Best States to Retire in 2024: Where to Retire | The Motley Fool (2024)

About half of Americans older than 55 are retired, and that percentage may be on the rise. Among those who haven’t retired yet, pessimism about being able to afford retirement is growing alongside considerations about moving during retirement to save money.

Of course, people have different priorities when it comes to choosing the best state to retire to. But what are those priorities? The Motley Fool surveyed 1,500 Americans to find out -- and then ranked all 50 states based on those priorities.

We'll go over the survey results and then jump into the best states to retire to based on what Americans really want.

Key findings

Key findings

• According to The Motley Fool survey, Americans value these seven factors when it comes to choosing a best place to retire: high quality of life, low housing costs, high healthcare quality, reasonable healthcare costs, low crime rate, good public health, and low taxes.
• The top five best states to retire to in 2024 are New Hampshire (1), Utah (2), Minnesota (3), Connecticut (4), and Colorado (5).
• The bottom five worst states to retire to in 2024 are Louisiana (50), Kansas (49), West Virginia (48), Arkansas (47), and Mississippi (46).

Retirement factors ranked

What makes a state one of the best places to retire?

Instead of ranking states on the factors we think are important to people, we surveyed 1,500 Americans 55 and older to find out what they really want. High quality of life, low housing cost, high healthcare quality, reasonable healthcare costs, low crime rate, good public health, and low taxes were the highest-ranking factors.

Here's the full list of things Americans think about when choosing a state to retire to:

What is quality of life?

Quality of life is the highest-ranking factor when it comes to finding a state to retire to, but what exactly does that mean?

The prevalence of retail and dining options came out at the top of our list, with 57% of respondents saying it's important. Outdoor activities (47%) and cultural activities (35%) were high priorities as well, while spiritual community (31%), organized activities for retirees (23%), and civic organizations (14%) were less important.

In these rankings, we used Sharecare's Community Well-Being Index to represent quality of life since it captures many of the things that people want in a high-quality life, including a wide variety of physical, social, financial, and community factors.

Top 10 best states to retire to in 2024

Here's the ranking of the top-10 states for retirees based on our study and data analysis:

1. New Hampshire
2. Utah
3. Minnesota
4. Connecticut
5. Colorado
6. Vermont
7. Maryland
8. Nebraska
9. North Dakota
10. Wisconsin

Best state to retire

The best state to retire: New Hampshire

New Hampshire earns the top spot on our Best States to Retire list thanks to its near-perfect healthcare score, second-best crime score, and being in the upper half of states when it comes to quality of life and taxes. That was more than enough to offset expensive housing, cost of living, and cold temperatures.

• Quality of life score: 60 (ranked 16th)
• Housing cost: $453,001 (ranked 41st)
• Healthcare score: 99.9 (ranked 2nd)
• Crime score: 95 (ranked 2nd)
• Tax score: 56 (ranked 18th)
• Average temperature: 45.2ºF (ranked 41th)
• Cost of living score: 34 (ranked 47th)

Top 10 best states to retire

2. Utah

Utah ranks second, boasting the top healthcare score in the country and pulling in scores in the top half of all states in two other categories: quality of life (eighth) and crime (12th). Utah does have among the highest house prices in the country and a relatively high tax burden, but those factors and middling temperature (33rd) and cost of living (28th) scores didn’t keep the state down in our rankings.

• Overall rank: 2
• Quality of life score: 76 (tied 8th)
• Housing cost: $510,173 (45th)
• Healthcare score: 100 (1st)
• Crime score: 79 (12th)
• Tax score: 34 (40th)
• Average temperature: 49.2ºF (33rd)
• Cost of living score: 80 (28th)

3. Minnesota

Minnesota ranks third on our Best States to Retire list, boosted by the fourth-best healthcare score among all 50 states, 13th-best crime score, and 15th-best quality of life score. While the state has the third-lowest average temperature, it comes in around average for housing cost (26th) and cost of living (30th), making it desirable for retirees who can handle chilly weather.

• Overall rank: 3
• Quality of life score: 64 (15th)
• Housing cost: $331,895 (26th)
• Healthcare score: 95 (4th)
• Crime score: 77 (13th)
• Tax score: 34 (39th)
• Average temperature: 41.5ºF (47th)
• Cost of living score: 78 (30th)

4. Connecticut

Connecticut is an expensive state to retire to, but it makes up for that with great quality of life (seventh best), healthcare (sixth best), and low crime (fourth best). That’s enough to make up for tough tax and cost-of living scores.

• Overall rank: 4
• Quality of life score: 80 (7th)
• Housing cost: $381,722 (31st)
• Healthcare score: 92 (6th)
• Crime score: 90 (4th)
• Tax score: 4 (49th)
• Average temperature: 51.1ºF (29th)
• Cost of living score: 51 (45th)

5. Colorado

Colorado’s natural beauty and outdoor recreation is arguably unmatched, so it’s no surprise that it ranks in the top 10 for quality of life. That, and scoring third best for healthcare, propelled it into our top five best states to retire to despite chilly temperatures and being home to the fourth-most-expensive housing market in the country.

