The top states for retirement in 2026 have been identified based on quality of life and cost of living, and the list might catch you off guard.
Even if you’re in your twenties, you might already be dreaming about the day you can retire, free from the daily grind of desk work and computer-related neck pain. However, that day remains in the distant future.
For those fortunate enough to have moved past the routine of crowded commutes, the crucial decision is where to spend what many consider the most rewarding years of life.
WalletHub has unveiled its findings on the ‘best and worst states to retire,’ evaluating all 50 states based on 46 key indicators relevant to retirement.
The analysis considers affordability, encompassing tax rates and living expenses, as well as quality of life, which includes local activities to engage in post-retirement, and healthcare services.
Surprisingly, Florida, often seen as the prime retirement destination in the US, has been dethroned from its leading position.
So, which states made the cut, and where does Florida stand now?
South Dakota secures the third spot on the list.
While it ranks 15th in affordability and 25th in quality of life, its fourth-place ranking in healthcare is commendable.
The state is noted for its ‘taxpayer-friendly conditions,’ with no estate or inheritance taxes.
It boasts ‘the second-best geriatrics hospitals in the country’ and shares the ‘second-lowest percentage of seniors experiencing frequent mental distress.’
Additional benefits include ‘a clean and natural environment,’ the ’13th-lowest poverty rate for residents 65+, and the fourth-lowest percentage of seniors who have faced hunger in the past year.’ What more could anyone ask for?
Although Florida has lost its top spot, its low taxes and absence of estate, inheritance, or income taxes continue to attract many retirees looking to improve their golf skills.
The state is among the best for senior funding in areas like transportation, homemaker services, and nutrition programs, ensuring retirees a comfortable life.
With an abundance of beaches, theater companies, golf courses, and country clubs, you’ll feel like you’ve stepped into the world of 1980’s Caddyshack.
However, the overall high cost of living has caused Florida to lose its first-place position.
Who claimed the top spot as the best state to retire in 2026?
Wyoming takes the top position, largely due to its affordability, as noted by WalletHub.
The state’s cost of living is more affordable ‘than half the nation,’ and it also has no estate or inheritance tax.
Wyoming works diligently to protect its seniors from financial and physical harm, boasts ‘the fifth-lowest violent crime rate,’ and fosters a strong sense of community, ranking 14th among the states for neighborly acts of kindness.
Other notable states include Colorado in fourth place, Minnesota in fifth, and Alaska in sixth.
For those wondering which states to avoid, Kentucky ranks last, with Oklahoma in 49th place and Mississippi in 48th.