Sure, the best state to retire in may be the one where you currently live. After all, it can just make sense to stay in a place you know and love. On the other hand, it may also make sense to move closer to family members who can provide support, find a city that’s more suited for seniors or downsize in a place that’s more affordable, something that’s especially important when you’re living on a fixed income. It’s a tough choice, and you know what makes it even harder? The mounds of research you need to sort through before making that choice.

Lucky for you, we’re about to make the process a whole lot easier, with some help from Seniorly, an online resource that focuses on senior living communities. A recently released report from the site looked at the various factors that determine the best—and the worst—states for retirement. A few of the report’s winners include a particularly attractive (and hefty) monetary incentive that might surprise you.

Intrigued? We thought you might be! Read on to find out which states are the most appealing for retirees—and how your current state stacks up.

Get Reader’s Digest’s Read Up newsletter for more retirement news, humor, cleaning, travel, tech and fun facts all week long.

How were the best and worst states determined?

Seniorly looked at nine metrics across three categories (affordability, quality of life and health care). The nine metrics were the cost of living, income taxes, Supplemental Security payments, weather, entertainment options, availability of doctors, long-term-care spending, the community of older adults and overall health status.

From there, a z-score was tallied across the nine metrics in all 50 states and Washington, D.C. The places that received the highest z-scores earned the top spots.

Which state is the best for retirees?

While technically not a state, Washington, D.C., earned the distinction in the Seniorly study as the best state for retirement. This may come as a surprise for a whole other reason: The nation’s capital doesn’t jump to mind when people talk about affordable places to live. In fact, data from the Missouri Economic and Research Center (one of the sources Seniorly looked at for affordability) ranks Washington, D.C., among the top five states with the highest cost of living. Income taxes are also high here.

But other monetary factors balanced that out—including the city’s high Supplemental Security income for those who qualify. “The district gives the elderly around $1,000 extra per month to live there, to help cover the higher cost of living,” explains Yuri Nosenko, a wealth advisor at Imperial Fund Asset Management. “Mix that with many options to move around easily and socialize, and you will get a very healthy older population.”

To that end, the district provides plenty of recreational activities and attractions, including museums, theaters, sports arenas and golf courses (775 per 100,000 older adults). This translates to both physical and mental stimulation for retirees, keeping them not just happy but also healthy in the long run.

Also keeping retirees healthy on a literal level? Washington, D.C., ranks No. 1 for health care, which is a huge priority for an aging population. For context, Florida—a state typically associated with retirees—ranked a dead-last 51 in that category. A wealth of doctors (769 per 10,000 older adults) and high long-term-care spending through Medicaid ($12,993 per senior) additionally make the district tops for seniors.

What other states round out the top 10?

These Are The Best And Worst States For Retirement In 2025READER'S DIGEST, GETTY IMAGES

Despite many people wanting to move south when they retire, no Southern states made it into the top 10 of Seniorly’s report. In fact, the first Southern state to make it into the rankings is Tennessee—all the way down in the 24th spot. Sure, great weather is attractive, but it’s not the only thing you should be focusing on when making your retirement choice.

“Montana, for example, doesn’t seem obvious because everything is a drive, and the hospital can be relatively far away,” Nosenko says. “However, a lower cost of living and additional monthly retirement stipends push these states to the top of the list, which equates to an overall healthy retirement population.” That extra Supplemental Security payment is also a big factor in Pennsylvania—No. 5 on Seniorly’s list—which has the highest average payment in the country at a whopping $1,240 per month.

Here’s the full top 10 ranking:

  1. Washington, D.C.
  2. Montana
  3. Wyoming
  4. Alaska
  5. Pennsylvania
  6. South Dakota
  7. Vermont
  8. North Dakota
  9. Rhode Island
  10. Maine

What state is the worst for retirees?

New Jersey earned Seniorly’s top prize as the worst state for retirees. Even if you think the Garden State is the best place to live, it’s hard to deny its affordability issues. “It costs a fortune to live in New Jersey, and the state taxes the heck out of the elderly while providing a lower-than-average monthly stipend,” Nosenko says. New Jersey’s Supplemental Security payment is only $660 (about half of Pennsylvania’s), and the income tax rate is high, at 10.75% for top earners.

According to Seniorly, it also has “mediocre access to arts and recreation” (268 per 100,000 older adults). It’s also worth noting that 65% of New Jersey’s senior population has three or more chronic conditions, making the senior population relatively unhealthy.

Where does your state rank?

  1. Washington, D.C.
  2. Montana
  3. Wyoming
  4. Alaska
  5. Pennsylvania
  6. South Dakota
  7. Vermont
  8. North Dakota
  9. Rhode Island
  10. Maine
  11. Colorado
  12. New Hampshire
  13. Minnesota
  14. Nevada
  15. West Virginia
  16. Oregon
  17. New Mexico
  18. Florida
  19. Connecticut
  20. Maryland
  21. Michigan
  22. Missouri
  23. Nebraska
  24. Tennessee
  25. Louisiana
  26. Idaho
  27. Iowa
  28. Indiana
  29. Washington
  30. Ohio
  31. Arkansas
  32. Illinois
  33. Hawaii
  34. Kentucky
  35. Delaware
  36. Wisconsin
  37. Virginia
  38. California
  39. Utah
  40. North Carolina
  41. New York
  42. Arizona
  43. Texas
  44. South Carolina
  45. Massachusetts
  46. Mississippi
  47. Oklahoma
  48. Georgia
  49. Kansas
  50. Alabama
  51. New Jersey

Why trust us

At Reader’s Digest, we’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. We verify all facts and data, back them with credible sourcing and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.

Sources:

Miniature elderly couple pushes wheelchair atop stacked coins, set against a blue background.Creativ Studio Heinemann/getty images

Common Retirement Mistakes to Avoid

Silhouette of the U.S. map overlaying rd.com, Getty Images (2)

The Most Dangerous State in America

Map of the United States with a cute face, styled like the American flag, set against a plain blue background.zoljo/Getty Images

The Happiest States in America

Author
Jaime Stathis
Jaime writes about technology, cybersecurity, careers, retirement, travel and everything related to being a human being on a constantly evolving planet. Jaime is insatiably curious and still trying to figure out if she prefers the mountains or the ocean—and realizes this might be a lifelong puzzle to solve.
Read More
Jaime Stathis