Tennessee
Overall retirement ranking: #5
Population: 6.5 million
Share of population 65+: 15.0%
Cost of living: 12% below the U.S. average
Average income for 65+ households: $47,891
Average health care costs for a retired couple: Below average at $411,617
Tax rating for retirees: Tax Friendly
The Volunteer State is a good choice for budget-conscious retirees. According to data from the Council for Community and Economic Research, every major metro area offers below-average living costs in almost every category of expenses, including health care—among the biggest financial concerns for aging Americans. Plus, Tennessee does not levy state income taxes, so your retirement income can stretch even further. And being economically healthy, Tennessee should have no issues maintaining its tax-friendliness; it ranks eighth of all states for fiscal soundness, according to a recent report from the Mercatus Center.
