Worst Places to Retire in the US

Retirement brings the promise of leisurely, stress-free days. yet not all U.S. destinations provide the perfect backdrop for this chapter of your life. A study from WalletHub compared all 50 states across 46 key indicators, from tax rates and the cost of living to access to quality medical care and fun activities, to find the least desirable places to retire.

As you think about where you want to retire, you might want to choose a place that offers a healthy and happy retreat from the day-to-day grind. Or, maybe just somewhere to live comfortably with easy access to quality health care and lower housing costs.

Regardless of your reasons for relocating, the ten worst places to retire in 2025 typically have higher taxes and crime rates, and subpar health care facilities compared to the top retirement destinations listed in our companion article, Best Places to Retire in the U.S.

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So, before changing your address, consider carefully where you want to live (or don't want to live) before packing up your belongings.

10 worst places to retire in 2025

What are the worst states to retire to? We've highlighted the bottom 10 (even Hawaii made the list).

*Rounded up or down. A rank of 1 represents the best conditions for that metric category.

1. Kentucky

• Kentucky ranks among the most tornado-prone states and regularly faces severe flooding
• The state consistently ranks in the bottom nationally for healthcare access, outcomes and overall senior well-being
• While still below the national average, home prices and property taxes have been climbing rapidly in many areas of Kentucky

Although Kentucky is known for horse racing, bourbon, bluegrass music and southern hospitality, the state is prone to various natural disasters, including floods and tornadoes. That (and other things, like humidity and pesky bugs) lands Kentucky at the bottom in 2025, where it also ended up in 2024.

Even so, the cost of living in Kentucky is about 19% lower than the U.S. average. Residents in Kentucky spend about $250 per week on food at home and $96 on eating out. In comparison, a meal at a high-end restaurant in New York City can cost upwards of $100 or more. The average home will set you back $222,718, up 4.7% over the past year.

Kentucky’s tax system generally suits retirees — there is no tax on Social Security and seniors also enjoy a sizable deduction of $31,110 per individual for other retirement income types such as IRA, 401(k), and pension income. Still, the overall quality of life and health care options are not the best.

2. Louisiana

• Louisiana is prone to hurricanes, floods and tornadoes (12 hurricanes from 2002–2023 alone), driving up the costs of insurance
• The state ranks near the bottom nationally with high medical costs and limited senior care options, which is critical for retirees
• While Social Security benefits aren't taxed, withdrawals from retirement accounts like IRAs and 401(k)s are fully taxed as income

Louisiana offers a diverse culture, great food and music. Housing costs are below average, but insurance rates can be high. Health care is important to senior citizens, and unfortunately, Louisiana doesn't rank very high.

Social Security benefits aren't taxed in Louisiana, but retirement account withdrawals are. The state also has a relatively low cost of living, with housing and utility costs particularly low. The typical home price in Louisiana is only $209,589 according to Zillow, which is nearly half the national average. Car insurance, though, averages just over $3,953 per year, 45% above average. Besides that, because of hurricanes and severe weather that have caused more than $115 billion of damage since 2020, Louisiana is expected to see the biggest hike in home insurance premiums, with a $2,974 increase in 2025, according to Consumer Affairs.

3. Mississippi

• Mississippi can be very humid and subtropical with hot summers.
• Crime is very high in many areas of the state
• Quality healthcare, important to retirees, is harder to come by than in most other states
• Mississippi is also prone to natural disasters, such as hurricanes and tornadoes, which impact insurance costs

Mississippi is home to vibrant cities and wide expanses of natural beauty. It also offers many opportunities for outdoor recreation or just enjoying a slower pace of life. In 2024, the cost of living was 22% lower than the U.S. average, and the average home will only set you back $187,882, up 0.9% from last year.

If you like a tepid climate, then Mississippi may be the best place to retire — it is typically very humid and subtropical with hot summers and mild to warm winters. But crime is high in many areas of the state and quality healthcare is harder to come by than in most other states. Mississippi is also prone to natural disasters, such as hurricanes and tornadoes, which can lead to higher insurance costs, property damage and the need to find temporary housing.

4. Washington

• While offering access to many outdoor activities, the overabundance of rain can hamper retirees' plans
• Housing prices are higher than the national average.
• Healthcare, groceries, utilities and transportation all run higher than typical U.S. averages.

Washington state has a lot to offer, from gorgeous mountains, long coastlines and many rivers to lakes, and, of course, great spots for coffee lovers. It also has plenty of rain, up to 120 inches per year in some places, which is not ideal for retirees who might want to enjoy the outdoors year-round.

Washington does not have state income taxes, so your retirement income, including pensions, 401(k)s, and IRAs, are not taxed by the state. Property taxes are relatively low, but housing prices can be high, averaging about $595,271, according to Zillow. Washington also boasts top-tier healthcare systems, with cities like Seattle and Spokane known for their medical centers and specialized healthcare.

Besides that, everyday living expenses can put a strain on a fixed retirement budget. Groceries, healthcare, utilities and transportation costs are all higher than the national average.

5. New Mexico

• Roads are bad, crime is high and medical facilities are scarce in New Mexico
• Dust storms, strong winds and wildfires are common across the state
• Unlike some states that don't tax retirement accounts, 401(k)s and IRAs are partially taxed

New Mexico is a popular destination for retirees for many reasons, including its warm temperatures and clean air. While it is rich in culture and boasts beautiful landscapes, before you pack your bags, you should know that it has been estimated that 30% of New Mexico’s rural roads are in poor condition. Crime is high — over 3% higher than the national average — and medical facilities are sparse, especially in rural areas. That means you may need to travel long distances to access specialized care, a disadvantage for some seniors.

