Best States to Stretch Your Retirement Savings

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If you're mapping out your retirement plans or helping a client with theirs, location is one of the biggest levers you can pull to make a nest egg last longer. A recent 2026 analysis highlighted that "tax-friendly" doesn't always mean "budget-friendly"—you have to look at the whole picture, including housing, healthcare, and groceries.

Here are the top 5 states identified for maximizing retirement wealth this year:

1. Mississippi

Why it wins: It has one of the most retiree-friendly tax policies. The state collects zero taxes on Social Security, pensions, IRAs, or 401(k) withdrawals.
The Trade-off: Sales taxes are on the higher side, but the low housing costs make it a financial powerhouse.

2. Arkansas

Why it wins: Consistently ranks in the top 10 for affordability (housing, groceries, transportation). While it has an income tax, retirees receive a $6,000 deduction ($12k for couples) and pay no tax on Social Security benefits.

3. Tennessee

Why it wins: No state income tax at all. It also boasts low property taxes and housing costs, ranking 8th overall for cost of living this year.

4. Wyoming

Why it wins: Another no-income-tax state with low property taxes. It's great for home ownership on a fixed income.
The Trade-off: Healthcare can be more expensive and less accessible than in other regions.

5. Georgia

Why it wins: People over 65 can deduct up to $65,000 in retirement income per person! Plus, groceries are exempt from sales tax, and Social Security is tax-free.

Honorable Mentions:

Oklahoma: Ranked #1 for overall cost of living, though rising insurance costs kept it out of the top 5.
Florida: A classic choice with no state income tax, but coastal housing costs are climbing, so you might need to look inland to find deals.

Where are you going to retire?

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