Where America's Retirees Call Home: Breaking Down Retirement Expenses Across 11 High-Senior-Population States

Understanding America’s Retirement Destinations

Across the United States, there are 11 states where one-fifth or more of the population has reached age 65—a striking demographic shift that reveals where Americans choose to spend their later years. Some attract seniors through scenic landscapes and coastal charm; others draw retirees through budget-friendly living conditions. To understand the real financial implications of these choices, we examined household income levels, overall expense structures, average Social Security payments, and cost-of-living indices across all 11 states.

Using cost-of-living data sourced from the Missouri Economic Research and Information Center (MERIC), we can see how each state stacks up against national averages. An index above 100 signals higher-than-average expenses, while values below 100 indicate relative affordability. The results reveal a fascinating spectrum: from Hawaii’s steep price tags to West Virginia’s surprising budget-friendliness.

The Premium Retirement Destinations

Hawaii Stands Alone at the Top

Hawaii presents the most expensive retirement picture in America. With a cost-of-living index of 182.3—nearly double the national average—retirees in this Pacific paradise face significant financial commitments. Single retirees should expect roughly $6,782 monthly after Social Security benefits, while couples spend approximately $5,828. The allure of tropical beaches and year-round pleasant weather commands a premium price.

The Northeast Luxury Factor

Maine and Vermont round out the top tier of expensive states, each carrying cost-of-living indices above 113. Maine (23.5% population 65+) requires about $3,460 monthly for singles after Social Security, with couples managing on $2,505. Vermont follows at $3,474 for individuals and $2,520 for couples. Both states offer natural beauty—Maine’s rugged coastlines and forested terrain, Vermont’s Green Mountain landscape—but housing costs particularly strain retirement budgets in both locations.

New Hampshire completes this northeastern cluster with an index of 110.1, translating to $3,301 monthly for single retirees and $2,346 for couples. While groceries cost less here, utility bills rise significantly.

Delaware represents a middle-ground option among pricier states, with a 103.5 index requiring $2,983 monthly for singles and $2,028 for couples—reasonable for Atlantic beachfront living.

Mid-Range Retirement Options

Florida: The Traditional Retirement Hub

Florida’s enduring appeal as a retirement destination stems partly from its manageable costs relative to its attractions. With an index of just 102, the Sunshine State requires $2,910 monthly for single retirees (after Social Security) and $1,955 for couples. Its subtropical climate, extensive beaches, and established retiree infrastructure make it an accessible choice for many.

The Affordable Retirement Corridors

Mountain and Valley Savings

West Virginia emerges as the budget champion, with a cost-of-living index of 88.6—among America’s five most affordable states. Single retirees manage on just $2,264 monthly after Social Security; couples require $1,309. Montana follows this value proposition with an index 4% below the national average, offering $2,640 for singles and $1,685 for couples. While healthcare and groceries run higher than average, exceptionally low housing and utility costs offset these expenses.

Great Plains Affordability

Wyoming closes the list with a 97 index and $2,669 monthly for singles, $1,714 for couples. New Mexico similarly prioritizes budget retirement, with a 94.2 index enabling retirees to spend just $2,534 (singles) and $1,579 (couples). Only healthcare costs exceed national averages in New Mexico; everything else stays below.

Pennsylvania (97.5 index) and New Mexico (94.2 index) round out the affordable category, with Pennsylvania at $2,693 and $1,738, offering cheaper groceries, healthcare, and housing despite higher utilities and transportation.

Making the Retirement Decision

The 11 states with 20%+ senior populations offer retirees genuine variety in both lifestyle and financial requirements. Whether prioritizing natural beauty or maximizing retirement dollars, each state presents distinct trade-offs. Comparing your expected Social Security income against these monthly costs—approximately $2,264 to $6,782 for individuals—provides the clearest picture of retirement feasibility in each location.

The choice ultimately hinges on personal priorities: coastal living in established communities like Florida, northeastern cultural attractions in Maine and Vermont, or maximum purchasing power in West Virginia and Montana. Understanding these cost structures enables informed decisions about where retirement dreams become financially sustainable.