10 Best States To Retire In 2021 – And The 10 Worst

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best states to retire 2021

Whether you’re months away, or decades, dreaming about retirement is normal for most Americans but that dream might have been pushed off a little thanks to recent world events.

A recent study even found that a quarter of Americans expect to retire later than originally anticipated due to the economic impact of COVID-19.

Thinking about the day the alarm clock can get unplugged, the travel mug goes in the trash, and the Sunday Scaries cease is part of the American Dream.

For many Americans, the decision of where to retire is just as important as when to retire.

“In addition to when to retire, a good question to ask is where,” explains WalletHub, the website behind this list of the best and worst places to retire in 2021.

“Finding the best states to retire can be difficult without doing lots of research.

Even in the most affordable areas of the U.S., most retirees cannot rely on Social Security or pension checks alone to cover all of their living expenses.

Social Security benefits increase with local inflation, but they replace only about 39 percent of the average worker’s earnings.

Plus, while affordability is one of the biggest concerns when deciding where to retire, there are plenty of other factors to consider like how safe the state is and how good its health care is (especially during the COVID-19 pandemic), as well as what activities it offers to keep retirees busy.”

WalletHub crunched the numbers and to determine the best states to retire, comparing the 50 states across 45 key indicators of “retirement-friendliness.”

Their analysis examined affordability, health-related factors, and overall quality of life.

Best States To Retire In 2021

Here are the best places to retire, according to WalletHub, and the number one place really shouldn’t come as a surprise to anyone.

1. Florida
2. Colorado
3. Delaware
4. Virginia
5. North Dakota
6. Montana
7. Idaho
8. Utah
9. Minnesota
10. New Hampshire

Worst States To Retire In 2021

According to WalletHub, these are the worst places to retire.

41. Illinois
42. Texas
43. Connecticut
44. West Virginia
45. Kentucky
46. Rhode Island
47. New Mexico
48. Mississippi
49. New York
50. New Jersey

Best vs. Worst States To Retire

  • Mississippi has the lowest adjusted cost-of-living index for retirees, 84.26, which is 2.3 times lower than in Hawaii, where it is highest at 194.66.
  • Louisiana has the lowest median annual cost of elderly housekeeping, $38,896, which is 1.8 times lower than in Washington, where it is highest at $71,294.
  • South Dakota has the highest share of the population aged 65 and older still working, 22.98 percent, which is 1.7 times higher than in West Virginia, where it is lowest at 13.27 percent.
  • Florida has the highest share of the population aged 65 and older, 20.10 percent, which is 1.9 times higher than in Utah, where it is lowest at 10.80 percent.

Head over to WalletHub

to read the entire report.

For more informative articles on retirement, check out the biggest warning signs that you’ll run out of money in retirement, figure out how much money you’ll need to retire in every state, and the three things you need to do to boost your retirement savings immediately.

Author
Chris Illuminati

Chris Illuminati is the author of five books and has written about personal finance, wealth, debt management, and entrepreneurship for numerous outlets including Wise Bread, Grow or Die, and Bankrate.

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