Retirees Be Warned: Bankrate Says These 10 States Are The Worst For Retirement In 2025

A Nationwide Retirement Institute study reported that 32% of investors doubt whether it would make good financial sense for them to retire where they currently live. Does that sound like you? You may already have a destination in mind. But, before you ride off into the sunset wearing a bathing suit, golf shoes, and a cowboy hat, take a sobering look at independent evaluations of the worst states to retire. You might find your intended target on the list. Having to reevaluate your initial decision may be disappointing, but in the long run, it could save you time, money, and bitter heartache.

Bankrate judged states across eight major categories, with affordability being the most impactful. The next three — weather, safety, and healthcare — were similar in the amount of weight they were given. The tier below them included taxes and the arts. The final two categories, which examined the age of the state's population and miscellaneous issues like walkability, were the least influential factors in the grading system. Obviously, you should look at Bankrate's evaluations in direct relation to your particular needs and values. For example, you may not be deterred by inclement weather, or you may be willing to spend more than the average retiree on living costs – including entertainment and leisure — meaning you prefer a retirement location with a vibrant arts scene. With that said, it still might be worth avoiding certain states.

It may be shocking to learn that Florida ranks in the bottom 10 of places to live after leaving the workforce. While many people cite Florida's friendly taxes as a solid reason to move there, taxes don't tell the complete story of trying to live on a fixed income. In fact, Florida ranked No. 48 in affordability, with only Nebraska (49th) and Hawaii (50th) making a worse showing. This is significant since affordability is the heaviest weighted category in Bankrate's evaluation — accounting for 28% of a state's grade. This affordability rating is calculated by combining the Cost of Living Index from the Council for Community and Economic Research (C2ER) with Bankrate's own data of the average yearly cost of insuring a home in that state. According to C2ER, affordability is calculated by looking at the cost of housing, utilities, groceries, transportation, healthcare, and miscellaneous goods and services in a state.

People often think of Florida's weather as a positive, however Florida finished No. 45 in Bankrate's weather category due to the increasing viciousness and frequency of hurricanes. For example, in 2022, the state experienced Category 4 Hurricane Ian, which cost the state around $112 billion, and 2023's Hurricane Idalia. Then, in 2024, Hurricanes Helene and Milton struck the state, bringing dangerous and costly flooding, with Milton also spawning a horde of tornadoes.

New Mexico's biggest boast is its favorable climate. The state finished only behind California when it came to gorgeous weather. However, on the other end of the spectrum, New Mexico finished last in safety in Bankrate's study. Per USAFacts, and 2024 data from the Federal Bureau of Investigation, New Mexico's violent crime rate was an astonishing 99.7% higher than the national average. Violent crime is specific to acts against people and can include everything from aggravated assault to murder. 

Meanwhile, New Mexico's property crime rate was also 56.3% greater than the average across the country. Property crimes often involve theft, such as stealing automobiles or burglarizing a home or business. If you think the numbers look bad, consider that these 2024 violent and property crime figures actually represent a decrease over the previous year of 4% and 4.3%, respectively. Albuquerque, in particular, has been in the national news recently. In early 2025, New Mexico's governor revealed plans to use the National Guard to battle crime on the streets of the state's largest city.

One of the key reasons California finished so poorly in Bankrate's rankings is its tax system. The Tax Foundation ranks California No. 1 for its state sales, gasoline, and cigarette tax rates. California can tax individual income up to 13.3%, and the state sales tax rate is 7.25%. However, the sales tax can vary at the local county or city level — with the average combined state and local sales tax rate hitting 8.85%.

Besides taxes, Bankrate also found that life can be significantly more expensive in California than in most other U.S. states. 7 of the top 10 most expensive cities in the U.S. in 2025 were in California, according to Redfin. Redfin also found that, as of September of 2025, the median price for a house in California was $832,800. Expect significantly higher prices the closer the house is to a desirable scenic location, such as the beach, mountains, or a vineyard.

Kansas has two locations listed on the Cost of Living Index of the cheapest places to live in the U.S. — with Pittsburg coming in No. 7 and Salina No. 8. However, there are other factors that can overshadow the state's relatively low cost of housing, groceries, and utilities — like healthcare. The Healthcare Value Hub produces a Healthcare Affordability Snapshot to help economic experts and lawmakers understand healthcare policies. Its analysis revealed Kansas to be one of the most expensive states to seek medical care. Out of all 50 states, plus the District of Columbia, Kansas was listed at 42. 

Kansas has many rural areas, which often charge more for medical services due to scarcity.  The lower population density outside city limits means fewer patients. However, medical facilities still need to meet their obligations for salaries, equipment, property costs, and overhead. To remain operational, they generally must pass these costs along to the patient in the form of higher out-of-pocket fees. 

There's also transportation costs that increase the costs of healthcare when living in rural areas. Outpatient treatments can require numerous trips to a facility far from home. Typically, these trips require driving yourself to the appointment, finding a family member or friend to drive, or hiring a ride, which can represent a considerable addition to the cost of treatment.

Alabama is a state where it's particularly important to factor in healthcare costs as a major retirement expense. Notably, the state lags behind many others in setting up financial protection policies for patients. For example, it hasn't established a limit to how much certain commonly prescribed drugs, such as insulin, can cost. There are also missing regulations that could help prevent patients from falling into medical debt. For instance the state doesn't require hospitals to offer low-income patients free or affordable care, according to a 2025 snapshot from Healthcare Value Hub. There's also no law requiring hospitals to try to help needy patients apply for services to which they may be eligible — such as Medicaid or charity. 

