Introduction

Selecting the right state for retirement can have a major impact on quality of life. With so many options across the United States, it’s important to weigh factors like healthcare, taxes, cost of living, and access to amenities. Not every destination is equally suited for a comfortable or happy retirement. Some states consistently rank lower for retirees, often because of high living expenses, limited healthcare access, poor weather, or high crime rates.

This list of ten states to steer clear of for a happy retirement highlights places that could present more challenges than benefits. The rankings draw on data from studies by WalletHub and Bankrate, which evaluate states using multiple indicators such as tax rates, healthcare quality, cost of living, and recreational opportunities. These studies consider how states handle both financial and lifestyle needs for retirees, offering a balanced perspective on where retirement may be less enjoyable or secure.

For example, several states on this list face issues like high insurance rates, subpar healthcare, or rural isolation that can leave retirees without necessary services. Others have high property taxes or extreme climates that can make day-to-day life more difficult, especially for those on a fixed income. While each state has unique qualities, retirees should approach these ten with caution. Knowing where to steer clear can help you plan more wisely for a happy retirement, ensuring your golden years are as fulfilling and stress-free as possible.

1. California

California often draws retirees with its scenic coastline, world-class cities, and pleasant weather. Still, the high cost of living makes it one of the worst states for retirement in 2025. Housing prices are among the highest in the country. Many retirees find that their nest eggs don't go as far as they would in less expensive states.

Taxes are another concern. California has some of the highest state income and sales taxes in the nation. Even though Social Security benefits are not taxed at the state level, other forms of retirement income are. This erodes purchasing power for retirees on a fixed income.

Healthcare quality in California is generally good, but the cost is high. Out-of-pocket expenses for doctor visits, procedures, and prescriptions can add up. In some rural areas, access to specialized medical care is limited, requiring long commutes into larger cities.

Traffic congestion is a daily reality in many areas. The stress of navigating crowded highways and busy city streets can take a toll on both health and quality of life. For those seeking a peaceful and relaxed retirement, this is a significant drawback.

Wildfires, droughts, and earthquakes also pose risks in California. The state’s natural beauty comes with the challenge of dealing with these threats. Insurance costs for homeowners or renters can be extremely high due to increased risk.

While California offers vibrant culture, diverse recreation, and stunning landscapes, these benefits are often outweighed by high expenses, taxes, and environmental threats. Retirees seeking affordability, safety, and easy access to healthcare may want to consider other destinations.

2. New York

New York is often seen as a vibrant destination, but it lands on the list of states to steer clear of for a happy retirement. The primary reason is the high cost of living, which can stretch even a well-planned retirement budget. Housing prices in many parts of New York, especially in and around New York City, are among the highest in the country. Even upstate, prices are not always as low as one might expect for a retirement destination.

Taxes are another major factor making New York less appealing for retirees. The state features high property taxes and income taxes that can eat into savings. For retirees relying on fixed incomes, these tax burdens make New York a tough choice. Everyday expenses like groceries, utilities, and transportation tend to exceed national averages, further chipping away at retirement funds.

Weather in New York can also pose challenges for retirees. Cold, snowy winters bring additional costs for heating and maintenance. For those seeking mild climates and outdoor activities, New York’s unpredictable weather may be a significant drawback. While the state offers plenty of cultural attractions, entertainment, and recreational activities, these often come with high price tags.

Healthcare quality is strong in many areas, but access can be limited in rural regions. Additionally, long wait times in metropolitan hospitals can be frustrating. Retirees looking for relaxation and affordability may find themselves spending more and receiving less. New York’s combination of high costs, significant taxes, and challenging weather make it a state many retirees choose to avoid when searching for a happy retirement.

3. New Jersey

New Jersey ranks as one of the top states retirees may want to avoid. The state's high cost of living is a major concern. Property taxes are the highest in the nation. This alone can put a strain on any retirement budget. Housing costs often exceed the national average. Everyday expenses, including groceries and transportation, also add up quickly.

The weather in New Jersey can be unpredictable. Winters bring cold temperatures and snow, while summers are humid and hot. These conditions may not appeal to retirees seeking comfort and mild climates. Seasonal storms can also pose risks, especially for seniors who prefer stability in their environment.

Healthcare access in New Jersey is generally good, but it can be expensive. Out-of-pocket medical costs and insurance premiums are higher than in many other states. While there are reputable hospitals and specialists, the price tag for care deters some retirees from settling here.

Traffic congestion is another negative factor. New Jersey is known for its busy roads and frequent delays. Commutes are long, and public transportation options may fall short for those who do not drive. This can make getting to appointments, social events, or leisure activities challenging.

