When it comes to retirement, home sweet home isn't necessarily where you now live, but where you can afford to live. The best states to retire are those offering the best value for retirement dollars, according to WalletHub.
But before you pack your bags, make sure you’ve saved enough to live on because even in the most affordable areas of the U.S., Social Security and/or pension checks alone are not enough to cover all living expenses. For example, WalletHub says, Social Security benefits increase with inflation but they replace only about 39% of the average worker’s earnings. That makes knowing when to retire just as important as where.
By comparing 50 states across 47 key indicators of retirement-friendliness, WalletHub has analyzed which are most affordable, have the most available healthcare options and offer the best overall quality of life. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for retirement. WalletHub then calculated each state’s weighted average across all metrics to determine its overall score and ranking.
Here, in ascending order, are WalletHub’s top-10 best states to retire in 2020.
10. Iowa
The Hawkeye State offers prospective retirees a high-quality, but not inexpensive lifestyle. Iowa ranks 7th in quality of life and 13th in healthcare, but 31st in affordability. Total score: 56.70.
9. Idaho
Retirees and visitors alike come to the Gem State for scenic beauty and outdoor fun at an affordable cost. Idaho ranks 13th in affordability and 19th in quality of life, but 30th in healthcare. Total Score: 56.80.
8. Wisconsin
Retire to the Badger State and you can enjoy ice fishing off Goose Island or cheering on the Green Bay Packers with other loyal Cheeseheads. Wisconsin ranks 8th in quality of life, 22nd in healthcare, and 24th in affordability. Total Score: 57.16.
7. Virginia
Known as Old Dominion, Virginia is a tax haven for cost-conscious retirees. The state ranks 13th in quality of life, 18th in affordability and 24th in healthcare. Total Score: 57.93.
6. Delaware
Senior living in the Diamond State is easy on the wallet for retirees. Although Delaware ranks 48th for the fewest theaters per capita, it ranks 7th in affordability, 18th in healthcare, and 35th in quality of life. Total Score: 58.10.
5. Wyoming
Known as the Cowboy State, Wyoming is also a flyfisher's paradise. While the state ranks 11th in affordability and 12th in quality of life, it ranks 33rd in healthcare and 45th in both fewest theaters per capita and highest annual cost of in-home services. Total Score: 58.17.
4. Utah
Active seniors looking to retire in the Beehive State have a lot of options for outdoor recreation. Utah ranks 15th in affordability, 17th in healthcare, and 18th in quality of life. However, the state ranks 50th in both fewest museums per capita and lowest percentage of population aged 65 and older. Total Score: 58.33.
3. New Hampshire
With no personal income tax, the Granite State is a taxpayer’s dream whether you’re retired or still working. In fact, New Hampshire ranks 4th with the highest percentage of workforce aged 65 and older. The state ranks 27th in affordability, 6th in healthcare, and 4th in quality of life. Total Score: 59.25.
2. Colorado
Retire to the Centennial State and you’ll be paying one of the lowest property taxes in the country. Despite Colorado's rank of 46th for lowest percentage of population aged 65 and older, the state ranks 4thfor healthcare, 11th for quality of life, and 17th for affordability. Total Score: 60.99.
1. Florida
If you’re a senior in search of warm weather, sunny skies and a tax-friendly retirement, then the Sunshine State fits the bill. A popular retirement destination, Florida ranks 2nd in both afrordability and in highest percentage of population aged 65 and older, 5th in quality of life and 26th in healthcare. Total Score: 63.02.