The state also ranks high in death due to chronic lower respiratory disease, according to the Center for Disease Control and Prevention. Overall, the state was fourth-worst in successful healthcare interventions, per Forbes. Plus, the state struggles to find healthcare providers, with only 12.2 primary care physicians for every 10,000 residents.

Bankrate also ranked Alabama poorly in the arts based on people's lack of access to arts and entertainment venues. This is especially tough for retirees as the arts have been linked to better mental health because they can bring people who are prone to loneliness into contact with others.

Nebraska appears on some lists as a favorable place to retire, but Bankrate scored the state poorly in both affordability and weather. Often, when people think of affordability, they're referring to the cost of living reflected in things like groceries. However, in the case of Bankrate, this metric also includes the price of housing — both the cost to purchase and associated expenses like homeowners insurance. As of 2025, Nebraska had the third-most expensive average home insurance premium of any state, per Insurance.com. On average, Nebraska homeowners pay $4,800 each year for $300,000 policies. The fee moves to $7,365 for a $600,000 policy, and $8,451 for a $1 million plan. For comparison, the average price tag is only $1,263 in a state like Vermont.

Nebraska's weather also offers challenges that few retirees are likely to embrace. For example, tornadoes are a common occurrence. Using data from the National Oceanic and Atmospheric Administration, How Stuff Works ranked Nebraska among the eight states that see the most tornadoes annually,  coming in at No. 5. This is largely because Nebraska exists along what is known as Tornado Alley — where cold Canadian air collides with warm Gulf of Mexico air over the Great Plains.

Arkansas is grappling with a level of crime far above the national average. The Centers for Disease Control and Prevention reports that the murder rate in  Arkansas is more than double that of California. Using FBI statistics, USAFacts ranks Arkansas No. 4 among states with high violent criminal incidents. In 2024, for every 100,000 residents, authorities recorded 579 violent crimes — this was 61.3% more than the U.S. average. Property crime is also more common in Arkansas — including burglary and theft. For every 100,000 people, there were 1,930 property crimes — 9.6% above the country's average.

In its 2025 listing of the best states, U.S. News & World Report ranked Arkansas No. 47 in healthcare after looking at factors like healthcare insurance, healthcare affordability, Medicare, hospital, nursing home quality, and mortality rate.​ The Commonwealth Fund similarly ranked Arkansas No. 48 in healthcare for 2025, based on things like the state's lack of effort to provide accessible care, the low quality of that care, treatment outcomes, income gaps, and racial impartiality. The state finished No. 42 for both the number of people covered by health insurance, and for the number of people that had access to care.

Many retirees look forward to having more leisure time to spend on cultural events and recreation. But this can be more difficult to do in Oklahoma. Arts and entertainment venues are concentrated only in the state's larger metropolitan areas. Elsewhere, there isn't often the population density to support a vibrant and ongoing arts scene, which contributed to Bankrate's low ranking for the state. The state spent only 3.4% of its 2024 gross domestic product on arts, entertainment, and recreation, according to Stat America. Interestingly, a much smaller state, Vermont, spent 7%.

Only 57.2% of residents feel that their community offers enough arts and entertainment, per a survey from Lending Tree. The survey, which also used the most recent 2024 census data, found that only 20.5% of the population attended a live theatrical, dance, or music performance. The movies were supported by 17.9%, while art exhibits could entice only 11%.

Oklahoma would seem like a great place for retirees to explore the outdoors through nature parks, but there are fewer structured and well-maintained outdoor programs than you might imagine. Recreation Roundtable ranks Oklahoma No. 33 in spending to support outdoor engagement. When ranked by percentage of spending, the state finishes even lower, at No. 39.

On the surface, it might seem like Texas should have great healthcare. After all, it's the home of several major hospitals with outstanding reputations, such as Houston Methodist Hospital, UT Southwestern Medical Center, and Baylor University Medical Center. However, if you plan to retire in Texas, you may want to consider making sure you're within an easy commute to these superior medical facilities. These institutions are all situated in dense urban areas, while the state has expansive rural land that houses 15% of the population. If you enjoy living away from city limits, you may find it much more difficult to receive the medical care you need, especially if your condition requires a quick response or specialized training.

The Texas Hospital Association reports the closing of 21 rural hospitals in just the last decade. Plus, The Commonwealth Fund ranked the Texas state health system as the second-worst in the country in 2025, only beating Mississippi. According to a Consumer Healthcare Experience State Survey, in 2023 84% of respondents reported having concerns about future healthcare costs. For the 12 months preceding the survey, 62% reported having to skip needed medical care due to the expense.

Unfortunately, there's more than Mardi Gras, jazz, and seafood that you need to consider before retiring in Louisiana. One issue, in particular, is crime. Louisiana's 2024 crime incidents beat the nation's average by 45%, according to CSG Justice Center. Plus, crime played a large role in CNBC giving Louisiana an "F" for quality of life. ​Similarly, when WalletHub published its 2025 report of the country's safest cities, Louisiana had three cities near the bottom. Out of 182 cities, Shreveport fared the best of the three, finishing No. 155. New Orleans, which is considered one of the country's most dangerous cities, claimed No. 178, while Baton Rouge followed at 179. ​The study was heavily weighted toward the risk of crime, but it also included the dangers of natural disasters and financial safety. 

In the crime subcategory of Home and Community Safety, Baton Rouge scored worse than any other city in the report. The city suffers a violent crime rate that's more than two and a half times the national rate. Meanwhile property crime, is almost three times the national rate. The Baton Rouge Police Department is reportedly understaffed and unable to train new officers quickly enough to answer a growing need.