Wyoming ranked best state to retire, New Jersey worst in new study

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A growing number of Americans are entering retirement age, reshaping trends of where and how people spend their golden years.

The population of Americans age 65 and older reached about 61.2 million in 2024, according to U.S. Census Bureau data.

Those entering retirement are also living longer than previous generations. Someone turning 65 today can expect to live nearly two more decades, based on data from the Centers for Disease Control and Prevention.

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Living longer and healthcare costs are increasingly shaping decisions about where older Americans can afford to retire.

In response to those trends, new analysis by U.S.-based senior care company CareScout examined affordability, quality of life and healthcare access to identify the best and worst states for retirees in 2026.

Increasing costs for daily necessities and medical care are influencing where seniors can realistically choose to retire. (iStock)

Best states

The analysis ranked Wyoming as the best state in which to retire, citing its lack of personal income tax and strong health indicators among older adults.

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"Tradeoffs include the weather and relative scarcity of doctors," CareScout stated.

Wyoming placed first in the rankings, supported by its absence of a state income tax and favorable health outcomes for its older population. (iStock)

Other top-ranked states included New Hampshire, Vermont, Montana and South Dakota, which scored well across measures of affordability, tax policy and quality of life.

New Hampshire benefited from having no personal income tax and one of the highest average Social Security incomes in the country, the analysis said.

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Worst states

New Jersey was named the worst state to retire in due to the high cost of living and one of the nation’s steepest personal income tax rates.

The study found New Jersey to be the least retirement-friendly state, citing its high cost of living and unusually high income tax rates. (iStock)

The analysis found that despite offering the highest average Social Security income in the country, New Jersey struggled with poor health outcomes among older adults.

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Massachusetts, New York, Alabama and Mississippi also ranked near the bottom.

Massachusetts and New York were penalized largely due to high living costs and tax burdens, while Alabama and Mississippi faced challenges tied to aging health outcomes and limited access to recreational and cultural resources for older residents.

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Fox News Digital reached out to CareScout for further comment.

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