AARP says these are the 7 best states to avoid extreme weather in retirement — why a Sun Belt state could scorch your savings

The contiguous U.S. just had its hottest summer on record in 132 years of record-keeping, according to the National Oceanic and Atmospheric Administration (NOAA). In August alone, extreme weather was responsible for destructive wildfires, tornadoes, flash flooding, heatwaves and drought.

While Hawaii experienced its second-wettest August on record — along with Hurricane Lala — drought covered 59.1% of the contiguous U.S. Multiple regions were impacted by lingering heat domes over the summer that locked in dangerously high temperatures, with Arizona, New Mexico, Utah and Colorado recording their warmest summers on record.

So if you’re thinking about retiring in the Sun Belt, you might get more heat than you bargained for — and it might even scorch your retirement savings.

Extreme weather can drain your nest egg

Despite these risks, Southwestern cities were the most popular destinations for retirees in 2025, according to SmartAsset’s annual ranking. The top 10 cities — aside from Minneapolis — were all located in the broader Sun Belt region, with Florida the most popular state overall.

But the three largest Sun Belt states — Texas, Florida and California — have “absorbed over 40% of the nation’s $2.8 trillion in natural disaster costs since 1980,” according to a 2025 report by First Street.

More extreme weather has serious repercussions for retirees, both on their health and their finances.

Among weather-related hazards, heat is the top killer — more deadly than flooding, tornadoes and hurricanes. And baby boomers (born between 1946 and 1964) “will be among those immediately hardest hit by climate change, as their vulnerability to extreme heat coincides with rising temperatures,” according to a report from Climate Central, a nonprofit research group.

The combination of extreme heat and poor air quality can exacerbate pre-existing chronic health conditions, while increasing susceptibility to heatstroke. Isolation and lack of mobility are other factors that could put older Americans at risk.

Living in a climate change hotspot also means higher utility bills and higher premiums for homeowner’s insurance — with some insurers withdrawing completely from high-risk areas, leaving homeowners to self-insure. Some homeowners facing impossibly high insurance rates are even opting to roll the dice and “go bare” without any coverage at all.

In these areas, referred to as “climate-abandonment zones,” First Street estimates that more than 70,000 neighborhoods could experience climate-driven property value losses totalling $1.47 trillion by 2055.

And, if your home is damaged or destroyed in an extreme weather event, not only would you be temporarily displaced, but you may have to tap into your nest egg to rebuild.

Retirees moving to a climate change hotspot risk getting stuck with a home that is both uninsurable and unsellable.

But at the other end of the spectrum are “climate-resilient zones.” While it doesn’t mean they’re immune to the effects of climate change, they’re more resilient, which means homeowners are less likely to face soaring insurance premiums or experience significant home depreciation in the coming years.

The best states to avoid extreme weather

According to AARP, the following 7 states are ideal for retirees who want to avoid extreme weather without having to give up essential amenities — including access to medical care — that retirees need.

Maine: When it comes to natural disasters, Maine has one of the lowest risk profiles in the nation, according to the Federal Emergency Management Agency (FEMA) National Risk Index. And while winters here are cold, the state has a lower overall risk of wildfire, drought and extreme heat (though coastal storms and flooding are still an issue). Maine also has a four-year climate plan designed to protect its natural resources and communities.

Michigan: Surrounded by four of the five Great Lakes, Michigan benefits from thermal regulation — the Great Lakes serve as heat sinks in the summer and heat sources in the winter, softening temperature extremes. While it has a low susceptibility to natural disasters because of its geography and humid climate, the state government has also enacted policies to boost climate change resilience.

Minnesota: While the state is facing rapid regional warming, Minnesota has a geography that helps protect it from catastrophic weather events. Northern cities benefit from their location close to Lake Superior, which absorbs heat in summer, and far from coastal threats such as flooding and hurricanes. Cities like Duluth offer a low cost of living and have capacity to expand (though you’ll need to invest in a good parka for winter).

New York: Like Michigan and Minnesota, the Rust Belt region of New York benefits from thermal regulation, thanks to its proximity to the Great Lakes. With a humid climate, the risk of intense, prolonged wildfires is relatively low. Summers are pleasant, though retirees should be prepared for winter snowstorms. Cities like Buffalo are also investing in green energy and sustainable growth.