This Midwestern state is considered one of the best places to retire, new study says: see the list Florida still tops the list, but other findings were surprising

 

This Midwestern State is Considered One of the Best Places to Retire, New Study Says: See the List

Retirement planning is a top priority for many Americans, and one of the most crucial decisions retirees face is where to spend their golden years. Whether it's the warmth of the sun, tax incentives, or the quality of healthcare, location plays a significant role in retirement satisfaction. While Florida has long held the top spot as the most popular destination for retirees, a new study has revealed some surprising contenders for the best places to retire in the U.S.

Florida Still Tops the List

According to the latest findings from the Retirement Index 2025, Florida remains the undisputed leader in the retirement rankings. The Sunshine State continues to draw in retirees with its balmy weather, low taxes (no state income tax), and a wealth of activities suited for those in their later years. Cities like Sarasota, Miami, and Tampa are particularly attractive, offering a combination of affordable housing, excellent healthcare facilities, and a vibrant cultural scene.

However, the study also uncovered some unexpected results, with one Midwestern state making a significant leap in the rankings. While the idea of retiring in the Midwest might not sound as glamorous as the beaches of Florida, it turns out that a specific state in this region has made a compelling case for why it should be on every retiree's radar.

The Midwestern Surprise: Iowa

In an unexpected twist, Iowa has earned a spot among the top retirement destinations in the United States. Known for its lush farmland and rural charm, Iowa’s ranking has climbed significantly due to its affordable cost of living, low crime rates, and top-notch healthcare facilities. Cities like Des Moines, Cedar Rapids, and Iowa City are particularly appealing for retirees looking for a quieter, more relaxed lifestyle while still having access to cultural events, museums, and outdoor activities.

The state also boasts one of the lowest costs of living in the nation, which means retirees can stretch their savings further. Additionally, Iowa has relatively low property taxes, making it an attractive option for those looking to buy a home during retirement.

Other Top-Ranked States for Retirement

While Florida and Iowa have captured headlines, several other states have also made their mark on the Retirement Index 2025 list. Here's a look at some of the best places to retire across the nation:

1. South Carolina: A long-time favorite for retirees, South Carolina’s warm climate and low taxes remain a significant draw. Cities like Charleston and Greenville offer a perfect blend of Southern charm and modern amenities, making them ideal retirement spots.

2. Tennessee: For those who appreciate scenic beauty, Tennessee offers both mountains and rivers, along with a lack of state income tax. Cities like Nashville and Knoxville are known for their cultural scene, low cost of living, and welcoming atmosphere.

3. Arizona: Known for its desert landscapes and dry climate, Arizona continues to be a top destination for retirees, especially those seeking to avoid harsh winters. Phoenix and Tucson are popular choices for affordable housing and active adult communities.

4. Michigan: Another Midwestern state, Michigan has gained recognition for its picturesque lakeside communities and high-quality healthcare systems. Cities like Grand Rapids and Ann Arbor stand out for their vibrant arts scenes and healthcare options.

5. Texas: Texas continues to be a retirement hotspot, with cities like Austin, San Antonio, and Dallas offering a mix of culture, great food, and no state income tax. The state’s lower cost of living is also a major factor in attracting retirees.

Factors Driving These Rankings

Several factors played into the rankings of the best places to retire, with affordability being the most significant consideration. The study considered cost of living, housing affordability, healthcare quality, tax advantages, and overall lifestyle offerings in determining its findings.

Low taxes were a major driving force in many of the rankings, as retirees are often seeking ways to maximize their retirement savings. States like Florida, South Carolina, and Tennessee offer significant tax benefits, including no state income tax in some cases.

Healthcare is another key factor. States like Iowa, Arizona, and Michigan stood out for their access to top medical facilities and specialized care for seniors. Access to hospitals, clinics, and retirement-friendly health services can make a world of difference in the decision-making process for retirees.

Looking Forward

As more Baby Boomers approach retirement age, the quest for the perfect retirement location continues to evolve. While Florida remains a favorite due to its tropical climate and tax benefits, retirees are increasingly exploring a variety of options across the country, from the affordable Midwest to the scenic South.

With more Americans rethinking the idea of retirement, we can expect to see more surprising shifts in rankings like the rise of Iowa, and perhaps even other hidden gems gaining attention in the years to come.

Whether it's sunny beaches or a quiet Midwestern town, the key to a successful retirement lies in finding a place that offers comfort, convenience, and a sense of community—no matter the region. So, before you make your final decision, consider all of your options and explore the possibilities.