A new report by personal finance website WalletHub ranks Alaska as the sixth-best state in the nation for military retirees, while neighboring Washington and Oregon placed at the very bottom, ranking 50th and 51st respectively, in WalletHub’s 2025 list of “Best & Worst States for Military Retirees.”
Alaska has not been in the top 10 for this annual ranking since 2022, when it was fifth in the nation.
The annual study compares all 50 states and the District of Columbia using 28 metrics across three major categories: economic environment, quality of life, and health care. Alaska’s strong showing reflects a supportive economic climate for veterans and a high quality of life, despite a lower ranking in health care (28th).
South Carolina topped the list overall, with strong scores in both economic environment and quality of life. Maryland and New Hampshire followed, each offering veterans distinct advantages such as access to health care facilities, retirement-friendly tax policies, and veteran employment opportunities.
In contrast, Washington and Oregon performed poorly across multiple categories, pushing them to the bottom of the list. While specifics of their low scores were not detailed in the report summary, subcategories included factors such as housing affordability, state tax treatment of military pensions, availability of VA services, and veteran job markets.
As thousands of service members transition into retirement each year, the decision of where to live can significantly impact their quality of life. Retirees often face unique challenges, including adjusting to civilian life, coping with mental and physical health conditions like PTSD and disability, and managing financial constraints during a time of rising living costs.
WalletHub’s report underscores the importance of state-level policies and support systems in shaping outcomes for retired military personnel. According to the study, the states that performed best tend to have robust support infrastructures, accessible health care, and favorable tax climates for veterans.
Here are the top 10 best states for military retirees, according to WalletHub:
- South Carolina
- Maryland
- New Hampshire
- North Dakota
- Virginia
- Alaska
- Florida
- Massachusetts
- Wyoming
- South Dakota
This compares to 2024’s rankings, in which Alaska was not in the top 10:
According to WalletHub’s 2024 rankings, the top 10 states for military retirees are:
- South Carolina
- Florida
- Virginia
- Maryland
- North Dakota
- Connecticut
- Minnesota
- South Dakota
- Wyoming
- New Hampshire
According to WalletHub’s 2023 rankings, the top 10 states for military retirees were:
- Florida
- South Carolina
- Virginia
- Minnesota
- Connecticut
- Maryland
- North Dakota
- New Hampshire
- South Dakota
- Wyoming
WalletHub’s full methodology included factors such as the number of VA health facilities per veteran, job opportunities for veterans, and the percentage of homeless veterans in each state.
As military retirees weigh their options, the report offers a comprehensive snapshot of where they are most likely to thrive, and where they may face additional hurdles.