While the state offers a variety of cultural and recreational activities, the costs and logistical hurdles often outweigh the benefits for retirees. The combination of high taxes, expensive living, and transportation difficulties makes New Jersey a tough place for those looking to stretch their retirement savings. For retirees seeking affordability and ease, there are better options elsewhere.

4. Illinois

Illinois continues to rank as one of the ten states retirees may want to avoid. High property taxes are a major concern for those on fixed incomes. Illinois has some of the highest property tax rates in the country. These costs alone can eat into retirement savings quickly.

In addition to steep taxes, Illinois has a high cost of living, especially near Chicago and its suburbs. Utilities and transportation are expensive. Healthcare access is decent in urban areas, but rural parts of the state offer fewer choices. Hospitals and clinics can be far from those living outside city centers.

Weather is another challenge in Illinois. Winters are harsh, with heavy snowfall and bitter cold common for months. This can make it difficult for retirees to stay active or travel easily. Icy conditions pose risks for slips and falls, especially for older adults.

Crime rates add another layer of concern. Chicago and some other urban areas report higher crime rates compared to the national average. Safety worries can affect retirees’ peace of mind and daily routines.

While Illinois does offer cultural attractions, museums, parks, and a lively food scene, these benefits may not outweigh the drawbacks for those seeking a comfortable, affordable retirement. The combination of financial pressures, challenging winters, and safety concerns makes Illinois a state to think twice about when planning where to retire.

5. Connecticut

Connecticut appears on the list of states to steer clear of for a happy retirement for several reasons. The state is known for its high cost of living, which can quickly drain fixed retirement incomes. Property taxes in Connecticut are among the highest in the country, making homeownership an expensive proposition for retirees. Even everyday expenses, like groceries and utilities, tend to be above the national average here.

Healthcare access in Connecticut is generally good, but the high out-of-pocket costs can be burdensome for those on a budget. While the state boasts beautiful scenery and pleasant summers, unpredictable weather throughout the year can be challenging for older residents. Winters can be particularly harsh, with heavy snow and ice that make mobility and safety significant concerns.

Connecticut also faces some limitations when it comes to recreational opportunities for retirees. Fees for parks, museums, and cultural events are often higher than in neighboring states, restricting affordable options for leisure activities. The state taxes pension and retirement income above certain thresholds, which can further reduce disposable income for retirees who depend on those funds. This combination of high taxes, steep housing costs, and expensive daily living makes Connecticut a less-than-ideal retirement destination.

For retirees prioritizing affordability, low taxes, and accessible recreation, Connecticut poses significant challenges. While it offers some appealing features, many retirees may find a more comfortable and financially sustainable lifestyle in other states.

6. Maryland

Maryland often appears on lists of states to steer clear of for a happy retirement. The state’s high cost of living is a major deterrent for retirees. Housing costs, in particular, are well above the national average. Property taxes and other taxes, including income tax on retirement income, can quickly eat into a fixed budget.

Healthcare in Maryland is generally high quality, but access can vary depending on your location. Urban areas offer good medical facilities, but rural parts of the state may have fewer options. While Maryland boasts a strong hospital network, the overall expenses for medical care tend to be higher than in many other states.

Weather in Maryland is also something retirees must consider. Winters can be cold and icy, and hurricanes or severe storms occasionally impact the region. This unpredictability can complicate daily activities and increase insurance costs. Additionally, Maryland’s traffic congestion is some of the worst in the country, especially near large metro areas like Baltimore and the Washington, D.C. suburbs. This can make getting around a hassle for retirees who value convenience and accessibility.

Maryland has many cultural and recreational offerings, from historic sites to waterfront parks. However, the high cost of these activities, combined with the expense of simply living in the state, may limit how much retirees can enjoy them. For those focused on affordability, low taxes, and easy living, Maryland may not be the ideal place for a stress-free retirement.

7. Massachusetts

Massachusetts is a state well-known for its rich history and access to world-class medical care. However, it often ranks among the states retirees may want to avoid for a happy retirement. The main reason is the high cost of living. Housing, groceries, and transportation costs all run well above the national average. Even basic expenses like utilities can add up quickly in Massachusetts, putting pressure on fixed retirement incomes.

Taxes are also a major concern. Massachusetts taxes most forms of retirement income, including pensions, though Social Security remains exempt. Property taxes can be steep, making homeownership costly for retirees. For those renting, prices in cities like Boston or Cambridge are among the highest in the country.

