Retirement

The Complete Guide to Cost of Living in Retirement

Plan your retirement budget with confidence. Explore the best states for retirees ranked by healthcare costs, tax benefits, climate, and quality of life.

Cost of Living USA TeamOctober 20, 202411 min read

Planning for retirement requires careful consideration of where your money will go. Healthcare, housing, and taxes are the biggest factors that vary dramatically by location.

Healthcare in Retirement

Healthcare is often the largest variable expense in retirement. Medicare covers many costs, but supplemental insurance, dental, and vision can add $300-800+ per month per person.

Tax-Friendly States for Retirees

Several states don't tax retirement income, including Florida, Nevada, Texas, and Washington. This can save retirees thousands annually compared to high-tax states.

Best States for Retirement

Florida

No state income tax, warm weather, excellent healthcare facilities, and a large retiree community make Florida the top retirement destination.

Arizona

Dry climate, affordable housing outside Phoenix and Scottsdale, and low taxes make Arizona attractive for retirees seeking warm weather.

South Carolina

Low cost of living, beautiful coastline, and favorable tax treatment of retirement income make SC increasingly popular.

Budgeting Tips

Plan for healthcare cost increases of 5-7% annually, consider downsizing housing, and factor in inflation when projecting long-term expenses.

Try Our Cost of Living Calculator

Compare your expenses across cities and find the best place for your budget.