The Best States to Retire, Based on What People Really Want

One of the biggest questions in retirement planning is where to retire. Nearly 400,000 Americans moved states explicitly because of retirement in 2019 alone. And millions of Americans over 55 moved across state lines to warmer climates in Florida, Arizona, Texas, California, and other states typically thought of as retirement destinations. 

Of course, deciding where to retire is more complicated than picking a state that has reasonable summers, mild winters, and plenty of sunshine. Even with a solid retirement fund, the cost of housing, healthcare, and other factors are still important. 

To determine the best states to retire in, The Motley Fool surveyed 1,500 Americans aged 55 and over about what they think the most important factors are when choosing where to retire. 

The Motley Fool ranked all 50 states for retirement based on their responses. 

Key findings

• The most important factors for where Americans retire are quality of life, housing costs, healthcare, crime, and public health (including COVID-19 response).
• Quality of life, for most Americans aged 55 and over, is defined by retail and dining, outdoor activities, and cultural activities like museums and theater.
• The five best states to retire in based on survey responses are Maine, New Hampshire, Kentucky, and West Virginia.

What do people value in retirement?

Quality of life, cost of housing, healthcare quality and cost, crime, and public health (including COVID-19 measures) are the most important factors Americans consider when deciding where to retire. 

Resistance to climate change, the political environment, diversity and equality, proximity to an airport, and public transit are the least important factors. 

Data source: The Motley Fool survey of 1,500 Americans age 55 and over, conducted December 2, 2021.

What is "quality of life"?

We asked 1,500 American adults around retirement age this question, and retail and dining came out at the top of the list, with 57% of respondents saying they're important in quality of life.

Outdoor activities (47%) and cultural activities (35%) were high priorities as well, with spiritual community (31%), organized activities for retirees (23%), and civic organizations (14%) being less of a priority.

The best states to retire, ranked

To find the best states to retire, we took the priorities identified by our survey respondents and mapped them to data. In the end, we came up with a ranking that's surprising, but driven by the desires of Americans in and near retirement age.

Here's how those rankings look on a map:

If you're interested in seeing the values behind the rankings, here's every score that went into ranking every state:

The best states to retire in by factor

Are you looking for the best state to retire in solely based on quality of life? Or the state with the lowest housing cost? Use the tables below to find out where you may want to consider moving.

Best states to retire in for quality of life

Data source: Gallup-Sharecare (2019), Census Bureau (2018).

Best states to retire in for housing cost

Data source: Zillow (2021).

Best states to retire in for healthcare cost and quality

Data source: United Health Foundation (2019).

Best states to retire in for low crime rates

Data source: Federal Bureau of Investigation (2019).

Best states to retire in for low sales taxes

Tax Foundation (2021). 

Best states to retire in for non-housing cost of living

Data source: Missouri Economic Research and Information Center (2021).

Best states to retire in for weather

Data source: NOAA (2021). Centers for Disease Control (2015). *CDC daily sunlight data not available for Alaska and Hawaii. 

What does the best state for retirement really mean?

Choosing where to retire is ultimately a personal or family decision, and while we’ve aspired to build an index that reflects what really matters to people when they retire, everyone has unique circumstances and priorities that can drive that decision. 

As a reflection of that, our rankings dramatically change when looking at individual factors. For example, the highest scoring states for weather are among the lowest scoring states overall. However that may discount retirees that place pleasant summers, mild winters, and sunshine over cost and other factors. 

Choosing where to retire isn’t an easy task. But with preparation, research, and some luck you’ll find a location that fits your priorities. 

Methodology

Quality of life scores are based on the Gallup-Sharecare Wellbeing Index and Census Bureau Statistics of U.S. Businesses data on retail and food service and drink establishments per state. 

Housing cost is derived from the Zillow Home Value Index. 

Healthcare quality and cost are derived from the United Health Foundation 2019 Senior Report state-level data on the percentage of adults age 65 and older who reported a time in the past 12 months when they needed to visit a doctor but could not because of cost and senior quality of care data by state. 

Crime scores are derived from data from the FBI “Crime in the United States” report on violent crime and property crime per capita. 

Public health and Covid-19 response scores are based on the University of California, Berkley’s 2020 Inclusiveness Index, which analyzed each state’s Covid-19 response based on the number of Covid-19 infections per 100,000 people, the number of deaths from Covid-19 per 100,000 people, and the number of Covid-19 tests per 100,000 people. 

Tax scores were calculated from the Tax Foundation’s 2021 sales tax rankings. 

Non-housing cost of living scores were based on the Council for Community & Economic Research (C2ER) survey. 

Weather scores were derived from a combination of state average annual temperature data from 1991-2020 collected by NOAA and state daily sunlight data collected by the Centers for Disease Control. 

Scores are weighted based on the level of importance assigned to them by survey respondents. 

The Motley Fool launched a survey of 1,500 Americans aged 54 and up on December 2. The respondents were 58% female and 42% male. 

Sources

• Census Bureau (2021). "Current Population Survey."
• Census Bureau (2018). "Statistics of U.S. Businesses (SUSB)."
• Centers for Disease Control (2015). "North America Land Data Assimilation System (NLDAS) Daily Sunlight (KJ/m²) (1979-2011) Results."
• FBI (2019.) "Crime in the United States."
• Gallup-Sharecare (2019). "Community Well-Being Index."
• Missouri Economic Research and Information Center (2021). "Cost of Living Data Series."
• NOAA National Centers for Environmental Information (2021). "Climate at a Glance: Statewide Time Series."
• Tax Foundation (2021). "Sales Tax."
• United Health Foundation (2019). "State Rankings, 2019 Senior Report."
• Zillow (2021). "Housing Data: Zillow Home Value Index."