Choosing where to retire is one of the most critical decisions you will make after you leave the workforce. As you get older, ღyour energy for relocation is likely to diminish. So if you plan to make a move, it’s better to choose a place now where you might comfortably stay for the rest of your life. 

There’s a lot of planning that goes into deciding and making a move. You have to factor in your budget, proximity to family and friends, th𝐆e cost of living, taxes༒, your physical well-being, and more. This guide can help you think it through.

꧋Factors t🎶o Consider When Deciding Where to Retire

Many of the factors you’ll be considering in making your decision will be financial, including the 澳洲幸运5开奖号码历史查询:cost of living in a new area, housing, he෴althcare, and t🀅axes you’ll have t𓃲o pay. All of those are covered below. However, there are other nonfinancial considerations as well.

One of the most important is having emotional, 澳洲幸运5开奖号码历史查询:financial, and caregiving support from family and non-family members, which can enhance your quality of life as an older adult, according to a study from the National Institutes of Health (NIH). Being alone with no nearby support can lead to lonelinꦍess and isolation, which can be harmful to your health.

Here are other fact🧸ors to think about as you make your plans:

Cost of Living

The 澳洲幸运5开奖号码历史查询:cost of living is a key factor in any relocation decision, but 澳洲幸运5开奖号码历史查询:especially when you are retiring. Its components include housing, food prices, healthcare, transportation, and taxes, among others. 

In selecting a new location, you’ll need to balance the cost of living against your expected income during the duration of your retirement. The quantity and quality of your income streams—such as a 401(k), 澳洲幸运5开奖号码历史查询:indivi🌟dual retirement account🍰s (IRAs), 澳洲幸运5开奖号码历史查询:annuities, pension, and 澳洲幸运5开奖号码历史查询:Social Security benefits—will help determine the places you have to choose from.

According to the Missouri Economic Research and Information Center (MERIC), the states with the lowest annual cost of living in 2024 are primarily in the South and Midwest, while those with the highest annual cost of living are in the Northeast and West. 

One tool that can be particularly useful is the , developed by the University of Massachusetts, Boston’s Gerontology Institute. It measures the amount of income older Americans require in order to meet their basic needs in specific U.S. locations. You can enter the name of a county, state, or metro area you’re considering into the index and find out what the costs are, including housing, transportation, food, healthcare, and miscellaneous costs.

Housing Costs

Like many retirees, you may want to live somewhere warm and sunny for most of the yꦓear. When you are thinking of the best places in the U.S. with that kind of climate, California, Arizona, and Florida may come to mind. 

If you are looking to buy, be forewarned: According to Realtor.com®’s February 2025 housing report, the top four 澳洲幸运5开奖号码历史查询:most expensive housing markets in the U.S. per median listing price are in California:

1. San Jose-Sunnyvale-Santa Clara: $1,304,500
2. Los Angeles-Long Beach-Anaheim: $1,119,000
3. 澳洲幸运5开奖号码历史查询:San Diego-Chula Vista-Carlsbad: $949,995
4. San Francisco-Oakland-Fremont: $899,944

However, housing in Florida is currently more affordable. Three of the top four markets in the Sunshine State have a median listing price below $420,000:

1. Orlando-Kissimmee-Sanford: $418,950
2. Tampa-St. Petersburg-Clearwater: $399,000
3. Jacksonville: $388,098

Miami-Fort Lauderdale-West Palm Beach, Florida has the highest median listing price at $515,000.

Arizona, another state that’s 澳洲幸运5开奖号码历史查询:a favorite destination for retirees, has a relatively fair market in Tucson, with a median listing price of $396,200. And if you branched out to consider Texas, the San Antonio-New Braunfels area and the Houston-Pasadena-The Woodlands area have median listings of $327,000 and $358,000, respectively. Those prices are below the December 2024 national median of $390,000.

For other retirees, the first priority may be 澳洲幸运5开奖号码历史查询:finding the most affordable region where their finances go farther. Realtor.com’s February 2025 housing report also listed the least expensive house markets in the U.S., per median listing price; the location of these markets vary:

1. Pittsburgh, Pennsylvania: $229,000
2. Detroit-Warren-Dearborn, Michigan: $239,900
3. Cleveland, Ohio: $241,725
4. Buffalo-Cheektowaga, New York: $249,974
5. St. Louis, Missouri: $276,799
6. Birmingham, Alabama: $285,000

What If You're Renting?