Overall, New Mexico has good weather with warm (sometimes very hot) summers and mild winters, but harsh weather conditions such as strong winds, dust storms, and wildfires are common.

On the upside, most retirees in the state don't pay state income tax on their Social Security benefits. Taxpayers age 65 and older can deduct up to $8,000 from their taxable income, and income for residents 100 years and older is completely tax-exempt. Retirement accounts, such as 401(k)s and IRAs, are partially taxed.

6. New Jersey

• The cost of living in New Jersey is relatively high⁢ compared to other ‌states
• New Jersey is also known for its higher property tax ‍rates
• The state's weather is a mix of hot and humid summers and cold, harsh winters
• New Jersey taxes most types of retirement income

New⁢ Jersey⁤ offers a unique retirement⁢ experience ‍that calls for careful ⁣consideration. The Garden State​ is home to numerous retirement communities⁤ that⁣ cater specifically ⁣to ⁢the needs of older⁢ adults. However, the cost of living is relatively high⁢ compared to other ‌states — 19.8% higher than the US average — with housing, health care, and taxes typically more expensive. If you're on a fixed income, it's important to know that New Jersey is also known for its higher property tax ‍rates.

The state’s weather can also be unpredictable at times, with hot and humid summers and harsh, snowy winters. So, if you prefer milder climates, keep this in mind. Additionally, New Jersey taxes most types of retirement income, with the exception of Social Security benefits. And, did we mention that New Jersey ranks as one of the worst for traffic and congestion.

7. Rhode Island

• The cost of living in Rhode Island is about 13% higher than in other areas of the U.S.
• Home prices are generally higher than in many other states
• Although sales tax is lower than in many places in the U.S., home property taxes are steep, which may strain retirees' budgets

Rhode Island offers beaches and scenic beauty, but the cost of living is high — 13% higher than the U.S. average. Buying a home in Rhode Island can also put a strain on your budget and set you back an average of $490,597. That's a 3.4% increase over the past year.

Taxes are also higher, although sales tax is lower than in many places in the U.S. (Read our Rhode Island State Tax Guide). Health care is highly rated, but the state has fewer hospitals and health care facilities compared to larger states. If you drive, get ready to be stuck in traffic no matter the time of day.

8. West Virginia

• West Virginia ranks low in the nation for elderly health care, including outcomes, cost and ease of access to healthcare facilities
• The state taxes withdrawals from 401(k) and IRA accounts and pensions, with some exceptions
• The distance between cities can make it difficult to get around, visit friends and family, or access specialty health care if needed

West Virginia creeps into the top 10 worst places in the US to retire for a variety of reasons. The state ranks poorly for health care, ranking as the 46th-best state in the nation for elderly health care, which combines outcomes, cost, and ease of access to healthcare facilities. West Virginia won't tax your Social Security benefits, but it does tax withdrawals from 401(k) and IRA accounts and pensions, with some exclusions. The state has no estate tax.

The Mountain State's major cities are a considerable distance from each other, and you'll have to take winding routes to get there. This can make it challenging to visit friends and family, access specialty health care if needed or find cultural and entertainment options in the larger metropolitan areas.

9. Arkansas

• Arkansas has high crime rates, including violent and property crime
• The state has lower education levels than many other areas of the U.S.
• Access to healthcare in more rural areas of Arkansas is limited
• Pensions, 401(k) and IRA distributions are taxed in Arkansas

Arkansas has a lower cost of living (about 19% lower) compared to many areas in the U.S., and health care, housing and groceries are all cheaper than the national average. The climate is temperate, allowing many opportunities for outdoor activities. On the downside, the state has high crime rates, including violent and property crime and a tough economy with lower education levels than many other areas of the country.

The state has many health care facilities, including major medical centers, but access to healthcare in more rural areas is limited. It is also home to the University of Arkansas for Medical Sciences, a world-class facility that provides outstanding care for retirees. Although Social Security is not taxed, pensions, 401(k) and IRA distributions are.

10. Hawaii

• While Hawaii has beautiful beaches and scenic landscapes, the cost of living is very high
• Both 401(k) and IRA distributions are taxable in Hawaii
• Gas and transportation costs are inflated, making it difficult for retirees on a fixed income to get around
• Hawaii is home to a variety of pesky and sometimes terrifying insects

Yes. Hawaii made the top 10. The Aloha State has beautiful beaches, scenic landscapes, and many activities for retirees to enjoy. The weather is warm year-round and crime is low. However, living in Hawaii can be very expensive. Gas, groceries, housing, property taxes and utilities are all very high, making it difficult if you're on a fixed income. For instance, the cost of living in paradise (Honolulu) is 71.5% higher than the U.S. average.

On a positive note, Social Security is not taxed. But 401(k) and IRA distributions are taxable. Check out our Hawaii Tax Guide 2025. Another factor to consider is the limited public transportation options. But even if you have a car, gas prices are typically sky-high. Don't get me started about all the creepy critters like cockroaches and spiders in Hawaii.

The next 10 worst states for retirees

Of the ten worst states to retire to, Kentucky holds the unfortunate distinction of being No. 1. Although each of the states in the bottom 10 have redeeming qualities, these next 10 states also represent a less-than-ideal place to live for retirees.

• Kansas
• Georgia
• Oklahoma
• Illinois
• New York
• Maryland
• Alabama
• Tennessee
• Oregon
• Indiana

Where you retire matters

It's likely there is no one perfect place to retire that matches all of your needs. If that were the case, choosing an area of the country would be simple. To find the best place that makes sense for you, carefully consider various factors such as access to healthcare, climate, taxes and how you plan to spend your well-earned free time. While you're at it, check out Best Places to Retire in the U.S., and you may discover a new (and ideal) place to live out your golden years.

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