This article looks at the 2025 Social Security COLA falls short: discover the 5 best states to retire and offset the gap. You may check out our detailed analysis by jumping to 2025 Social Security COLA Falls Short: Discover the 11 Best States to Retire and Offset the Gap.
5. Delaware
Insider Monkey Score: 136
Cost of Living Index: 100.5
Median Home Price: $365,000
Retirement Tax-Friendliness: Tax-Friendly
Delaware offers a cost of living close to the national average, with a median home price of $365,000 according to Redfin Corporation (NASDAQ:RDFN). This makes it an affordable option for retirees. Its tax-friendly policies, including no sales tax, enhance its appeal. The state’s coastal charm and moderate climate further contribute to its desirability for retirees.
4. Tennessee
Insider Monkey Score: 146
Cost of Living Index: 90.8
Median Home Price: $385,900
Retirement Tax-Friendliness: Tax-friendly
Tennessee’s low cost of living and no state income tax make it a top retirement destination. Home prices in the state are well below the national average, standing at an estimated $385,900. The state’s tax-friendly environment is ideal for retirees seeking affordability. Additionally, Tennessee offers scenic beauty and cultural experiences in cities like Nashville and Chattanooga.
3. Florida
Insider Monkey Score: 150
Cost of Living Index: 102.4
Median Home Price: $403,300
Retirement Tax-Friendliness: Very Tax-Friendly
The Sunshine State of Florida is always going to be a retiree-favorite. That said, its very tax-friendly retirement policies, including no state income tax, attract retirees seeking financial ease. With a diverse range of retirement communities and a median home price of $403,300, it remains a popular destination. The state’s warm climate and numerous recreational activities further enhance its appeal.
2. South Dakota
Insider Monkey Score: 170
Cost of Living Index: 91.2
Median Home Price: $320,900
Retirement Tax-Friendliness: Very Tax-Friendly
South Dakota has previously topped our list of best states to retire in the US in 2024. It remains one of the most tax-friendly environments for retirees, with no state income tax and a low cost of living. The median home price of $320,900, coupled with its scenic landscapes and outdoor activities, makes it a top choice for those seeking tranquility and affordability.
1. Wyoming
Insider Monkey Score: 179
Cost of Living Index: 92.8
Median Home Price: $275,000
Retirement Tax-Friendliness: Very Tax-Friendly
Making it to the top on our list of best places to retire in the US amidst the 2025 Social Security COLA shortfall is the state of Wyoming. The state’s very tax-friendly status, with no state income tax and a median home price of $275,000, makes it the most affordable option on the list. Its low cost of living, coupled with stunning natural beauty and wide-open spaces, offers retirees a peaceful and financially secure retirement.
Check out all the 11 Best States to Retire and Offset the 2025 Social Security COLA Gap.
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