The rental housing market has been very tight, which means the cost to rent a home is rising. According to Department of Housing and Urban Development (HUD) estimates, median rents are expected to be 4.8% higher in 2025 than in 2024. Median rents for three-bedroom homes are projected to rise 4.4%, while four-bedroom homes will grow by 4.1% to $2,681 a month.

Some midsize cities, however, are experiencing lower rental costs, including Tallahassee, Florida, and Beaumont-Port Arthur, Texas. If you plan to rent, you’ll need to figure rising rental costs into your annual budget.

Healthcare Access

Your health and well-being are critical to enjoying your life in retirement. But healthcare costs can be very high and unpredictable: According to Fidelity, an average couple can expect to pay $315,000 after taxes in healthcare costs over their retirement, while an individual can expect to fork over $157,500 after taxes. Typically, healthcare costs rise faster than inflation, which means planning for these costs is essential.

Finding a home in a locale where 澳洲幸运5开奖号码历史查询:healthcare is a priority may help you live a longer and better life. But all states are not created equal when it comes to healthcare. According to the Commonwealth Fund’s latest data (2023), the 10 states that rank the highest on their health system performance—a measure of 58 factors, including health care access, quality, use of services, costs, health disparities, and health outcomes—are mostly in the East, while the 10 with the lowest ranking are primarily in the South:

Another consideration for retirees is the quality of long-term care services, which AARP has ranked for affordability and access to healthcare, safety and quality, and support for family caregivers. Minnesota, Washington, Massachusetts, and Colorado, along with the District of Columbia, rank the highest, while West Virginia, Alabama, South Carolina, Mississippi, and Tennessee rank the lowest.

Taxes

Retirees often look for 澳洲幸运5开奖号码历史查询:states where they won’t pa💮y high taxes—after all, 🌼less money paid out means more money in your pocket. While taxes on Social Security and retirement accounts may be of greatest concern, don’t overlook a state or city’s other taxes, including sales and property taxes.

In 2025, nine states—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—have no state 澳洲幸运5开奖号码历史查询:income tax, according to the Tax Foundation. That means they don’t levy taxes on retirement income from sources like pensions, IRAs, 401(k)s, or 403(b)s. In addition, Alabama, Hawaii, Illinois, Iowa, Mississippi, and Pennsylvania are 澳洲幸运5开奖号码历史查询:states that exempt at least a part, if not all, of retirement income from state taxes.

Most states don’t take a tax bite out of 澳洲幸运5开奖号码历史查询:Social Security benefits, but these nine states do: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.

Most states in the U.S. have a graduated income tax rate, which means your income taxes increase as your income increases. The remaining states have a 澳洲幸运5开奖号码历史查询:flat income tax rate, which remains the same at all income levels. These are the states with a flat tax:

• Arizona
• Colorado
• Georgia
• Idaho
• Illinois
• Indiana
• Iowa
• Kentucky
• Louisiana
• Michigan
• Mississippi
• North Carolina
• Pennsylvania
• Utah
• Washington*

*Washin💙gton state applies capital gains income tax to all high-earning individuals.

Weather

As weather patterns shift across the country due to climate change, it’s important to consider this factor in your relocation decision. For example, you may want to avoid areas of the country that are prone to flooding, hurricanes, severe forest fires, earthquakes, or tornadoes, especially if you have issues with mobility—or make sure you have 澳洲幸运5开奖号码历史查询:extra funds to cover insurance and damage.

Weather extremes—very hot and very cold temperatures—can make older adults more vulnerable to health problems. According to a study published in Science Advances in 2025, extreme heat can affect seniors’ long-term health and aging at a molecular level, causing illness and even death. And older adults are more likely to develop chronic medical conditions such as diabetes, thyroid problems, Parkinson’s disease, and memory issues due to overexposure to cold weather, according to the National Institute on Aging.

Older individuals also may have health conditions that make them less able to adapt to changes in air quality, according to the Environmental Protection Agency (EPA). To get a sense of the weather patterns in an area you might relocate to, you can input your information into one of the popular weather websites or apps to access detailed forecasts.

