The Bluegrass State lies nestled into the foothills of the Appalachian Mountains, which lend it a green, rolling landscape, dotted with hundreds of horse farms sprawling across undulating hills. The state earned its nickname thanks to the acres of fields rustling with uniquely colored grasses, and it’s expected that many residents here chose to spend as much time as possible enjoying the state’s vistas and outdoor activities, like hiking, bicycling, bird watching and fishing.
Still, Kentucky is also an affordable retirement destination. The cost of living is 12% lower than the national average, while the median home price is $122,700. The state also offers a number of tax benefits to retirees.
Con: High unemployment
Best For: Outdoor lovers
Cost of Living: 12% lower than national average
Median Home Cost: $122,700
Top State Income Tax: 6%
Social Security income is tax exempt, as are federal, state and private pensions up to $41,100.
A number of small college towns attract retirees, including the funky town of Berea, which is one of the the fastest growing towns in America, and Bowling Green, which has been ranked as a good value town for retirees.