One Of The Best States To Live In The United States In 2025 Is Also The Perfect Place For Retirees

A record number of Americans are hitting retirement age. About 11,400 baby boomers will turn 65 every single day in 2025, according to the Alliance for Lifetime Income. This wave of aging Americans, also known as "Peak 65," means that millions of retirees will be looking to move to places with below-average living costs, stability, and a decent quality of life. Rising costs and insufficient retirement savings are forcing many to look beyond more typical best and worst states to retire in – with Nebraska quietly becoming a solid choice.

U.S. News & World Report ranked Nebraska No. 5 in their 2025 Best States list. The state ranked No. 1 for infrastructure thanks to its quality roads and renewable energy. However, the state's economy did come in at No. 29, meaning there is still room for improvement. With that said, it's still one of the cheapest states for retirees, and boasts wide-open Great Plains along with interesting historic sites. Retirees can maintain a stable retirement lifestyle without the same financial concerns that retirees might face in other states.

Retirees trying to stretch their savings will enjoy Nebraska's low cost of living and tax breaks for seniors. World Population Review puts Nebraska's cost of living index at 93.1, which is below the national average baseline of 100. Housing costs are also a big part of the savings, with Redfin reporting a Nebraska median home price of $309,500 in May 2025, significantly under the national median of $426,600.

Utilities are another area where Nebraskans save. The Nebraska Public Power District bumped rates up by 2% for 2025, which means about $3.25 more each month for the average household. Even with that, the 2025 average residential electricity rate was 10.78¢/kWh — well below the 2024 national residential average of 16.48¢/kWh, per the U.S. Energy Information Administration. This means energy bills will likely stay more reasonable for people on fixed incomes. Groceries aren't too bad either, with Nebraska's grocery cost index sitting about 0.8% below the national average.

Nebraska is also among the states that exempt Social Security income tax, which directly helps retirees who might depend on those checks for most of their income. There's also a homestead exemption program to help lower property taxes for those who are 65 or older and make $52,901 or less as a single person (or $62,801 or less as a married couple).

Nebraska looks out for its seniors through the Social Services for Aged and Disabled Adults (SSAD) program. The program brings services like adult day care, meal delivery, and caregiver respite services right to people's homes and communities so older adults can stay independent. This can be significant alternative to much more expensive full-time care options, allowing retirees can stay comfortable at home while keeping their savings intact. If you're 60 or older, or an adult with disabilities, you might qualify for SSAD. The income limits are $1,216 per month for one person or $1,362 for a couple and there's no asset limit.

If you don't qualify for SSAD, or want more coverage, the Nebraska Farm Bureau Health Plans launched in late 2024 and started covering people as of January 2025. Self-employed workers, farmers, ranchers, and small business owners can get coverage that costs 30% to 50% less than unsubsidized federal health plans. The plans cover office visits, hospital stays, preventive care, and mental health through a nationwide PPO network.

Nebraska also offers strong Medicare coverage options. Data from the Centers for Medicare & Medicaid Services found that 99.6% of Nebraska residents with Medicare can access Medicare Advantage plans. Even better, 98% can get plans with $0 premiums. The state has 43 Medicare Advantage plans and 12 different prescription coverage options in 2025, with average Medicare Advantage premiums running just $23.19 per month.