Lifestyle

Everyone’s lifestyle is unique. And as a retiree, you may have the free time to explore your interests and hobbies. This could mean more socializing with family and friends, going out to eat at your favorite restaurants, taking walks or playing golf or pickleball, catch༺ing a movie at the local theater, or traveling🔴 the U.S. or the world. 

If you choose ⭕to live in a retirement community, you’ll have an accessible group of individuals to get to know and share activities with. Or you may be living near your grown children and spending time with your grandkids. Wherever you’re thinking of moving to, be sure also to consider the availability of resources you may depend on to stimulate your mind and spirit, whether that’s the arts, sports, outdoor activities, the materials to start a new business, or other pursuits.

You might want to consider adopting a pet if you don't have one and have the resources and energy. A dog or cat, for example, can provide companionship to someone living on their own and benefit long-term health in other ways. According to a study from the Universities of Florida, Michigan, and Virginia Commonwealth University, owning a pet for over five years can help keep your cognitive skills sharp as you get older.

Retiring in the U.S.

If you were born and spent most of your life in the U.S., you may be more comfortable staying here than moving to a foreign country. You understand the laws and the language(s), and you probably have closer access to family and friends. Also, as a retiree, you have access to Medicare and Medicaid inside the U.S. to help pay for your healthcare.

All that said, where you reside in the U.S. can have a big impact on your finances. For example, living in a state that taxes retirement income and Social Sec🎐urity can make it hard for someone with more limited resources to enjoy a full retirement. On the other hand, if you have significant wealth and want to protect your assets for the next generation, you’ll want to pay attention to the estate taxes of the state you choose to live in. 

If you decide to 澳洲幸运5开奖号码历史查询:move out of the country, you will no longer have access to Medicare services. However, you may decide to keep paying your Medicare premiums so that you don’t have to deal with late enrollment penalties if you decide to move back to the U.S. at a later point in your life. When it comes to Medicaid, you can only use its coverage inside the U.S.

Retiring Abroad

澳洲幸运5开奖号码历史查询:Retiring abroad can be beneficial for some💝 retirees, especially those who have family or other ties to another country. The opportunity to meet new people, start friendships, and enjoy a different culture can provide a fresh perspective on life. There’s also a chance you may find more affordable healthcare abroad compared to the U.S.

Living abroad also has its challenges. Adjusting to a different lifestyle doesn’t get easier as you get older. If you choose to retire ꦬabroad, you need the right support system around you—especially if you are solo—so you aren’t vulnerable to those who prey on exploiting seniors. And keep in mind that every country has rules and regulations for retirees coming from other countries.

From a financial perspective, you can still receive your 澳洲幸运5开奖号码历史查询:Soci🔜al Security benefits w🧜hile living abroad in most countries. However, there are some countries where the U.S. does not allow Social Security benefit payments to be sent, most notably North Korea and Cuba. Exemptions may be made for eligible U.S. citizens who want to live in Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

Downsizing May Help You Reach Your Retirement Destina🥂tion

If you’re still paying off a mortgage, selling your home and moving to a cheaper house or apartment at a desired retirement location can provide benefits such as cutting proper🦂ty taxes and home insurance and maintenance costs inside and outside your home. The extra money you save can go toward an emergency fund, investing, vacations, other fun activities, or wherever it’s needed. 

Before you decide to downsize, discuss this option with your family. If you are close to paying off your mortgage, you may want to keep your home to pass down to your children or grandchildren. If renovations are needed to allow you to stay in the house, that can be part of the discussion.

The Bottom Line

Choosing w𓆉here to retire is never easy. Ideally, it should be a place where you want to live for the rest of your life. Because it can be such a significant life change, before making a decision, you may want to review your options with a financial advisor. They can assess your financial situation and help you decide which states and cities offer the greatest potential for your lifestyle, given your resources. They can also help you maximize your retirement income. 

While it may be 澳洲幸运5开奖号码历史查询:tempting to move to a new place, there are also challenges to relocating when you’re older. When all is said and done, you may choos꧋e to stay exactly where you are once you’ve put the world of work behind you.ꦯ