Arizona
Meanwhile, Arizona boasts of a cost of living that is 3 percent higher than the U.S. average. The state has a population of 6.7 million, with many retirees opting to live in Green Valley. It offers great views and lots of sunshine, so this is a great place if you hate icy winters. The dry heat can get unbearable during the summer, however. On top of that, this is not the most affordable place for seniors since the average household income for the older generation is 10.8 percent lower than the national average.
North Dakota
According to Kiplinger, North Dakota is tax-friendly for retirees since income taxes are only 1.1 to 2.9 percent. The state taxes retirement income, although this should not be a huge problem since the cost of living is only a percent higher than the U.S. average. The natural landscapes are great as well! The population of 760,000 makes it ideal if you do not like big city living. Rugby is a great place to live in.