Alabama
Overall retirement ranking: #6
Population: 4.8 million
Share of population 65+: 15.3%
Cost of living: 13% below the U.S. average
Average income for 65+ households: $44,934
Average health care costs for a retired couple: Below average at $404,922
Tax rating for retirees: Tax Friendly
Frugal retirees are sure to love the Heart of Dixie. You can get many of Florida’s retirement attractions—warm weather, nice beaches and plenty of golf—all at a lower price. The low living costs extend to health care, for which retirees can expect to spend 4.4% less than the average retired American couple. Taxes are easy on the budget, too, with income tax rates ranging from just 2% to 5%, and Social Security benefits being exempt.
