Worst States to Retire 2026

Most people have their ideal retirement location – the place they will retreat to for their rest of their lives after many years of working. One’s dream spot, however, might not be realistic or within their means. And while everyone’s preferences for retirement are different there are states considered to be the “best” and “worst” for retirement.

The cost of living is a big factor for retirement, as it varies greatly between states. Additionally, crime rate, weather, health care, and whether or not the state taxes Social Security benefits are all taken into consideration when finding the ideal place to retire.

The largest factor of these, and arguably the most significant, is the annual spending for comfortable retirement (the cost of living) in each state. Not surprisingly, this list is very similar to the most expensive states to live in.

Hawaii is considered to be the worst state to retire in. The annual spending for comfortable retirement in Hawaii is the highest of all 50 states at $117,724.18 per year. While the weather might be beautiful and the thought of an island retirement sounds ideal to many people, Hawaii is one of the most expensive states to both live and retire in.

The District of Columbia follows Hawaii with annual spending for comfortable retirement of $100,879.90 per year. Hawaii and Washington DC are the only two states with annual spending for comfortable retirement above $100,000. If one were to base their retirement location entirely on the lowest cost of living, Mississippi, Oklahoma, Arkansas, Missouri, and Michigan would be the best options.