Choosing the right state for retirees can shape every aspect of life after work — from financial stability to health and overall well-being. A new study by Bankrate examined all 50 U.S. states, revealing which offer the best mix of affordability, health care, safety, and lifestyle. The findings show that Texas, despite its size and appeal, has fallen near the bottom of the list.
While many Americans are drawn to Texas for its warm climate and tax advantages, those nearing retirement may want to think twice. The 2025 ranking exposes serious weaknesses in areas that matter most to older adults, such as access to medical services, affordability, and overall quality of life.
Why Texas ranks so low for retirees
According to Bankrate’s 2025 report, Texas finished 49th out of 50 states, surpassed only by Louisiana at the bottom of the ranking. The Lone Star State earned solid marks in one area—taxes, where it ranked 7th—but performed poorly across most others. It came in last place for health care, 42nd in affordability, and 47th in weather, suggesting that retirees could face serious challenges living there long term.
Rising housing and insurance costs continue to erode Texas’s affordability, while health care access remains a major problem, particularly in rural areas. The state’s extreme weather also weighs heavily against it, with increasingly intense heat waves and hurricanes contributing to a low livability score.
By contrast, Louisiana, which ranked 50th overall, struggles with safety, affordability, and health care, making it the least favorable option for retirees. Other low performers include Oklahoma, Arkansas, and Nebraska, each showing weaknesses in affordability or access to medical care despite some localized advantages, like milder weather or cultural offerings.
The best states for retirement in 2025
At the other end of the spectrum, New Hampshire earned the title of best state for retirees, offering an ideal mix of safety, access to quality health care, and reasonable taxes. Though it ranked low for weather, its overall living conditions and strong sense of community make it an attractive option for older adults.
Maine followed closely, performing well in both safety and health care, while Wyoming stood out for its tax advantages and affordability, despite weaker scores in health services. Vermont and Idaho completed the top five, with Vermont excelling in arts and health care, and Idaho offering a strong balance between safety and cost of living.
Notably, New England dominated the upper half of the ranking this year, with three of the five best states located in that region. Even with colder climates, these states offer stability, good infrastructure, and access to essential services—qualities that retirees prioritize over sunny weather.
What the rankings reveal about retirement priorities
Bankrate’s study reflects shifting values among retirees and pre-retirees, focusing less on weather and more on long-term livability. According to the firm’s senior financial analyst Stephen Kates, the rankings capture “lifestyle and risk factors” that shape the daily experience of retirement. “There’s more to being a resident than just the number of sunny days and taxes,” he said.
In compiling the results, Bankrate weighted affordability as the most important factor (28%), followed by weather (18%), neighborhood safety (17%), and health care (16%). Taxes, arts and entertainment, and the presence of people of a similar age contributed to the remaining scores. Smaller influences such as air quality, walkability, and community well-being were also considered.
This broader approach reflects a growing awareness that retirement is not just about financial security—it’s also about comfort, accessibility, and overall quality of life. States that succeed in those areas, such as New Hampshire and Vermont, demonstrate that a strong sense of safety and community can outweigh higher living costs or colder weather.