The 7 Best States for Retirement

November 23, 2016
Joe Hannan

This WalletHub ranking takes into account several factors, including Affordability, Quality of Life, and Health Care access.

The year 2016 is about to come to a close, and with its passing, you find yourself a year closer to retirement. As you contemplate your retirement strategy--accounting for factors such as timing, the sale of your dental practice, the different phases of retirement, and how much money you will need—you also might be thinking about relocation.

Related: 5 States with the Highest and Lowest Property Taxes

Relocating to another state offers numerous advantages for retirees. Many states have a lower cost of living, lower property taxes, and better access to the services you will need as you enjoy your golden years. The data-crunching gurus at WalletHub have assembled a systemic ranking system to give you a better understanding of which states are retirement-friendly, and which aren’t. This story will focus on the 7 best states in which to retire.

WalletHub arrived at these rankings by looking at three dimensions for all 50 states and the District of Columbia: Affordability, Quality of Life, and Health Care. Each dimension was assigned a total point value: Affordability—40, Quality of Life—30, and Health Care—30. Each dimension was broken down into criteria, each eligible for a specific amount of points. Affordability was measured by 4 criteria, including Adjusted Cost of Living and Annual Cost of In-Home Services. Quality of Life was measured by 12 criteria, including Percentage of the Population Aged 65 and Older, among others. And Health Care was scored on 8 criteria, such as number of Dentists per 100,000 Residents.

Here’s how the 7 most retirement-friendly states stack up, in ascending order:

7. Texas

Total Score: 61.85

Affordability Rank: 9

Quality of Life Rank: 16

Health Care Rank: 40

6. Idaho

Total Score: 62.19

Affordability Rank: 10

Quality of Life Rank: 32

Health Care Rank: 29

5. Colorado

Total Score: 62.23

Affordability Rank: 27

Quality of Life Rank: 6

Health Care Rank: 11

4. South Carolina

Total Score: 62.50

Affordability Rank: 6

Quality of Life Rank: 26

Health Care Rank: 34

3. South Dakota

Total Score: 66.62

Affordability Rank: 14

Quality of Life Rank: 29

Health Care Rank: 1

2. Wyoming

Total Score: 67.09

Affordability Rank: 1

Quality of Life Rank: 28

Health Care Rank: 16

1. Florida

Total Score: 70.75

Affordability Rank: 2

Quality of Life Rank: 3

Health Care Rank: 15

Source: WalletHub