New Jersey ranks No. 23 on Bankrate’s 2025 list of best states for retirees, outscoring Sun Belt states such as Florida and Texas which have lost their shine under the company’s new scoring methodology that gives more weight to items Americans say they value most.
“Our survey results may be shocking to any retirees who only considered warm weather and income taxes in their relocation plans,” says Stephen Kates, CFP, Bankrate financial analyst. “We incorporated 15 different data points into our analysis for a comprehensive perspective on the true costs of retirement across different states.”
Under the company’s new scoring methodology, states are ranked based on affordability; weather; neighborhood safety; healthcare; local taxes; arts, entertainment, and recreation; the number of residents of similar retirement age; and other miscellaneous factors (such as walkability, air pollution, water quality, etc.).
More weight was given this year to qualifies that surveyed Americans say they value most, which changes the traditional narrative on best places to retire. The most heavily weighted factors were affordability, weather, neighborhood safety, and healthcare.
The No. 1 retirement destination for 2025, according to Bankrate, is New Hampshire, which scored neighborhood safety, healthcare, taxes, and residents of similar age. Rounding out the top five were Maine, Wyoming, Vermont and Idaho, respectively.
The worst state is the nation for retirement is Louisiana, according to Bankrate. Two traditional retirement havens – Texas and Florida – also ranked in the bottom 10.
“Coming in at number 41, Florida ranks strongly on taxes and abundance of other retirees,” Kates said. “However, it ranks poorly for healthcare, home insurance costs and natural disasters, which create significant cost disadvantages for retirees,” Kates said.
New Jersey’s overall ranking of No. 23 reflected the fact that its high taxes (No. 49 in that individual category behind only New York) are not weighted nearly as heavily as other categories.
“Retirees and pre-retirees should take notice of these rankings because we looked beyond the typical categories to look closely at important lifestyle and risk factors for residents of various states,” says Kates. “There is more to being a resident than just the number of sunny days and taxes. Categories like public safety, walkability, access to healthcare, air quality, recreational opportunities, and more add up to the daily quality of life retirees want.”
Go here to view the BankRate rankings.
