The 7 most affordable U.S. states to retire—and none of them are Florida (2023)

FAQs

What state is best financially to retire in? ›

Iowa. This state topped the list from MoneyRates, tied with West Virginia, scoring points for nursing care capacity, a strong economy, and a low crime rate. Social security benefits are not taxed by the state, and beginning in 2023, retirement income is exempt for taxpayers over age 55.

Beyond its much-touted great weather, it's affordable, it offers a high quality of life, and it has decent healthcare resources. Plus, Florida has no state income tax, which helps with the affordability factor, and it has a huge population of retirees—and all the amenities and services they demand.

(The Center Square) – Virginia is the best state to retire in, according to a new analysis from WalletHub, edging out perennial stronghold Florida for the honor.

Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors.

States That Don't Tax Retirement Income

Those eight – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – don't tax wages, salaries, dividends, interest or any sort of income.

Cape Coral

It's easily one of the most affordable places to live in Florida. It's also one of the safest cities in Florida, with one of the lowest crime rates in the state.

“It's not as reasonable living in Florida as it used to be,” he says. Some retirees are opting instead to relocate to places such as Alabama, Mississippi and the Gulf Coast of Texas, he adds, where “the cost of living is significantly less and you still have those nice warm climates, and you're near water.”

Fort Myers

Fort Myers is located along Florida's Gulf Coast and the Caloosahatchee River. Over a third of the population is age 60 or older in this popular retirement destination, and the area has added over 5,000 new residents in the past year, the Census Bureau found.

What is the downside of living in Florida? ›

Since there are good reasons not to live in Florida. The drawbacks include severe weather, heat, humidity, sales taxes, fees, and the negative effects of urbanization.

Daytona Beach, FL

It's also attracted the attention of retirees. Its affordable gated housing communities and convenient proximity to top hospitals in the area and major airports have made Daytona Beach a retirement-friendly option for older Americans relying on a smaller income and desire a more serene lifestyle.

Ecuador. If you're looking for a country where you can retire outside the US comfortably with $800 per month and experience one of the most ecologically diverse places in the world, then Ecuador might be for you. The go-to city for US retirees in Ecuador is Cuenca, which also happens to be a UNESCO World Heritage site.

1 retirement spot in the country, but a new list from the U.S. News and World Report found Lancaster, Pa., is the best place to retire in the United States. In fact, towns in Pennsylvania made up five of the top 10 ranked metropolitan areas, compared with four towns in Florida making the cut.

Eight states have no personal income tax, including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. The states with the highest total sales taxes include Tennessee 9.55%, Louisiana 9.52%, Arkansas 9.51%, Washington 9.23%, and Alabama 9.22%.

What states have the lowest property taxes for retirees? ›

The safest place to live in Florida is Satellite Beach. You'll feel safe living in this quaint city on Florida's space coast, which is home to just over 11,000 people. In 2021, there were only six violent crimes in Satellite Beach, easily making it the safest place to live in Florida.

1. Titusville. Titusville, also known as the Space Coast, is the most affordable city in Florida.

The cheapest city to live in florida, and safest, is Cape Coral. It has a low crime rate and a population of roughly 183,942. According to Neighborhood Scout, their crime rate is only 12 per 1,000 residents.

A lot has changed in 2022, but one thing stayed the same: Americans kept moving to Florida in large numbers. Some of them, however, are likely to regret it. From July 2021 to July 2022, Florida's population grew by over 22 million people, according to new Census Bureau data.

To retire comfortably in Florida starting today, you will need to save at least $175,000.

1. Lakewood Ranch. Lakewood Ranch earns the top spot on our list for 2023. It has an in-demand central west coast location and proximity to popular cities like Sarasota and Bradenton, and offers a variety of 55+ and all-ages neighborhoods, making it suitable for a variety of retirement tastes.

What city in Florida has the best quality of life? ›

Our list of the best places to live in Florida in 2023 is topped by Sarasota and Fort Myers, two cities along the state's western coastline south of Tampa. They're not as high-profile as Miami, but they're also much less expensive, with no shortage of culture and things to do and see.

During the winter, north Florida and the Panhandle is much less humid than South Florida due to colder winter temperatures. Remember, colder air holds much less water vapor than warm air, so the colder parts of Florida will be less humid that warmer areas further south.

So why are people moving to Florida? It's largely because of the state's low taxes, job opportunities, and light regulatory and business-friendly government, all of which make the cost of living affordable for many lower- and middle-class Americans.

And their findings revealed Florida came in at #10 on the happiest states list, jumping into that spot from traditionally low or middle rankings. "Florida residents report a higher well-being in the purpose, community, social relationships, and physical health elements than a majority of states," they write.

More and more people are moving to Florida these days, and for good reason! Sunny weather, affordable property, and no state income tax all combine to make an attractive territory where both young professionals and retirees looking to enjoy their golden years can come to have a great time.

The safest and most affordable place to retire is Charleston, Illinois. Enjoy Lake Charleston, and take in all it has to offer on one of its many trails. The cost of living is the lowest on this list: $36,915 per year.

What state is the happiest living? ›

These 10 states received the highest Happiness Scores: Hawaii. Connecticut. Massachusetts.

WalletHub this week released its "Happiest States in America" list for 2022, ranking Hawaii as No. 1.

Living on Social Security alone is not only possible, but many retirees already accomplish that very feat every year. While the lifestyle associated with Social Security income isn't exactly luxurious, it doesn't have to equal rice and beans for the rest of your life, either.

Mississippi

Mississippi has the lowest cost-of-living index of any state on the list, making it an excellent choice for those looking to stretch their Social Security checks.

The safest and most affordable place to retire is Charleston, Illinois. Enjoy Lake Charleston, and take in all it has to offer on one of its many trails. The cost of living is the lowest on this list: $36,915 per year.

Cheapest vs most expensive state

The cost of living in America varies dramatically between each state. From Mississippi being the cheapest state to live in with a median household income of $46,511 to Hawaii being the most expensive state with a median household income of $83,173.

1. Mississippi. Mississippi is the cheapest place to live in the United States, with a cost of living 15.6% lower than the national average.

1. Wilmington, North Carolina. Living on a coast boosts happiness, health and well-being, according to a 2020 report.

What state has the lowest cost of living for retirees? ›

No. 1 cheapest state to buy a house in 2022: Iowa

Iowa came in at the top of the list with the lowest average median household income it takes to be able to afford a house. The largest housing markets in the Midwestern state include Des Moines, Iowa City, and Cedar Rapids.

Alaska, Florida, Nevada, South Dakota, Texas, Washington state and Wyoming don't tax any income at all. And on top of not taxing Social Security benefits, Oregon and Delaware have no sales tax.

Hawaii. With a cost of living index score of 189.9 Hawaii is the most expensive state to live in right now. Groceries alone are 50 percent more expensive than the country's average though poverty remains low.

Overall, the cost of living in Florida ranks as the 24th highest among states. It is important to note that this index reflects the annual average cost of living in 2021 and does not account for recent price increases due to inflation.