The 10 Most Expensive States for Financially Savvy Retirees to Avoid

Key Points:

• Most workers in the U.S. aspire to one day retire with a degree of financial security — but a growing number of Americans are not optimistic about their prospects.
• Growing concerns over the cost of retirement are well founded, as an average American can expect to spend over $1 million after exiting the workforce.
• Retiring early is possible and may be easier than you think.

Retirement should be a time to relax and enjoy the rewards of decades of hard work. It definitely should not be a period defined by financial stress. Where you choose to live can dramatically impact how far your savings will stretch. Some states can quickly turn a retirement budget into a headache, even those that are well-planned. This can happen through a range of factors, like high housing costs, steep property taxes, expensive healthcare, or costly everyday living expenses. What seems like a dream destination on paper may come with hidden costs that simply aren’t worth the tradeoff.

For retirees hoping to make their nest egg last, geography matters more than many realize. While some states offer tax breaks, lower costs of living, and affordable healthcare options, others are consistently ranked among the most expensive places to retire. Knowing which locations could strain your finances can help you make smarter decisions about where to settle down, ensuring your retirement years are dominated by comfortable instead of stress.

Using the latest data from the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the National Center for Health Statistics, 24/7 Wall St. calculated the estimated average expenditures throughout retirement in each state.

According to the BLS Consumer Expenditure Survey, the average American in the 65 and older age group spent $60,087 in 2023. Adjusting for the cost of living, as reported by the BEA, this figure varies from about $52,000 to $67,600, depending on the state. If, going forward, inflation tracks with the Federal Reserve’s 2% target rate, this amount will go up annually — and in some states, the average 65-year-old will live another 16 years, and in others, nearly 20 years, according to the Centers for Disease Control and Prevention.

This post was updated on February 24, 2026.

Why It Matters

Choosing the wrong state for retirement can significantly reduce your financial flexibility, forcing you to spend more on basic essentials and leaving less room for unexpected medical expenses as well as fun stuff like travel and hobbies. By understanding how taxes, housing prices, and living costs vary by state, retirees can avoid negative surprises and protect their savings. Careful planning now can mean the difference between merely getting by and truly enjoying a secure, stress-free retirement.