With retirees dealing with inflation while often living on a fixed income, the personal-finance company WalletHub has released its report today on 2026’s Best & Worst States to Retire, along with expert insights, to highlight where seniors can maximize savings while enjoying a high quality of life.
To help retirees find a safe, enjoyable, and budget-friendly place to live, by their subjective standards, WalletHub evaluated all 50 states across 46 key measures, covering affordability, health-related factors, and overall quality of life.
Analyst Chip Lupo said, “Wyoming is the best state for retirees due partly to its friendliness towards retired taxpayers, including no estate or inheritance taxes. In terms of overall quality of life in Wyoming, the state has the fifth-lowest violent crime rate and the 10th-best elder abuse protections in the country, which guard elderly residents against physical and financial harm. In addition, it has the seventh-lowest share of seniors who are in poverty and the 14th-highest percentage of people who do favors for their neighbors, reflecting both financial security and a strong sense of community.”
Oklahoma elections in this year may empower officials to change the state’s traditional efforts to impoverish seniors by property tax and court abuse of trust accounts, but in the meantime, here is how WalletHub ranks our state.
Retiring in Oklahoma (1=Best; 25=Avg.):
- Overall Rank for Oklahoma: 49th
- 23rd – Annual Cost of In-Home Services
- 23rd – WalletHub ‘Taxpayer’ Ranking
- 48th – Elderly-Friendly Labor Market
- 44th – % of Population Aged 65 & Older
- 40th – Property-Crime Rate
- 43rd – Life Expectancy
- 31st – Health-Care Facilities per Capita
Lupo added, “Retirement is supposed to be relaxing, but it can also be incredibly stressful given that it typically puts people on a fixed income, which may not be enough for them to live comfortably. As a result, the best states for retirees are those that have low taxes and a low cost of living to help retirees’ budgets stretch as far as possible. Having access to excellent medical care and homemaking services is also crucial, especially for people who don’t plan to retire in close proximity to their families.”
For the full report, click here.
Expert Perspectives:
What is the most common mistake that retirees make when choosing where to live?
“People should never move to a different state before a trial period of living there. People get fantasies of places such as Florida and Arizona that may or may not be realized. I interviewed a man some years ago who retired and moved with his wife to Florida, their long established dream. Very shortly, he had a major heart attack and was told that he needed to walk 3 miles a day as part of his recovery. He said to me, “Have you ever thought about walking 3 miles to nowhere in 95 degree heat? So, he moved back to New England and started working at a pharmacy retail store, stocking shelves. He said he easily walked 3 miles a day, did something that was helpful to people, made a little money for trips with his wife, met friends and neighbors, and had a new sense of purpose.”
Jacquelyn B. James, PhD, FGSA – Founder, Sloan Research Network on Aging & Work, Boston College
“A common mistake retirees make when choosing a location to retire is focusing too heavily on weather and scenery without fully evaluating long-term financial sustainability and lifestyle needs.”
Lauren E. Haddad Washburn, Esq. LL.M. – Adjunct Professor, Bryant University
What are the top factors retirees should consider when choosing a state for retirement?
“The cost of living, access to quality healthcare, and proximity to family and friends are major considerations when choosing where to live in retirement. Taxes and insurance premiums (e.g., homeowner’s, auto, etc.) can vary greatly in different locations. Amounts needed can also fluctuate due to policy changes or the after-effects of natural disasters. Researching the state’s history of events and policies, as well as local conditions and crime statistics, will be an important step in the decision-making process.”
Tamara L. Wolske, MS, MPhil, CPGTM, CSA, CTACC – Assistant Professor Emerita, University of Indianapolis
“While weather and scenery are important considerations, retirees should prioritize evaluating cost of living and tax burdens for that state. Overlooking these factors can cause retirees to run into higher costs than anticipated. Retirees should also consider access to quality health care, as healthcare needs generally increase with age, access to social services and public transportation. The proximity of family and availability of caregivers are also important factors when considering long term care needs. Those considering moving away from family should make sure they have access to quality and affordable care, should the need arise. Couples who are retiring together should also contemplate where they intend to reside if their partner passes away. Is the location suitable for one partner to reside alone or whether they would choose to relocate, perhaps closer to family or friends. Planning for these scenarios in advance can avoid unexpected costs and allow for smoother transitions in the future.”
Lauren E. Haddad Washburn, Esq. LL.M. – Adjunct Professor, Bryant University
What are some tips for living on a fixed income in retirement?
“A budget is critical, especially when living on a fixed income. In addition to tracking current expenses, such as housing and living expenses, discretionary spending, travel, hobbies, etc., retirees should also contemplate future costs of healthcare, long term care expenses, and other unexpected costs. Those who plan to rely on family to provide long term care in the future should discuss their wishes with family to ensure they are in fact willing and able to provide care if necessary. If family members agree to provide care, it is still important to have an alternate plan to finance care needs in the event family members become unwilling or unable in the future… Choosing a location with affordable housing costs, property taxes, and living expenses can dramatically stretch retirement dollars… Invest in a Medicare supplement plan that fits anticipated needs and minimizes medical spending… Unexpected expenses can disrupt a fixed budget, so maintaining an emergency fund to draw from is advisable.”
Lauren E. Haddad Washburn, Esq. LL.M. – Adjunct Professor, Bryant University
“Create and follow a realistic budget and plan for managing unexpected expenses (e.g., health and dental emergencies, home/auto accidents or repairs, family crisis). Look for free and low-cost options for leisure and entertainment. Possible sources include online searches, social media, local news, museums, libraries, city/town websites, senior centers, hobby groups, colleges, and faith organizations… Pay off your debt before you must live on a fixed income (or soon after) to avoid having interest payments erode your wealth in addition to inflation. Your income will remain consistent in retirement, but inflation will not. In some areas, especially retirement meccas in warm states and rural vacation towns, costs for essentials like groceries, housing, and energy have risen significantly in recent years… Plan for your health care costs, which can quickly increase with a new diagnosis, chronic condition, or injury and require a significant portion of your monthly income. Figure in the ever-increasing prices for Medicare and supplemental insurance plan premiums, co-pays, deductibles, and prescriptions. There are additional costs Medicare does not cover for eye, dental, hearing, and chiropractic conditions, which increase with age. Private-pay assistance from home care services, adult day centers, assisted living facilities, and long-term care in a nursing home can quickly deplete one’s retirement savings… Prepare for long-term security in your housing by living below your means, even if you own a house mortgage-free. Increases in rents, property taxes, homeowner’s insurance, or a natural disaster can be devastating when living on a fixed income.”
Tamara L. Wolske, MS, MPhil, CPGTM, CSA, CTACC – Assistant Professor Emerita, University of Indianapolis.