Feb 12, 2026
If you’re among the 40% of American retirees who decide to move — whether to a condo or another state — you likely have a wishlist.
For most older Americans, the top two considerations are affordability and proximity to family and friends, according to the nonprofit Transamerica Center for Retirement Studies (1).
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Not far behind are tax friendliness, quality of life, access to health care and amenities.
No wonder that retirees thinking about relocating consider published rankings, like WalletHub’s recent ranking of 50 states based on their relative “retirement-friendly” aspects (2).
Such lists carry weight and can influence retirees’ decisions to sell or purchase properties — even move to a place they’ve never lived before or where they may have no friends or family (2).
Another concern is that they may oversimplify complex life decisions.
With those caveats in mind, here’s a list of the five states WalletHub ranked as the most retirement-friendly in the U.S.
States ranked in the Top 5 for retirement
WalletHub compared 50 states on 46 metrics, all of which fed into three core pillars:
- Affordability
- Quality of Life
- Health Care
Financial considerations (cost of living, taxes along with health-care costs and cost of in-home services) carried the greatest weight.
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The result is a list of top five states that, on paper at least, will appeal to retirees.
1. Wyoming
Wyoming narrowly took top spot thanks to affordability, particularly tax treatment and low-cost homemaker services. WalletHub cites Wyoming as standing out for its friendly neighborhoods, protections against abuse, low crime and poverty rates among older adults. Retirees enjoy relatively generous funding through the Older Americans Act (OAA) to live independently.
2. Florida
Florida came a close second, offering not only its beautiful climate, beaches, golf courses and country clubs, but favorable tax treatment and more per-capita OAA funding than all but two other states.
3. South Dakota
In addition to taxpayer-friendly policies and good health care, South Dakota scored highly for low rates of poverty, hunger and social isolation among residents 65 and older. It also got top marks on air quality and clean drinking water.
4. Colorado
Colorado ranked in 3rd place for Health Care and 19th for Affordability and Quality of Life respectively. The state allows taxpayers 65 and older to deduct any federally taxed Social Security income from their income taxes, making it a tax-friendly state.
5. Minnesota
Minnesota ranked No. 1 among all states for Health Care and made the top 10 on Quality of Life (in 7th place). But it is one of the less affordable states to live in, scoring in 33rd place.
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What retirement rankings may miss
It’s easy to see why rankings like this resonate. WalletHub’s list highlights places where retirement dollars stretch further, medical needs are easier to manage and lifestyle amenities remain within reach.
All these are concerns that weigh heavily for American retirees.
But there are more factors at play when making a move. Everyone is different and has different needs.
For all their rigor, “best places to retire” rankings can only go so far.
You might assume coming first means all bases are covered, yet Wyoming, WalletHub’s top pick, ranks 33rd for health care, an area many older adults consider among the most critical.
Third-place South Dakota, meanwhile, is the most expensive for in-home services.
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A heavy reliance on averages can also be misleading. Costs, access to services and quality of life can vary dramatically by city or county.
While a state may perform well overall, access to specialized care, geriatric services or long-term support frequently depends on proximity to major — and often more expensive — metropolitan areas and certain services an individual needs may not be available at all.
One area may offer amenities and strong infrastructure, while another struggles with limited services, higher poverty or elevated risk from natural disasters.
Insurance costs, which can rise sharply in certain regions, are rarely captured in these rankings at all.
Then there are the factors that are harder to quantify but often matter most in day-to-day life.
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Proximity to family, friends or a support network, reliable transportation and personal climate preferences can easily outweigh tax advantages or recreational amenities.
Long-term risks tied to extreme heat, wildfires or flooding also tend to fall outside traditional retirement rankings.
That doesn’t make these lists wrong — but it does make them incomplete.
Rankings like this work best as a starting point rather than a final decision-making tool.
The smartest approach is to use these studies to narrow options, then dig deeper into local costs, health care access, personal priorities and other factors that may not be measured yet can have an outsized impact on quality of life and long-term affordability.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Transamerica Center for Retirement Studies (1); WalletHub (2); Kiplinger (3)
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Financial journalist with 15+ years’ experience covering markets, economics and personal finance for a range of international publications including Investopedia, The Times, Investors Chronicle (Financial Times) and NerdWallet.
