These Are the 10 Best States To Retire in if Social Security Gets Cut

Where you choose to retire has an undeniably massive impact on how long your savings last. Depending on whether Congress decides to act or not, that impact could increase exponentially: Without congressional action, the Social Security Trust Fund is likely to run out in 2032, which would spell an automatic 22% benefits cut for retirees, according to the Social Security Administration (SSA).

If that happens, the best way to stay on track for retirement could be planning a move to a state where Social Security benefits aren't taxed, and the cost of living is below average. Below, we list 10 states where your benefits could stretch further, whether Social Security checks decrease six years from today or not.

Editor's note: Unless otherwise noted, all cost-of-living data comes from Salary.com.

Texas

Like most states, Texas doesn't tax Social Security income, but it doesn't tax other types of income either, including income from 401(k) and IRA withdrawals. If your benefits get cut by 22%, Texas' below-average cost of living ensures your limited money goes farther. All major expenses cost less in Texas except for energy, which Salary.com reports as costing about 2% more on average than in the rest of the states.

Indiana

In Indiana, where the cost of living is 9% below the national average, Social Security benefits are untaxed. While the state does have an income tax, it's levied at a flat rate of 2.95%, so your tax burden won't go up that much if you need to withdraw more cash from your 401(k) in some years. 

Indiana is a particularly good choice if you're hoping to sell your current home and purchase a smaller, more comfortable retirement home. In 2025, Consumer Affairs reported that Indiana's median home prices were almost 40% lower than the national average.

Florida

Worried that shrinking Social Security benefits could end your dreams of a beachside retirement? Think again. Like Texas, Florida lacks an income tax, so you could withdraw retirement funds without paying the state. You'll also find plenty of affordable beachside towns, from Pensacola to Daytona Beach, where housing market website Redfin reports housing costs are below average.

Iowa

Iowa might not seem like a typical retirement destination, but this midwestern state's cost of living is 10% lower than average. One reason for that, at least where retirees are concerned, is that Iowa doesn't tax any retirement income for individuals who are 55 and older. You get to enjoy your full Social Security check, pension, and 401(k) withdrawals without paying a percentage to the state government.

Tennessee

If you love Florida's lush greenery but don't have your heart set on an ocean town, landlocked Tennessee is a beautiful alternative, and it's even more affordable for retirees than the Sunshine State. Tennessee has no income tax, and Salary.com states that its housing costs are 23% less than the national average. Plus, with its mild climate and majestic mountains, this outdoor-friendly state gives you endless options for year-round entertainment that shouldn't cost you any cash.

Nevada

If you're interested in a sunny, dry, desert retirement, Nevada could be a more cost-effective choice than popular Arizona. Nevada's cost of living is at exactly the national average, according to Salary.com, but Arizona's is 6% above average. Plus, Nevada doesn't have an income tax, so your pension and Social Security benefits are all yours (at the state level, at least). 

Even better, there's no estate tax, property taxes are some of the lowest in the nation, and Salary.com says its health care costs are 6% lower than the average.

Wyoming

Do you love the freedom of wide open spaces, affordable housing, and limited neighbors? The cost of living in sparsely populated Wyoming is 5% below average, and while it isn't necessarily a good fit for seniors who want plenty of sun, warmth, and community, it could be the perfect locale for seniors searching for Florida's spiritual opposite. Like Nevada, Wyoming lacks an income tax, inheritance tax, and estate tax.

Mississippi

With a cost of living 13% lower than the national average, Mississippi is easily one of the most affordable states on our list. And since its median home sales price is just $281,002 (as of May 2026), according to Redfin, it's a top relocation spot for seniors who want to sell their current homes and start building equity in their retirement home before a potential Social Security cut kicks in.

Illinois

Life by the Great Lakes might mean much cooler winters than a retirement by the sea, but if you can stand the humidity, you'll reap some key financial benefits. The cost of living in this midwestern state is 5% lower than the average, and the state fully exempts all forms of retirement income from taxation, including income from pensions, 401(k)s, IRA distributions, and Social Security.

New Hampshire

The East Coast is generally more expensive than Midwestern or Southern states, but pockets of New Hampshire still have below-average prices (for instance, Redfin reports that the small town of Keene has the below-average median home sales price of $348,750. Plus, New Hampshire doesn't tax pensions, 401(k) or IRA withdrawals, or Social Security.

New Hampshire is also one of the best states in the nation in terms of affordable health care access. According to a WalletHub study in 2025, New Hampshire had both the highest-quality health care and the fourth-lowest out-of-pocket costs of any state.

Bottom line

Even if Congress steps in now to ensure Social Security is fully funded for decades to come, it's not a bad idea to consider moving to a cheaper state. After all, if your retirement savings are stretched thin already, a preemptive move could help you keep more of that retirement cash in your wallet while you wait to see if your benefits could change. 

Ideally, moving could decrease your expenses enough that you could start saving some of your check every month, building a back-up nest egg if worse comes to worst.