• Overall rank: 5
• Quality of life score: 76 (tied 9th)
• Housing cost: $537,600 (46th)
• Healthcare score: 96 (3rd)
• Crime score: 57 (31st)
• Tax score: 55 (19th)
• Average temperature: 46.2ºF (38th)
• Cost of living score: 79 (29th)

6. Vermont

Vermont comes in sixth on our list of best states to retire to due to having the third-best crime score and fifth-best healthcare score. That, along with a slightly-above-average quality of life, is enough to make up for cold temperatures, a high cost of living, and an expensive tax environment.

• Overall rank: 6
• Quality of life score: 52 (tied 21st)
• Housing cost: $393,838 (34th)
• Healthcare score: 93 (5th)
• Crime score: 91 (3rd)
• Tax score: 20 (47th)
• Average temperature: 44ºF (42nd)
• Cost of living score: 55 (41st)

7. Maryland

The only mid-Atlantic state to crack the top 10, Maryland has the second-highest quality of life score and ninth-best healthcare score. Although Maryland has a relatively high cost of living, its scores for crime (28th), temperature, tax (35th) and housing (35th) are closer to average, leaving it as a top state to retire to.

• Overall rank: 7
• Quality of life score: 96 (tied 2nd)
• Housing cost: $407,656 (35th)
• Healthcare score: 83 (9th)
• Crime score: 60 (tied 28th)
• Tax score: 41 (35th)
• Average temperature: 56.7ºF (18th)
• Cost of living score: 62 (39th)

8. Nebraska

The Cornhusker State scores in the upper half of all 50 states in every category but taxes and weather. And Nebraska’s scores in those two categories aren’t among the worst, meaning they more than offset its strong scores in cost of living, quality of life, housing cost, healthcare, and crime.

• Overall rank: 8
• Quality of life score: 56 (tied 18th)
• Housing cost: $254,571 (15th)
• Healthcare score: 77 (tied 12th)
• Crime score: 69 (22nd)
• Tax score: 39 (tied 37th)
• Average temperature: 49.5ºF (32nd)
• Cost of living score: 92 (9th)

9. North Dakota

North Dakota has experienced a relatively recent boom thanks to drilling in the oil-rich Bakken formation. The state doesn’t stand out in any one category but scores in the top half in five of the seven categories that factor into our rankings. Weather is a rough spot -- North Dakota has the second-coldest average temperature, at about 41 degrees Fahrenheit.

• Overall rank: 9
• Quality of life score: 60 (tied 18th)
• Housing cost: $257,503 (16th)
• Healthcare score: 75 (16th)
• Crime score: 70 (21st)
• Tax score: 63 (7th)
• Average temperature: 40.7ºF (49th)
• Cost of living score: 80 (27th)

10. Wisconsin

Wisconsin rounds out the top 10 best states to retire to by posting healthcare, crime, and house price scores all in the top half of the country. Its quality of life and cost of living scores come in at 25th out of 50 states, while it fares worse in terms of tax burden and average temperature.

• Overall rank: 10
• Quality of life score: 48 (tied 25th)
• Housing cost: $293,610 (20th)
• Healthcare score: 80 (11th)
• Crime score: 71 (20th)
• Tax score: 44 (32nd)
• Average temperature: 44ºF (43rd)
• Cost of living score: 81 (25th)

The best states to retire in for high quality of life

Our respondents said that quality of life is the most important factor to them. We measured quality of life using the Sharecare Community Well-Being Index, which combines a wide range of factors that they call "social determinants of health." This includes factors that cover physical and financial health, food access, and a variety of social and community elements.

The best states to retire in financially

We looked at two different factors that make a state affordable: housing cost, via the Zillow Home Value Index, and non-housing cost of living, represented by the C2ER Cost of Living Index. With the recent drop in average financial well-being among Americans over 61, this is more important than ever.

States with the most affordable homes for retirees

To determine the level of safety of each state, we used the number of violent crimes committed per 100,000 population from the America's Health Rankings Crime Report.

Best states to retire tax wise

We ranked states for taxes by looking at the Tax Foundation's State and Local Tax Burden tables. The five states above have the lowest state and local tax burden in the country. It's important to remember that different states tax your retirement income differently.

Best states to retire to for warm weather

Identifying the state with the best weather for retirees is complicated, if not impossible. Many people prioritize mild winters, but others prefer dryness over heat. Others want to be close to the beach, and still others are fine with cold winters as long as summers aren't too oppressive. In the end, because warm winters are a common theme, we went with a five-year average temperature for our ranking, and the five states above came out on top.

Retirement ranking by state

The best states to retire: The full ranking

Worst states to retire in

The worst states to retire in

Louisiana, Kansas, West Virginia, Arkansas, and Mississippi ranked as the worst states to retire to based on the factors Americans care most about.

These five states are among the most affordable in terms of housing and other cost-of-living categories. They also feature relatively warm temperatures. But they post very low scores in other areas.

