The Retirement State Where Monthly Expenses Tend to Feel More Manageable

The Motley Fool

by newsfeedback@fool.com (Leo Sun)

February 25, 2026

AI-Generated Deep Dive Summary

Michigan is often overlooked as a top retirement destination due to its harsh winters and struggling urban areas like Detroit. However, according to The Motley Fool’s 2026 ranking, Michigan has emerged as the fourth-best state for retirement, trailing only Florida, California, and Texas. Its strong suits include a low cost of living, affordable housing, and favorable tax policies that make it an attractive option for retirees seeking financial stability. One of Michigan’s key strengths is its affordability. With a cost-of-living score of 89 (out of 100), it beats states like Florida (79) and California (37) in terms of affordability, while being only slightly pricier than Texas (94). This makes it an appealing choice for those looking to reduce monthly expenses without sacrificing quality of life. Additionally, Michigan does not tax Social Security benefits, has no estate or inheritance taxes, and is phasing out its state tax on most retirement and pension income—features that can significantly boost retirees’ financial security. These tax advantages and low living costs are particularly important for those planning for retirement. While Michigan may face challenges like aging infrastructure and harsh weather, its favorable economic policies can help offset these concerns. For many retirees, the ability to manage monthly expenses through lower taxes and affordable housing can be a deciding factor in choosing where to settle. This makes Michigan a compelling option for those prioritizing financial stability in their golden years. For individuals interested in finance and retirement planning, understanding Michigan’s unique benefits is crucial. The state’s tax-friendly policies and low cost of living offer retirees the opportunity to stretch their income further compared to other popular retirement destinations. As people look for places where monthly expenses feel more manageable,

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Originally published on The Motley Fool on 2/25/2026