There are numerous factors to consider when determining the most tax-friendly for retirees, including state income, property, sales, motor fuel, and inheritance taxes for each state.
Putting all the data together, the Motley Fool's analysis ranked Tennessee, Kansas, South Dakota, Missouri, and Oklahoma as the most affordable states for retirees based on overall cost of living scores. However, there are other factors to consider to assess a state's affordability.
For example, the study concluded that West Virginia, Mississippi, and Louisiana are among the top states with the most affordable homes for retirees. Considering healthcare, another metric that affects the long-term affordability of a state to spend one's older years in, Utah, Colorado, and Vermont were among the top states to retire to for healthcare.
Meanwhile, poverty rates for older adults in Arizona, Colorado, Georgia, Hawaii, and Iowa increased more in 2023 than in any other states. Conversely, Alaska, Wyoming, New Hampshire, Delaware, and Utah have the lowest poverty rates for senior citizens nationwide.
Obviously, each of the nation's almost 58 million senior citizens will have to make their own decisions about the cheapest state for retirement. Some people have made excellent retirement plans and will have the ability to relocate, regardless of the cost of living; others will have to carefully consider their retirement location.
