Personal preferences matter when it comes to picking where to retire. Do you prefer year-round warm weather or all four seasons? Do you want to be near the grandkids or far away from family? These are questions you need to answer for yourself. What we can help you with is whether a particular state fits your retirement budget. We ranked all 50 states for retirement based on a host of financial factors including cost of living, tax burdens on retirees and the affordability of health care. We also examined how economically healthy each state is, as well as the physical health of each state's population of residents age 65 and over. After crunching all of the numbers, Tennessee ranked fifth on our list of the best states for retirement. Take a look at why.
Tennessee: #5 Best State for Retirement
Population: 6.5 million
Share of population 65+: 15.0% (U.S.: 14.5%)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Cost of living: 12% below the U.S. average
Average income for 65+ households: $47,891 (U.S.: $53,799)
Average health care costs for a retired couple: Below average at $411,617 (U.S.: $423,523)
Tax rating for retirees: Tax Friendly
The Volunteer State is a good choice for budget-conscious retirees. According to data from the Council for Community and Economic Research, every major metro area offers below-average living costs in almost every category of expenses, including health care—among the biggest financial concerns for aging Americans. Plus, Tennessee does not levy state income taxes, so your retirement income can stretch even further. And being economically healthy, Tennessee should have no issues maintaining its tax-friendliness; it ranks eighth of all states for fiscal soundness, according to a recent report from the Mercatus Center.
Learn more about how we ranked all 50 states for retirement including our methodology and data sources.
-
Stock Market Today: Tech Stocks Soar as AMD, Alphabet RallyAI-related headlines sparked a major surge in tech stocks Thursday, with the Nasdaq handily outperforming its peers.
-
Six Steps to Take if You've Recently Inherited Money From a Loved One
It’s important to deal with the emotional aspect first before tackling the financial one.
-
Best Foreclosure Sites for Finding Properties
Making Your Money Last Wondering how to find foreclosed homes for sale for your next residence or to flip for a profit? These websites will guide you to foreclosures and real estate-owned properties to buy.
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage Rates
Luxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
-
Is a Medicare Advantage Plan Right for You?
Medicare Advantage plans can provide additional benefits beneficiaries can't get through original Medicare for no or a low monthly premium. But there are downsides to this insurance too.
-
What You Must Know About the Different Parts of Medicare
Medicare Medicare can be complicated but we've got you covered. Here is a quick guide to the different benefits provided through each part.
-
5 Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are high this year, but you can still find an affordable loan.
-
Retirees, It's Not Too Late to Buy Life Insurance
life insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.
-
Best Banks for Retirees
banking Kiplinger's 2023 list of the best banks for retirees.
