP. This listicle points out hard numbers and expert insights so that retirees and pre-retirees can make informed, strategic decisions.
1. West Virginia Tops the Affordability Charts
By far and away, West Virginia is the cheapest state in which a couple can enjoy a comfortable retirement. According to GOBankingRates, a couple receiving Social Security benefits needs a mere $2,032 a year to replace retirement expenses, excluding money for discretionary spending. Without Social Security, the annual cost is $37,562, assisted by an average $882 monthly mortgage payment.
Low-cost housing and a generally low cost of living mean retirees can really stretch their savings in the state. Though West Virginia doesn’t rank particularly high in every lifestyle category, affordability provides a safety net of sorts for those prioritizing financial security over amenities.
2. Mississippi and Arkansas: Southern Savings Havens
At second place, Mississippi would require $2,917 annually for a couple receiving Social Security benefits. It is followed by Arkansas at $4,264. Both the above states are relatively less expensive in terms of housing and other basic needs.
Of course, affordability needs to be weighed against access to healthcare and safety. Mississippi ranks near the top of states nationally in senior poverty rates, while Arkansas ranks poorly in violent crime metrics. These states can offer some savings for budget-conscious retirees but do require careful planning for healthcare and community support.
3. Hawaii: Paradise Comes at a Price
Hawaii ranks first in the nation for high retiree living costs, with couples needing $74,333 annually including Social Security benefits-or $109,863 without. Housing costs are one of the major drivers for Hawaii, with average monthly mortgages nearing $5,000.
The islands offer incomparable natural beauty and mild weather, but the costs of groceries, utilities, and health care are very high. It is a dream for those who have considerable savings; it is otherwise a risk of quickly depleting resources.
4. California and Massachusetts: Coastal Costs
California needs $54,579 annually with Social Security benefits, while Massachusetts follows at $47,876. Regarding tax burdens, both tend to consistently rank very high: the top individual income tax rate for California is 13.3%, while Massachusetts requires more than $1.6 million in savings for comfortable retirement, according to Kiplinger.
Strong cultural amenities and health care access are being offset by high housing costs, taxes, and insurance premiums. In this area, retirees often require multiple streams of income in order to enjoy a lifestyle that will not deplete savings.
5. Tax burdens shape retirement viability.
The most tax-heavy states tend to be the same states that are generally expensive to live in, such as New York, Vermont and New Jersey. New York has a combined tax burden of 15.9%, the highest in the nation, while Vermont taxes most retirement income – including up to 85% of Social Security benefits.
These policies in taxation greatly reduce the disposable income of retirees and, therefore, make relocation to tax-friendly states a prudent strategy for long-term sustainability.
6. Healthcare Quality vs. Cost
A major concern of many in retirement is healthcare. Whereas states such as Vermont and Maine boast top-ranked healthcare but are very expensive, others such as Wyoming are relatively affordable with very low taxes but rank poorly in terms of access to healthcare.
A balance needs to be struck between quality health care and cost. As Ibrahim AlHusseini told Newsweek, “Retirement security is no longer just about how much you save; it’s also about where you spend those savings.”
7. Safety and Lifestyle Considerations
Bankrate’s rankings indicate that safety, arts and recreation are the things that mean the most to retirement desirability. New Hampshire, Maine and Wyoming ranked the highest in the safety and community amenities categories. States like Louisiana and Oklahoma ranked low due in large part to their high crime rates and lack of access to healthcare.
Everything from walkable streets to cultural venues can make lifestyle preferences affordability translate into actual quality of life.
8. Inflation and Tariffs Add to Uncertainty
Top of mind for 57% of the 401(k) participants, says Charles Schwab, is inflation. Of course, tariffs are making that challenge worse, as 63% of retirees say they will push inflation beyond the cost-of-living adjustments in Social Security.
Accordingly, experts suggest inflation-protected investments such as TIPS and dividend-paying stocks to keep one’s purchasing power whole, together with flexible retirement age expectations.
9. The Important Role of Social
Social Security makes a dramatic difference in how affordable retirement is couples in 14 states are able to retire for less than $10,000 a year with benefits, but without them, the costs balloon into six figures. However, 83% of Americans remain worried about the long-term survival of Social Security. Savings, investments, or part-time work are all ways to cushion against a reduced benefit in the future.
10. Feasibility of relocation and remote work
With location-independent work and portable benefits, relocation is easier. Moving from high-cost coastal cities to more affordable inland states can stretch retirement savings further without sacrificing lifestyle. As AlHusseini emphasizes, the location strategy is practical: “Remote work, more portable benefits, and expanding infrastructure make relocation more feasible than ever.”
This kind of flexibility can be an excellent tool for retirees in balancing comfort with financial resiliency. Retirement planning in 2025 requires a great deal more than just a savings target; it requires a clear-eyed view of how geography, taxes, healthcare, and lifestyle intersect.
The cheapest states provide financial breathing room, while the most expensive require major resources but often deliver amenities that cannot be found elsewhere. By weighing affordability against quality-of-life factors, retirees will get ready for economic uncertainties and choose a location that will support wallet and well-being for decades to come.
