The 10 Best States To Retire in 2025, According to New Data
Choosing where to spend your retirement years is no small decision, especially when you’re balancing affordability, healthcare access, and long-term peace of mind.
As Tim Schmidt, founder of Gold IRA Custodians, puts it, “Finding the right retirement location involves balancing multiple factors that impact both quality of life and financial security.”
To help simplify that choice, Gold IRA Custodians analyzed all 50 U.S. states across six categories: cost of living, median home prices, access to healthcare and nursing homes, crime rates, and tax benefits to reveal the best retirement destinations in 2025.
Each state received a “Retirement Score” based on its performance across these factors, with higher scores indicating more retirement-friendly conditions.
Note: The “crime rate” figures reflect each state’s overall crime index — higher numbers signal higher reported crime per capita.
Here are the 10 best states to retire in 2025, ranked from #10 to #1.
10. South Dakota (Retirement Score: 48)
South Dakota earns its spot for overall balance. With a below-average cost of living (92.2) and no state income tax, retirees can stretch their savings further. The state’s median home price of $340,000 is still reasonable compared to coastal markets. While its crime rate (350) is slightly higher than some neighbors, South Dakota’s simple tax structure and affordability make it a smart choice for financially savvy retirees.
9. Indiana (Retirement Score: 49)
Indiana offers retirees a low-cost, low-stress lifestyle. With a 90.5 cost-of-living score and median home price of $261,000, it’s easy on fixed incomes. The state also provides decent healthcare access (130 facilities, 512 nursing homes) and a manageable crime rate (332). Add in a central location close to major cities, and it’s a practical pick for retirees who want small-town calm without losing access to urban amenities.
8. Iowa (Retirement Score: 49)
Iowa’s quiet charm pairs with financial practicality. It ranks among the most affordable on this list, with a cost-of-living score of 89.7 and median home price of $241,000. Healthcare options are solid (118 facilities, 404 nursing homes), and crime is relatively low (280). The state’s blend of affordability, access, and safety makes it one of the Midwest’s most retirement-friendly spots.
7. Alabama (Retirement Score: 53)
With no state tax on Social Security income, Alabama offers retirees clear financial advantages. The 88 cost-of-living score and $277,000 median home price help stretch retirement savings, though healthcare access is limited (102 facilities, 224 nursing homes). The higher crime rate (404) is a drawback, but for many, the tradeoff is worth it for year-round mild weather and low living costs.
6. Ohio (Retirement Score: 57)
Ohio’s strength lies in its affordability and healthcare access. Retirees benefit from a 94.2 cost-of-living score, $255,000 median home price, and an impressive 187 healthcare facilities with 929 nursing homes — one of the highest counts in the nation. The crime rate (287) is moderate, and with diverse cities and small towns, retirees can find a community that fits their pace.
5. Mississippi (Retirement Score: 57)
Mississippi tops the affordability charts with the lowest median home price ($257,000) and cost-of-living score (87.9) among the top states. It’s also one of the safest, with a crime rate of 203. While the healthcare infrastructure is smaller (99 facilities, 202 nursing homes), the financial breathing room makes it an appealing option for retirees prioritizing low costs and safety.
4. Florida (Retirement Score: 58)
Florida’s classic appeal holds strong with no state income tax, sunny weather, and a robust healthcare network (213 facilities, 699 nursing homes). Though the cost of living (102.8) and median home price ($433,000) run higher than some peers, the state’s moderate crime rate (290) and recreational opportunities keep it high on many retirees’ lists. For those craving warm winters and coastal living, Florida remains a top-tier choice.
3. Illinois (Retirement Score: 62)
Illinois might surprise some, but its affordable housing ($289,000 median), 94.4 cost-of-living score, and strong healthcare system (181 facilities, 682 nursing homes) give it serious appeal. While the crime rate (310) is slightly above average, access to both urban and rural living — and relatively low housing costs — make Illinois a practical pick for retirees, especially Midwesterners wanting to stay close to family.
“Illinois might surprise some people as a top retirement destination, but the numbers don’t lie,” says Schmidt. “The combination of relatively low housing costs and excellent healthcare access makes it an attractive option.”
2. Pennsylvania (Retirement Score: 62)
Pennsylvania offers the best of both worlds — strong healthcare access (185 facilities, 670 nursing homes) and affordable housing ($319,000 median) paired with a 95.1 cost-of-living score. Its low crime rate (266) adds to the appeal. Retirees enjoy access to major cities like Philadelphia and Pittsburgh without the price tag of neighboring states like New York or New Jersey.
“Pennsylvania offers retirees proximity to major metropolitan areas while still providing more affordable living,” notes Schmidt.
1. Texas (Retirement Score: 78)
Texas takes the top spot for 2025, and by a wide margin. The no state income tax, 92.7 cost-of-living score, and $349,000 median home price all favor retirees looking to stretch their savings. It also boasts one of the strongest healthcare infrastructures in the nation (509 facilities, 1,184 nursing homes). While the crime rate (406) is higher than average, the state’s overall value, climate variety, and tax advantages make it the most retirement-friendly destination in America.
“Texas provides a balance that appeals to retirees,” explains Schmidt. “The state offers relatively affordable housing below many coastal states, while maintaining a manageable cost of living below the national average.”
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