Get All Access for $5/mo

These Are the 5 Best States for an Affordable and Leisure-Filled Retirement, According to a New Report More than half (56%) of American workers believe they're behind on saving for retirement.

By Amanda Breen

Key Takeaways

  • The state someone retires in can significantly impact the quality and affordability of their retirement years.
  • WalletHub's study reveals the best states for retirement, ranking Florida as No. 1 due to favorable taxes, cost of living and quality of life.

Retirement should be a time of relaxation and enjoyment, but for many Americans, it's a source of financial anxiety.

More than half (56%) of American workers believe they're behind on saving for retirement — and 37% feel they're "significantly behind," according to a recent Bankrate survey.

But where people choose to live out their golden years can make or break their retirement. A new study from WalletHub reveals the best states for retirees, evaluating crucial factors like tax rates, cost of living, access to quality healthcare and fun activities.

Related: The No. 1 State to Retire in Might Not Even Be on Your Radar, According to a New Report

Here are the top five states to retire in the U.S., per the report:

1. Florida offers retirees lower taxes and absent estate, inheritance or income taxes. Additionally, costs for essential services like adult day health care and homemaker services remain competitive. The state has a vibrant senior community and comes with abundant volunteering opportunities and leisure activities.

Image Credit: Alexander Spatari | Getty Images. Miami, Florida.

2. Colorado promises a retiree-friendly tax environment, high-quality healthcare and a community where seniors are less socially isolated and predominantly in good health and financial standing. The active lifestyle and excellent geriatric care might especially appeal to health-conscious retirees.

3. Virginia looks after its seniors' well-being with robust elder abuse protections and highly regarded medical care. The state has a reputation for being tax-friendly without estate or inheritance taxes and also boasts miles of shoreline, low crime rates and clean air.

4. Delaware has one of the lowest tax burdens nationwide. Its significant senior population translates to a strong sense of community and minimal social isolation. It also has the lowest poverty rate among seniors aged 65 and up.

5. Wyoming stands out for its commitment to elder safety, clean air and a sense of community evidenced by high senior volunteering rates. It also has low tax burdens, with no estate or inheritance taxes.

Image Credit: christiannafzger | Getty Images. Snake River near Jackson, Wyoming.

Related: Looking to Retire? Here Are the Top Five States to Consider

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Growing a Business

5 Books to Help You Motivate, Unify and Build Perspective

In a post-Covid world, check out these must-read books to help build a more resilient organization, create a modern work culture and maintain a powerful growth mindset.

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Making a Change

Learn All of Rosetta Stone's Languages for $152

A lifetime subscription is nearly $250 off for a limited time.