Healthcare access is generally excellent, with many renowned hospitals and specialists available. However, this contributes to overall living expenses. Long-term care and assisted living costs remain high. While Massachusetts offers beautiful coastal scenery and vibrant cultural experiences, the unpredictable New England weather—with long, cold winters—can be off-putting for some retirees seeking a milder climate.

Crime rates are generally low, but traffic congestion and a fast-paced lifestyle may not appeal to those seeking a slower, more relaxed retirement. Recreation options abound, yet participation can be limited by high costs and busy urban environments. For retirees prioritizing affordability, comfort, and stable weather, Massachusetts may not be the ideal retirement destination.

8. Hawaii

Hawaii’s reputation as a paradise is well-deserved, with stunning beaches, tropical weather, and vibrant culture. For many, it seems like the ultimate retirement dream. However, retirees should think carefully before committing to the islands. Hawaii ranks as one of the worst states for retirement because of its astronomical cost of living. Housing prices are among the nation's highest. Everyday expenses—groceries, transportation, utilities—quickly add up, stretching fixed incomes to the limit.

While Hawaii has no state tax on Social Security income, and offers a scenic, mild climate year round, those benefits may not outweigh the financial pressures. Healthcare in Hawaii is of good quality, but access can be limited, especially on less-populated islands. The state’s isolation also leads to higher shipping costs for basic goods and can result in shortages. This remoteness may make it harder for retirees to stay connected with family and friends on the mainland, potentially increasing feelings of isolation.

Recreational opportunities abound, from hiking beautiful trails to enjoying cultural festivals. Still, retirees need to consider whether those amenities offset the steep costs. For people on a strict retirement budget, Hawaii’s high taxes and daily expenses can significantly erode savings. Before making a move, it’s crucial to weigh the perks against the day-to-day realities. Hawaii’s beauty and climate are undeniable, but the financial obstacles make it a challenging state for a happy retirement.

9. Louisiana

Louisiana makes the list of states to steer clear of for a happy retirement, despite its celebrated culture and vibrant community spirit. The state does offer some attractive features for retirees, such as affordable housing and rich traditions. However, these positives are often outweighed by several drawbacks that can impact quality of life for those on a fixed income.

High insurance rates in Louisiana can consume a significant portion of a retiree’s budget. Homeowners insurance premiums are among the highest in the United States, driven by the state’s susceptibility to hurricanes and flooding. Natural disasters not only add financial strain, but they also create a sense of insecurity for those seeking stable retirement years.

Healthcare in Louisiana also ranks poorly compared to other states. Many retirees require easy access to medical care, yet Louisiana’s healthcare system struggles with low national rankings for both quality and access. The state’s health outcomes reflect these shortcomings, with higher rates of chronic diseases and limited availability of top-rated medical facilities.

Safety and crime remain concerns in many parts of Louisiana. Several metro areas report above-average crime rates, which can affect daily life and peace of mind. Retirees looking for a sense of security may find this a significant drawback.

While Louisiana’s unique culture, food, and festivals are appealing, the state’s high insurance costs, poor healthcare rankings, and safety issues make it a challenging place to retire. For those weighing where to spend their retirement, these factors place Louisiana among the least desirable states in the country.

10. Alabama

Alabama rounds out the list of states to steer clear of for a happy retirement. The state boasts a low cost of living and affordable housing, but it comes with a set of drawbacks that cannot be ignored for retirees looking for comfort and security. Healthcare access ranks below national averages, and many areas lack the quality medical facilities that retirees may require. Higher rates of chronic health conditions can further strain the healthcare system, leaving residents with limited care options.

The state’s tax structure appears attractive at first. Alabama does not tax Social Security benefits, which is a positive for retirees on a fixed income. However, property taxes may seem low, but sales taxes are among the highest in the country. These sales taxes, combined with the cost of other services, can quickly eat into a retiree’s budget.

Crime is another factor that weighs against Alabama. Several cities report higher-than-average property and violent crime rates. This can impact peace of mind and personal safety, which are top priorities for those seeking a happy retirement.

While Alabama offers natural beauty and mild winters, the state is prone to severe weather, including tornadoes and hurricanes. This risk can increase both insurance costs and personal stress. Limited recreational and cultural activities in rural areas may also hinder retirees seeking an active lifestyle. For those wanting a reliable mix of affordability, healthcare, safety, and amenities, Alabama may fall short compared to other retirement destinations.

Conclusion

Choosing where to retire is a major life decision, with lasting impact on happiness and quality of life. The ten states listed—Kentucky, Louisiana, Mississippi, Washington, New Mexico, New Jersey, Rhode Island, West Virginia, Arkansas, and Hawaii—share common challenges. These include high crime rates, subpar healthcare, high taxes, and a high cost of living. Alaska stands out as one of the least favorable options, despite some tax benefits, due to its high costs and harsh winters. States like New York and California also present unique challenges for retirees, mainly related to expenses.

