Thinking about retiring? These states may not be your best bet in 2025
- Replies 0
Retirement is often pictured as a well-earned reward—time to rest, travel, and enjoy family without the daily grind.
But where you choose to spend those years can make a big difference in how comfortable and fulfilling they are.
While some states offer affordability, quality healthcare, and plenty of recreation, others pose challenges that can eat away at your savings or affect your lifestyle.
A new WalletHub study compared all 50 states across dozens of factors, from cost of living to crime and health access, and the results might surprise you.
Before packing boxes and hiring a moving truck, here are the states that ranked lowest for retirees in 2025.
WalletHub’s research looked at 46 indicators, including taxes, healthcare, affordability, and even quality of life measures like recreation and culture.
Some states scored well in one area but poorly in others, and those trade-offs make a big difference.
What counts as a drawback for some retirees—like high humidity or higher costs—may not matter as much for others.
Still, the states below struggled across multiple categories, from rising insurance rates to limited medical access.
Here’s the countdown, starting at number 10:
10. Hawaii
Paradise comes at a cost. With living expenses 71% higher than the national average, even groceries and gas can stretch budgets thin.
Housing is expensive, utilities are high, and while Social Security isn’t taxed, other retirement income is.
9. Arkansas
Low costs and natural beauty are offset by high crime and limited healthcare access in rural areas.
While Social Security is tax-free, other income isn’t. Retirees may need to live near larger cities to feel secure.
8. West Virginia
Scenic views aside, the state ranks low for healthcare and overall quality of life.
Roads and small towns make access to services difficult, and retirement income beyond Social Security is taxed.
7. Rhode Island
Coastal charm doesn’t make up for a 13% higher cost of living and pricey homes.
Healthcare is good but limited in availability, and congestion makes getting around stressful.
6. New Jersey
Retirement communities are common, but high property taxes and living costs nearly 20% above average create challenges.
Most retirement income is taxed, and healthcare costs are steep.
5. New Mexico
Known for culture and warm weather, New Mexico also faces crime concerns, wildfire risks, and limited medical resources in rural areas.
Seniors can benefit from some tax breaks but may find road and weather conditions difficult.
4. Washington
With no income tax and beautiful landscapes, Washington has appeal.
But high housing costs (averaging nearly $600,000) and frequent rain dampen the outlook. Groceries and utilities are also more expensive.
3. Mississippi
The low cost of living is attractive, but crime, hurricanes, and limited healthcare drag down quality of life.
Home insurance rates are rising, and retirees may need to travel far for medical care.
2. Louisiana
Famous food and music can’t offset high insurance, frequent storms, and poor healthcare ratings.
While Social Security is tax-free, other income is taxed, and insurance premiums continue to rise.
1. Kentucky
With a friendly culture and low costs, Kentucky still ranked last due to severe weather, limited healthcare, and high humidity.
Taxes are relatively kind to retirees, but natural disasters and lower-quality services weigh heavily.
Other states flagged for retirement challenges include Kansas, Georgia, Oklahoma, Illinois, New York, Maryland, Alabama, Tennessee, Oregon, and Indiana.
Issues range from higher taxes and living costs to weak healthcare access or tough climates.
WalletHub’s study shows that five key issues consistently tip the scales:
There’s no universal answer to where the “best” or “worst” place to retire is.
Every retiree has different needs, preferences, and financial realities.
Here are a few tips before making your decision:
Retirement should be a time of comfort and possibility—not unnecessary stress.
By researching and planning carefully, you can find a location that truly supports your golden years.
Read next:
Have you retired in one of these states—or are you considering it? What challenges or surprises did you find? Or maybe you’ve discovered a retirement haven that isn’t on any list. Share your insights in the comments so fellow readers can learn from your experience!
But where you choose to spend those years can make a big difference in how comfortable and fulfilling they are.
While some states offer affordability, quality healthcare, and plenty of recreation, others pose challenges that can eat away at your savings or affect your lifestyle.
A new WalletHub study compared all 50 states across dozens of factors, from cost of living to crime and health access, and the results might surprise you.
Before packing boxes and hiring a moving truck, here are the states that ranked lowest for retirees in 2025.
Where you retire can shape your quality of life—some states make it easier than others. Image source: Pexels / Barbara Hartmann Fara.
How the “worst” states were determined
WalletHub’s research looked at 46 indicators, including taxes, healthcare, affordability, and even quality of life measures like recreation and culture.
Some states scored well in one area but poorly in others, and those trade-offs make a big difference.
