Retiring in 2026? These Are the Best and Worst States

Retirement dreams often start out hazy and optimistic. The conventional vision includes a porch lined with rocking chairs, a few extra hours of comfort under the covers, sunlight streaming through the windows, and a stack of books you always intended to read but never found the time for. But eventually, every soon-to-be retiree runs into the same practical question: Where can I afford to live sustainably once the paychecks stop? 

Taking a data-driven approach, WalletHub ranked the best and worst states to retire in the U.S., setting aside sentimentality to focus on what truly matters for retirees: affordability, quality healthcare, and a lifestyle free from financial stress.

Some states are ideal for retirement in 2026, while others make it much harder than advertised. 

IT DEPENDS ON THE DATA

There are three core categories that shape everyday retirement life. 

First is affordability, which looks at the cost of living, housing expenses, and how financially friendly a state is to retirees on fixed incomes. This category considers how long retirement savings last when expenses are manageable. 

Next comes quality of life. This covers topics such as safety, weather, and recreational spaces like parks. Retirement isn't just about survival; it's about enjoying life every day. 

Finally, there's healthcare, measuring access, quality, and costs. Once people reach retirement age, reliable medical care becomes less of a luxury and more of a necessity. 

With these factors in mind, which places stand out as the best for retirement? Here’s what the data reveals.

BEST STATES TO RETIRE

At the top of the list stands Wyoming, a state that doesn't usually come up in retirement conversations but excels where it counts. Excellent affordability, low taxes, and impressive quality of life scores push it to first place. 

Florida follows closely behind, solidifying its reputation as a longtime retirement favorite. Its lack of state income tax helps offset the crowds and heat, earning it a high ranking. It is the sunshine state, afterall. 

South Dakota, Colorado, and Minnesota complete the top five. South Dakota shines for retirees who are mindful of their budgets, while Colorado offers a strong balance between quality of life and exceptional healthcare access. Minnesota claims the top spot in healthcare, thanks to its abundance of highly rated medical facilities across the state.

WORST STATES TO RETIRE

On the other hand, there are states where retiring can be more financially and practically challenging. Kentucky ranks last overall, weighed down by lower scores across affordability, healthcare, and quality of life. States like West Virginia, Mississippi, and Oklahoma also land near the bottom, struggling with limited health outcomes and economic factors that make retirement less appealing. 

Then there's Hawaii, surprisingly, among the worst places to retire in America. Despite its bright reputation, Hawaii falls towards the bottom of the list due to extremely high living costs. Paradise is expensive, and retirement income doesn't always stretch far enough to enjoy everything Hawaii has to offer. 

Several Northeastern states, including New Jersey, New York, and Connecticut, also ranked low, largely because of high taxes and housing expenses.

MORE TO CONSIDER

It’s evident that a successful retirement is more about structure than scenery, though both play a role in the decision-making process. States that provide affordable living and accessible healthcare consistently outperform those relying solely on good weather or a picturesque setting.

However, data doesn’t tell the whole story. Beyond the core categories, family, climate, and lifestyle can also influence where a retiree chooses hang their hat. 

In the end, the best place to retire isn't just where you want to live; it's a mix of where your money lasts, where your health is supported, and, above all else, where you feel most fulfilled starting the next chapter of your life.