Forget Florida — these two unexpected states are the new retirement hot spots, offering lower costs, tax perks and a better quality of life for retirees

West Virginia

West Virginia is ranked second best for retirement, just behind Delaware. While an official annual retiree count isn't available, the U.S. Census Bureau reports that as of 2024, the state has a population of approximately 1.77 million, with over 21% of the population aged 65 and older.

Dr. Joshua Price, an associate professor of economics with WVU Tech, told 59News that West Virginia offers a low cost of living — 16% below the national average — along with tax incentives.

According to the Bankrate study, West Virginia is the most affordable state in the country. This affordability helps residents better manage inflation, which Price noted is another sticking point, particularly for retirees.

For example, the state has the ninth-lowest average property tax rate in the U.S. (0.55%). In the capital city Charleston, the median home sale price results in monthly property taxes of less than $120. Additionally, taxes on Social Security benefits will be phased out by 2026, benefiting those approaching retirement.

But West Virginia’s appeal stretches beyond finances. Charleston offers laid-back, scenic mountain living with big-city amenities, as well as a thriving arts and culture scene. Nearby towns like Hinton and Point Pleasant are known for their tight-knit, welcoming retirement communities.

Outside the capital region, popular retirement destinations include:

• Lewisburg, known for historic architecture and quaint boutiques.
• Morgantown, a vibrant college town with great health care facilities.
• Wheeling, offering a low cost of living and recreational options along the Ohio River.

Of course, no retirement destination is perfect. Challenges in West Virginia include access to health care facilities in rural areas, colder winters with significant snowfall and fewer job opportunities for retirees to supplement their fixed income.

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South Carolina

South Carolina's affordability has improved since 2023, moving up six spots in Bankrate’s study from the previous year. However, the overall cost of living remains above average, at about 95.9% of the national mark.

Utility costs contribute to the higher expenses, while housing remains affordable. Other costs, such as groceries, are around the national average. House prices vary by region, but the state’s median home price — just under $297,000 — is about 17% below the U.S. average.

What makes South Carolina stand out is its tax structure. There's no estate tax, Social Security benefits aren't taxed and 401(k) and IRA withdrawals are only partially taxed.

The state offers a diverse range of retirement options:

• Myrtle Beach, known for its iconic waterfront and golfing.
• Charleston, has rich culture and historic antebellum architecture.

With nearly 200 miles of coastline, retirees can also find idyllic communities on islands like Kiawah and Seabrook.

While South Carolina’s mild winters and sunny summers appeal to many, retirees should consider the region’s hot summers (with July highs of 89°F), as well as the risks of hurricanes and flooding. Another potential drawback is the state's relatively high health-care costs, ranking 33rd in the study.