12. Kentucky
Median home price: $128,100
Health care costs: 3% below the national average
Tax friendly
Kentucky, which is known for its many bourbon distilleries (95% of the drink consumed in America is produced here) and horse farms, has pretty low home prices and costs of living. It belongs to a group of tax friendly states which do not tax social security income, while it also offers a deduction of up to $41,100 on all types of retirement incomes. Seniors in Kentucky can enjoy many outdoor activities – hiking, fishing, boating, even cave exploring as the state is a home to Mammoth Cave, the largest cave system in the world.