Overall retirement ranking: #13
Population: 3.1 million
Share of population 65+: 15.8%
Cost of living: 12% below U.S. average
Average income for 65+ households: $41,194
Average health care costs for a retired couple: Below average at $399,991
Tax rating for retirees: Not Tax Friendly
Low living costs are the big advantage for retirees in the Hawkeye State. Health care costs are especially affordable, at 5.6% below the U.S. average, based on what a 65-year-old retired couple can expect to pay for the rest of their lives. That should help the below-average household income for seniors stretch further. But the tax situation may be burdensome: While Social Security benefits are untaxed, some retirement income may get hit by the high top rate of 8.98%. On the plus side, people age 55 or older can exclude up to $6,000 if single ($12,000 for joint filers) of taxable retirement income.