What counts as a drawback for some retirees—like high humidity or higher costs—may not matter as much for others.
Still, the states below struggled across multiple categories, from rising insurance rates to limited medical access.
Also read: Pension delays raise concern—are retirement checks safe?
The 10 worst states to retire in 2025
Here’s the countdown, starting at number 10:
10. Hawaii
Paradise comes at a cost. With living expenses 71% higher than the national average, even groceries and gas can stretch budgets thin.
Housing is expensive, utilities are high, and while Social Security isn’t taxed, other retirement income is.
9. Arkansas
Low costs and natural beauty are offset by high crime and limited healthcare access in rural areas.
While Social Security is tax-free, other income isn’t. Retirees may need to live near larger cities to feel secure.
8. West Virginia
Scenic views aside, the state ranks low for healthcare and overall quality of life.
Roads and small towns make access to services difficult, and retirement income beyond Social Security is taxed.
Also read: Could you unlock $141,900 in tax-free retirement income next year?
7. Rhode Island
Coastal charm doesn’t make up for a 13% higher cost of living and pricey homes.
Healthcare is good but limited in availability, and congestion makes getting around stressful.
6. New Jersey
Retirement communities are common, but high property taxes and living costs nearly 20% above average create challenges.
Most retirement income is taxed, and healthcare costs are steep.
5. New Mexico
Known for culture and warm weather, New Mexico also faces crime concerns, wildfire risks, and limited medical resources in rural areas.
Seniors can benefit from some tax breaks but may find road and weather conditions difficult.
New Mexico offers warm weather and culture, but high crime and limited healthcare make it a tougher choice for retirees. Image source: YouTube / Across The Globe.
Also read: The hidden retirement crisis leaving thousands of seniors without a home
4. Washington
With no income tax and beautiful landscapes, Washington has appeal.
But high housing costs (averaging nearly $600,000) and frequent rain dampen the outlook. Groceries and utilities are also more expensive.
3. Mississippi
The low cost of living is attractive, but crime, hurricanes, and limited healthcare drag down quality of life.
Home insurance rates are rising, and retirees may need to travel far for medical care.
2. Louisiana
Famous food and music can’t offset high insurance, frequent storms, and poor healthcare ratings.
While Social Security is tax-free, other income is taxed, and insurance premiums continue to rise.
1. Kentucky
With a friendly culture and low costs, Kentucky still ranked last due to severe weather, limited healthcare, and high humidity.
Taxes are relatively kind to retirees, but natural disasters and lower-quality services weigh heavily.
Also read: Why retirement savings feel harder than ever—and how Americans are adapting
The next 10 to watch out for
Other states flagged for retirement challenges include Kansas, Georgia, Oklahoma, Illinois, New York, Maryland, Alabama, Tennessee, Oregon, and Indiana.
Issues range from higher taxes and living costs to weak healthcare access or tough climates.
What makes a state “bad” for retirement?
WalletHub’s study shows that five key issues consistently tip the scales:
- Affordability – High costs for housing, insurance, and daily expenses erode savings.
- Healthcare access – Proximity to hospitals and specialists matters more with age.
- Crime rates – Safety and peace of mind are essential for older adults.
- Climate risks – Hurricanes, wildfires, floods, and extreme weather all affect health and finances.
- Lifestyle factors – Limited recreation, culture, or community can leave retirees feeling isolated.
Also read: Could your retirement plans handle a 24% Social Security cut in 2032?
Choosing the right state for you
There’s no universal answer to where the “best” or “worst” place to retire is.
Every retiree has different needs, preferences, and financial realities.
Here are a few tips before making your decision:
- Prioritize what matters most—affordability, climate, healthcare, or family.
- Spend extended time in potential states to see how life really feels.
- Talk to locals to get unfiltered views on daily living.
- Factor in proximity to family and support systems.
- Build a cushion for unexpected costs like rising insurance or healthcare bills.
Retirement should be a time of comfort and possibility—not unnecessary stress.
By researching and planning carefully, you can find a location that truly supports your golden years.
Read next:
- Make your retirement money last—15 genius, practical ways to cut costs and enjoy life more
- Boost your Social Security income in retirement with these three smart strategies
- Older Americans are delaying retirement—why working after 65 is quickly becoming the new normal
Have you retired in one of these states—or are you considering it? What challenges or surprises did you find? Or maybe you’ve discovered a retirement haven that isn’t on any list. Share your insights in the comments so fellow readers can learn from your experience!
