These 5 states give retirees the best shot at financial security, says new study — here’s what makes them so great

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Vawn HimmelsbachSun, October 5, 2025 at 2:15 PM GMT+2 7 min readWhile the size of your nest egg can help determine how comfortable you’ll be in retirement, so does where you choose to live. And some states do a better job of setting up residents for success in retirement.That’s according to a Caring.com study, which analyzed a number of factors — average retirement income, homeownership rates and annual cost of a comfortable retirement — to determine which states best support residents’ financial preparedness for retirement. (1)The study highlights the top five states for financial readiness, explains why they scored so highly, and offers insight into what retirees should weigh when deciding where to live.Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howI'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast)Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPBelow are the five states that scored highest in the study — and why each one stands out for retirees looking to make their money last.The state doesn’t top the charts in any single category, but it performs solidly across the board — retirement income, savings, and homeownership rates are all close to national averages. What helps Illinois stand out is its relatively affordable housing market compared with coastal states, which can make fixed retirement budgets stretch further.Still, the state’s higher overall tax burden can offset some of those gains, making Illinois best suited for retirees who value stability over extremes.A higher-than-average household income helps residents build stronger retirement savings than many of their peers, while homeownership rates remain robust. That financial foundation gives Minnesota retirees a solid cushion, though the state’s higher cost of living can erode some of those advantages. For retirees who have already built up a healthy nest egg, Minnesota offers a stable environment, but it may be less attractive for those who need to make every dollar stretch.Connecticut, at No. 3, has the highest average retirement savings. And retirees with an adjusted gross income (AGI) of less than $75,000 are partially exempt from taxes on Social Security. 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