10 Most Affordable States For Retirees In 2025

New Hampshire was named the best state for retirees in 2025, according to Bankrate’s annual Best and Worst States to Retire Study, with the best all-around score. But surprise — the state didn’t crack the top 10 when it came to affordability. That honor belongs to West Virginia, the most affordable state for retirees. 

Here are the most and least affordable states for retirees in 2025, according to Bankrate’s analysis. 

The 10 most affordable states

Affordability is the largest concern for Americans when it comes to finding the best state for retirement. Retirees may be living on fixed incomes, meaning that every dollar counts, and so states that offer a cheaper cost of living may be particularly attractive. So the most affordable places already have a leg up on the competition when it comes to being named the best state to retire.

Bankrate measured affordability according to two criteria:

• Cost of living index from the Council for Community and Economic Research (2024)
• Average annual home insurance premiums from Bankrate’s Quadrant data (May 2025)

“Affordability was the most important factor for many retirees considering relocation in retirement,” says Stephen Kates, CFP, Bankrate financial analyst. “There’s only so far that you can stretch a fixed income until you start to look at ways to reduce your expenses. Many locations across the South, Midwest and Mountain States are drawing in more transplants as the ‘traditional’ retirement states lose their luster for a variety of reasons.”

Here are the most affordable states, according to Bankrate’s analysis. 

1. West Virginia
2. Pennsylvania
3. Delaware
4. Wyoming
5. Ohio
6. Wisconsin
7. Nevada
8. Indiana
9. Idaho
10. Georgia

West Virginia powered to the top with strong performances in both key sub-categories. The state had the lowest cost of living, as well as the fourth-lowest cost of homeowner’s insurance, at $1,009 annually. 

“West Virginia has been an attractive location for retirees for the last few years and has seen multiple years of positive net migration — people moving in — despite the fact that the overall state population is shrinking,” says Kates.

Wild, wonderful West Virginia has been particularly popular with older Americans, says Kates.

“Retirees and soon-to-be retirees are the largest groups moving in, and it’s no surprise given the pace of inflation in recent years pushing people to find more affordable living situations,” he says.

A few Midwest states also populate the top ranks of this list, as do a few western states, including Idaho and low-tax favorites such as Wyoming and Nevada. And where did New Hampshire land on this list of most affordable states? In the 14th spot.

“Low homeownership cost is a thread that largely unites all these states,” says Kates. “For retirees, certain fixed costs like homeowners’ insurance and property taxes loom large.”

“While many of these states have lower-than-average cost of living scores, that alone isn’t enough,” says Kates. “There are numerous low-cost states that didn’t make the cut.” 

Some may be wondering why traditional low-tax retirement havens such as Texas and Florida don’t appear here. Bankrate’s survey ranked states on taxes in a separate category, not in the affordability category. So low-tax states may not appear on the most affordable list. However, Wyoming and Nevada — both of which have no state income tax — do appear on the list of most affordable states. 

In terms of low taxes, Florida ranked fourth and Texas ranked seventh. Wyoming and South Dakota tied for lowest taxes.

The 5 least affordable states for retirees

And which states sit at the bottom of the affordability rankings? Some of the usual suspects, but also one of the most popular retirement destinations, too. 

1. Hawaii
2. Nebraska
3. Florida
4. Massachusetts
5. California

It’s perhaps no surprise that well-known high-cost states such as Hawaii, California and Massachusetts make the list of least affordable states. Hawaii had the highest cost of living, while Massachusetts and California came in second and third, respectively. 

All three rank in the bottom 10 when it comes to taxes as well. 

More surprising among the least affordable states, however, are Nebraska and Florida. The key reason? The cost of homeowner’s insurance. Nebraska ranks No. 1 in the country in the cost of home insurance, with an average annual premium of $6,097, while Florida comes in No. 2, at $5,409. Both were far and away above third-place Oklahoma at $4,623, while only six states in total (including these three) had insurance costs above $4,000.   

But Florida and Nebraska are closer to the middle of the pack when it comes to the cost of living, at 34th and 18th, respectively. 

Bottom line

While affordability may be the biggest factor for seniors in determining the best state to retire, it’s not the only factor, and of course, everyone places their own values on the various retirement factors. So, it’s key to find the state that best meets the mix of factors that you value overall.