Looking for affordable retirement states? You’re not alone. In 2025, an increasing number of seniors are opting for lower-cost destinations, such as Arkansas and Missouri, over traditional retiree hubs like Florida and Arizona. Why? It’s all about stretching your retirement dollars further—without sacrificing lifestyle, healthcare, or community.
Why Affordable Retirement States Are Gaining Popularity
The cost of living in Florida and Arizona has soared. Home insurance, real estate, and daily expenses continue to climb. In contrast, affordable retirement states like Arkansas and Missouri offer a slower pace of life, better value for money, and growing senior communities.
According to RealClearMarkets, Arkansas had one of the highest rates of inbound migration among seniors in 2024, primarily due to its affordability and robust healthcare infrastructure.
Cost Comparison: Affordable vs. Traditional Retirement States
| State | Comfortable Nest Egg | Notable Feature |
|---|---|---|
| Arkansas | $1.35 million | Low cost of living, scenic beauty |
| Missouri | $1.45 million | Affordable housing and healthcare |
| Florida | $1.75+ million | High costs, crowded cities |
| Arizona | $1.8+ million | Rising home and insurance prices |
Top Cities for Retirement in Each State
🏞️ Arkansas
- Hot Springs – historic charm + natural beauty
- Bella Vista – great golf, outdoor life
- Bentonville – modern, growing, healthcare access
🏙️ Missouri
- Columbia – college town with top-tier hospitals
- Springfield – artsy, affordable, senior-friendly
- St. Charles – historic, walkable, riverfront living
Checklist: Questions to Ask Before Relocating
- Is there a good hospital nearby?
- What’s the crime rate in the area?
- Are senior centers or activities for people aged 55+ available?
- Is public transportation or a shuttle service available?
- What are the property taxes and income tax rules for retirees?
How Retirement Income Is Taxed
| State | Social Security | Other Retirement Income | State Income Tax |
|---|---|---|---|
| Arkansas | Not taxed | First $6,000 exempt | Yes |
| Missouri | Partially exempt | Exempt up to limits | Yes |
| Florida | Not taxed | Not taxed | No |
| Arizona | Not taxed | Taxed | Yes |
Retiring Near Family Without Breaking the Bank
Another reason for the migration to affordable retirement states? Family. The National Association of Realtors found that proximity to loved ones is now a top reason older adults are relocating.
Living in Arkansas or Missouri lets you enjoy a slower pace of life without straining your savings—and without losing touch with family. These states also offer more opportunities for intergenerational living or support for grandparents.
Related Reading
Is It Time to Rethink Your Retirement Plan?
If your dream of retiring in Florida now feels more like a financial nightmare, you’re not alone. Many seniors are finding freedom, peace, and savings in lesser-known but highly affordable retirement states.
Whether you’re retiring next year or just starting to plan, consider putting Arkansas and Missouri on your shortlist. You might be surprised by how far your money—and your lifestyle—can go.
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