Affordability is by far the most important factor for Americans deciding where to retire in the U.S., regardless of income or age, a new Bankrate survey finds.<\/p>\n
The importance of affordability, weather, neighborhood safety and quality of health care goes up with age.<\/p>\n
The states with the best combination of those qualities are all up north, where affordability, safety, health care and other strengths more than make up for their lack of sunshine, according to\u00a0Bankrate\u2019s 2025 Best States to Retire Study.<\/p>\n
If you\u2019re not living in the best place to retire, you probably know it by now. Just look at your bank account.<\/p>\n
The price you pay in your community for groceries<\/a>, gasoline, housing and other essentials will significantly impact your quality of life. And if you\u2019re having trouble affording them now, imagine doing it while retired on a fixed income.<\/p>\n Americans, in fact, value a community\u2019s cost of living more than just about anything else, according to a recent Bankrate public opinion survey. Eight in 10 said it would be a top concern when deciding where to retire.<\/p>\n Affordability was cited much more often in the survey than other qualities typically associated with retirement such as sunny skies, no-shovel winters, top-flight healthcare and safe streets. The survey also found that people appear to become increasingly sensitive to the cost of living the closer they get to retirement<\/a> and the less disposable income they have to throw around.<\/p>\n Eighty-four percent of Gen Xers and 83 percent of baby boomers said cost of living is their biggest concern, compared with 74 percent of Gen Zers and 78 percent of millennials. And 85 percent of Americans earning under $50,000 ranked affordability as their top factor, compared with 74 percent of those making over $100,000.<\/p>\n In some cases, affordability can be improved by downsizing your home or trimming your budget<\/a>. But many Americans have opted for another method: moving to a cheaper location.<\/p>\n A median-priced home costs roughly $200,000 less in Florida than it does in New York, for example. If you move from Boston to Charleston, South Carolina, you\u2019ll save about 25 cents per gallon on gasoline, at least $4 every time you grocery shop and over $100 on your electricity bill.<\/p>\n But, as many retirees find out, a cheaper location isn\u2019t always better. Some low-cost states also have the worst healthcare systems, the highest crime rates, more natural disasters. Younger boomers and Gen Xers, Hannon added, are especially aware that traditional retirement destinations \u2014 like Florida and Arizona \u2014 may no longer be the bargain they once were and introduce other risks.<\/p>\n \u201cIt just became sort of ingrained that those were logical places because you didn\u2019t have to deal with inclement weather,\u201d Hannon said. \u201cThey\u2019re [Gen Xers and younger baby boomers] more cognizant of the fact that the whole thing has been upended to a certain degree.\u201d<\/p>\n Retirees in the next generation are likely to consider a variety of factors before choosing where to spend their golden years. Besides affordability, the survey found that 52 percent ranked weather as a top priority and 48 percent said the same of neighborhood safety. Survey respondents could pick up to three qualities as most important.<\/p>\n Where are the best places to retire in the U.S.?<\/p>\n Four New England states, including New Hampshire, Maine, Rhode Island and Vermont, as well as three Western states, offer the best combination of qualities for retirement, according to\u00a0Bankrate\u2019s 2025 ranking<\/a>.<\/p>\n Considering a retirement move? With inflation eroding buying power and health costs climbing, experts say Americans approaching retirement are weighing trade-offs more carefully than ever.<\/p>\n In addition to affordability, here are six other factors you should weigh when deciding where to settle down, according to retirement experts.<\/p>\n Before you relocate for retirement, make sure your finances line up. Here are some steps that Collinson and Hannon recommend:<\/p>\n Know your budget. Track your spending habits<\/a> so you understand what you can actually afford.<\/p>\n Figure out your income streams. Add up Social Security, retirement savings and other assets (like home equity) to see how long they\u2019ll last.<\/p>\n Think about timing Social Security. You can claim at 62, but waiting means bigger checks for life. Benefits grow about 8 percent every year you delay past full retirement age until 70.<\/p>\n Be realistic about retirement age. Many people stop working at 62 or 63, the median age of retirement, which means fewer years of earnings and more years to cover with savings, according to Collinson.<\/p>\n Run the numbers. Use Bankrate\u2019s retirement calculator<\/a> or the \u201c25x rule\u201d (annual income needed \u00d7 25) as a quick gut check.<\/p>\n Use free resources. Your 401(k) or retirement plan provider likely offers free planning tools. Take advantage of them while you have access.<\/p>\n Consider professional help. A financial advisor<\/a> can give you personalized guidance and a solid plan.<\/p>\n \u201c We\u2019ve seen high rates of inflation in past years, which erodes our buying power, so affordability is just that much more important. People are feeling a squeeze, whether they\u2019re in the workforce or retired.