2025’s Best States to Retire: Where Does New York Rank

With retirees facing the pressures of inflation while often being on a fixed budget, the personal-finance website WalletHub today released its report on 2024’s Best & Worst States to Retire, along with expert commentary, to identify where seniors can save the most money while enjoying the best quality of life.

To help retirees find a safe, enjoyable and wallet-friendly place to call home, WalletHub compared the 50 states across 46 key metrics. The report examines affordability, health-related factors and overall quality of life.

Retiring in New York (1=Best; 25=Avg.):

• Overall Rank for New York: 35^th
• 46^th – Adjusted Cost of Living
• 13^th – Annual Cost of In-Home Services
• 49^th – WalletHub ‘Taxpayer’ Ranking
• 34^th – Elderly-Friendly Labor Market
• 20^th – % of Population Aged 65 & Older
• 28^th – Property-Crime Rate
• 4^th – Life Expectancy
• 41^st – Health-Care Facilities per Capita

Expert Commentary
 
What is the most common mistake that retirees make when choosing where to live?

“One of the most common mistakes retirees make is focusing solely on the cost of living without considering other crucial factors like access to healthcare, proximity to family, climate suitability, and the availability of community activities. For example, a low-cost area may lack quality healthcare facilities or social networks, leading to unforeseen expenses and a lower quality of life.”
Juan E. Gallardo, Ph.D. – Director, Texan Smart Financial Education Center; Instructor, Tarleton State University
 
“A healthy social life has been shown to be an important contributor to longevity. To avoid loneliness, try to find a place with a strong and active community that you’re excited to be a part of. It’s even better if that community is easy to walk to so that you’re not dependent on a car to spend time with friends. Keeping moving physically is important. Being able to walk to shops, restaurants, and activities will make retirement more enjoyable. It’s tempting to choose a big new house that might be farther away from central activities even though a smaller place that is closer can be better for your long-term happiness.”
Suzanne B. Shu, Ph.D. – Dean of Faculty and Research, SC Johnson College of Business; Professor, Cornell University

 
What are some tips for living on a fixed income in retirement?

“To successfully live on a fixed income in retirement, it’s essential to create a budget and stick to it. Start by prioritizing needs over wants, ensuring that essential expenses like housing, healthcare, and utilities are fully covered before allocating funds to discretionary spending. A well-planned budget can help retirees maintain financial stability and avoid unnecessary financial stress.”
Juan E. Gallardo, Ph.D. – Director, Texan Smart Financial Education Center; Instructor, Tarleton State University
 
“With a fixed income, it is important that costs are predictable each month. Set a budget for categories of expenses and be sure that the budget has a built-in buffer for unexpected expenses and occasional luxuries. Working a part-time job or participating in the gig economy (e.g., driving for companies like Uber) can expand your social life, keep you active, and provide some extra spending money. Pay attention to rules about how such income will affect federal and state taxes on Social Security benefits. Only some states tax Social Security benefits.”
Suzanne B. Shu, Ph.D. – Dean of Faculty and Research, SC Johnson College of Business; Professor, Cornell University

 
The financial impact of inflation has many Americans reevaluating their retirement plans. What are some new points of concern for future retirees in considering where to retire?

“Cut discretionary expenses and increase annual draw on investments, if possible. Future concerns would be a market whose returns are below average. Concern with increasing insurance and/or property tax costs. Increased cost of housing.”
Dr. Michael E. Bitter, PhD, CPA, CGMA – Retired Professor, Stetson University
 
“The financial impact of inflation has introduced several new concerns for future retirees as they reconsider where to retire. Rising housing costs, even in traditionally affordable areas, are making long-term affordability a significant challenge. Additionally, healthcare expenses are increasing at a rate that outpaces general inflation, forcing retirees to allocate more of their budgets to medical care. Compounding these issues is the erosion of purchasing power, as fixed incomes often struggle to keep up with the rising costs of essentials like food, utilities, and transportation. These factors underscore the importance of careful financial planning and selecting a retirement location that balances affordability, access to quality healthcare, and overall cost of living stability.”
Juan E. Gallardo, Ph.D. – Director, Texan Smart Financial Education Center; Instructor, Tarleton State University