These Are The Most Affordable States To Retire In

In a 2023 survey, 43% of the retired respondents said that the thing they were most surprised by was how much they were enjoying being out of the rat race. They were also pleased to learn that their expenses were lower, and that their taxes were lower. Retirees have individual criteria that determine what "best" is, like the availability of health care, or the opportunity for social interactions, but if affordability is your main concern in retirement, Delaware, Indiana, and Arizona are the best states to retire in on a fixed income. Retirees living on Social Security should avoid states in the Northeast. 

Based on data reported by the Social Security Administration and the Elder Economic Security Standard Index, retirees living in these three states, followed by Utah, South Carolina, and West Virginia, can expect to have money left over each month after paying for the basic necessities. The data compares the average Social Security payment in that state to the average retiree's expenses. One of the factors included in the outcome is housing status. Indiana is the best state to live in if you have a mortgage or if you're a renter, Delaware is ranked number one if your mortgage is paid off, and Arizona is a close second. None of these are in the most overpriced housing markets. 

More than 20 million senior adults in the U.S. live on Social Security alone. In addition to housing costs, other recurring bills like utilities, property taxes, and insurance add to a retiree's monthly financial burden. Transportation, food, clothing, and entertainment are additional costs. Being able to pay for all of these expenses on a fixed income and still have a financial cushion are all factors in determining the best states to retire in. Low living costs in states like Delaware, Indiana, and Arizona make it easier to live comfortably without working.

Retirees don't have to disregard other livability factors if they choose to stay in Delaware, Indiana, or Arizona. Well-being, a measure that includes both mental and physical health, looks at overall satisfaction with life. Arizona placed ninth on a survey conducted by Gallup and Healthways, lagging less than two points behind the top state, Hawaii. Since retirees typically have greater medical needs, the cost of health care is another major factor in affordability. In state rankings of access to good medical care, Delaware, Indiana, and Arizona ranked high, though none were in the top ten.

Stretching your retirement dollars without having to pinch pennies is one way to improve quality of life. Delaware, Indiana, and Arizona have state and national parks, most with reduced or no cost entry for retirees. In addition, Indiana has large cities and small towns to fit any lifestyle, as well as a thriving golf scene and access to boating and fishing on Lake Michigan. If you prefer coastal living, you're never far from the shore in Delaware, and the Rehoboth Beach boardwalk has excellent views and old-fashioned charm. And in Arizona, the best places to live provide access to hiking trails and museums.