\u201d \u2014 Catherine Collinson, CEO of Transamerica Center for Retirement Studies<\/p>\n Community is critical when choosing a place to retire, and it\u2019s a factor that often doesn\u2019t get enough attention in the decision-making process, according to Hannon.<\/p>\n If you\u2019re considering relocating for retirement, Hannon recommends testing the place out for three to six months before committing. See if you can easily join groups and meet people you can connect with, whether it\u2019s joining a pickleball league or a volunteer organization.<\/p>\n Other than housing, Hannon said health care will likely be your biggest cost in retirement. According to a Fidelity analysis<\/a>, a 65-year-old retiring this year can expect to spend roughly $172,500 in health care and medical expenses throughout retirement, a 4 percent increase from 2024.<\/p>\n Medical and health care costs vary widely throughout the country, which is why it\u2019s important to consider the out-of-pocket health care costs after Medicare wherever you retire. Look for places with reasonable health care costs, as that can lead to sizable savings in retirement.<\/p>\n You should also get a good grasp of the health care quality in the area. Bankrate\u2019s annual study<\/a> found that several Northeastern and Western states \u2014 including Vermont, Massachusetts, Oregon and Washington \u2014 ranked at the top for health care quality.<\/p>\n Access matters, too. If the nearest hospital is far from where you want to settle down in retirement, Hannon said that\u2019s something to consider, especially if you plan to go in regularly for health visits.<\/p>\n \u201cYou might live somewhere that is beautiful, but maybe it\u2019s very remote and the nearest hospital is an hour away,\u201d Hannon said. \u201cYou\u2019re going to have to be helicoptered or transported to get to a medical center, so that should be an important consideration.\u201d<\/p>\n When you\u2019re deciding where to retire, Hannon said neighborhood safety should be factored into your decision. Living in a community with low crime rates will make you feel more secure walking around, meeting neighbors or even just relaxing at home.<\/p>\n Safety also plays a big role in the long-term value of where you choose to settle down. Areas with lower crime rates tend to have stronger property values, which is important even if you\u2019re not planning on selling your home anytime soon.<\/p>\n Plus, safer neighborhoods often come with better infrastructure, like well-kept parks, active community organizations and more responsive local services. Those things can make daily life easier and more enjoyable in retirement.<\/p>\n Consider how you\u2019ll get taxed in the city and state you\u2019re interested in moving to for retirement.<\/p>\n Many states that have no income tax have higher property taxes or higher sales tax, which is why Hannon recommends getting a full picture of what taxes would cost you in that area. The best way to do that is by talking to a tax expert who understands how taxes work in your retirement destination.<\/p>\n You’re on the hook for taxes in every state<\/p>\n You may want to move to Florida because it has no income tax, but you may end up spending significantly more on property taxes and home insurance. The average cost of home insurance in Florida was \u200b\u200b$5,728 as of August 2025, one of the highest average premiums in the country, according to Bankrate\u2019s Quadrant data.<\/p>\n \u201cGet a real beat on what the tax picture would look like for you,\u201d Hannon said.<\/p>\n It\u2019s tempting to opt for warm, sunnier states with milder winters, like Florida, Arizona and South Carolina, but with natural disasters and temperatures on the rise, you may be shelling out more on electric bills and home insurance<\/a> in those places. Your home could also be at higher risk of getting hit by a natural disaster<\/a>, especially in hurricane-prone states, which could cost thousands of dollars to repair, even with insurance.<\/p>\n Many insurers are changing their rates, raising deductibles and excluding certain natural disasters because of the increasing rate of extreme weather. In Florida, three major insurance companies have voluntarily stopped offering homeowner insurance policies over the last few years, which may be partly driving up the cost of home insurance in the state.<\/p>\n Methodology<\/p>\n All figures, unless otherwise stated, are from YouGov Plc. The survey gathered a total sample of 2,260 U.S. adults May 14-16. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.<\/p>\n","protected":false},"excerpt":{"rendered":"Affordability is by far the most important factor for Americans deciding where to retire in the U.S., regardless…\n","protected":false},"author":2,"featured_media":118133,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[12832,15655,28,12586,252,76363,76364,147,530,55673,1048],"class_list":["post-118132","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-affordability","tag-bankrate","tag-business","tag-cost-of-living","tag-health-care","tag-healthcare-systems","tag-neighborhood-safety","tag-personal-finance","tag-personalfinance","tag-retired","tag-retirement-savings"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/118132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=118132"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/118132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/118133"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=118132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=118132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=118132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}