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Which States Are Best for Retirees Living on a Fixed Income?

Many retirees live on a fixed income. That isn’t so bad when the cost of living is relatively low, but a high cost of living can be very limiting to a senior on a fixed income. The state-to-state cost of living disparity is so large that it might be optimal for a senior to consider relocating.

If you are a retiree struggling to make ends meet and are open to relocating, here are some states that you may want to consider.


Alabama is a very senior-friendly state. Its average cost of living is ninth among the 50 states, coming in at 13 percent below the national average. The median income is $24,000, which means that a retirement income of $50,000 will go a long way. Some of Alabama’s lowest cost of living categories include medical care and housing. However, it should be noted that Alabama imposes a state tax with a cap of five percent.

Alabama provides many lifestyle benefits, including 60 miles of coastline. Its climate is mild with winter daytime highs averaging in the 60s. Alabama is also known to have some of the nation’s highest-quality air and water.

Its senior population averages more than 19 percent with Orange Beach reaching almost 30 percent. Cullman has the largest number of doctor’s offices at 5.5 per 1,000 residents.


Although Florida’s cost of living is approximately the same as the national average, it is a tax-friendly state with no state income tax.

As far as lifestyle, the Sunshine State is hard to beat. It has plenty of coastline with beautiful white-sand beaches, a climate that is perfect for retirees, and all the seafood a person could eat. As such, Florida’s senior population is one of the highest in the nation at more than 17 percent.

Abundant entertainment options range from the theme parks of Orlando to the southern charms of Tallahassee. The state has some of the most vibrant senior communities in the nation. For instance, The Villages in central Florida has a population of over 100,000 with 50 golf courses.


Georgia has a median income of less than $30,000. Plus, its cost of living is seven percent below the national average. When both of those numbers are considered, it is easy to see why a dollar goes a long way. Moreover, health care and housing are highly affordable for retirees on a fixed income.

There is more to Georgia than affordable living. In fact, its recreational opportunities are abundant with topography that ranges all the way from beaches to mountains.


Hawaii is said to have the best tropical climate in the United States. Its scenery and beaches are absolutely gorgeous. Plus, its sunsets are mind-blowing.

The state is a haven for retirees due to its average cost of health care, which is lower than any other state in the union.

Retirees have many choices when it comes to recreational activities, including every water sport imaginable. Hawaii’s geographical layout makes it easy to island hop and enjoy all the state’s beauty, including hiking trails, waterfalls, and volcanoes.


At five percent below the national average, the Potato State’s cost of living is retiree-friendly. Its average annual income is just over $40,000.

Seniors can easily stay fit by taking advantage of Idaho’s 30 state parks. This includes Yellowstone, one of the most visited national parks in the country. Moreover, health care costs in Idaho are relatively low. Additionally, housing costs run less than the national average.

Although much of Idaho is rural, Boise is one of the largest metropolitan areas in the Northwest, just behind Portland and Seattle. It has a Paris-like feel with abundant street-side cafes and restaurants.

New Hampshire

New Hampshire has much to offer due to its geographical location and its topography. Its mountains are beautiful — especially when fall foliage is at its peak — and there are plenty of opportunities for hiking and skiing. At only 18 percent above the national average, New Hampshire’s cost of living is one of the lowest in the Northeast.

New Hampshire is only about an hour away from Boston, making it easy to take in a Red Sox game or eat some clam chowder. For retirees who love the New England lifestyle, New Hampshire offers an affordable lifestyle due to the state’s tax burden being one of the lowest in the nation.

North Dakota

Retirees in North Dakota enjoy low health care costs, along with a cost of living that is just over the national average. State income taxes are relatively low. Moreover, median home prices are a bargain at just over $200,000, making the state extremely affordable for retirees.

Bismarck, the state capital, has an extremely low unemployment rate along with a thriving retail district. Its local economy is stable, which guarantees plenty of benefits and amenities for retirees who decide to make it their home.


Some states are more senior-friendly than others when it comes to such things as the cost of living, the cost of health care, and retiree perks. If you are a retiree living on a fixed income, you owe it to yourself to investigate the states listed above to see if one of them might be right for you.

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