The rankings from sources like WalletHub and Bankrate highlight that affordability, healthcare, and access to amenities should be top priorities. A state may seem attractive for its scenery or culture, but if it lacks reliable healthcare and safety, it becomes a less desirable spot for retirement. High living costs in states such as New Jersey and Hawaii can quickly erode savings, while areas with limited healthcare access may impact long-term wellbeing. Weather also plays a role in satisfaction and comfort during retirement years.

Financial planning is important, but non-financial factors matter just as much. Community engagement, access to recreational activities, and opportunities for social connection contribute to a fulfilling retirement. Using resources like retirement calculators can help estimate future needs and support better choices. Retirees should weigh all factors—taxes, cost of living, healthcare, and lifestyle—before making a decision about where to spend their retirement years.

FAQ

Why is selecting the right state important for retirement?
Choosing the right state impacts quality of life by affecting factors like healthcare, taxes, cost of living, and access to amenities, which are critical for a comfortable and happy retirement.

What factors make some states less suitable for retirement?
High living expenses, limited healthcare access, poor weather, high crime rates, and environmental risks can make some states less ideal for retirees.

Which sources provide data for ranking states to avoid for retirement?
Studies by WalletHub and Bankrate are used, evaluating states on tax rates, healthcare quality, cost of living, recreational opportunities, and overall financial and lifestyle needs for retirees.

What are common challenges faced by states to avoid for retirement?
Challenges include high insurance rates, subpar healthcare, rural isolation, high property taxes, extreme climates, and traffic congestion.

Why is California considered a difficult state for retirement despite its attractions?
California has a high cost of living, expensive housing, high income and sales taxes, costly healthcare, traffic congestion, and environmental risks such as wildfires and earthquakes.

What makes New York less appealing for retirees?
New York has a high cost of living, steep property and income taxes, expensive everyday expenses, harsh winters, and limited healthcare access in rural areas.

Why should retirees be cautious about retiring in New Jersey?
New Jersey has the highest property taxes in the nation, high living expenses, unpredictable weather, costly healthcare, and significant traffic congestion.

What are the drawbacks of retiring in Illinois?
Illinois has high property taxes, expensive living costs near Chicago, harsh winters, limited healthcare access in rural areas, and elevated crime rates in some urban locations.

What challenges does Connecticut present for retirees?
Connecticut has a high cost of living, high property taxes, expensive healthcare, unpredictable weather, limited affordable recreational options, and taxes on pension and retirement income.

Why might Maryland be a difficult retirement destination?
Maryland features a high cost of living, expensive housing, variable healthcare access, cold winters with severe storms, heavy traffic congestion, and costly cultural activities.

What makes Massachusetts a less ideal state for retirement?
Massachusetts has a high cost of living, taxes on most retirement income, expensive property taxes, long cold winters, traffic congestion, and high costs for long-term care.

Why is Hawaii considered challenging for retirees despite its beauty?
Hawaii has an extremely high cost of living, expensive housing and daily expenses, limited healthcare access on some islands, high shipping costs, and potential isolation from the mainland.

What are the concerns about retiring in Louisiana?
Louisiana has high insurance rates due to natural disaster risks, poor healthcare quality and access, higher crime rates, and financial strain from these factors.

What factors make Alabama less desirable for retirement?
Alabama has below-average healthcare access, high sales taxes, higher crime rates in some cities, severe weather risks, and limited recreational and cultural activities in rural areas.

Which states share common challenges that make them less suitable for retirement?
Kentucky, Louisiana, Mississippi, Washington, New Mexico, New Jersey, Rhode Island, West Virginia, Arkansas, and Hawaii face issues like high crime, poor healthcare, high taxes, and high living costs.

Why is Alaska considered a poor option for retirement despite some tax benefits?
Alaska has high living costs and harsh winters, which outweigh the benefits of some tax advantages.

What should retirees prioritize when choosing a retirement state?
Retirees should prioritize affordability, healthcare quality and access, safety, climate, and availability of amenities and recreational opportunities.

How do non-financial factors influence retirement satisfaction?
Community engagement, recreational activities, and social connection opportunities are crucial for a fulfilling retirement beyond financial considerations.

How can retirees make better-informed decisions about where to retire?
Using resources like retirement calculators and carefully weighing taxes, cost of living, healthcare, lifestyle, and safety factors can support smarter retirement planning.