Louisiana, West Virginia, Arkansas, and Mississippi are among the 10-worst states for quality of life, with Mississippi taking the bottom spot.

In terms of healthcare for seniors, the bottom four states are Mississippi, Louisiana, Kansas, and West Virginia, in that order. Arkansas is ranked sixth worst.

Louisiana and Arkansas have the fourth- and fifth-worst crime scores, and Kansas is in the bottom half of all states.

Of course, there are sought-after retirement communities in some of those states, such as the Ozarks in northern Arkansas.

Related retirement topics

Methodology

The Motley Fool’s 2024 Best States to Retire study leverages data and rankings from a variety of reputable sources, as well as primary data collected by The Motley Fool to determine what Americans value most in retirement.

To determine the best states to retire in, The Motley Fool used a three-step process:

1. Survey distribution and analysis

The Motley Fool surveyed a national representative sample of 1,500 American adults aged 55 or older to find out what they value in retirement. This survey was distributed on Dec. 2, 2021. The margin of error was 3%, and the confidence level was 95%. Their responses determined the factors considered in this study, as well as the weighting of each factor (described below). The online survey was distributed via Pollfish. The survey employed organic sampling via random device engagement.

2. Data analysis

Second, The Motley Fool selected data sources to correspond to these top retirement factors:

Quality-of-life

• Source: Sharecare's Community Well-Being Index (2022).
• The Sharecare Community Well-being Index, produced in partnership with the Boston University School of Public Health, examines more than 600 factors, including physical, financial, social, community, purpose, healthcare, food, resources, housing and transportation, and economic security, as well as data from more than 400,000 Americans. The index makes use of county-level well-being data to generate a holistic assessment of well-being.

Cost-of-living (excluding housing)

• Source: The Council for Community and Economic Research’s (C2ER) Cost of Living Index (Q2 2023).
• C2ER has collected state and MSA-level cost-of-living data since 1968. It has been recognized by the U.S. Census Bureau and U.S. Bureau of Labor Statistics and is consistently cited by major media outlets.

Housing cost

• Data source: Zillow Home Value Index (ZHVI) (August 2023).
• The ZHVI is a measure of the typical home value in a state, across all homes in a state. The dataset includes more than 100 million homes, including those under construction or not listed for sale, providing a more accurate overview of a housing market.

Healthcare

• Data source: United Health Foundation’s America's Health Rankings - Seniors Report (2023).
• This report scores health and well-being outcomes for older adults by state. It examines 52 measures from 22 data sources.

Crime

• Data source: United Health Foundation’s America's Health Rankings - Violent Crime Report (2023).
• This report reviews the number of murders, rapes, robberies, and aggravated assaults per 100,000 population to determine state safety rankings.

Temperature

• Data source: National Oceanic and Atmospheric Administration National Centers for Environmental Information (October 2018 to September 2023).
• Uses average temperature from October 2018 to September 2023, a 60-month period.

Tax

• Data source: The Tax Foundation: State and Local Tax Burden (2023).
• Provides findings on effective tax rates for each state. Effective tax rates are the percentage of taxable income paid in taxes, which provides a holistic view of taxes paid in each state.

3. Data weighting and state scoring

Data from those sources were normalized and weighted based on the importance of the corresponding factor from the survey.

Weighting was assigned as follows, based on survey results (percentages do not add up to 100% due to rounding):

• Quality of life: 15.2%
• Housing cost: 14.9%
• Healthcare: 14.8%
• Crime: 14.8%
• Taxes: 13.7%
• Non-housing cost of living: 13.6%
• Weather: 13.1%

The Motley Fool used that data to create a final weighted score between 0 and 100 for each state to determine the best states to retire.

Sources

• Council for Community and Economic Research (2023). "COLI State Level Index."
• Ipsos (2023). “One in five don’t think they will be able to retire.”
• Gallup (2023). “Americans’ Outlook for Their Retirement Has Worsened.”
• National Oceanic and Atmospheric Administration (2023). “Climate at a Glance Statewide Rankings.”
• Pew (2021). “Amid the pandemic, a rising share of older U.S. adults are now retired.”
• Sharecare (2022). "Sharecare Community Well-Being Index."
• Tax Foundation (2023). "State and Local Tax Burdens, Calendar Year 2022."
• United Health Foundation (2023). “America’s Health Rankings: Overall - Seniors in United States.”
• United Health Foundation (2023). “America’s Health Rankings: Violent Crime by State.”
• Zillow (2023). "United States Home Values."

The Motley Fool has a disclosure policy.

• Icon-GuidancePremium Investing GuidanceMarket beating stocks from our award-winning service

• The Daily Upside Newsletter

  Investment news and high-quality insights delivered straight to your inbox

• Icon-InvestingGet Started InvestingYou can do it. Successful investing in just a few steps
• Icon-RetirementWin at RetirementSecrets and strategies for the post-work life you want.
• Icon-BrokerFind a BrokerFind the right brokerage account for you.
• Icon-PodcastListen to our PodcastsHear our experts take on stocks, the market, and how to invest.