Idaho tops retirement-friendly states ranking as Florida slips to 7th

Idaho scored a perfect 100 in Polaris Home Care's 50-state retirement ranking, while Florida — the most famous retirement destination — landed seventh at 83.77.

The study's methodology weighed healthcare costs, housing expenses, property taxes, utilities, food costs, crime rates and average earnings across all 50 states, according to Polaris Home Care's published findings. The results show that even popular retirement destinations can fall short when everyday costs are factored in.

Arizona ranked second at 90.67 with a property tax rate of just 0.41 percent — among the lowest in the country — and average monthly utility costs near $524. North Dakota took third at 90.48, with food and beverage costs around $3,810 per person annually, more than $500 below the national average. Virginia, Alabama, Wyoming, Florida, Mississippi, Minnesota and Michigan rounded out the top 10.

The stakes are significant. The average retired household spends more than $61,000 per year, according to the U.S. Bureau of Labor Statistics, while the average retired worker receives about $2,000 per month in Social Security benefits — roughly $24,000 annually, per the Social Security Administration. With Fidelity estimating a 65-year-old retiring in 2025 may need approximately $172,000 for healthcare costs alone, state selection can materially affect retirement savings longevity.

Idaho's top ranking reflects annual medical expenses of $8,148 per person, above-average earnings of $63,894 and a crime rate about 41 percent below the national average. The state's combination of affordability, safety and relatively low healthcare costs produced the only perfect score in the study.

Alaska Ranks Last as Living Costs Outpace Earnings

Alaska was named the least retirement-friendly state, scoring just 41.44. Although Alaska residents earn some of the highest average wages in the country at about $70,196 annually, those earnings are offset by high living costs. The state recorded some of the highest expenses for utilities, healthcare and food, including average monthly utility costs of $658 and annual medical spending of more than $13,600 per person. Alaska also had the highest violent crime rate among states analyzed.

Missouri, Texas, Nebraska and Louisiana also landed in the bottom five. Texas, which has no state income tax, ranked third-worst in the study because higher property taxes, above-average crime rates and high utility costs dragged down its overall score.

The rankings suggest that taxes alone don't determine retirement affordability. Florida's lack of state income tax and warm weather keep it attractive for retirees, but the study's composite scoring shows everyday costs matter more than tax policy alone.

Six Factors to Weigh Before Relocating

For retirees considering a move, the study's findings point to six key considerations:

1. Total cost of living — A state with no income tax may still have higher housing, insurance or healthcare costs that can drain retirement savings faster.

2. Healthcare access and affordability — Affordable medical care is only useful if quality providers and hospitals are accessible when needed.

3. Housing costs and insurance — Property taxes, homeowners insurance and climate-related costs such as flood or hurricane coverage can make a significant difference to a retirement budget.

4. Safety and community amenities — Crime rates, access to recreation, transportation and social activities all play a role in quality of life during retirement.

5. Proximity to family and support networks — A lower-cost state may not be the best choice if relocating means losing access to family, friends or caregiving support.

6. Long-term affordability — Consider whether a location will remain affordable as expenses rise over time.

Retirement planning isn't about finding the cheapest place to live. It's about finding a place where money, health needs and lifestyle goals can work together — and the data shows that the best balance often isn't where retirees traditionally flock.

This article is for informational purposes only and does not constitute investment advice. Figures cited are from the sources noted and may change; readers should verify against the latest official announcements.